@industrialOSguy Did you finance it? What are market terms these days?
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Eric
833 posts
Eric
@sellercarry
Small-time real estate sponsor sharing about investing and anything else that catches my fancy. Focused on heavy value add $1-10m in the Orlando area.
Orlando, Florida Katılım Eylül 2024
639 Takip Edilen339 Takipçiler
Another one closed. Cranes, dirt, storage, power, manufacturing. We are investing in the real assets that are the backbone of the American economy.
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The 40% rule.
The mind gives up way before the body. Like when your mind is screaming "I can't do this anymore!" LOL the body has only reached 40% of its capacity.
This REALLY helped me today!
I'm walking the Camino de Santiago and today my plan was to walk 10-12 miles.
Well something happened with my math, and I ended up walking 15.8! Now that may not seem like a big difference to you, but trust me - 6 hours in- sun blazing down, no shade, diminishing water, those extra 3.8 miles were tough!
But, I remembered the 40% rule and I knew that my body could handle it!
I trained for this for a year. I mentally prepared, I physically prepared -
It did help that a Camino Angel with a red nose appeared at just the right moment and offered me some watermelon!
I knew I wouldn't quit. I never really had that thought - not that that would have helped - I was in the middle of nowhere!
I did call my bestie and we FaceTimed the last mile!
That helped a lot!
So when you are doing something physical and you want to quit- or think you hit your max- remember the 40% rule!
I'm happy with my feet up in my hotel room now!
Tomorrow is a new day!
182 miles behind me.
318 to go.
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Anyone that has invested with ODC can write a review on their experience, good or bad, here: investclearly.com/sponsors/open-…
Robbie Hendricks@robbiehendricks
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.
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@TheRealEstateG6 Agree. There's an interesting line between kicking someone when they're down and trying to point out hypocrisy.
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I’m not defending specific deals. The deal didn’t look good and I personally wouldn’t have done it
But no one has a 100% hit rate and all the people acting like they’re so above it are extremely cringe. Guarantee you if you took a microscope to their personal investment decisions, there’d be a lot to laugh at
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@bridgelenderguy If you project value doubling, but insurance remaining the same, that's on you
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If you project value doubling, but taxes remaining the same, in Texas, that’s on you
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@phil_mcalister I bought a small apartment deal end of 2021 during the interest rate/MF craze. Been a rough ride with insurance and occupancy. Current value is probably just catching up to purchase price 5 years later, BUT I still have 5 years of term left at 3.9%.
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I'll say this as someone with experience in acquiring several billion dollars of multifamily:
If you don't understand how floating rate debt and rate caps work, you really aren't ready to act in a GP capacity. (His comment here proves he didn't understand).
If you don't understand how investing in a market with rents up 40% might affect the future returns you think you're getting and then shrug it off: "hey, I couldn't underwrite a 7% cap could I?!" you're really not ready to act as a GP.
I hope that he's plugging as much of the gap with his own money as possible and definitely refunding his fees. I'm sure he's been aware of issues at this property for some time so hopefully he's been waiving the AM fee for some time.
If you're an LP here's my advice: If you feel like you're in a marketing funnel, that's not the right GP for you.
Brandon Turner@BeardyBrandon
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.
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@DannyKPolitics Very easy to get an LLC in Florida, but there's a whole ecosystem around it -- annual filings, tying it to an EIN, maintaining certain addresses, maintaining a registered agent for legal notices, and filing for business tax receipts with your local municipality or county.
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EXCLUSIVE: Randy Fine claims he’s president of a Florida company that doesn’t exist
On his sworn 2024 personal financial disclosure to the U.S. House, filed December 29, 2024, Randy Fine certified he is “president” of Jayvid Holdings and that three assets valued in the aggregate between $10,500,003 and $51,000,000 are held by or through Jayvid Holdings.
The Florida Department of State shows Jayvid Holdings, LLC was administratively dissolved on September 22, 2017 for failure to file an annual report. The entity’s current status is “Inactive.” It has not been reinstated.
The disclosed Jayvid assets are the bulk of Fine’s reported net worth. They include “Jayvid Money Market Holdings” at $5,000,001–$25,000,000, an investment in Waterloo, Ontario software startup RideCo at $5,000,001–$25,000,000, and an investment in Tangam Systems at $500,001–$1,000,000. Jayvid Money Market generated interest income of $100,001–$1,000,000 in both the filing year and the year prior.
