Christopher Stout

NYC developer | Commercial Real Estate owner | Buying apartments across the country

[Christopher Stout @Official_Stout]

Want to buy real estate from battered men (or women)? Just absolutely beaten to a pulp.

Call owners of rent stabilized apartments in NYC.

[Christopher Stout @Official_Stout]

@cmills @realEstateTrent Much better to just respond a little slower.

[Christopher Stout @Official_Stout]

@bhwizzy @RandallHouseRE You sound bitter.

[Christopher Stout @Official_Stout]

@RandallHouseRE Agreed. Townhomes are a solution to a land inventory problem.

If you build them where there is available land, you're at the bottom of the barrel. If you build them where there is no available land, you can do well.

The BTR model is still broke.

[Christopher Stout @Official_Stout]

New York State collected $80k from me in mortgage recording tax on my last construction loan.

I'll get it back when I sell. Here's how it works:

When you close on a construction loan in New York, the state charges mortgage recording tax on the full loan amount.

Most builders factor it in as a cost and move on. I don't accept that.

There's a structure called a Purchase CEMA. Consolidation, Extension, and Modification Agreement. When my buyer is ready to close, instead of their lender originating a brand new mortgage, my lender assigns my existing construction loan forward to the buyer's lender. The buyer only pays mortgage recording tax on new money.

The gap between what I borrowed and what they're borrowing. In many cases, that number is close to zero.

[Christopher Stout @Official_Stout]

NYC mortgage tax is brutal

I force my buyers to sign mortgage assignment language in the contract which mandates them to give me the tax they would have paid to the city through a purchase CEMA.

Basically helps me recoup the tax I had to pay when I took my construction loan.

[Christopher Stout @Official_Stout]

Punch lists are complete BS. They should be wiped off the face of the planet.

I know they are inevitable but cant just be an acceptable part of the home building business.

[Christopher Stout @Official_Stout]

Subcontractors:

Start nickle and diming your best builders. Its a great way to kill a relationship and stop the work flow.

Youll get away with it once then they phone will stop ringing.

[Christopher Stout @Official_Stout]

Im working with a seller that is demanding we release the deposit to them. $120k.

In the past, if I knew I was closing I would say no problem.

It dawned on me that they can simply not show up to the closing.

Then what?

[Christopher Stout @Official_Stout]

Everyone who wants to solve the housing crisis should spend a day watching what it takes to build one building.

[Christopher Stout @Official_Stout]

@AdamHKlein Ive seen some centers add an angled front. Increases usage tremendously

[Christopher Stout @Official_Stout]

NYC wants more housing. Bad.

The mayor doesnt stop talking about it.

I can tell you from the front lines. Its extremely inefficient and slow. Its expensive to build because of the delays and requirements.

Nothing they are doing makes me able to lower my sales prices.

[Christopher Stout @Official_Stout]

@Kevinkrone @realEstateTrent Underrated comment

[Christopher Stout @Official_Stout]

@ant0niorules @shawngorham How did that work out?

[Christopher Stout @Official_Stout]

Cash flow is a lie.

If you target cashflow you're likely to not get a good deal.

Target buying assets for less then they are worth. The rest will figure itself out.

[Christopher Stout @Official_Stout]

This would have been $4k a decade ago. Crazy.

[Christopher Stout @Official_Stout]

So much junk real estate out there that are great candidates to lose money on.

To do re well is very difficult.

[Christopher Stout @Official_Stout]

@ldolla @GrantCardone @realDonaldTrump @pulte @grok Down for sure.

[Christopher Stout @Official_Stout]

@JakehellerAI Its because you said a bad word

[Christopher Stout @Official_Stout]

Real estate agents:

If you hired a Filipino cold caller. Just stop. You're wasting your time.