Hot take! 🔥
These wall features are going to be like granite countertops in the 90s… cool until they weren’t cool.
Drywall repair guys gonna be booming in the next few years!
Alright so here's the story on our acquisition of Morris Self Storage... how I sourced it, the deal structure (just around 16% cash of out pocket), our call with
@sweatystartup
, the value adds, the bonus house, & why we think its going to double in value...giddy up!
#Retwit
🧵👇
Boom! Closed on our 1st storage facility! Lots to unpack, deal summary coming out soon! 106 units +10 parking and a 🏠. Fully occupied and in place 10cap! Shout out to
@sweatystartup
for helping us analyze it, worth every penny! We even have some land to grow our own 🍅 farm 🤑
A hill I’ll die on…
These garage doors are ugly, they don’t mesh with most modern home designs and actually cheapen the look of the house.
Am I wrong here?
#modernhome
#retwit
🔥BOOM!! 🔥 Closed on our Self Storage 2nd facility…4x the size of our first one… 400 units, about 30 minutes outside of San Antonio!… deal summary below 👇🏼
Shop around and do your own homework… got 3 concrete driveway quotes from my builder, steep but fair, I decided to try one more idea myself..found a paver vendor for $1K less than the lowest bid from all the other guys, so much nicer!! This is the progress…
How it started…
How it’s going!
Mission complete! We finished the house after nearly a 2 year journey!
Learned so many lessons of building custom… thread coming soon!
This young man is hustling on a hot Sunday morning…high school kid and he is working the neighborhood power washing driveways and building a small business for himself! We were happy to hire him and be a small part of his journey! Reminds me of
@sweatystartup
💪🏼
Indian negotiator trick.. for any large purchase (house, car, etc), take your estimate/bid and have your sales person walk you through it, and for each line item, just ask “do I have to pay for this? And why?”... watch them squirm, and numbers drop like magic! 😎
...Thanks for reading along!! if you enjoyed this summary, smash the retweet on this thread 🙏 and show me some love! DM's are open and subscribe to my newsletter (link in bio), oh! we've found our next facility and raising our first fund for it, more on that process soon! ✌️
Under contract for our 2nd Storage Facility in TX!! This one is a much bigger facility right around 400 units, 67K SQ FT, we have room for expansion and its been run as a mom/pop (on site manager, offline systems), but its in fantastic condition…
@g_leichtfuss
I personally love a clean wooden door, still works well with modern aesthetic and ads contrast, warmth, and texture… something like this…
Working on my first self storage deal, toured today and it checks all the boxes for
@sweatystartup
playbook, retiree seller, analog ops, smaller market, LOI going out this week and what they don’t know is I baked Nicks consult into the offer price too! 😜
What a wild couple weeks! Little Sofia finally joined us on 5/7 after going a week past her due date. Baby and momma are both home and healthy!
We are over the moon and I cant wait to start the
#girldad
life!
Update: Under contract, 106 unit self storage, 98% occupancy, smaller town outside of Houston. Room for expansion and a House on 1 acre in the package. Inspections look good, this one is full steam ahead! Especially proud of how we structured (if it closes), deal summary soon!
Working on my first self storage deal, toured today and it checks all the boxes for
@sweatystartup
playbook, retiree seller, analog ops, smaller market, LOI going out this week and what they don’t know is I baked Nicks consult into the offer price too! 😜
Biggest take away from lending conference today… capital markets are THIRSTY for SFR rental properties loans… expect to see very competitive rates and products in this space (1-4 unit DSCR and long term rentals)… great news for all our SFR investors clients!
Newbies: How do you invest in Real estate with $1000?
When I was starting out with very little $, I placed small bets and ended up 10xing most of them!
Here’s what I did…. 🧵👇🏼
We had bought this old bank building in a small TX town in 2020, had big plans for it but our mortgage biz was so slammed in 21 we let it sit there vacant and didn’t focus on it (really dumb)…
My partner informed me that a tenant at our storage facility setup a whole gym and does personal training sessions out of it… I’m both impressed and annoyed at the same time. We only found out cause he had his clients doing laps around the facility! 😂
RE Model we are trying:
Buy house cash (discounted)
Match with end buyer that needs owner financing
Sell house at market (appraised) to end buyer with OF
20-30% down
Service note for 1 yr to season
Sell note in private market or buyer refis us after 1yr
Repeat
Thoughts?
