🧵 displaying each page of the report:
Page 1: Cover page
May 29, 2023 • 20 tweets • 4 min read
The silent killer of a great deal, Flood Insurance (FI)
A breakdown of flood insurance and how loophole crushes storage deals
1/ If a buyer is acquiring a property the bank will order title, survey, enviro(typically), and elevation certificates (if necessary, these will be useful later)
Don’t think of these as closing costs, think of these as necessities so eventual liquidation isn’t a nightmare
May 28, 2023 • 16 tweets • 4 min read
In our industry, builders absolutely love smaller units
Smaller units = higher rent per sq ft
By understanding market dynamics (supply/demand of certain unit types), you can capitalize by making some minor adjustments
An example of how we did just that & how you can too
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This deal had 2 value add components
1) Parking
2) Reconfiguring inventory
2/
Feb 5, 2023 • 14 tweets • 7 min read
Capital Improvements
In order to achieve (& more importantly sustain) higher rent/rates, it is best practice that the customer sees what they are paying for in higher monthly rent
11 Capital Improvements that justify higher rent🧵👇
1.) Curb appeal
Ensuring the property looks clean & well kept (picking up trash & leaves)
Fresh coat of paint works wonders for weathered buildings makes the property pop. Catches eyes to the property that were used to the old color
Securing good title is most important aspect of purchasing a piece of property.
There are times when some minor title issues arise that can be resolved by the title co & attorney
what happens when some arise that are not so easy to resolve?
a thread & recent example 🧵👇
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Title insurance is in place to insure you, and the lender (if applicable), have claim to the property
Once you are under contract on a piece of property, title will be ordered and a title search will be initiated
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Nov 15, 2021 • 22 tweets • 4 min read
There is one central and common player in the real estate game, Bank Financing
What to know, what to avoid, and how to have Banks play on your team. Buckle up
1/I will focus on smaller deals because larger ones get to complicated to explain in one thread
For smaller deals the purchase prices is anything under $5MM-$10MM
Nov 13, 2021 • 14 tweets • 2 min read
Inflation is here and it is not good for anyone, despite what some of the media says
During inflationary periods investors flock to real assets, RE being one of them
That’s great for the CRE market, but is it?
1/ Investors will panic buy real assets to hedge against inflation. This is one of the reasons the RE market has been on fire recently
The other reason, low interest rates
Nov 12, 2021 • 15 tweets • 3 min read
Liability insurance protects from the unforeseen. This is a security layer that protects the owner from events that could transpire on their property
This layer has its limitations, most notably the policy coverage $ amount
Let's another layer (thread)
1/ When acquiring property, the list of legal items needed will make your head spin, especially if you are using LP equity. We are going to be adding an extra legal deliverable to this list
That item is a disregarded entity
Nov 11, 2021 • 18 tweets • 3 min read
The silent killer of a great deal, Flood Insurance (FI)
A breakdown of flood insurance and how loophole crushes storage deals
1/ If a buyer is acquiring a property the bank will order title, survey, enviro(typically), and elevation certificates (if necessary, these will be useful later)
Don’t think of these as closing costs, think of these as necessities so eventual liquidation isn’t a nightmare
Nov 10, 2021 • 12 tweets • 2 min read
Looked at a marketed deal the other day where the broker marketed a 5.5% acquisition cap rate at stabilization.
A breakdown of the deal why its success may have a bumpy road ahead:
1/ The broker detailed the stabilized financial metrics as follows:
•10% Revenue Increase
•35% OpEx (industry average – ish)
•Stabilized Econ Occ: 85%
