Drew McAllister | CRE

NRE Commercial | eXp | DRE 01946829 Husband & Father of Three - USC Graduate & Former Athlete

[Drew McAllister | CRE @DMAC_19]

@_sorci_ Loan Broker gets paid to get the deal done though…

[Drew McAllister | CRE @DMAC_19]

One of my best clients bought 3 value-add apartment buildings in Southern California 2019-2022.

All 3 had real upside.

30–35% upside in rents.

A couple had ADU components that needed to be built out.

Over the next few years, we executed the plan:

Improved the properties.
Built the ADUs.
Turned the units.
Pushed rents.
Stabilized the assets.

By 2026, all 3 properties were ready to refinance.

In February, rates had started to come back down and we were getting quoted around 5.75%.

The plan was simple:

Refi into a 3-year fixed loan, get off the adjustable rates, and buy him flexibility over the next few years.

Bank moved painfully slow.

Took 6 weeks just to get an LOI with terms.

He rate locked - 5.70%

As the rate lock deadline got closer, we started putting pressure on everyone involved:

Property management.
Bookkeepers.
Accountants.
Lender.
Broker.

Everyone.

But time wasn’t on our side.

Rate lock expired.

New rate came back at 6.34%.

Same assets.
Same borrower.
Same business plan.

But now materially worse loan proceeds and cash flow because the process dragged.

This is the part of real estate people don’t talk about enough:

You can execute the business plan perfectly and still get hurt by timing, process, and people not moving with urgency.

So here’s the question:

Who’s at fault here?

[Drew McAllister | CRE @DMAC_19]

@JakehellerAI Right answer. I was firing texts at 4:45

[Drew McAllister | CRE @DMAC_19]

Is 5:00 am too early to start texting people about the work day?

[Drew McAllister | CRE @DMAC_19]

@LandlordRescue Wanting to spite me?

[Drew McAllister | CRE @DMAC_19]

@danbottcre Fair enough

[Drew McAllister | CRE @DMAC_19]

@MainStLender Take a guess

[Drew McAllister | CRE @DMAC_19]

@ChrisDPrins1 Does it matter?

[Drew McAllister | CRE @DMAC_19]

@AdamHKlein

[Drew McAllister | CRE @DMAC_19]

@Brittonnorth

[Drew McAllister | CRE @DMAC_19]

@Barnabas_Barmy @ThinkAppraiser Cherry picking numbers

[Drew McAllister | CRE @DMAC_19]

@shawngorham Only up and to the right

[Drew McAllister | CRE @DMAC_19]

@Barnabas_Barmy @ThinkAppraiser Huh? Those are percentage gains.

[Drew McAllister | CRE @DMAC_19]

@CliffGagliardo @SistersPress I hear you on that.

[Drew McAllister | CRE @DMAC_19]

@CliffGagliardo @SistersPress Might as well be lunch time

[Drew McAllister | CRE @DMAC_19]

@SistersPress They have any real estate to sell? 😂

[Drew McAllister | CRE @DMAC_19]

@N8RealEstate I can’t believe there are $55k homes in the US. 🤯

[Drew McAllister | CRE @DMAC_19]

Trailing 5 year avg annual returns

QQQ - 24%
S&P - 16%
BTC - 17%

[think like a real estate appraiser @ThinkAppraiser]

I don’t like or understand Bitcoin.

At what price would you buy a couple bitcoins as a lotto ticket?

[Drew McAllister | CRE @DMAC_19]

@Barnabas_Barmy @ThinkAppraiser 5 year avg returns

QQQ - 24%
S&P - 16%
BTC - 17%

[Drew McAllister | CRE @DMAC_19]

Fought this for the last two weeks.

Provided evidence of improvements (Electrical / Roof).

Day before expiration - Quote for $7100 with A rated carrier.

[Drew McAllister | CRE @DMAC_19]

Just got an insurance renewal quote for my client’s 14 unit property.

$16,035.43

Insurance cost is 7.75% of gross income