Someone paying 1,000 likely wants 100 hours of time as they will struggle with lots of stuff and blame someone other than themselves when they don't follow all the steps because they are lazy or don't want to put in the steps to lay the foundation.The foundation isn't sexy.

Notably, there is often an unfortunate cycle where: (1) current ownership has financial struggles; (2) this requires the current ownership to fire sell or declare bankruptcy; (3) the development suffers as a result; (4) new ownership comes in and tries to fix it; and (5) the cycle repeats.

Just saw it and came to share it.https://dailytrojan.com/2024/11/26/trojan-shelter-struggles-...

Hello all, I am struggling to analyze multifamily deals in my area.   

Many though, struggle to understand our market and the US culture of tenants.At the first negative issue, many panic and either want to sell or terminate us:(It can be done, but depends on your team and YOUR management of the manager.

Here are my thoughts on your questions:Pain Points: Many investors struggle with quickly analyzing deals at scale.

Borrower Types: The Professional - HM Lender will cut sweet-heart deals to keep these borrowers around Experienced real estate investors Regularly engage in property transactions Typically have a track record of successful projects The Newbie - Charge Higher everything as the risk is higher as no experience Novice investors or first-time borrowers Limited experience in real estate Seeking to build their investment portfolio The Deadbeat - Only lend if the deal is so SWEET, they can't lose if they take the property from the Borrower Borrowers with poor credit history or financial difficulties High-risk borrowers May struggle to secure traditional financingThe lender will do an application on the deal/borrower and some standard docs they require are:Hard Money Application / ExperiencePurchase contractARV report – COMPS – See * Redfin*Pictures of Property – most people use Dropbox to shareProof of Funds – Down / Reserves (Bank Statements)Personal identification (ID or passport)But usually if the deal is sweet enough, they will do it anyway because if the deal goes south, there is so much equity/value in the property that the HM lender can't lose.

I have been receiving listing from brokers offering cap rates of 3-7% in almost all 50 states, for different lease terms and guarantors.I am trying to analyze those deals in an efficient manner - weeding many deals or brochures early on, and understanding the out of state location well.Because the cap rates are all over the place (based on tenant, location and lease term), I struggle to understand if a property is fairly priced, as it is not easy to come up with a "general" cap rate to apply to each NOI.Does anyone have resources (books, podcasts, blogs) that they can share that gives pointers when analyzing NNN properties?

Years ago I had a friend that had been laid off and was struggling to pay the bills while looking for work.

Here are some key red flags to watch for:🔴 Lack of experience: A borrower without a proven track record in real estate projects may struggle to navigate unexpected challenges.🔴 Overly optimistic projections: Unrealistic ARV (after-repair value) or underestimated rehab costs can signal poor planning—or worse, a lack of transparency.🔴 Incomplete or disorganized documentation: Missing detailed plans, financial statements, or timelines could mean the borrower isn’t ready to execute the project successfully.🔴 Over-leveraged finances: Borrowers with excessive debt or insufficient personal capital invested in the deal could pose a greater risk of default.🔴 Questionable property comps: Overstated market values or inappropriate comparables may mean they’re inflating expectations.As always, thorough due diligence is your best protection.