Quote from @Chris Seveney: Over the past quarter, I have seen around $1B in defaulted fix and flip loans - many of these from new lenders since 2020 and more of a "tech platform".As we all know, the intersection of tech and real estate investing has brought incredible innovation, especially in hard money lending.

The issue with watering your foundation is that you have to do it always, every year without a break in order to achieve the desired effect.

The signaling effect of QE also plays a role.

If you do the math, since your borrower is paying interest on interest, it raises your effective interest rate by about a point.

Platforms like Procore, JobTread, Buildertrend, and FlipperForce have caught my eye, but I want to make sure I’m considering the best fit for my needs.Here’s what I’m looking for in a solution:Cost Estimation: A tool that accurately calculates material and labor costs.Project Oversight: Features to manage tasks, schedules, and budgets efficiently from start to finish.Vendor Integration: Real-time updates on pricing and inventory from suppliers like Home Depot or other suppliers.Material Suggestions: Automation or recommendations based on the rehab’s scope and specifications.Labor Planning: Tools to predict labor hours and staffing requirements for each phase of the project.For those of you who’ve used any of these platforms (or others), I’d love to hear your thoughts:Which software have you found most effective and why?

I work mostly with bank & credit unions lenders, who tend to be much more conservative, and most of them use a 35% operating expense margin.Also, the operating expense is calculated off the EGI (Effective Gross Income), which is the Gross Rent x the Occupancy Rate (i.e.

Some of these new age syndicators are raising money in incredibly small amounts and I believe are intentionally pursuing these smaller dollar amounts because of the unsophisticated individual behind those dollars.

Look to ask the seller about financing back whatever they want for their equity but make sure the mortgage rate and payment are at a place where you will be able to cash flow effectively.

The most effective approach is to analyze other short-term rentals in the area, reviewing their nightly rates and occupancy trends throughout the year.

How much it makes as a LTR/STR/MTR doesn't have any effect on the pricing as it's value is strictly from comps.