All Forum Posts by: Daniel Wheeler

There aren't many secrets in the real estate game. Particularly SFH. Very low barrier to entry so everyone and their land scapers are doing it.

Find a house that matches your profile and swing away. 

I doubt you would be able to buy on the northwest side (I-10 corridor -Boerne, scenic loop, Boerne stage, dominion, camp Bullis) and make any sort of number make sense. 

You’ll be buying a high cost highly levered house with negative CF. 

Fredericksburg seems to be a hot market particularly on the vacation rental front. If you live there, I would probably start there. 

Edited

You guys more or less answered better than I could articulate what I was thinking. It wasn't worth it. Grabbed the financials, asked what the seller was after "I've been instructed to entertain all offers, what would you come in at?" 58% of the unstated ask on one and 33% of the other. It would take a very large downpayment to make it work, which I am uninterested in doing. Zeroing in on two other commercial plays with motivated sellers in largely ignored areas.

Does the income service the debt load at 20% down if you didn't change anything? DSCR 1.3-1.4? Without knowing the context of the deal, the above is pretty easy to tell right off. Most of the MFs I see in cities require large downpayments to make the numbers work. Same with metro self storage and a few other classes.

Thoughts on transferring land to kids and grandkids via an interfamilial transfer vs a land trust? For estate planning purposes. From what I can tell an interfamilial transfer is not a tax triggering event. A land trust seems more cumbersome. What say the guru's?

Relevant to the read. I'm trying to do my first big multi. 260 units. Class A. They have a due date for offers and then we see what happens.

I'm in Germany! Good time to be in Europe!

Levi, what are you referring to middle market, as being?

So I have my first prospect being sold with "offers due by" a certain date. Next size up deal for me. How do you guys play these? The appraisals that came with the supporting documentation are way out of line with what the net can service debt wise. All three prospects are stabilized. 2 class B and one class A. Without an asking price, it's tougher to gauge whether an offer is even worth it. I know where the break even with the income is at. I know what I want to discount from it and from the replacement cost...but the appraisal is slightly more than twice that for all 3. I have an equity partner to get the deal done, but going beyond what the income operations can service by much will lengthen the time for their takeout, limit the refinance room (to still be serviced by the income) and will generally close the margin of safety. General thoughts? Do these attract more institutional buyers by nature? For deals like these do you just take an interest only refi, for the partner takeout, to lengthen the time horizon with a longer call? Do it more than once? That seems like a less than ideal way to get into these...But these are prospects with pretty rock solid profiles. Sort of like Coca Cola in your stock portfolio...but in better markets. I'm mostly just feeling you guys out as my thoughts aren't dialed in to more specific questions for the board at the moment.

Not knowing anything beyond the cap...and recognizing that's dubious at best, you still wind up on the wrong side of zero unless you front a large downpayment. Unless I'm missing something.