CRE, Value Add

@jeremiahjw A utility or retracting knife that stores extra blades will cut much faster then this or any electronic tool. They are more dangerous though. Theres a reason that those tools are referred to as box-cutters!!

I bought one immediately after seeing Austin’s tweet and it is indeed life-changing

@bridgelenderguy Derivative Logic

Who is the cheapest source of rate caps?

@mwmoedinger These mud in bath vents are affordable (esp. to Home Depot pros), and are compatible with standard vent fans. For some bathrooms i would say these can be the one upgrade that makes the biggest impact. fittes.com/products/flush…

- mud-in bath fans. They always look cheap and they cost a lot of money! - built in microwaves. Build a cubby in the cabinets, stick a $150 microwave in there, save $1200 - kitchen drawer inserts/knickknacks that have highly specific uses

Yesterday I posted a bunch of things that are worth spending your money on in a renovation/new build. Today, here's a list of things that ARE NOT worth it! ...in my opinion! You can spend your money however you want. As usual, #1 is at the end! Ok, let's dive in:

@bridgelenderguy The older version of this is when a lender sends you back the property financial from Bloomberg Terminal and they dont match what the seller sent at all…

I just had AI compare bank statements to a borrowers collection report, this stuff is going to take over underwriting

@DallasAptGP What happens if you happened to purchase and spend 150% in a property, does it now qualify retroactively?

Almost everyone (even me) who read the new Opportunity Zone legislation missed a crucial detail: the rural renovation rule isn't waiting until 2027. It's been active since July 4th. 50% improvements instead of doubling basis. This is a huge deal. Let me explain why... This is for existing buildings in a rural Opportunity Zone census tract. Step one: Always verify that the building is in an OZ census tract. With 8,000+ designated census tracts, you might be surprised. Step two: Try to figure out if it is in a "rural OZ census tract". This is currently not cut & dry. In the legislation, 'rural area' means any area other than: 1. a city or town that has a population of greater than 50,000 inhabitants, and 2. any urbanized area contiguous and adjacent to a city or town described in subclause (1.) There has not yet been any map or guidance from Treasury/IRS to finalize which current census tracts qualify as "rural" so you should use best judgment. The EIG map does a good job of guessing at this as well. Step 3: This is the big change! You used to have to Double (2x) the basis of a building when you were buying and renovating it to get the OZ benefits. This is now no longer the case in a rural OZ census tract. You only need to improve the building by 50%. Here is the example: $2M property, $400K land value. Depreciable basis? $1.6M. To qualify for OZ benefits, buyer needs to invest an additional $801k in improvements. What counts as improvements? Any capitalized costs: brokerage fees, attorney fees, carry costs until stabilization, and of course, hard costs of physical improvements. This is a huge change and makes the buy & rehab strategy work on a lot more properties if they are in rural OZ census tracts. Ideally, we'll get solid guidance on which census tracts are rural ASAP. For now, we are just using our best judgment.

@MichaelAlbaum As soon as it’s paid off Fico is a snapshot in time, and does not account for what your balance was in prior months

How long does it take your credit score to bounce back after maxing out your available credit for several months in a row?

@MultifamilyMad Appraisers are even worse then weathermen - I once got 2 appraisals for similar properties in the same market, with a 150bp spread in the cap rate!

3 people that can always be wrong and still keep their jobs: - appraisers - weathermen - politicians Main emphasis on appraisers this week.

@TopherNOW What’s the earning requirement? Popular Bank had a easy $700 for checking/savings

Points & miles gang: What’s the best new bank account bonus you’ve ever gotten? $1,500 coming in hot from Capital One shortly. I don’t do many of them, but for money that would otherwise be in my emergency fund, seems like a no brainer.

@OhioDebtDealer @robbiehendricks Not on the docs we’ve gotten but that can always change

@robbiehendricks Also wondering, do they add anything to the discount rate when they calculate the penalty? (Life co lender here; we add 50 bps to the discount rate, when calculating YM.)

@OhioDebtDealer @robbiehendricks Yes and yea

@robbiehendricks They using the avg life treasury when they calculate the YM? Is it also a minimum 1% penalty?

@robbiehendricks @ClarenceWongCRE @tyleralley24 Is your equity promoted 15% along with the partners?

@ClarenceWongCRE @tyleralley24 Clarence, one correction - we don’t charge an asset management fee. The lights stay on with the 85/15 split on cash flow. We put in substantial equity, yep.

@PARELawyer @CaseyMericle Now that’s just teasing… at least drop a hint!

@CaseyMericle I’ve gotten 5 in a day. Just have to know the secrets!

We can have a tower catch a rocket but you can’t get 2 EINs in one day

@dirtdog 5 minutes - does that mean you have a lender who lets you E-sign closing docs?

Why can I sign closing docs and buy a $50,000,000 shopping center with a big loan in less than 5 min but it takes 2 hours+ to buy a car?

@MultifamilyMad “Sorry, rates have gone up”

Fed cuts rate 50 bps. I immediately text my lender on the deal I have under contract.

@bridgelenderguy Sometimes, They just want to watch your world burn.

Do appraisers think their reports mean anything?

@pslohmann Have you tried apples implementation? They often fix the pain points before releasing it. The main question is one of power… if you have a powered strike you can probably set this up if you wanted.

First company to make a door lock that locks/unlocks with an automotive-style key fob will be a $10B company overnight.

@mu2myoc @codylittlewood Some bankers just look at you funny if you say debt yield…

@codylittlewood Yep. Just negotiate the DY threshold. Could also be a dscr test. Whatever, just find a path to removing recourse

If you MUST take on recourse debt, you need to negotiate having that recourse burn off when the property hits an agreed upon debt yield. Somewhere in the 8-9% range should work for your lender.

@MultifamilyMad @Josh_Appelman Depends on terms… for 80%, IO and a no prepay it would be a good rate. Who do you prefer for homes?

@Josh_Appelman Yikes, that is a terrible rate

Worst lender in the world. Lima One Capital.

@dariandemetri @jbulltard1 Not anymore without Premium…

@CREVadd @jbulltard1 You can DM me.

Is this some sort of joke are any of you paying less health insurance bc of Obamacare? Did I miss the memo I pay $2500/mo for blue cross blue shield with a $7500 deductible

@dariandemetri @jbulltard1 How can I learn more about this?

@jbulltard1 I own a health insurance agency with thousands of clients who pay $0 premium and have $0 deductible. Some of them are even millionaires.