#retwit
Had a doozy of a weekend… freak accident coming down the stairs, missed a step and broke my leg in 2 places, spent sat night in the ER hallway waiting for a bed, had surgery Sunday to insert rod and screws, now 3-4 months of recovery…
One of our RE clients learned a hard lesson yesterday... had grabbed a ~$2MM lot to develop a large MF after we helped them swoop in and get it under contract the day they were signing another offer, literally out of another buyers hands...
Residential Mortgage Appraisals are a complete Sh*tshow...
In some markets they are taking 4-6 weeks to complete
Some assignments are not even getting picked up
Some are getting quoted nearly $10K+ to appraise a SFR! (WHAT!)
#Retwit
Here’s why….😩👇🏼
I joined twitter in 2008… for years I followed mostly media/news accounts, sports teams, etc, last year I trimmed most and focused on leaders in my industry (real estate/mortgage) and found the little corner of
#retwit
, it has completely changed my daily focus and trajectory!
Finished the cosmetic work on the little SFR we grabbed next door, leased in 2 weeks!! We got a 2 year lease, with a 1 year extension option. Set it and forget it… now on to the refi!
@GuyDealership
In person shopping at dealership is painfully too slow of an experience, sometimes hours between sales person, finance, keys. Feels like on purpose to fatigue buyer in negotiations, but I avoid going in completely now. All over phone/email, I’ll go pick up once keys are ready.
Came across this franchise biz, this truck compacts dumpsters to make less dumpster turn overs for job sites etc… curious of RE devs thoughts, have y’all used this? See any value in the service?
@DonovanBuilds
@TyronMcDaniel
@FelixOrtecho
...Classic lesson of stepping over dollars to pick up pennies. Luckily we move on to other development sites and buyers looked in the mirror to realize they took their eye off the prize, but man choose your cheapness wisely people! Lol sigh
Businesses I tried and failed:
DesiMode - Indian magazine (oof, it still hurts)
YoAuto - auto parts marketplace
SmartSmS - text autoreply bot
Worknest - coworking biz
Throttle - personal finance app
Realzy - ibuyer wannabe
Keep going… it’s part of the process.
Whether your flipping houses or ground up developing, I don’t care how long you’ve known your GC or how many jobs you’ve done with them… someone thats a principal in the deal needs to go to the job site almost every single day, no one will watch the details like an owner will.
I got a phone call today and a lady said “I heard you bought a storage facility and it’s now full and operating at a 14 cap!”, I said how did you know?
She said I read about it on Twitter. It was my mom and she read my tweets through google.
The internet is incredible.
Indian Parent Version: If your kid isn’t the top 1% of math and science by 3rd grade stop devoting your life to anything else and get your parenting act together!
A few things we added to our new construction family home that I think will become more and more standard in the future: taexx pest control system, parcel locker for package delivery, car chargers in the garage, what else is a modern must have?
@AyeshaSelden
@antonia_mdprjct
Born and raised in the US has been a blessing and privilege for me, equally is the blessing of seeing countless numbers of immigrant family and friends come to the US and build their futures in the land of opportunity, no greater country in the world! Happy 4th America! 🇺🇸 🇺🇸
@RohunJauhar
Been slanging mortgages for 20 years, rates adjust buying power but don’t stop demand. The last 2 years everyone got to play and win the rate lotto, odds of that happening again are very low. Buyers will adjust buying power but still buy homes, expect to see arms make a come back
...so how did we approach the offer? Well with
@sweatystartup
playbook of course, here's the LOI i sent them (Look familiar?) , for me the goal was to roll the proceeds from a recent rental sale into this deal, so I wanted to minimize my cash outlay, so "Your price, my terms"...
My baby girl grabs my shirt with her little fist every time I’m putting her down… and she holds on tight even after she falls asleep…
If you need me, I’m the big pile of mush that melted in the corner.😍😭
Finally hitting the room after a whirlwind of opening night
@REconveneLA
the level of talent here is absolutely absurd, my head is spinning from all the RE discussions ive already had in 1 place. Grateful to be a small fish in a big pond that
@moseskagan
filled in LA this week!
