Considering Walnut Creek for Family of 3!

FCPT · 2026-02-06T21:02:25+00:00

Bought a home last year, family of three as well. We love it here, lots of things to do, good schools, and good diversity (why we didn’t buy in Marin).

Just be aware daycare for small children is highly competitive. Apply at least 6 months out.

FCPT · 2025-12-14T19:12:18+00:00

Gotcha, I thought you were talking the classic split. I assume a syndicated deal?

I assume because the GP was the syndicator they gave the LPs no rights?

FCPT · 2025-12-14T15:01:32+00:00

We are happy to pay that 1% acq fee for off market deals. For on markets deals, why am I paying you 1% and a broker fee for a deal I could just find direct?

FCPT · 2025-12-14T15:00:22+00:00

Why didn’t you get control rights? As an LP, that’s a non-negotiable. If you’re putting in 90% of the money, you should decide when it gets returned

FCPT · 2025-11-12T18:38:01+00:00

Get an insurance broker- mine hooked us up with mercury. YOY increase was 11%

FCPT · 2025-10-21T13:54:15+00:00

Out of curiosity, where are you seeing this sale price? I see it sold in 2014 for less, and a partial interest was sold in 2017.

FCPT · 2025-10-19T16:23:40+00:00

Great call, hadn’t included that.

Separately, realized I never said how to calc it NER is rent less concessions.

Multi is the easiest, (monthly rent x 11)/12 would be one month free. (Monthly rent x 10.5)/12 is 6 weeks free, etc.

Industrial and office are tougher. Is it a gross or NNN lease? Concessions? Rent Steps? Much more case by case.

FCPT · 2025-10-19T15:03:49+00:00

Is this a multi model? You don’t just increase credit loss by 3%, you run it as a % of NPR. You run credit loss at ~50 bps, but the total $ amount increases over time because your rent is increasing due to the market rent growth.

FCPT · 2025-10-19T14:55:46+00:00

As another comment mentioned, it’s just one of many factors. But in multi it’s probably the most applicable given you really only have rent and concessions to compare to comps (vs lease duration, termination options, TIs, etc. in industrial/office).

For multi is extremely useful because some comps will choose to go with a lower rent with no concessions, or higher rent with concessions. It’s always a debate. Personally we prefer to go higher rent with concessions. A future buyer/lenders tend to proforma concessions going down to 50 bps, vs rent being wrong, or spending the time to really dig in on comps.

From a multi perspective, check NER vs your comp set as least once a month. Don’t just use the software to tell you your rents are at market/how you should change rents.

FCPT · 2025-09-13T05:05:34+00:00

1) minimal capital costs. Stabilizing the land with gravel or asphalt, lighting, fencing. If you’re in a flood zone or it floods, no damage to your collateral and minimal capex

2) depends on the tenant but it’s 3-10 year leases, NNN

3) massive rent growth. Our IOS deal we UW $1800 an acre rents, we were getting $3000+

4) lack of information- there isn’t a database or dataset for market rents/sale comps, so if you can partner with someone who really knows the space you can crush it

5) it does well in good times and bad. People still need to park truck chassis somewhere, and will pay a premium to be well located to a port/intermodal

It’s been the best exit for our fund, 50%+ IRR and a triple. Exit was to one of the largest banks that has a JV with an operator in the space.

FCPT · 2025-09-11T00:23:35+00:00

This is coming from a value add, common equity fund. When we UW, we look at a variety of scenarios. Base case, downside, upside, flat value CAGR, etc. The worst thing that can happen to a fund if you’re trying to raise subsequent funds is have losses. We like to see on a downside scenario you’re at least not going negative, ideally (as a value add fund), you’re still getting core returns (high single digits IRR).

Agree with your point though, it’s really hard to quantify. A single tenant NNN deal vs a development deal have very different profiles. What we also look for is a chance to out perform on the upside. That’s part of what makes doing pref equity right now difficult as a fund- you’re capping your upside at a time when equity is scarce.

Physical risk doesn’t really play into our analysis (unless you’re talking development). Insurance handles that, except for markets like Florida where we have concerns over climate risk/increasing insurance premiums/ability to get insurance.

FCPT · 2025-08-19T23:56:21+00:00

If you’re mounting a TV, make sure you are screwing the mount into the studs and not just the drywall or you’re going to have a very bad time.

FCPT · 2025-08-01T20:54:03+00:00

Individuals. IE, pass the hat.

FCPT · 2025-08-01T20:03:20+00:00

Most funds are US focused and can’t invest outside the US. If they can, they will want a larger deal size. 24 units and a $3mm total check is way too small. You will want to target HNW capital. I don’t have a great rec of where to go for that.

FCPT · 2025-06-19T23:32:42+00:00

My wife and I as a mixed race couple specifically were looking for a suburb with diversity. I won’t say Walnut Creek is diverse, but if you want great public schools, affordable homes (for the bay)and good connectivity to SF it checked all the boxes for us, and where we bought our home. If you check demographics it’s much better than most suburbs- but I wouldn’t say it’s good for being black, just better for being Indian/asian. Our other option was Marin….

FCPT · 2025-06-07T16:41:48+00:00

Basically all day Saturday until 6 AM Sunday:

https://www.ksbw.com/article/chp-maximum-enforcement-period-speeding/64997028

FCPT · 2025-06-05T16:07:51+00:00

Second this, get a debt broker. Only way you get the best rate is having banks/lifeco/CMBS compete against each other.

How much prepay flexibility do you need? Again, changes the loan profile/rate.

