FourPlex Guy Carlos Gonzalez

This is how I remodel my Fourplex units. All of them with some variance in flooring. Bathroom is all the same I chose the bathroom flooring and the tiles along with the doors. I love it. This is a 3 bedroom 1 bath 750 sq ft $2500 South phoenix AZ

@SweetTexanRose @grok How much is the helicopter pilot getting paid and how much is the lineman getting paid. Cool jobs

I can’t decide which one I’m more impressed with, the lineman or the pilot. 🤯

All syndications revolve around making a lot of money on fees. Anyone who goes into syndication wants to make money with no risk and that is charging a lot of fees, the waterfall fee, double dipping, everything. I tried my hand at it but my partnership fell through It’s all about the money

I'm a few days late here, but I'm going to call bullshit on Brandon's level of sincerity. Here's his fee structure. - Acq. fee: 2.5% of the purchase price - AM fee: 2% of revenue - PM fee: related entity - Promote is 30 over an 8, 50/50 of a 15. - Sale & refi fee (can double dip): 2% of sale price or new loan. This guy's entire org was set up as a fee machine at the expense of retail investors. I don't buy that he's humbled by any of this; I think he's just trying to rebrand.

I’d like to give Brandon Turner sincere credit for this post on IG. He fully owned up to the loss of LP capital publicly. Explained his responsibility, which is the most important, along with the market factors the affected the downfall of this deal. This is exactly how a sponsor should transparently communicate when something like this happens. It doesn’t make the loss of capital easier, but I have true respect for people that take ownership. The guru class has butchered the handling of their errors over the past 5 years. Brandon is the first one I’ve seen to step forward and address it. Credit where credit is due. Bravo.

@Shehmeerkanwar That’s good

But also the issue is you then have to go back on the market and find a new buyer. I’d give them another couple days to close if I were the seller. If you do cancel and go back on the market the problem is that you now have to disclose everything that came up on their inspection legally in AZ

There is this buyer who wants to buy this property and makes an offer and the seller accepts and property is under contract. Say the closing date is May 21 and buyer nor seller extend the closing date thinking lender will get clear to close send docs to title and sign it, well that didn’t happen because lender still trying to check out last items. Now seller is trying to cancel the entire deal based on no communication from lender thinking the loan is shaky…. Buyer still wants to make this work because really wants the property Buyers agent is siding with seller because the lender is not being communicative with the agent and agent thinks the same. Buyer contacts lender and lender says there is nothing they can do because underwriting still working on it nonstop around the clock. Can the seller do this as in cancel the deal and not extend the closing date because he FEELS the loan is bogus even though lender is truly working towards bringing it he loan to the finish line ? Is it legal what the seller is trying to do here ?

@Shehmeerkanwar This makes sense

@dig_deeper1 You can give them a cure notice which is a 3 day grace period to close. If they don’t close you can then cancel, take their earnest and move on as a seller.

@BeardyBrandon @robbiehendricks Not reading the fine print on that cap rate insurance was your mistake. There are terms and renewals just like any other insurance. Rookie mistake and I’m sure you’re never going to do an adjustable rate again when rates are near zero….

Hey dude- thank you for the post. Wow, lots of comments. Yes, definitely some damage control in the post (as my investors and partners already knew all the information, so clearly this was for the public), but only because the Internet started going wild with a lot of misinformation about what was happening. So I definitely wanted to try and control some of that. The narrative was “Brandon Turner lost 100% of all his investors money in all his deals.” I’m mean I’ve been seeing fake rumors like that for years online, there’s not a lot a person can do. And I’ve already addressed a couple hundred comments over on Instagram, mostly the same stuff, but I’ll say a few things: 1.) yes it was adjustable rate, but we had a rate cap on it. For those unaware, that is basically like Insurance against the rate going up. So it can turn adjustable into fixed. And it worked. However, but I did not realize and I don’t think anyone realized… is that if rates did go up, you have to re-buy rate cap insurance and the cost went like 100x. Plus, there were limits. No one expected us to blow past those limits. So definitely I wish I would’ve known that before and I would not have likely done it. 2.) but this is the interesting thing about real estate. Or any investment, no matter what. If you underwrite everything, every line item, to the most insane unprecedented estimate, you would never invest in anything ever. You would live in total fear all the time. So for example, if the average cap rate was a four, I might underwrite to a five, but I would never underwrite to a seven. And I might assume rents aren’t going to do 5% per year, but I might say worst case is zero. But in Austin, for example, we’ve seen Rents drop 30%. Geeze. So on one hand, it’s easy to look back and say that we should not have bought the deal. And I agree. Maybe I got caught up in the frenzy of buying. But also- every line item went up to unprecedented levels. Our underwriting, even when I look at it now, wasn’t crazy. It was conservative. Just … wrong. Anyway, appreciate you. Thanks for sharing.

