Dave DeMarinis

@RealFrugalMogul God stopped makin’ land and kept makin’ Man

@TristenPalori Happy to look at it. I’ll DM you.

Who does private loans on here? I got a situation where someone inherited a property worth $ 4mm+ from his mom, but she has an existing loan of $800k and needs to pay it off in 30 days or they foreclose. Property has rents of $ 20-30k per monthly currently to support debt payments.

@DaveBoczkowski @Zigmanfreud Underrated observation.

@Zigmanfreud The Rebels were destined to win that game.

High school baseball season on the line… Bases loaded, up by two, with two outs… The pitcher is put into an impossible situation… Most might concede the run… This guy says, “Not on MY watch!” (And the cameraman nailed it as well!) 😱💪🇺🇸

@bairdk Great job Baird and you deserve it! Why couldn’t you be better forecasting expenses? Just kidding, but curious what expenses drove the significant increase vs. forecast? Obviously some are a function of the higher than expected revenue (insurance, possibly management, etc.)

The sad story of two crappy self-storage deals... sourced on-market via LoopNet, bought near the peak in 2022 and 2023 at 5.8% and 5.6% going-in cap rates, sold this week at 9.2% and 8.5% exit cap rates, but managed to return 22.2% cash on cash, 67.8% IRR, 5.1x MOIC, and $1.8m net proceeds to roll via 1031 exchange into a $6.5m purchase of less-crappy assets in a less-crappy market. Property 1 Purchased: Sep ‘22 Price: $1,000,000 Initial Investment & Capex: $81,597 Cashflow (after debt svc): $188,466 Annualized Cash on Cash: 63.0% Sale Price: $1,750,000 Net Proceeds: $861,047 MOIC: 12.9x IRR: 128.4% Property 2 Purchased : April ‘23 Price: $1,400,000 Initial Investment & Capex: $337,799 Cashflow (after debt svc): $152,613 Annualized Cash on Cash Return: 14.7% Sale Price: $2,000,000 Net Proceeds @ Sale: $940,340 MOIC: 3.2x IRR: 48.7% *Fun Fact: I have only ever seen this property in photos, never in person. Combined Hold Period: 44 months Initial Investment & Capex: $419,396 Cashflow (after debt svc): $341,079 Annualized Cash on Cash Return: 22.2% Principal Paid Down: $174,916 Net Proceeds: $1,801,387 MOIC: 5.11x IRR: 67.8% Okay, not that sad. The actual sad part: I was originally under contract to sell for $4.1m early last year. Buyer's primary business was imports. Tariff Day cratered the deal the day before DD ended. They came back after a few months at a lower price, I begrudgingly agreed, they couldn't close after multiple extensions, left me with $20,000 hard earnest money (not included in my return metrics). I'm not sad. It all worked out perfectly in the end. Why did I sell? You get rich by holding forever, right? 1) I enjoy most the part of adding value. I added my value. Stabilized is boring. 2) I'm making a deliberate effort to consolidate and expand my portfolio closer to my home market. Figured I could find some deals closer to home (and I did). These were an outlier in my portfolio. 3) The sold properties were generating a combined 8% cash return on net equity and 11% if you also consider principal being paid down. I can do better (read on). Now the deal I'm rolling proceeds into: 100k sq ft across 3 locations in my home market, where I am already the largest single owner of storage. Sourced via a multi-year courting process, consummated magically 3 weeks before close of this sale. $6.5m purchase price, $65/sf, in a market with comps for well-run assets that are, um, higher than that. Conservatively, I expect to generate 16-23% cash flow return on the rolled proceeds and 20-30% if principal pay down is considered. Double the returns if I just held. May 27 close, $150,000 earnest money hard (from the start). Let's f_cking go. I'll leave you with something that gives me a lot of pride - what these deals were doing before they were mine, what I told my lenders they would do, and what they actually did. Mic drop.

@CreateNotesOnRE It came with cheap (and walkable?) debt

We bought a 250,000sf junky empty warehouse with iffy environmentals in a tiny town in Missouri. Why did we do that? #retwit

@realAAAbbott @shawngorham This

@shawngorham isn't it the same job but you just don't risk/spend $800k on the palette?

I am convinced I would have made A LOT more money in home remodeling than flipping houses for the same exact work

Life should move with you. Whether you're renovating, planning a getaway, or test-driving a new neighborhood, we're here to make the 'in-between' never feel temporary. One platform. Hundreds of cities. Wherever life takes you, stay with Landing.

@CreateNotesOnRE Let’s talk. I’ll DM you.

Seeking: $1m loan in 1st position. Will pay back $2m in 5 years. You'll like the collateral. #mortgage #retwit #realestate

@realEstateTrent Of course, the Wizard of OZ (@DallasAptGP) seems to have found some black magic that truly makes the “loan” disappear entirely… but that’s a story for another day. (No licensing required on the moniker.)

@realEstateTrent Cost seg + 1031 can work beautifully… but only if you understand the trade-off and model the phantom income risk. Ignore it, and you can walk straight into a tax-driven negative-cash-flow situation, in spite of the great investment property.