Anyone in Houston today want tickets to the Texans game? It’s a set of 3. (Free) Noon start at NRG stadium. Would love to treat any of my followers and their friends or family!
Our Missouri City building rehab is in the final home stretch! Bathrooms almost done, sprinklers going in next and we’re starting interior suite framing! T-minus 90 days for this bad boy to start seeing tenants!
RE transactions are very emotional, esp in residential... i'm still trying to teach my team that there will be hiccups, esp in this environment, but the worst thing you can do is avoid the problem, people get very worked up when you go dark. Just pick up the phone, every time.
@moseskagan
@jdecentralized
@AyeshaSelden
@bahiyyudin
Why does “low income” have to be “low quality”? There is plenty opportunity for RE investors and developers to put good product out there at affordable prices, the smarter ones work with municipalities to get grants and incentives to do it, increasing ROI. Look at
@TyronMcDaniel
Signed the closing papers to sell my final SFR rental property today, bittersweet as it was the end of an era but I’ve officially graduated out of SFRs! Onwards to larger deals and first GP deal, can honestly wouldn’t feel as confident had it not been the last year of RE Twitter!
...Okay the numbers, here they are, for you number crunchers just know im a napkin math guy, i look at income, expenses, NOI, and cash on cash (actual and conservative proforma), if i like the #'s, im moving forward, one thing to note, this includes the House, so about that...
Have a self storage seller deal we’re not taking down, good Texas tertiary market but we’re stretched on the current deal we’re working. Sharing it in the wild to give everyone a chance on it. Seller info: number is (713) 533-6500, ask for Mr. Lyon! Good luck
#retwit
! 💪🏼💪🏼
Here she is! Previous Wells bank building! We just passed inspections and it’s in fairly decent shape, smack in the middle of a town called Poteet, Tx, about 25 min outside of San Antonio. Should close in a couple weeks, will be our first retail store front for
@matadorlending
LOI pending on a small town freestanding retail building, had national owner that vacated. May be getting this at 50% tax value and well below rebuild cost. Easy landlord play that should have stabilized double digit cap. Once we lock it up, can’t wait to share the details.
Walked without a walker or crutches for the first time since January 22nd yesterday. Health and mobility has shot up to the top of my list of things that matter… not taking for granted the independence it grants you ever again. 🙏🏼
Building a house chronicles:
Waiting eternity for custom front door to be ready, steel, 10’ tall, powder coated… Perfection right?
Well today, delivery guy brings it unwrapped on his truck, it falls off and drags it 200 yards, shreds it to hell, sending it back tomm🤦🏻♂️🤦🏻♂️
Been searching for security cameras for our job sites with cellular most need wifi or insanely expensive, my 70yr old neighbor suggested a hunting trail camera… I’ve never hunted so didn’t even know about them (im vegetarian), mind blown, great options and low cost, who knew!
Today my daughter took her first steps, and my son swam by himself in the pool without floats. Both of them smiled ear to ear and beamed of pride in themselves. Mom and dads hearts were completely filled.
These moments eclipse everything else.
Today was an amazing day.
Under due diligence for our 16unit… its in solid shape already but we can improve rent rates with minor interior updates… previous owner put some $ in already. This will be just a long term cashflow play, not a huge amount of value add but we like the market!
@Mehul14345387
Have a friend, who were helping finance, buying 140 acres of wooded land with a nice house on it with ponds and river access just 45 min outside of Houston for under $900K... TX is incredible!
Hussain is criminally under followed… if you want to see a lean operator building an empire of quality RE holdings, follow along on his journey! Congrats on another great pick up!
Excited to get this one closed last week. 18 acres of outdoor storage one mile from Dell's campus in Round Rock, TX (suburb of Austin). Hopefully
@fortworthchris
prediction
#3
for 2022 comes true!
I don’t plan on buying vacant RE again anytime soon, in this current environment I value in place cashflow far more than opportunistic rehab or value add…
Been on a twitter hiatus for few weeks… finally finished our house and moved, and was heavily focused on strategy for 2022 across all business units,
@matadorlending
, Matador Realty, and storage investing. Can’t wait to share progress updates on many fronts! C U IN 2022!✌🏼🎉
One of the coolest thing about brokering commercial real estate, when there’s big players negotiating on both sides, you get to learn how each side analyzes and structures a deal. So many unique ways to make a deal happen, it’s not just seller price vs buyer price.
