All Forum Posts by: Michael Le

You can go to a local meetup. There are plenty in Dallas. There are also online meetups you can join and network there.

 It's becoming more normal for GCs to want to do that. They're also not wanting to lock in prices at time of contract but at time of delivery. Crazy indeed.

I don't own any so just my opinion. But I think if you get a parking lot in a good urban core area and treat it as a covered land play that would be interesting. So decent but not great cash flow now but potential for land appreciation and you can sell it or development something yourself later.

What are you current loan terms? A long term 4.5% fix rate loan is pretty attractive in this current debt market. You'd be looking at a much more expensive bridge loan for any new heavy value add property and that could work against whatever you're doing to fix it up.

Love your posts. Appreciate the details. Lots of nuggets of information.

If you're talking about asset management software, you can take a look at this. I had a demo call with them recently and it looks like it probably does what you were looking for.

https://www.lobbycre.com/

1. The cap rate is determined by the market so you don't just lower it to increase your building price. If it were that easy everyone would just lower it to 0% and make infinite money :) As for the projection in 5 years, that would be up to you do determine what the likely cap rate to be and get your investors to buy off on your projection. Cap rates are pretty compressed right now, historically speaking, so most of us right now are underwriting with some expansion in mind. Is that an increase of 50 basis points over 5 years or 100 or more, who knows?

2. That's not how it works. You can only calculate the IRR after you figure out the sale price, not the other way around. So using your projected sale price you can calculate the IRR and then determine if that IRR is sufficient for you to raise the money you need from your investors.

Acres Home is a slowly gentrifying area but it's definitely not there. Definitely not a place I would be looking to have an AirBnB.

In this current market I'd always do on market and let the market bid it up.