MJ

@lukepierceops So who’s the implementer?

If you sell AI automation services, this data is basically your entire marketing strategy. Your messaging, VSL, content angles, objection handling. All of it is in here. Stop guessing and build your sales process around what the market actually said.

@DMAC_19 Don’t need a whole folder for 1 file smh

If your due diligence doesn’t look like this then we can’t be friends. I will buy a deal from you though.

@Storage_Venture Yup. Would highly recommend removing AM schedule for any seller financed deals. You’ll be much happier and pay down much faster

@MJTraderPro True! There is value in paying down principle at times, but we have definitely structured IO loans with sellers. Also structured principal only .. even better!

Seller financing has been the single most important tool in building my storage portfolio. I own 12 facilities across 4 states (have owned and sold many more), and my best deals - both on price and terms - have all been seller-financed. Here's how I approach it. Why sellers say yes. Most people assume sellers want all cash at closing. Some do. But a surprising number of small facility owners are open to carrying the note because it solves real problems for them. Tax deferral is the biggest one - an installment sale spreads their capital gains over time instead of taking a massive hit in year one. Consistent monthly income in retirement is another. Many of these sellers are in their 60s and 70s and would rather have a predictable payment than a lump sum sitting in a savings account earning nothing. I have actually had seller's tell me they wouldn't sell to me UNLESS they could seller finance. How I bring it up. I never lead a conversation with "will you seller finance?" That puts the seller on defense. Instead, I ask questions. "What are you planning to do after you sell?" "Are you concerned about the tax hit? I hate that the government takes half of what we earn" "Would it be helpful to have monthly passive income from this instead of a lump sum?" Let them arrive at the idea. Your job is to present it as a solution to their problem, not as a favor to you. The terms I typically target. Every deal is different, but my starting point is usually 10-20% down, 4-5% interest rate, 25-35 year amortization with a 7-10 year balloon. I'm flexible on the rate if I can get better terms elsewhere in the structure. Sometimes a higher rate with lower down payment is the better deal. Run the numbers both ways. Thats the fun part - it's all negotiable. Find the win-win, I promise that 90% of the time it's in there! What to watch out for. Get a proper promissory note and deed of trust drafted by an attorney. Don't shake hands on napkin terms. Make sure the seller has clear title and no existing liens that would complicate the carry. Also make sure the seller actually owns the property free and clear or has a lender who will allow a wrap or subordination - this trips up a lot of first-time buyers. The 2 biggest advantages nobody talks about. Speed. There's no bank committee, no SBA underwriting timeline, no 90-day closing process. I've closed seller-financed deals in under 30 days. When a seller is motivated, speed is a competitive advantage that beats a higher offer every time. No PG. Rarely will a seller require a Personal Guarantee. They know the facility, know it cash flows, and know it can cover the payment. In a worst case scenario, the last thing you want is to PG that loan. Happy to answer specific questions about structuring seller finance deals on storage facilities. Reach out anytime!

@MultifamilyMad Yeah depends on the strategy. Usually when we reposition a building, every tenant has to go. Every unit gets renovated and rents increase 2-3x.

@MJTraderPro Oh yeah, some residents have lived here for 15-25 years so naturally that will take some time. I don’t want to kick them out or displace them

I purchased a 54-unit apartment complex in September of last year. Monthly rent roll was $37,845. 5 months later rent roll is now at $47,220. An additional $9,375 of income per month or $112,500 per year. Divide this by an 8 cap and that’s $1,400,000 of added value/equity in 5 months. This came from renovating and releasing vacant units. Not to mention I have 4 of the 54 apartments still vacant as I finish up reno’s at the moment. Once those are leased, monthly income will be up to $53,020. Or up $15,175 per month from acquisition. $182,100 in added annual income. Divided by an 8 cap and that’s $2,300,000 in added value! This is the beautify of true value add real estate. I bought this property from an owner who had it for 57 years. Property needed a lot as you could imagine. Tenants are thrilled with all of the updates we have made and are happy to pay more for it. Only two tenants have left from the increase in rent and they were problem tenants so I was happy to see them go. Capex wise, spending approx $16k per unit on interior upgrades (actually spent in the particular unit being renovated). So far total of about $110k on interiors and about another $60k on misc exterior landscaping, lighting, misc. So far total CapEx spent has been ~ $170k.

@Jacobtmueller @AviFelman Holy crap lol. Where is the access?

