All Forum Posts by: Daniel Schiller

@Riki Tang you need to get on the phone with the seller’s agent and get a better understanding of their concerns.

I proposed a similar request for an extension on selling 8 homes that were under contract before this virus started shutting things down. My property manager and agent talked me off the ledge to keep the deal from terminating. Perhaps your counterpart can do the same with their client.

@Jen Senecal like everything from SA to San Marcus. Your org structure and business entities need to be fleshed out with with a solid lawyer and CPA specifically focused on real estate. Don’t use your partner’s cousin, “friend”, etc.

But first and foremost, as newbies, you need to find a solid banker to help you vet deals. Most of the Texas regional banks essentially provide free back office support for deal valuations.

Good luck!!!

@Andrey Y. The family offices and international investors buying the luxury sector in each market you mentioned are doing so for capital preservation and foreign currency arbitrage. It’s more correlated with the $50MM+ art market than American-style real estate investment.

Even then, the “big boys” playing with leverage in the markets you mentioned routinely run into issues using leverage. Just NYC, check the historical transaction histories on the Empire State Building, Stuyvesant Town–Peter Cooper Village, and 666 Park Ave where the President’s son-in-law fell down the rabbit hole.

Serious players in the trophy market and luxury condo sector are not “BAM”ing it. They are paying cash, because it’s treated more like a CD in their portfolios and provides diversification AWAY from banks. Just look at all the empty sold units / entire floors in buildings in NYC, Miami and Panama City.

Meanwhile, BlackRock’s RE division has a $20B+ US portfolio... focused on what? Cashflow.

Meanwhile,

@Mark F. Yes, this. Allowing rent deferrals while demanding debt service is on par with the California energy crisis that Enron capitalized on exponentially. You can’t arbitrarily regulate parts of a vertical business stream.

Does anyone have experience financing commercial property in Italy? Curious if the local lenders look for anything different in valuation models versus US banks.  My international RE experience is limited to South America, and it looks like I will need to build a forecast model from scratch to properly value the deal as the property and business are generational family-owned and the financials are not exactly GAAP compliant.   

Any heads up on the differences / priorities between preferred numbers, ratios, matrixes, acceptable EBITDA calculations would be appreciated.    

@Lisa Mason home office deductions are way up there in red flags for audits from the IRS. It’s not generally worth it. My entire first floor is a modern functioning office, but I’ve never claimed it for tax purposes. It rarely make sense.

@Daniel Schiller not joking on this. Anyone who tells you otherwise will turnaround and sell you a $50 book as a prelude to their investment presentation.

@Kamal Sharma go onto AliExpress and order tents in bulk. Set them up on the street and list each unit via AirBnB.

@Jordan Reed look for a agent who owns their own investment properties.

@Bill Haldenby find a great housekeeper to do your turns at a volume discount if you lower the minimum rental period to that level.