@alpha4th @peaceseller Most likely yes

@dig_deeper1 @peaceseller Likely. There are provision for missing deadlines.

@WC_Equity_Group There is a grace period built in most contracts for this type of situation

@dig_deeper1 Contract expired; buyer did not perform. Escrow forfeit. Best case, offer seller additional terms to extend the contract so that lender has more time to underwrite & fund.

@grok I like this answer

**No, the seller likely can't just unilaterally cancel like that without following the contract's specific procedures—and it could backfire on them.** Real estate contracts don't automatically become void the second the closing date passes. It usually becomes *voidable* by the non-delaying party (here, the seller) only after proper notice (e.g., a "notice to perform" or cure period, often 2–14 days depending on your state and contract form). Many agreements have built-in grace periods for delays. Since the buyer is still ready, willing, and able (lender actively working and saying it can close soon), the seller trying to bail because they "feel" the loan is shaky risks being in breach themselves. The lender's comment about "illegal" is probably referring to that—the seller could face a lawsuit for specific performance or damages. **Key:** This hinges on your exact contract wording, whether "time is of the essence" applies, and your state's laws (location matters a lot). Have the buyer get a real estate attorney to review the purchase agreement immediately and advise on next steps. Don't rely on agents or the lender alone for legal calls.

@Jon_in_SoCal I think this is spot on.

@dig_deeper1 Agents not doing their job

@ikehobbs Damn

I think the answer is yes. Buyer's offer said they would close by "x" date. They've not been able to fulfill their part of the contract so seller is free to move on. Hate it when lenders act this way but seems more and more common. Lots of overpromise/under deliver on lenders' part these days.

@peaceseller So if no extension was filed there is no contract anymore ?

@dig_deeper1 A contract is a contract. Hopefully it states what takes place.

@wbridgefa Yeah lol

@dig_deeper1 …today is the 24th right?

@JeffGrenz Lender is legit and so the buyers financial and credit worthiness Buyer is willing to give more deposit Seller has lot faith on the deal though. Lender says it’s illegal for seller to pull this move though.

Their contract has expired. Maybe send 48 hr notice to close (or pound sand) if required or available in your document stack. How do you figure out their ability to close? some engagement from the lender would be helpful. Is the buyer willing to pass through the deposit for an extension? (this is a test)

@IncDak @indexnforgetit Pretty sure the duplex mortgage payment would be less after the renter helps pay down the debt service

@dig_deeper1 @indexnforgetit These duplex deals don't pencil anymore. They might be better off just buying the condo.

Buying a duplex and living in once side while renting the other is an undefeated wealth building hack - 3.5% down with FHA - little or no mortgage payment - ability to move and do again every year Why aren’t more people doing this?

@ChrisTwiggsPM @indexnforgetit 4plex can’t be done in this economy Self sufficiency kills it

You can go as high as a 4 plex too. Condition and conforming requirements but it can be done. Builders should be building more small multifamily too. Team up with a PM, sell it as a package deal. PM runs the rental, they get rent income to help pay the mortgage. Would move homes, increase housing, and allow people to more easily qualify using rental income

@CashionEast Agree with Cash here. They’re trying to save face and people are giving praise because he’s apologetic lol Please What’s the first rule of Warren Buffet. Never lose cash I guess he skipped that one but attended the one in being apologetic for losing cash to LPs….

This place is so gross sometimes. Guess he is winning by losing? Leveraging his investors lost money by using it for more attention? Coming clean about losses used to be basic table stakes. Now it’s worthy of praise apparently. Oh well. A fool and his money are soon parted.

Well the market turned and they probably kept extending the rate and that cost a shit load of money so they were bleeding money. No choice but to sell In retrospect they were idiots At the time they thought they were the smartest people in the room because they saved money and kept the money to themselves Some people can’t see the future.

@dig_deeper1 @robbiehendricks Most ARM have an initial period where the rate is locked for 5 - 7 years. If you have a clear strategy to sell before that time and ARM will work. Unless, the market turns and then your property has decreased in value so you are forced to sell at a loss.