All Forum Posts by: Dan Rowley
Dan Rowley has started 0 posts and replied 202 times.
@Kevin Bartel welcome to BP. it's true the SFH or small multifamily rentals barely will pencil anywhere these days for a couple of years now even though it's the best way to really learn RE investing as a beginner. syndication/private equity deals have a much better chance of penciling and providing decent CoC as there are more economies of scale and sophistication at the GP/operating group level in general.
Post: Plotting the Relationship Between Social Media Presence and Real Estate Fund IRR
- Investor
- Cary, NC
- Posts 208
- Votes 185
Those who do do. Those who can't, teach
Post: Possible Duplex LTR Purchase - Would love any insight!
- Investor
- Cary, NC
- Posts 208
- Votes 185
Quote from @Steven Wetherill:
Newly built (2024) duplex in Boiling Springs, SC.
List price: 445,000.
DP: 89,000
Closing: 8900
Total Invest: 97,900
Projected mortgage: 2500
Rent: 1700 per unit, 3400 total
Taxes: 42
Insur: 263
CapEx: 100
Repairs: 100
Vacancy: 100
Total expense: 3105
Cash flow: 295, 3.1% - 6.0% CoC return.
This deal doesn't meet the 2% or 50% rule of thumb, but it has positive cash flow and is in a growing market, according to the latest 2024 Top 100 data from BP.
What questions should I be asking? What have I missed?
Hi Steve, where did you get your property tax estimate from? Because, it's way too low. If you own this as a rental then there is not homestead exemption and you'll pay much higher tax rate than a resident/owner occupant in SC. This is the case in a few states. reach out to me if you'd like details. ~Dan
Post: South Carolina Investors
- Investor
- Cary, NC
- Posts 208
- Votes 185
Quote from @Davis Barnes:
Anyone in the South Carolina area and wants to connect?
I live in NC but invest primarily in Greenville SC / upstate with my business partners. Let me know if you'd like to chat.
Post: BetterLife Tribe program - Brandon Turner - looking for reviews and feedback
- Investor
- Cary, NC
- Posts 208
- Votes 185
@Scott Stamps I'm skeptical of many of these programs but for sure I'd pass on any 'guru' programs where they are struggling to keep their own deals afloat, as ODC is. There is a lot of public info out there on their funds and how they are (not) performing.
Post: Life Bridge Capital?
- Investor
- Cary, NC
- Posts 208
- Votes 185
@Mike FitzPatrick I have experience investing with them. you can DM me to connect if you'd like my feedback.
Post: Has anyone used Roofstock to invest?
- Investor
- Cary, NC
- Posts 208
- Votes 185
Quote from @Sean Kirk:
I'm seeing what seems to be 10%+ cap rates on roofstock. Has anyone bought from the platform? Is their underwriting sound?
I used Roofstock to sell one of my rental properties in TX as their sales commission is lower than going through traditional sales channels. I have not purchased property via their platform but I'd also note it's few and far between to try to find any deals that pencil in the current environment. 4-5 years ago one could find good cash flow with SFR properties.
Quote from @John Jasko:
I am in ATM investment. Bronson Hill created at fund of funds and invested through Dave Zook at the RealAsset Investor. The investment is with Paramount Partners. This deal has turned very negative. I am concerned that it is a ponsi scheme. be very wary of ATM deals.
Post: Anyone has invested with Open door capital? How was your experience?
- Investor
- Cary, NC
- Posts 208
- Votes 185
Quote from @Chris Seveney:
Quote from @Jay Hinrichs:
Quote from @Evan Polaski:
@Hyun Supul, without diving too far into this, and the devil is always in the details, when I see this, I can't help but assume this whole offering is a way to for them to raise pref equity for their own deals, but wait, that won't look too good, so let's layer in some private credit, too.
It says it will lend money AND invest pref equity into MF deals owned by Disrupt and Open Door Capital.
Questions to ask: what allocation is going to loans versus pref equity in their own deals? Why do their deals need capital infused, and are those reasons due to poor management or things that were truly out of their control and/or could not have been foreseen at acquisition?
On the loans side, who is the lender JV? What is their book of business? Is this lender going to sending money back, as second mortgages to ODC/Disrupt deals?
@Chris Seveney, I can only imagine two things here:
1. They are lending to people who are so desperate they will pay 16+% for the loan. Which in itself gives me major pause, because these rescue capital loans almost never work out.
2. They aren't making money on the loans and the true business driver is the pref equity raise for their own deals. It allows them to keep those afloat and can collect fees on that side by retaining ownership of the deal.
OH gosh I just read this and this is what led a company I worked for in the 80s into a massive BK loaning between partnerships.. Not sure about this I hope they can pull it out.
Do not quote me on this but I think someone told me the new fund was a debt fund (along with some other asset classes) and a percentage of the money raised was to invest in their other funds (ie. instead of capital calls). This is what I heard third hand, so not sure if it is true but i believe the person got this from the PPM which was noting where the monies were going.
I know the "survive till 25" crowd was banking on interest rates going down to the 4's or low 5's next year and that was going to save these deals. If that is the case, I unfortunately do not see that happen.
What do others think?
Chris, Agreed & I see a VERY low probability that interest rates will be in 4s or 5s in 2025, so those deals with variable rate debt will likely continue to bleed.
Post: Mag Capital Partners
- Investor
- Cary, NC
- Posts 208
- Votes 185
Quote from @John McKee:
What kind of upside/IRR are they promising in their fund? @Dan Rowley