Mid Market Maverick (MMM) Real Estate

Former Engineer & Hotelier | Real Estate Value Creation & Domination of my Mid-Market area | Re-Positioning/Development/Re-Use/Public-Private Partnerships

[Mid Market Maverick (MMM) Real Estate @MMMavRE]

A THREAD: Let's talk RE condemnations...aka takings.

Have you even woken up in a cold sweat, going over that nightmare you got a letter in the mail saying the DOT needs your land for a new project?

Fear not, for condemnations (takings) can be quite the blessing !

1/x

[Mid Market Maverick (MMM) Real Estate @MMMavRE]

@bairdk Why touch the 4% debt?

Just refi the 7.75% loan

[Mid Market Maverick (MMM) Real Estate @MMMavRE]

@LOIsAndLeverage @realEstateTrent What if he 1031’s?

If he buys a property or two every year, he can engineer a recurring tax loss.

[Mid Market Maverick (MMM) Real Estate @MMMavRE]

@CoyDavidsonCRE Agreed. People will be inundated with AI robospam calls more than we already are.

Personal letters, warm introductions and in person meetings will reign supreme.

Turn back the clock!

[Mid Market Maverick (MMM) Real Estate @MMMavRE]

@spencertbarber Essentially it become a condo, with other co-owners that complicate many things.

Having A+++ management and strong legal docs will be key.

Ritz Carlton has been able to successfully do this at places like Vail / Beaver creek, but they have irreplaceable locations.

[Mid Market Maverick (MMM) Real Estate @MMMavRE]

Reminder: Time Kills Deals!

People that don’t see transactions all day / everyday don’t get to witness this repeatedly.

Just when you think you have seen all the ways “iron clad” deals can blow up, you are presented with new examples.

[Mid Market Maverick (MMM) Real Estate @MMMavRE]

On a large development deal, between negotiating a contract, DD, option extensions, etc., picking the wrong buyer might cost you 6-8 months, plus your time, attorney fees, opportunity cost, etc.

Sometimes the best offer is not the best looking offer on paper!

[Mid Market Maverick (MMM) Real Estate @MMMavRE]

When considering purchase offers, people don’t place enough consideration to the probability of closing.

Is the buyer offering the highest price because he is attempting a re-zoning that is a pipe dream?

Is he trying to perform a miracle extending utilities ?

1/x

[Mid Market Maverick (MMM) Real Estate @MMMavRE]

Their offer on paper might look the best, but you need to ask questions about the buyer’s plans, and what they need to get done during DD to close.

You might be wasting months and tons of time on a deal that never had a high likelihood to close.

2/x

[Mid Market Maverick (MMM) Real Estate @MMMavRE]

People remember your successes more than your failures, so go take a swing at it!

[Mid Market Maverick (MMM) Real Estate @MMMavRE]

@bobbyfijan Love these!

How big is the retail space on the bottom.

One unit up top?

[Mid Market Maverick (MMM) Real Estate @MMMavRE]

@Bethazor1 Please let me know! Would love to participate.

[Mid Market Maverick (MMM) Real Estate @MMMavRE]

Been trying to distill what I do in Real Estate, and it comes down to this:

Manufacture value and harvest tax benefits.

That’s it.

If there is not a controllable way I can increase equity significantly, it is not the deal for me.

[Mid Market Maverick (MMM) Real Estate @MMMavRE]

@bethanyjbabcock Very messed up!

Does anyone have a story of when a ROFR benefitted the party that wasn’t holding it?

I have tons of horror stories about them, and none of them end with “I sure am glad I gave them that ROFR”.

[Mid Market Maverick (MMM) Real Estate @MMMavRE]

@bethanyjbabcock Have you ever done a food truck deal?

If so, what is the max rent you have gotten / month?

Any tips ?

[Mid Market Maverick (MMM) Real Estate @MMMavRE]

@sweatystartup Have a 2nd home in New Braunfels, TX and am seeing the same thing.

[Mid Market Maverick (MMM) Real Estate @MMMavRE]

@AvivaRealEstate @bethanyjbabcock Wow. I didn’t expect that kind of behavior at this event from anyone. Glad it was addressed

[Mid Market Maverick (MMM) Real Estate @MMMavRE]

@rohde88 Love it!

What is exterior material?

Construction cost (minus land)?

Does cost include any office finish out and is it sprinkled?

Square footage?

[Mid Market Maverick (MMM) Real Estate @MMMavRE]

@MattLasky No, very substandard.