Lending against a tract where most of the value is growing on it
A borrower brings you 300 acres, appraised at 1.6 million, and the appraiser splits it into 900k of land and 700k of standing timber. Underwriting question that I keep going back…
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A borrower brings you 300 acres, appraised at 1.6 million, and the appraiser splits it into 900k of land and 700k of standing timber. Underwriting question that I keep going back…
I've toured four age-restricted rental communities in the last month, which for someone who was selling insurance a year ago is a lot of clubhouses. Two of them were amenity heavy…
Two scopes for the same 1950s three-bed came across my desk this week, both written by the same investor, and I've been staring at them for days. Scope A is 38k. Kitchen, bath, fl…
I'm at month 11 in the current house and there are two orders I can do the next steps in, and lenders have told me different things about which one helps. Order A. Find a tenant,…
Fast is my whole thing and it cost me here. Saw a parcel come across a list, 5 acres, wooded, $4,300 asking from an owner three states away who had inherited it and never visited.…
Offer accepted at 296k on what the listing called a duplex. Upstairs is a two bedroom, downstairs is a one bedroom with its own entrance off the side yard. Separate electric, shar…
Looking at a 1950s house where the seller has a tenant in a walkout basement with a full kitchen and its own door. County records show a single family, one unit, and zoning for th…
Looking at an LP position in a 148 bed purpose-built property about half a mile from a mid-size public flagship. Sponsor is showing 96% pre-lease for the coming academic year and…
I own a service business, and a couple of the people I work for have rentals near a state university, so I've started looking at the sector myself. An agent sent me a rent roll fo…
Working through the management agreement on a 44-unit AL, $9.8M ask, 88 census, blended rate around $4,850, T12 revenue $2.24M and EBITDAR just under $780k after a 5 percent base…
Last March I closed on a 4 bed 2 bath ranch in a first ring suburb, 310k, 25 percent down. The reason I bought that particular house was an operator I'd met at a local investor me…
Three and a half years into what was sold as a 24 month entitlement play, and there is a capital call notice sitting on my desk. Deal shape: 140 acres of raw ground on the growth…
I've got a small portfolio of rentals and I've learned the hard way to keep reserves, so committing money for five years makes me itch. The deal I'm reading says target hold of fi…
I manage a building for an OZ fund and I've spent the last month reading offering documents for my own account, and I keep landing on the same fork. Single-asset funds. One proper…
Closed last month on 12 acres at $84,000, seller carried. Terms: $16,800 down, $67,200 at 5.5 percent interest only, monthly payments of $308, balloon at year seven. Taxes are $52…
Working a house where the numbers are: $412k balance at 3.125%, PITI $2,190, market rent $2,450, seller wants $45k for her equity and would carry $30k of it, value around $520k. E…
This has been theory for me for months and now an actual one has shown up, which is not the order I wanted things to happen in. The seller is a coworker's brother-in-law. Divorce,…
First rental is coming and it looks like it's going to be a house with a detached cottage in the back rather than the duplex I originally wanted. Which means I have to decide whic…
This started as a flip. 1940s farmhouse, decent bones, 168k in at auction, and I figured 60k of work and out at 310. The listing said "12+ acres" and I read that as land, which ar…
I have money to place and haven't picked a lane yet, so treat this as a beginner question about the model itself. A sponsor sent me a one pager comparing two scenarios on the same…