How did you add value to the deal?

How did you add value to the deal?

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

However, it will likely lower future cash flow so it is a time-value of money play (and perhaps income tax bracket matching... ie, big deduction during a one-off big income year).Two properties... one with cost seg and one with out will have the same depreciation taken at the end of its life (27.5 or 39.0 years).Also keep in mind that STR usually requires 39.0 years of depreciation for the primary building asset.

How did you add value to the deal?

We do have an initial fee, but we strive to offer substantial value in return through our 100% financing, ongoing coaching, and profit-sharing model.

About 1-1.25% of the home's value (approx) has been what I've seen for decent policies. 

If more retailers vacate their space than those properties are at risk of losing tremendous value as it will be difficult to re-lease to a tenant that is not impacted by California's high costs to do business. 

Going to be hard to get a traditional 15/30 year mortgage on something like that just based on total value. 

Community bank How did you add value to the deal?