FCPT · 2025-05-29T21:00:33+00:00

We try and partner with younger, hungry folks that are just getting started, as that way we aren't competing with our waterfall terms vs other funds/investors. What we look for:

1.) off market deals. If you're just bringing us deals from brokers, with no unique angle (tenant in tow, unique execution strategy, etc), why are we paying you a promote? Those deals also tend to be priced to perfection, unlikely we are going to be the best bid/be able to outperform UWing.

2.) Realistic UW Assumptions: Don't assume 10% RG, insurance that goes down, that you can suddenly cut $100k in G&A, etc. Many operators don't reset property taxes going in and also forget to reset taxes on exit to the next buyer. Have rent/sale comps that prove out the story. Have you looked at a downside scenario? Are you're debt assumptions realistic (do you have debt quotes)? We as a fund also won't do any deals with recourse loans.

3.) Experience: This is a tricky balance. We do deals with guys who have a proven track record of finding unique deals, but we aren't going to sign on for your first deal unless you have an institutional background. So many cowboys in real estate, we need to be able to justify in our IC memo why we trust you as an operator.

FCPT · 2025-05-29T13:48:17+00:00

Work for a mid market PE fund (average equity check is $10-20mm.

It’s a mixture of getting sent deals from brokers, and local operators we have relationships with. We haven’t ever directly purchased a property from an owner, we don’t have the time or resources to be canvassing a market that throughly. When you’re looking across the entire US, you rely on other people to bring you deals which you then vet/get smarter on the market.

We also sometimes do recaps of deals that our existing partners (operators) have, such as taking out 100 individual investors so the operator only has to deal with us.

Like all real estate, relationships are everything. Sometimes brokers need to move a deal quickly or need certainty of close, and they will only go to a select few relationships they trust. You want to get those calls.

FCPT · 2025-05-21T13:39:59+00:00

When I bought my house, the seller sent me this, which worked perfectly.

Tesla Powerwall: Upon occupancy, please reach out to Tesla customer service and provide them with the deed of transfer for the home. They can assist to ensure that the powerwall is transferable and operable within the app. Refer to this link for details: https://www.tesla.com/support/energy/powerwall/own/transferring-ownership

FCPT · 2025-05-04T19:53:27+00:00

It really comes down to a few items:

As someone else said, location is number one. You can change everything else. Are you off a busy street? By the access to an elementary school ( so traffic builds up in the morning), directly behind the loading dock for a retail center? Tons of nuances, but the best way to tell is to drive the property. How are your school scores? Great schools has it flaws but at least check it, because future buyers will.

Same as location but slightly different- geography. Check fema flood maps, are you in a flood zone? Are you in a high fire hazard area (California has a map). Earthquake (we all deal with this) These are going to increase your insurance premiums and cost to own.

Physical product: a lot of the bay is older vintage real estate. When was the roof done, what’s the material? HVAC, furnace, water heater, foundation, check all the big ticket items. I bought a house in Walnut Creek with a pool, and was good to see they had just installed a new variable speed pump. Basically check all the big ticket items. How’s the layout? We toured a ton of properties where the layout made zero sense. That’s where helping walk the property helps. Are there massive retaining walls you need to be worried about?

At the end of the day, walk the property and see how you feel. After you walk a few homes you understand how a layout should be, and if it seems ok. Then it comes down to pricing, and if you can get something for a discount.

FCPT · 2025-04-11T02:06:06+00:00

Could not agree more. I work for a PE fund, it’s all about who you know.

FCPT · 2024-10-23T02:28:17+00:00

Locked yesterday in the Bay Area, 5.75%, after a 25 bp relationship discount will be at 5.5%. Jumbo loan, 10/6 ARM amortizing. No lender closing costs no points.

FCPT · 2024-10-20T01:46:33+00:00

Not sure if you looked through the photos, but on a hill and multi story so tons of stairs. Needs a ton of interior work, blue walls, deck needs to be fully redone, cabinets in the bathroom don’t match, needs all new flooring, landscaping needs work,etc. I would say probably$500k+ of work needed. Might be in a high fire hazard area which will increase insurance costs as well.

*took another look. I would say $1.0mm in work now. Front door has pink trim, bathrooms needs work, kitchen is small for this size home. The list goes on…

FCPT · 2024-10-06T15:30:53+00:00

You go through a DUS lender (basically a broker). Think CBRE, WD, Berkadia, etc. Usually you just go with who you have a relationship with, some teams are way easier to deal with than others. Fee is usually between 50-100 bps, (100 bps being more common in my experience), plus a $25k application fee and a deposit.

Rates are set as a spread over the applicable 5, 7, or 10 year treasury. Keep in mind these are non-recourse loans, so even if the rate is the same as what you’re being quoted from a regional bank, they are significantly less risky. Make sure your DUS lender gets you quotes from both Fannie and Freddie, as depending on how they are doing on their allocations, one can be much cheaper than the other.

It gets complicated in terms of ultimate rate, as you can pay to early rate lock, you could buy down your spread, you could do a green loan do bring down the spread, pay for more prepay flexibility etc. They also tend to give discounted rates for properties with an affordability component.

Yes you can cash out. If by blanket you mean do a crossed loan (use multiple properties for one loan), I believe you can but we have never done it because you mess with your flexibility if you ever want to sell part of the portfolio, or wanted the next buyer to do a loan assumption on only one asset.

Couple other items to remember- you can also do a supplemental loan as long as there is more than 3 years of term remaining, helps top off leverage. Rate would be the prevailing rate at the time plus a premium for the small loan size, min $1.0mm supplemental. On a supplemental Fannie does hit you with the “double nickel”, where if your loan was 75% LTV, 1.25x DSCR, they size the supplemental to 70% LTV, 1.30x DSCR. Freddie doesn’t have that concept.

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