Since apparently nobody in the world is actually willing to publicly admit that there are also downsides to using accelerated depreciation, I asked Chat: 👇🏻 Yes — absolutely. Plenty of sophisticated people quietly admit there are downsides. They just rarely say it publicly because everyone online wants to sound like a tax hero. Here are the real downsides that experienced owners, accountants, and estate planners acknowledge (but don’t tweet about): ⸻ 1. Recapture can crush you at sale When you sell, the IRS “claws back” your accelerated depreciation at up to 25%. This means: •If you took $2M of bonus depreciation •And you sell •You may owe $500,000 in immediate tax** •Even if you didn’t make a ton of profit Many people do not expect this — until they stare at the settlement statement. ⸻ 2. You lock yourself into 1031 exchanges forever The second you take large bonus depreciation, your options become: •1031, or •Take a massive tax hit and destroy your IRR, or •Never sell Your exit strategy shrinks dramatically. A lot of people hate this part. ⸻ 3. It forces you into assets you may not want Because now you “need” replacement property, you can end up buying assets because: •You “have to” •The clock is ticking •You can’t take the tax hit •You don’t want to break the 1031 chain This can lead to bad acquisitions, which wipes out any tax benefit. ⸻ 4. Your partners might not line up Not all LPs want bonus depreciation. Not all LPs can use it. Some LPs fear the recapture. It can create misalignment or tension in a partnership. ⸻ 5. Depreciation ≠ free money People talk about it like a cheat code. But depreciation is actually a timing benefit, not a permanent one for most people. If you aren’t a real estate professional (REP), or if your passive losses can’t offset income, your benefit is way smaller than Instagram makes it seem. ⸻ 6. In some states, recapture hits even harder California (you know this in your bones) does not play around. You accelerate depreciation → you recapture → and California takes their cut. It hurts. ⸻ 7. Estate planning gets tricky If you plan to: •sell some assets, •hold others until death (step-up basis), •gift shares, •move assets to trusts… Depreciation can create massive differences in tax basis between partners or between owners and heirs. Estate attorneys complain about this constantly. ⸻ 8. Banks sometimes hate the “paper losses” If you’re applying for: •personal loans •home mortgages •HELOCs •certain commercial credit facilities Large depreciation losses can make you look “poor” even when you’re doing well. Some lenders do add depreciation back, but many do not — particularly for consumer credit. ⸻ 9. It can distort underwriting Some buyers overestimate how much depreciation they’ll get. Others underestimate the recapture risk. It creates confusion and bad assumptions. ⸻ 10. It tempts people to buy deals for tax reasons This is one of the most dangerous: People buy mediocre deals because they want the tax losses. Every veteran operator has seen this end badly. ⸻ So yes — smart people absolutely admit there are downsides. They just don’t say it loudly online because “accelerated depreciation” is now a religion. But the banker you met? That guy is telling you the truth most people hide.

@realEstateTrent And that matters. A LOT. Reduced depreciation can turn what looks like a great investment into a cash-flow negative deal because phantom income spikes while real cash flow stays the same. People forget depreciation is a loan. You have to pay it back.

@realEstateTrent If you do a big cost seg and then 1031, your depreciation basis in the upleg gets crushed. All that accelerated depreciation on the down-leg reduces your carryover basis, which means far less new depreciation in the replacement property.

@realEstateTrent My best advice, get a standing desk … If you still need a chair, big fan of the Herman Miller Aeron - make sure to size correctly. You are probably B, maybe C. I thought the price was outrageous for about 20 years before finally pulling the trigger and have been very happy.

I’m guessing there’s a whole world of folks who take their office chairs really seriously. Looking for a new one. Recommendations? 🙏

@JimKittridge Hi Jim - tried to DM you but I think they’re closed or maybe you don’t follow me. Hoping to talk with you about what you’re doing in the market there.

Another Deal Done Right. Closed a prime flex/industrial property in just 57 days in Asheville, NC. Speed. Certainty. No fluff. The breakdown: ✅ 46 days from agreement to close— could’ve been faster, but I was out riding 🏍️ across Mongolia for 2 weeks. ✅ No retrades. What we offered, we paid. Full stop. ✅ Smart structuring: Seller leaseback + creative financing for a win-win. This is how we move: Clean, fast, reliable. 📢 Carolinas brokers with industrial & retail deals: Need a buyer who gets it done? DM me. One decision-maker, zero drama.

@AdamB1438 Are you looking for bridge type debt or long term financing?

Great news! I'm under contract for a wonderful little multi-tenant medical office in Rocky Mount, North Carolina!! Can any of my NC friends introduce me to: - a lender for a ~$600k loan, - a contractor for light renovation, or - architect/engineer to look at installing a 2 story elevator Really looking forward to this one. Thanks for your help!

@TonyKorologos I can't wait to check this out - definitely feel like I need a guide at Alta to really experience it.

A new mobile app I've been working on over the winter has just been released in the Apple and Google app stores, "Alta Guide." The app is a digital guide for skiing Alta, with detailed run info, 3D maps, photos, run tracking and stats, weather, traffic conditions and more.

@kaleighf @TheAnnaGat @AgnesCallard Try The Dancing Wu Li Masters by Gary Zukav - it is a very good book that manages to deeply discuss Quantum Physics without the math. It is old but excellent

I would love to discuss the philosophical implications of the fact that quantum physics shows a particle explores all possible paths. @TheAnnaGat @AgnesCallard know of anyone who could speak to this?

Something Strange Happens When You Trust Quantum Mechanics GOD I love this channel: youtu.be/qJZ1Ez28C-A?si…

@JulieChangRE Is that 160 internal temp really what you finished to?

Who only cooks filet mignon by temperature? It’s really the only way I have found you do not overcook your meat. Insert into smallest filet