The Florida record is unambiguous. Jayvid Holdings, LLC, Document Number L16000089227, principal address 490 Spoonbill Lane, Melbourne Beach, registered agent Bradley F. White, sole manager Fine, Randall A. In a 2018 candidate profile, Fine described himself as “manager” of Jayvid Holdings, LLC. On the 2024 House filing, he is “President.” An administratively dissolved Florida LLC has no officers and no offices to be held.
A material attestation about the largest asset on a sworn House filing can’t be reconciled with the public record of the entity it names. The disclosure is governed by the Ethics in Government Act. Falsified PFDs carry criminal exposure under 18 U.S.C. § 1001 and § 1621, and ethics review jurisdiction at the OCC.
I have filed a supplemental submission to the Office of Congressional Conduct.
Fine’s office did not respond to a request for comment on whether Jayvid Holdings has been reinstated, whether a separately registered Jayvid Holdings exists in another jurisdiction, or how the entity is “President”-able while administratively dissolved.
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@tellesio @moseskagan @reseedrhett It's definitely one-offs, but we aim for +9% on 2-4 deals a year here in the Orlando area.
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Guessing those capital providers know a thing or two about investing in shallow tertiary markets. Have kind of been surprised at the one-off opportunities I’m see in these markets.
Conservative UYOC ranging above 9. One unique true Alpha opp 14+. You don’t see these in the urban core!
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A little more context:
Via ReSeed, the platform some partners and I started ~3 yrs ago, I am now seeing sub-institutional multifamily and industrial deal-flow across like 15-20 markets.
We have standardized the modeling and underwriting assumptions (allowing for regional variation supported by data), which allows us to make apples-to-apples comparisons.
While the yields tend to cluster around 7% unlevered, bc that's roughly the floor we're willing to accept, the differences in the types and magnitudes of risk we have to take to get there are *wide*.
Moses Kagan@moseskagan
As someone who has made a career fishing in an over-fished pond, having to develop increasingly complicated techniques to catch enough to eat, take my advice: Better to find a pond with fewer fishermen.
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@moseskagan I was assuming. Saw you say somewhere you had deployed $130m into reseed with another $100m in the wings. 10-4 on conservative underwriting.
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@sellercarry Ha -
1. I didn't raise the $$ (wish I could raise on that scale!)
2. As you know, one person's 7% isn't the same as another person's 7%... I think the operators would tell you that the assumptions we require them to bake in are very conservative
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Leased this property to a vehicle logistics company earlier this year. Marked their entrance into the Central Florida market.
Took a little longer to lease than we underwrote, but should be a great location for the tenant and a solid win for our investors.
Eric@sellercarry
Just closed on this deal. Got a nice credit union loan. Improvements start tomorrow.
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@bridgelenderguy Accounting team probably got ahead of the investor relations team.
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Always a little nerve racking the first night the client spends their first night in the home…just had to run to a house we closed yesterday 2nd propane tank was shut off by maybe pool company so they had no gas to their appliances or water heaters….
It’s not a 9-5 job….
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@sellercarry Sort of like a mail order bride from Kazakhstan?
Oh wait that would be a discount. I need a good metaphor for this.
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You can lease space to an automotive tenant.
You can tour their existing locations and see a clean operation.
You can hear all the right things during negotiations.
You can get their word they will keep the parking lot orderly.
You can put it in the lease.
You can add language about inoperable vehicles, overnight parking, storage limits and designated stalls.
You can require fencing, screening and regular clean up.
You can have the property manager enforce it.
You can send notices.
You can hold meetings.
You can threaten default.
You can repaint lines and install signage.
You can even have weekly inspections.
And you will still have a tenant that parks broken down vehicles wherever they want.
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@javi_zona You have the single to multi tenant guys and then you have the multi to single tenant guys... The blue building is one unit split into two at the moment. Five electric meters, five bathrooms.
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@sellercarry Is it already 6 units separately metered? What's the bathroom situation? I really like the single tenant to multi conversion if it isn't a ton of work to make it happen
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Got this little brownfield bonanza under contract the other day. ~7,100 SF, six units, third of an acre yard. Will make for some nice contractor spaces when we're done with it. Should stabilize at +10% UYOC in Year 2. Maitland and Winter Park are less than 10 minutes away.
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