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DiscussionGround-Up Residential Development (Spec Home Building)

Sizing contingency when my framer's price is only good for 21 days

Numbers on the one I'm looking at. Lot is 180k, plan is 2,400 square feet, my best hard cost number is 165/sf so call it 396k. Soft costs I've penciled at 55k. That's 631k all-in…

gregpowell66AG4BPRO12Answered4 replies

LossTax Lien (Capital Scale)

The fund charged fees on my commitment and then couldn't deploy it

$250k committed, three year term. Management fee 1.75%, and here's the clause I read and did not think hard enough about: charged on committed capital, not on invested capital. Th…

ehernandez74PO2BPRO74 replies

PollOff-Market Deal Sourcing

Small list worked to death versus wide list mailed once, for someone with ten hours a week

I'm setting up sourcing around a job and I keep going back and forth on where the ten hours go. The narrow argument: you can only have so many real conversations a week, so the co…

paulgrant17PassivePRO73 replies

PollAssisted Living / Residential Assisted Living (RAL)

Maintenance and unit turns in a leased care home: leave them with the operator or keep them with the landlord

I manage a handful of houses leased to care operators and the maintenance split is where every one of these relationships goes sour eventually. Option one, operator carries it. Le…

tonyv88SO4CPRO64 replies

Happening NowOffice Buildings (Passive Hold)

The seller's expense number on six gross leases has no vacancy in it

First time I've looked seriously at office and I'm out of my depth on the lease structure, so going slow. 14,000 sf two story, six suites, built 1991, asking $1.05M. Rent roll sho…

samantha_ruizAU4APRO5Answered13 replies

DiscussionOffice Buildings (Passive Hold)

What do a Phase I and a PCA run on a $650k small-town office?

Small-town deal, 6,200 sf single story office built in 1978, four tenants, asking $650k. Local bank says they'll look at it but they want a Phase I, a property condition assessmen…

34Llaurenkim53PassiveAnswered1 reply

PollSelf-Storage (Capital Scale)

If storage is supposed to be defensive, why does everyone say the housing market is the problem?

Two things I've read a lot of and can't square. First, storage is defensive. Demand comes from life events, people die, divorce, downsize, get a new job. Those things happen in go…

raj_mehta14CapitalPRO138 replies

PollSelf-Directed IRA (Real Estate)

The no-personal-work rule and whether that forces full third-party management

I scope renovations for a living, which means I can look at a bid and tell you which line is padded. Inside an IRA I can't touch the property, can't swing a hammer on it, can't sp…

omar_haddadActivePRO177 replies

DiscussionWholesaling (As Service)

Do I need a license to take a fee on a house I never put under contract?

A buy-and-hold client wants my small acquisitions team on a per-house fee, where he signs the purchase contract with the seller directly and we get paid for the finding and the ne…

angela_burkeServicePRO12Answered4 replies

Happening NowWholesaling (As Service)

He wants me finding houses for a flat fee. What changes on paper?

I've done six assignments. The way it works for me now is I get a house under contract, I market it, whoever pays the most gets the assignment, I collect the fee at closing. Simpl…

samantha_ruizAU4APRO5Answered8 replies

LossResidential Property Management

Pulled maintenance out of my manager's hands on 31 doors. $14,100.

Construction is what I know, so when I bought into a 31 door scattered portfolio with a partner I looked at the manager's fee sheet and saw a 10% base plus a maintenance coordinat…

gregpowell66AG4BPRO1210 replies

PollBRRRR Method (Active Operator)

Finishing to the top of the comps versus stopping at rentable

Two deals in progress, both roughly 1,300 square foot three-beds in the same submarket, and I've deliberately run them differently to see what the appraiser does with it. House A…

joe_delgado5AP4CPRO4Answered1 reply

DiscussionBRRRR Method (Active Operator)

Swinging the hammers myself to save on labor, where does that stop being allowed?

Small multifamily person here, every unit has taught me something and this one is teaching me about my own budget. Contractor bids on the unit turn came back higher than I want to…

6Rrenee_dubois Get yoursAnswered4 replies

Happening NowDouble Close Wholesaling

The funding quote on this double close eats a fifth of my spread

Contract with the seller is 182,000, cash, 21 day close. End buyer is a local flipper doing three or four a year, signed at 214,000. So 32,000 of spread. Why I'm not assigning: th…

dpatel_reCS4A5 replies

DiscussionDouble Close Wholesaling

Transactional funding wants two points against a 14k spread

Working out whether double closing pencils at my deal size. Purchase 185k from seller, resale 199k to a landlord buyer who already knows the street. Spread is 14k. The funders I'v…

jordan_ellis2ActivePRO93 replies

PollNNN Leases (Triple-Net)

Ground lease under the chain, or fee simple with the building on it

Two offerings on my desk this week, same national dollar-store tenant archetype, same small midwest trade area, roughly the same check. One is fee simple, 9,200 square foot box, 1…

diane_kowalskiPassivePRO145 replies

DiscussionLive-In Flip

Second live-in flip in five years, does the exclusion reset or do I lose it

Working out the sequencing on paper before I commit to anything. Say I buy a house, live in it 24 months, sell, and the gain is around $180k. Single filer, so under the $250k cap,…

aliyah_bAU2APRO94 replies

WinLive-In Flip

Kept a valid CO through a gut, and the utility nearly cost me the schedule

We closed on the sale two months ago, so I can finally write this up. House was a 1,650 square foot 1940s two-story in a first-ring suburb, bought at 218k, worst house on a decent…

angela_burkeServicePRO12Answered9 replies

PollMedium Multifamily (5-20 Units)

How do you actually set the reserve line on a 12-unit? Per unit or percent of rent

I've owned land long enough that the holding cost is a tax bill and a mower, so budgeting for a building with roofs and boilers in it is new territory for me. I'm looking at a 12-…

karen_whitfieldPG4APRO71 reply

PollVirtual Assistant Agency

Moving off hourly seats onto per-outcome pricing. The math scares me.

Running seven seats across four clients, all hourly, bill rates $14 to $19. Gross margin sits around 41%. Two clients have started asking why they pay for hours when a chunk of th…

angela_burkeServicePRO128 replies

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