All Forum Posts by: Shawn McCoy

I have warehousing needs for my company in the Charlotte area. Specifically looking for smaller units in the 2,500-5,000 sq ft range.

I'm wondering if any of you have any insights on the market for these properties in the Charlotte area. While I have a business need for the space, I still want to make sure there's room for growth in the market before investing.

I'm interested in helping my employees move to an area with high living costs. I'm willing to subsidize their rent, but I feel like a better model might be to share in the benefits of property ownership--I'll cover the down payment and part of the mortgage, they will also pay part of the mortgage equivalent to rent in the area.

I'm wondering if others have tried a similar model or have any thoughts on alternative options.

This is just a random thought that surprised me, but might be well known to more experienced investors...

I've been doing some modelling ahead of launching a fund doing BRRRR investing. I was looking at the impact on IRR of 70%, 75%, and 80% LTV refinance rates.

Holding other variables constant, each LTV rate has the same IRR over a 10-year period in my model. At 70%, the rent cash flow is higher and the profit at liquidation is higher, but at 80%, you would be able to purchase more properties over a shorter period and have more capital remaining if, for example, you were returning capital to investors after a defined period.

I have run the model a number of different ways as they apply to the fund I'm raising. This may be different under other conditions, but I think some investors may find this interesting.

Shawn McCoy

Podcast Guest on BP Business Podcast #75

I'm comparing potential markets for BRRRR opportunities, and I'm particularly interested in Durham, NC.

I'm wondering if anyone sees particular advantages or disadvantages in the current market there.

I'm looking into doing some BRRRR investing in the Manassas, VA area. I've invested in commercial real estate previously, but I've not focused much on the residential side. I've become interested in the area because my company has operations nearby.

I'm wondering if anyone has any insights on the long term growth prospects of Manassas real estate. What parts of Manassas would be best for investment? Or are there other nearby towns that would be preferable? If you've done any BRRRRs or rentals in the area, I'd really appreciate any insights I should consider in writing a business plan and making financial models.

I'm just getting started in commercial real estate in the DC area. I'm seeing cap rates ranging from 3%-7%. I'm just wondering if anyone is seeing better cap rates than this? 

Since I'm just starting out, is there a cap rate range that I should target for commercial real estate in the DC area right now?

Thank you for all the insight. Very helpful!

I'm somewhat new to the real estate world. I'm coming in from a background in private equity, where limited partners typically target a ~25% IRR. And that IRR is key to modelling when approaching investors with business plans and structuring the investment.

Is there a similar target IRR that investors expect for real estate funds?