every post in the forum, newest first
Wholesaling gets pitched as the way to start in real estate with nothing: lock a house under contract, assign the contract to a cash buyer, collect the spread, no title, no loan,…
Renovation is my usual lane and I keep getting handed these because nobody else wants them. Current one: seller inherited, holds title alone, house is full floor to ceiling, and h…
I bought a corner lot with a 1954 house on it because I wanted the dirt. Half an acre, three streets away from a plant that keeps getting money spent on it, and my whole plan was…
Ran the arithmetic on three years of my own buy-side spend and the percentage structure looks harder to defend the bigger the deal gets. On a $180k rental, 2.5% is $4,500 and the…
Here's the argument I got into with a guy who's been doing this longer than me, and I've been chewing on it for a week. His position: the tax treatment is part of the return. If y…
I've been building the sponsor side of a small deal on paper to see whether the first one is even reachable, and the pre-close spend is the part I keep getting wrong. What I have…
I've been comparing the two ways I can actually get at this as a passive holder. Listed REITs, where I can read the 10-K, and a non-traded private fund a broker sent me at 1.25% m…
Got a letter, then a call, then a draft option agreement, and I'm out of my depth on the parts that matter. 62 acres, flat, cleared, about a mile and a half from a high voltage tr…
First house I've gotten to the bid stage on after way too long looking. 1,450 square feet, 1978 build, three bed two bath, in a suburb where finished comps run $255k to $272k. Pur…
I left a job in logistics eight months ago to figure out how to do this and I've been collecting stories from anybody who'll talk to me. My old boss found out what I was up to and…
A useful test case: two decks from the same introduction. One is a sponsor with roughly three years of visible history, eleven deals, responsive communication, and quarterly lette…
My land holdings produce no income and I'm fine with that, the whole point was appreciation and patience. So when I look at REITs I have to decide what job they're doing in the po…
There are two common ways to model the same gut, and it is not obvious which one is actually more conservative. The first models 150 days of carry as the base case. Interest, taxe…
Three cosmetic flips in and I'm trying to step up to a real gut. On the cosmetic jobs 10 percent contingency was plenty, I never used all of it. Put the same 10 percent on a 100k…
A true second mortgage is secured by a subordinate lien directly on the real property. Mezzanine debt in its standard commercial structure is not secured by the real estate at all…
A useful scenario: underwriting a $4.5M gap on an office to residential conversion, with the sponsor offering two structures. A mezzanine position at 12.5 percent current, 1 point…
A live-in flip financed with seller carry can create a timing trap that is easy to miss on a first read of the note. Say the house is a 1,650 square foot two story in a first ring…
Curious about the service side of this and this keeps coming up when I talk to people. If you buy a house that's half torn apart and you live in it while you fix it, what policy a…
I have room for one more note this quarter and two candidates that price to almost the same number, so the choice is really about which risk I want to hold for the next several ye…
Two office LP packages on my desk and the entire difference in outcome is a rent growth assumption I can't verify. Deal A is a prime building, 210,000 sf, 88 percent leased, in-pl…
One for every strategy in the guide. Each has its own discussion, live deals, outcomes and polls.
