The issue with these “development gurus” is that they falsely make the hardest value add in real estate sound easy.
Guru: Buy land at price = $5/ft and you will make millions 🤑
Me: Buy land at price = Max Project Cost of Total Land Acquisition - Site Prep - Tap Fees - Holding
@Esqueer_
@ashertwilde
So it may be a promoted tweet, but that effectively works like a Super Bowl add. Companies will pay a premium to be in a promoted tweet like a Super Bowl add to be viewed by you. Your preferences decide what promoted add comes through. Kids would not see a dildo.
Best ways to finance your next development:
4. OZ fund: sounds tax sexy but you are stuck with investors for 10 years. You give up 35-70% equity based on TVM
3. Syndicate: 🥱 0% down, give up 20-40% equity
2. Partner with land owner and use him as KP: 0% down, give up 20-30%
What makes the most money in real estate?
Funds 💰= $$$$$
Development 🏗️ = $$$$
NNN 🏭 = $$$
Apartments 🏘️ = $$
SFR 🏡 = $
StripMallGuy Intern = $70k
What’s your take?
If you think development is easy, go to your local civil engineer and ask him about all the projects failing in town.
They are almost always new people who thought development would be easy. Developing isn’t easy, it is the hardest value add in real estate.
When interest rates dropped, there was an incredible two year period to buy an asset at an 8 cap and then sell at a 6 cap by offering seller financing, so long the building could appraise.
When rates are high, the reverse process is the arbitrage. What incredible times we live
Younglings- take note. Xtwitter is a once in a lifetime opportunity to reach out to the most successful experts 👇🏽👇🏽 I have skipped steps because of amazing people off xtwitter
3) form relationships, and realize that most of them must be made through cold emails / cold calls ...
The younger you are when you reach out, the higher likelihood of success
@ZeroBasis
@KrissBergTweets
@Wildlaw406
Can’t exchange into what you already own.
Better idea is to create big paper on prop 1.
Buy with paper from 1 a new prop 3.
Sell prop 3 for cash.
Use cash on prop 2 construction.
My focus for 2024:
Asset Class: flex space and industrial
- gotta focus
Value Add Type: ground up or heavy value add
- 🤬low hanging fruit
Financing: paper & creative
- love you long time
@CaseyMericle
&
@REExchangor
Deal Sourcing: brokers
- iykyk
Mindset: ♾️
Must-Attend Real Estate Events 🏆
1. SEC (Society of Exchange Counselors) 🤝
2. Anything Jason Dillard 🤯
3. NCE (National Council of Exchangors) 💼
4. ICSC (International Council of Shopping Centers) 🛍️
5. Local Exchange Meetings 🌐
6. Pete Fortunato Paper Class 📝
What’s
This was my last year in my 20’s
The decisions I made in my 20’s put me in a position I thought I wouldn’t be in till I was in my 40’s
Here’s everything I’ve learned in my 20’s
🧵
I just got drinks with Faraz in DC. Very smart and an exceptionally great connector. After 2 hours I know half of the DC real estate community and have a land deal I need to pro forma 😉 Hit up Faraz for deals in DC 👇🏽👇🏽
This is something I always have been a big believer of, always acknowledge people who have helped you along the way because as
@BobKnakal
said it, no one can do it themselves.
@SimpleCRE
I heard that if you buy the entity that owns the real estate, the transfer isn’t recorded with the county and the taxes don’t go up. Thoughts?
Does anyone want to buy a property at a lower price?
If the seller can do seller financing, I will buy at the high price and sell to you at the lower price you want.
DM me!
When someone says they “sell paper” on a property they own, that means they refinanced their property with a “private mortgage”.
Eg. I own 2 million dollar strip mall, created paper of 1.5 million with 75k payments a year means: I have a 2 million dollar strip mall and
@SethLaceyCRE
I am seeing socials saying boutique being a better option to get into acquisitions and developing.
The freedom in a boutique is also nicer
I have an off market site planned approved self storage deal. The current owner put $4 million all in to buy, site prep, and get plans county approved.
100,00 SF of two story self storage
@Xander_Board
@tyleralley24
Is your tax basis less than you are selling for?
Options assuming REPS:
1. Depreciate current buildings to offset recap
2. Roll another building with equity to reset depreciation clock, and cost seg
3. Buy / assume it 😉
Last year I completed my first land assemblage in Reno of three parcels totaling 48.81 acres. 30 acres are continuous and the 18.8 is on the other side of a building but are on the same street called Waltham Way in the Tahoe Reno Industrial Center which is all an Opportunity
@maxfisherRE
Did a value add warehouse earlier this year. Looking at a small flex dev with Mr. Washington! Have a few pieces of land we are looking at.
Don’t forget to sign up for FREE meeting in Florida! Alejandro leads it and it is a life changing meeting. I have met many good mentors there.
Give Alejandro a follow- he is one of the best dudes I’ve met and genuinely cares for people and wants you to get a deal 👇🏽👇🏽
Cool idea for financing development:
Negotiate seller finance. Pay your friend in equity to have the lien on their property instead of sellers property. Use the land for a 30% down payment for the bank and get fully financed 😘
@_apryor
@DallasAptGP
JD is doing a solar roof in a OZ zone for industrial
The credits on it I think are 30% base + 10% for American or 6 month international + 10% OZ zone + 10% coal zone +…etc
@REExchangor
I would love to make it out :) I'll be pounding Jack Miller audio and those books till then so I can understand a little bit of what you are talking about. Have a great weekend!
@artyomka26
@RE_Deal_Junkie
@warehousedevguy
I’m not an expert but supply of non recourse debt (and other debt but less so) contributes to what funds can buy properties for, and they buy a huge volume of real estate.
If you look at the 80s when cre debt collapsed, prices dropped like crazy. The reverse with Covid.
@tyleralley24
@SpaceCoastCRE
Do ever use PlacerAI to contribute to decisions like this?
One of my brokers just got it recently, and helping to see if a 3 acre site is good for service retail: like a Valvoline or o’reilys
@CarolWalshReal1
@JeppsenJonny
@CaseyMericle
Jonny is a great guy. I talked with him for an hour a month ago and he just wants to pour into people. I learned a lot from him in that hour. Go Jonny 🫡
Actual Deal Available:
1.3m NNN 8 cap
Or a 1.1m NNN 7cap
Or a 900k NNN 6 cap
Which one will you choose?
They are all the same property with a 120k NOI and 1.45m “Value”.
When parking 1031 money, why not move price around to match buyers return/safety expectations?
A buddy of mine got a 1.3 million SF data center contract to develop for the government.
He can only use materials purchased from gov approved suppliers. There is a 30% markup on average for gov approved supplies.
How can I supply to gov contracts for a 30% markup too 😂
@JeppsenJonny
@REExchangor
@re_exchangor
Been guilty of that. My process:
1. I read and realize I don’t understand real estate
2. I stare at the post for another 30 minutes
3. I reach out to an exchanger
4. Still don’t get it
5. Week later it clicks and I feel like I can take over Richmond ⚠️
6. Jason posts again…
An end use buyer approached me and wanted a 20k SF sprinklered building. In this county, it costs an extra $600,000 + just in tap fees to add a sprinkler system. Another 100k+ to move the main. 🤯