Yes I think your analysis is right. TBH is impossible to wrap one’s head around what is happening. For example, in our little corner of the world, someone replicated the best website in the world for attracting and converting guests, Airbnb, with a weekend of work. And then shared the entire web schema via GitHub for free. We can one shot connect it with our main software and launch our own version. 🤯

The reaction to the Citrini article tells you that no one has a clue whats going on. You’re telling me that hedge fund PMs read it, panicked, and then billions of dollars shorted off the back of this? No one has any real takes right now because the world is changing so rapidly. Everyone is in short term trades. The only constant will be volatility.

@pjmcgeary Congrats

Just hit 1,000 reviews on Google with a 4.9 rating. Took us 1,361 days. That’s cool. Onto 1,001 we go. 💰🚂

@andyantiles_ Not very good returns

My game plan to extraordinary wealth: Use cashflow to buy 50-70 single family homes per year Average annual income per door after maintenance and capex: ~$3k I own 75 homes currently Aiming for 125 by EOY That’s $375k of ‘passive’ cashflow annually By end of 2030, I’ll have 365 homes Over $1m of cashflow from real estate $35m+ real estate portfolio where the tenants are paying down my equity every month

@robbiehendricks You’re prob right there. Different rules for different folks! Congrats

Fannie refi quote hot off the presses: $10M 65% LTV 5% fixed 5 yr term, FT I/O With 1.25 buydown: 4.73% fixed. Not bad. Currently at 3.65% fixed w/many years remaining, but could return an additional 30% of LP capital. Cash flow post refi well into the teens. Decisions.

@pjmcgeary @gowithquo Good ideas!

A visual feature in @gowithquo that would be a huge help for teams at scale and keeping everyone on track: An option to have messages turn yellow after a set amount of time with no response (2-3 minutes) and then red after another couple minutes with still no response (5+ minutes equals red). Maybe include code that brings those messages to the top of the inbox too? Or something separated from the rest so there’s no possible chance of missing them. This could be a toggable option as well so if users didn’t want to use it, they don’t have to. Response time is crucial and this would help visually bring timelines to life for our team. Would anyone else use this? ⚠️🚨

@robbiehendricks I wouldn’t rent a 1BR under $1800/m in the Midwest , but we do furnished rentals. Sec 8 pays $1200/m here

Here are the first couple renovations we completed at our mega distressed 350 unit portfolio I posted a few weeks ago. Simple. Clean. Boring. Functional. Affordable. Yes, rent had to go up. Was $750/mo. Now $900/mo. Line out the door for the new units, BTW. (Scroll down)

@ThinkAppraiser I have sold furnished rentals 3-4 units at a huge premium. Much higher than appraised value and buyers willing to pay the difference!

Have you heard of anybody selling residential 4 Plexes based on the cap rate versus sales comparables Only reason I ask is with comparables my four Plex is worth $1.5 million If you use a 5 cap, it’s worth $1.9 million What would you do in this situation?

@moseskagan We turn units within 5hrs. Sometimes 20 different units in a day. Should be easier to turn units without furniture. They are also inspected each turnover & items repaired that are broken

As an owner of a rental property, beware of focusing too intently on any one metric in isolation. Like, if you want, I can ~guarantee your units will be turned over and back on the market within a day or two of the tenant moving out. But, I assure you, you're not going to like the cost. (This is yet another reason judgement is so important in a property manager.)

@resellerrowe How did you get special rate shipping? That usually kills these deals

Just picked up TWO like-new electric dryers from a Costco return auction. Paid: $376 Shipping: $18 (special rate) Total into BOTH units: $394 That’s $197 per dryer Retail on these? About $449 each or $900 total. So potentially a $500 win! These aren’t going online… these are going straight onto the floor at The Bargain Shop where customers can see them, touch them, and take them home same day. This is the game: Buy smart. Control your costs. Sell where you have the advantage. Most people see “customer returns.” I see inventory with margin built in. Would you spend $300 to make $500? I will every day…thanks @bstocksol for the event today.

@realEstateTrent That’s because people don’t know how to operate. My best SFH netting 49% using your formula.

Buying a home to rent out for income is a terrible investment. Pick any house in America. Take the monthly rent x 12. Subtract property taxes, insurance, and random things breaking. Now take that number (your income), and divide it by the purchase price. Ya like 3%, I know.