All Forum Posts by: Louis Leone

@Chester Transo 

Yes, the way you summarized the post is correct. The key points being that depending on your time horizon, a disposition in the near term with a cap rate that is moving in line with interest rates will value the property much lower (last outflow in the IRR calculation) then one that is delayed further down the line. The other factor is the NOI which has more to do with the lease structure and timing.

I think since everyone is expecting inflation and investors are preparing for upward movement in cap rates, we won't see an immediate jump (the buffer compressing instead).  It's cap rate increases that investors don't expect that usually panics everyone.

I guess we'll see what happens.

Loved it.....okay...I'm re-energized!

@Bob Wilkus 

Haven't seen much on BP for European properties, but I have on LinkedIn groups.  You may want to check there also.

@Brian Gibbons 

Great story Brian....very inspiring.

@Christopher Persaud 

I don't have any experience with these types of investments in NYC, but they are called Section 8 and I would start by looking at this link:

http://www.nyc.gov/html/nycha/html/section8/landlo...

It talks about the voucher system and is specifically designed for landlords.

@Nat C. 

If the problem was caused by a condition similar to what @Shawn M. described then it actually could have been fixed, but reoccurred.  When they indicated it was fixed during the due diligence of the property, did they provide proof (e.g. an outside vendor invoice and what was performed)?  This may be a tough one to win unless you can prove they did something shady or fraudulent.  

From a purely legal point, since there is no written agreement, the agent isn't owned anything, but you did say in your question that there was a "general understanding that we would use him to list all properties that he helped us buy".  

If he is working hard to bring you deals and he is under the impression that he will get the buy and sell side, then it makes sense that he is upset.  It comes down to what you have both discussed and what the expectation was. 

Welcome to BP Christopher.

I'm not from the Phoenix area, but there are plenty of people on the site who are.

A lot of great information here.

Welcome Andrez!

@Aaron Foster 

Interesting... I do think you would lose FMV if you hold less than a year (I think you only get the adjusted basis - but I'm not an accountant!). What will it rent for? Maybe there is an option there to get through the holding period.