To get rents to market rate, do you... a) reprice existing tenants (they are pissed) b) evict existing tenants re-rent at market (also pissed off) c) wait until existing tenants leave, then reprice to market (slow process but few people issues) d) other?? Thanks
I'm assuming you're referring to the downtime while leasing up? That wouldn't be represented in a BOE as it's a snapshot at acquisition and a snapshot at stabilization. It would be represented in a full model though
I'm not trying to be mean but if you can't figure out how to have a good credit score, you're not going to make money in anything you do (real estate included)
How would you have actually purchased this deal though. Let’s say you went bank loan. If you don’t want to put 50% down you would be cutting the purchase price significantly which the sellers wouldn’t accept. This is what I am running into in my market. I’m either having to put an extreme amount of payment or cut a large percentage off the purchase
1. Put 55-60% down 2. Use bridge debt 3. Use seller financing 4. Have a good relationship with a bank who can get you to ~65-70% leverage by underwriting Y1 rent bumps on the in-place income
This is awesome man! The one assumption I struggle is executing rents from in-place to market within hold period. Tenants could stay for very long time and I assume you want to avoid evictions unless necessary? How do you get conviction to be able to turn all 16 units in this case to market rents?
@@parristaylor1699 Leases are typically only 1 year long so the longest you'd have to keep any one tenant is 1 year. Realistically most will have shorter leases than 1 year so you'll be able to get to them even quicker
@@TwistiieHD You can't terminate a lease anywhere in the country without just cause. I'm not talking about terminating leasing in my above comment I'm talking about waiting for them to expire
Thank you! As always detailed and informative .
Glad you liked it!
Video was great! Can you make a video with a more detailed model?
dude, insane amounts of value in this !!!! Keep killin it bro !!
Glad you like it!
To get rents to market rate, do you...
a) reprice existing tenants (they are pissed)
b) evict existing tenants re-rent at market (also pissed off)
c) wait until existing tenants leave, then reprice to market (slow process but few people issues)
d) other??
Thanks
Personally c but I know people who do all of the above and make money
These videos are excellently done, I’m not in the industry but learning a lot, thank you for putting these for the public
Appreciate it!
Awesome, extremely helpful. Will 100% use this thank you
Glad you like it!
Amazing video, lots of value! Is it possible to do one for stand alone retail buildings & retail strip malls?
Appreciate it! Can look into doing one for retail.
How do you capture construction and post-construction marketing in your vacancy?
I'm assuming you're referring to the downtime while leasing up? That wouldn't be represented in a BOE as it's a snapshot at acquisition and a snapshot at stabilization. It would be represented in a full model though
@ Got it! As always, thanks for putting this vids up!
Don't you need a good credit score to even get a loan for CRE?
I'm not trying to be mean but if you can't figure out how to have a good credit score, you're not going to make money in anything you do (real estate included)
How would you have actually purchased this deal though. Let’s say you went bank loan. If you don’t want to put 50% down you would be cutting the purchase price significantly which the sellers wouldn’t accept. This is what I am running into in my market. I’m either having to put an extreme amount of payment or cut a large percentage off the purchase
1. Put 55-60% down
2. Use bridge debt
3. Use seller financing
4. Have a good relationship with a bank who can get you to ~65-70% leverage by underwriting Y1 rent bumps on the in-place income
This is awesome man! The one assumption I struggle is executing rents from in-place to market within hold period. Tenants could stay for very long time and I assume you want to avoid evictions unless necessary? How do you get conviction to be able to turn all 16 units in this case to market rents?
@@parristaylor1699 Leases are typically only 1 year long so the longest you'd have to keep any one tenant is 1 year. Realistically most will have shorter leases than 1 year so you'll be able to get to them even quicker
@@TwistiieHD You can't terminate a lease anywhere in the country without just cause. I'm not talking about terminating leasing in my above comment I'm talking about waiting for them to expire
@@TwistiieHD Then don't buy there