All Forum Posts by: Nina Grayson

@Henry M. I use Excel. It calculates the Acquisition, Holding, and Sale to arrive at MAO. And it shows the ROI, CoC. If the investor is leveraging, my calc will always be different because the flipper may be using a different lender each time and may be looking at LTC vs a 90/100. But the rehab is always going to be different because every flippers costs are unique to the vendors, materials, and labor they utilize. So, it's easier for me to include what their average Rehab Rate $ /SF is so I can get close to where they need to be. When I do the initial view of the property with the Seller, I look closely at the high ticket items and will adjust my estimate. And I'm not greedy. If the only way a deal can work is that I go to my minimum fee, so be it. But at the end of the day, I prefer Cash Investors, especially since the industry has grown so much that the competition for available inventory is extreme, so spreads are lower. And in this Covid-19 redefined economy, Cash is Queen.

@Henry M. Excellent! It astounds me when I see posts or emails for deals that show a spread of let's say $25k and nothing to substantiate it like SF, Rehab $/SF, Rehab % of ARV, etc. I keep telling folks this who are jumping into the "COVID-19 is going to bring great opportunity" camp, that it will but you still need the first and foremost requirement for a potential deal: Motivated Seller!!! No matter what, if the seller is not motivated, it is a tougher deal to negotiate to the price that's going to work for my Investors. Henry, my calculator includes everything you have listed above. Thank you for bringing some clarity to this aspect of the industry.

Hi Texas Investors, 

Does anyone know where I can post my Wholesale Multifamily deals on BP?  I tried marketplace, but listings for Commercial only go up to 5 Units.  

Thanks for your help,

Nina

Thanks @Dana A.

It's not an easy space to enter into.  I'm focused on the listing side vs buyers and tenants. I'd rather take a listing I have fully done the DD on that I know is sensitive use than rely on other brokers who don't do the deep-dive on behalf of the seller.  

@Tim Herman Hilarious! Yeah, that's what I first thought. I think the investor was referring to 70% of ARV and he made it sound like he also got the rehab cost, but I think he was referring to the 100% rehab financing that goes with it.

I attended an REI event recently and I heard of "over-funding" a deal. It was not explained to me how this is done, and I would think it's a bit risky. Have you ever heard of this term? Have you ever "over-funded" a deal? My first thought is that this has to do with lending on 70% of ARV. If so, the deal has to be so obviously good and calculated immaculately, that there is little margin for variation. Let me know in your comments below.

Nina

@Bill Snyder, Find developers and pitch them to develop for Cana. Land is gold, IMO.

I've been building my network here in Southern CA and throughout the Nation.  On the buyside during the recent Phase 2 Social Equity licensure for Retail, pre-licensees were frenzied to find properties.  Several are partnering with the big franchisee syndicated Cana Cos, who are buying the asset and leasing to the new licensee with a share of profit agreement.  Now we are in Phase 3 in SoCA, and acquisitions interest is not slowing down, but the biggest hurdle is broker/buyer sensitive use market and property knowledge.  I lost a $1,45mm deal because of a non-operational daycare that was a few blocks from the subject property.  The day-care was still actively licensed, so at anytime it could have the minimum required enrollment to resume operations.  Thus, the location did not meet sensitive use.  The listing agent and owner had it off market promoting it as a Cana opportunity, but they did not do their DD pre-listing.  So, brokers need to know the zoning, how many licenses and types can be issued in a sub-market, and they need to do their DD before listing.  Fortunately I love research and crossing T's and dotting I's, so I know how to suss out properties and qualify them for my cash paying Cana buyers.  

@Account Closed 

Kwan, thank you for calling and apologizing and acknowledging that you made a mistake.  That speaks to your character.  And you have now learned the greatest lesson in real estate investing - relationships are key!  

I'm glad you now know the value of transparency in both respecting others and their time and business, the importance of the nucleus of real estate investing - relationships, and that you realize why it is imperative that you are careful in your business dealings so you do not open yourself or others up to liability.

You confirmed that you have a proposed offer and have not executed the offer nor are you exclusively contracted with an agent at this time.  

I stand by all that we discussed on Sunday re your family's home.  I look forward to supporting you in your investing future.  

Nina

@Mark 

@Mark S. I received an email from this guy (it's a guy) saying he found an archived marketplace post online.  He said he was not an investor and was not on BP.  He said he was looking for a Realtor to help him see what he could get for his house and that they would want my help selling it.  After meeting with him (and he never disclosed he was working with a Realtor or had an offer) I decided to check BP for other reasons.  I then decided to search for him on BP to see if he was here.  And here was this post.  Grrr!