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DiscussionSmall Multifamily (2-4 Units)

Is 10% of rent the going rate for managing a triplex, or does small get charged more?

I don't want to be the one running this day to day, so I'm pricing management before I price buildings. Every article says 8 to 10% of collected rent. Then I called two companies…

tylerbrooks9PassivePRO42 replies

DiscussionLarge Multifamily (Institutional)

Does buying at $240k a unit against $330k replacement cost actually protect me on the downside

Working through a deal a mentor sent me so I can see how the bigger end underwrites. 300 units, 2016 vintage, secondary Sun Belt market. Ask is $72m, so $240k a door. The sponsor'…

9Rryanmck27SC2CAnswered2 replies

From the desk:Large Multifamily (Institutional)

$118k a door on a 1985 value-add, or $198k on a 2023 lease-up. Wrong axis?

Two things on my list this week and they're the same equity check. Deal A. 176 units, 1985 vintage, garden style, in an inner-ring suburb of a midwest metro. $118k a door. Rents a…

devon_pierce Get yoursPRO14Answered1 reply

DiscussionMezzanine Financing

"Converts to equity if the borrower defaults." Real remedy or consolation prize?

Every mezz summary I read lists the conversion to equity as one of the protections. The mezz lender can end up owning the ownership interest in the entity that holds the property,…

wendy_park48CapitalPRO1515 replies

DiscussionGround-Up Residential Development (Spec Home Building)

Rate buydown or price cut, same 12k out of my margin

Finished spec, listed at 469, three weeks in with decent traffic and no offer. My agent wants to advertise a permanent buydown, roughly 12k of points to the buyer's lender, which…

34Rrenee_dubois Get yours5 replies

From the desk:Boarding Houses

Seller carry on a 12 room house, but the carry note has an occupancy covenant I've never seen

Under contract on a 12 bedroom licensed boarding house in an older inner ring suburb. Purchase 690k, seller carry of 480k at 7.25% interest only for 4 years, balloon. I've got 210…

diane_kowalskiPassivePRO14Answered11 replies

DiscussionBoarding Houses

The affordability argument gets made at every hearing, then loses anyway

I've sat through three planning commission meetings in two counties where someone proposed a rooming house or a conversion to rooms. Every applicant led with the affordability cas…

karen_whitfieldPG4APRO7Answered4 replies

WinStudent Housing

Cut 12 two bedrooms into 4 bedroom layouts, delivered three weeks before move-in

Bought a 1972 built 12 unit walk-up about a mile from a flagship that's added enrollment every year for the last decade. Two bedroom, one bath units, 880 square feet, renting at $…

gregpowell66AG4BPRO12Answered10 replies

DiscussionStudent Housing

Do I just eat June to August on a nine month lease?

Agent walked me through a 4 bedroom near a state school, rented by the bed, and the lease he showed me runs August 18 to May 22. So on paper that's nine months of rent and three m…

7NnataliehsuSO1BPRO10Answered2 replies

DiscussionCommercial Wholesaling

Do commercial lenders actually fund an assigned contract, or is that a myth I've been repeating

An assignment of a small industrial flex building has come my way and I'd be the end buyer, 22k square feet, three tenants, contract price 1.4m, assignment fee 85k. I plan to fina…

marcus_hale41CG4AAnswered1 reply

From the desk:Commercial Wholesaling

My only real buyer for this office building just went asset-selective

I've been circling one property for four months and I finally have it under contract, so now I get to find out what I actually don't know. 52,000 square foot suburban office, thre…

aliyah_bAU2APRO9Answered11 replies

DiscussionDouble Close Wholesaling

seller's agent says she has to disclose my resale price to her seller, is that a thing

I've got a listed property under contract at 212k and I'm planning to resell at 235k the same day. The listing agent found out about the second closing somehow and told me she has…

carlos_nunezActiveAnswered1 reply

From the desk:Double Close Wholesaling

Funding a first closing for six hours. What am I actually holding?

I lend, I don't own, and this is the first time anyone has asked me for money that comes back the same day. Trying to understand it before I say yes. The deal as described to me:…

sonia_alvarez Get yoursPRO6Answered6 replies

WinFund Management

The check that nearly stopped my first fund commitment

I've done passive deals one property at a time for a while and this was my first pooled fund, so I wrote down what I was going to check before I let myself get excited. $75k into…

marcus_hale41CG4A6 replies

DiscussionMezzanine Financing

At what point does 10 to 15 percent stop paying you for the subordinate seat?

Mezz targets 10 to 15 percent. Common equity in the same deals is usually pitched at high teens and up. So you're giving up several hundred basis points of upside in exchange for…

chriswalton8CC1CPRO154 replies

DiscussionGround-Up Residential Development (Spec Home Building)

Raw lot cheap with 14 months of entitlement, or shovel-ready at a 40 percent premium

I've got two things I could put the same money into and I've been stuck on this for three weeks. The first is four raw acres in a growing outer suburb, priced around 112k, that wo…

aliyah_bAU2APRO914 replies

DiscussionSubject-To Financing

Which seller is actually easier, the one two payments behind or the one just moving?

I've had two sub-to conversations in six weeks and they were nothing alike, so I want to know which type people prefer to work with. Seller A is behind. Two payments missed, a not…

26Rrenee_dubois Get yours5 replies

WinSenior Housing (Independent Living)

Sold my 88-unit 55-plus at 6.1. Internet is what nearly killed it.

I'd been trying to figure out which strategy fit me and ended up in age-restricted almost by accident. 88 units, built 2004, three-story elevator building in a suburban submarket…

aaron_fitz10 Get yoursPRO157 replies

DiscussionBird Dogging (As Service)

Where's the leak? 40 leads a month to three buyers, one closing in three months.

Numbers as they stand. I drive roughly 20 hours a month and pull a list of pre-foreclosure and long-vacant records, about 300 records filtered down to 40 submissions. I send the s…

18Rryanmck27SC2CAnswered12 replies

From the desk:Bird Dogging (As Service)

Clause 4 of this one page bird dog agreement is doing something odd

A younger cousin is about to start finding houses for a local flipper and sent me the agreement to look at, since reading paperwork is the thing I do. It's one page, which is the…

wendy_park48CapitalPRO15Answered2 replies

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