Windows went in today! Hit some slow downs due to weather but finally back on track, still a solid 6 months away from completion but the house is starting to feel real!
I’m about 1 month from being a girl dad...👧🏻🙏🏼, what should I know about raising a girl that’s different than a son (my boy is almost 5)? All of you daughters out there, what’s the best thing about your Dad?
#girldad
Just sent out 4 offer letters to new team members who wanted to break into the Mortgage industry… assuming they join us, we’ll be over 30 strong by Feb… 18 months ago there was 4 of us! We’re hiring people without exp to bring new ideas and training them our way, lets go 2021!
We bought a property last year to build our new home, the existing house had a nice dated but live-able home on it (pics). Instead of just tearing it down, we learned about deconstruction, we ended up using Habitat for Humanity. /1
Overdue for on an update on this building, our 14 exec suites are nearing 80% full, nearing ~40% occ on the building… today we had a killer meeting with a potential occupant of all of the remaining space as a JV that still gets us our base rent first, pray the RE Gods for us!
Seller rescinds extension offer and isn’t going to extend anymore... shock and awe on our side (saw it coming)... previous buyer (who we leapfrogged) came back, beat our #, AND giving $100K hard EM day 1... it’s over, we lost the deal.... for haggling $5K. So many 🤦🏻♂️🤦🏻♂️🤦🏻♂️🤦🏻♂️🤦🏻♂️...
My brother
@mehul_shah_CBC
just locked us up a 16 door MF under $70K a door, fully occupied in Houston... he set a goal to get a deal before the year was up and hustled us one! 💪🏼💪🏼
How I built a mortgage business.... (and little about me)
RE businesses have many sides, but lending though exposed to RE is truly just a paperwork business. I didn't intend to find this career but i dont think i'll ever leave...
Here's how it all came together.... a 🧵👇
...we closed about 2 weeks ago and the letters for new rents are out, some push backs (expected) but many have already signed new leases, we're converting to ESS (it has no website!), we will be rebranding, and going fully online & automated, so the in place CAP is a 10CAP🤠...
And lastly being a lender or carrying a seller note helps you structure deals that make sense for both sides, and in our case hit reasonable returns. I had a huge exhale today. I did not want to enter next year with this property on our books, we funded today…
When
@twitter
first launched, its growth moment was
@sxsw
, in that spirit today we’re launching TheNoteFund at
@REconveneLA
, a real estate note fund for passive accredited investors looking for cash flow, sign up for early access here: 🙏🏼
...First, the main question, how did you find it? Well folks, most will be disappointed with this answer, but... it was on Loopnet! But my HACK is the filter "Date Entered" and look for listings at least 6 months old, notice the date ours was listed... 11/15/2019, over 1 yr...
“If we just raise rents 20%, it will be an Xcap!”
“Raising rents” = 100s of notices, angry tenants, phone calls, move outs, clean outs, capital improvements, repairs, new tours, rent quotes, new leases, time, and a few details in between.
Easy Peazy!
Just a quick note to ambitious GPs:
Actually executing the thing is a lot harder than typing in a few numbers in a spreadsheet.
So many moving parts. And each needs human attention and oversight.
True boots-to-the ground operators know that that spreadsheet ain’t shit.
…And ✌🏼out LA and
@REconveneLA
, incredible event and structure of meeting some incredible RE peeps. Looking forward to another one and forging relationships and opportunities beyond Twitter! Thank you again
@moseskagan
so happy we met IRL, onwards and upwards! 🙏🏼
One of my fav properties in the Houston heights, wished it was occupied by something more exciting than a fast causal restaurant and a paint store but still very eye catching!
If you’re borrowing hard money/private money and intend to BRRRR, you should be starting your effort on the take out refi the day you close, dont wait until the end of your loan…
Met a “luxury asset lender” today… their model is you can get fast loans against luxury items like cars, watches, jewelry, etc. it’s basically a high end pawn shop for Ferrari’s I suppose… but one of their most prized collateral items was… a Manhattan parking spot!! RE baby!!
A Negotiation Super Power: Stay silent…. Had a vendor come off 15% from a top line contract by staying silent after explained all the “features” I was getting at a higher price point… kept quiet and the silence did the negotiations for me! “Enjoy the Silence!”