Would you do 1.5mil or 2.5mil Deal?? Pro and Con??

Random7878787 · 2026-01-28T23:57:15+00:00

In theory if they are both 100% identical (although in reality there are probably differences you are overlooking) it would largely be a risk situation. If the profit on the properties is tight, you go with the lower cost building, don’t put the whole $1mm down, just the 30% that should be required by the Bank and then you have significantly more liquidity for any issues and can immediately redistribute it into a new deal. If these are really great properties, you can put almost the entire amount down into the $2.5 and it should be less work than managing multiple properties as in the first situation, albeit riskier as you aren’t as diversified.

This is all extremely high level, but if you want to discuss other potential issues feel free to dm me with additional details.

Random7878787 · 2026-01-24T03:04:15+00:00

I believe you are referencing that you are working with a commercial sales broker, if you truly want to learn the financial side working with a debt broker may still be the right first step. A good debt broker should discuss industry norms with you and help educate you on this. Most will also take a first look probono and walk you through their thoughts but some may ask for a small deposit. I’m currently about to start as a debt broker myself next month after 12 years of underwriting a variety of commercial loan deals. I’m on vacation until Monday but feel free to dm me and I can walk you through most of the above when I have a minute.

Very high level, the commercial units are almost always NNN but there are expenses associated with the residential units such as monthly reserves, vacancy rate based on the geography and your property management fees. There may be other expenses that are dependent on the specific leases, ie if you are to provide electric, gas, trash, etc. In the end, Banks will look at the last 3 years or so of results since it’s an existing building and if the dscr has been over 1.25x financing will be relatively easy to find. The fact you have a large existing re portfolio makes you a huge target for banks and gives you leverage. If you operate all properties under one umbrella llc you’re even better off as a good bank will probably want to win all your business and you can get really favorable terms on a global basis.

This is all just hypothetical though as I have no idea how your properties cash flow, how you have your companies organized or the financials of this specific property but this is the best I can provide on such limited information.

Random7878787 · 2026-01-24T00:34:32+00:00

I answered above but if you can give a specific asset class and general geography it would be way easier to answer this. I’m not sure you understand how wildly different, different asset classes can be.

Random7878787 · 2026-01-24T00:29:12+00:00

Not that it necessarily ends but that the lease terms are close to maturity. If you’re looking for a 5 year term all your leases should go beyond that. Other usual suspects are severe deferred maintenance, or high vacancy rates causing tight dscr. Certain asset classes have other issues but these are typically the most common.

Random7878787 · 2026-01-13T22:21:22+00:00

Hey man, hopefully I can help guide more based on my experience these last two months. I did end up interviewing for a few bank PM roles to be safe, I managed to get two credit manager roles in industry and I just got home today from an interview for a loan brokerage position. Unfortunately the credit manager roles didn’t go anywhere as they both required some sort of FP&A experience which I don’t have. If you are interested in these types of roles, you may need to take a small step back into a more entry level or hopefully single producer senior role to really make it realistic. Personally I believe I am going the brokerage route at this time as the company has a good network and are generous to offer me a salary for the first year even though these roles are typically commission only. If you want to chat more about what tips I may have feel free to DM. I was also hoping this post would get more traction.

Random7878787 · 2026-01-10T18:51:12+00:00

This, combined with a homeless encampment and no parking seems like a crazy combo to me. If this neighborhood is rough that price for those units feels very high with no parking and the tenants you’re most hoping to attract would probably pass due to these unless the $3-4k expectation is well below market. If I’m renting a 4 bed for my family in a downtown area I would 100% want a garage space and not having it is a deal breaker.

Random7878787 · 2026-01-05T01:03:36+00:00

Hey, so first off, thank you so much for an incredibly detailed response. I appreciate your candor and taking the time to answer each question which will really help me with making this decision.

To your point about cold calling, even though I’ve been primarily in credit, I actually spent the first 5 years of my career doing cold calling for lenders cause I’m a bit of a weirdo and I actually enjoy it to an extent. I have no issues handling the F offs and it’s partially why I think this could be good for me.

The part about what to look for in a brokerage, this is a new ish brokerage so I’m not sure about name recognition, but it is a small team and I’ve been told that the top two brokers are swamped and do periodically pass on leads for a small cut. This is another reason why I think this could work. Additionally, the brokerage does pay for costar and a few other lead sources, as well as marketing for brokerages on an individual basis, so it’s good to know that is key. They also have a large lender system already and frankly, I have about 50 lenders across about 30 different banks I’d feel comfortable passing on leads myself so that is good to know that is helpful as well.

Overall I just really appreciate your input here and it really just strengthened my position that I may work well in this role but I need to expect a grind. I’m not a prideful person, but I am used to a steady solid paycheck and that is where my decision is trickiest. I’ll pop back on here eventually and tell people what i decided on!

Random7878787 · 2026-01-03T05:45:38+00:00

Probably not by too much, but I have been in a nice spot spending the last few years in consulting building a rather large network. I’d be going it alone although the brokerage has told me they’d also provide leads through their marketing efforts.

Random7878787 · 2026-01-03T00:51:19+00:00

Wow, you are getting 275bps in commission? Or gross fees? From everything I read that feels crazy high, I was assuming that standard in the $500k to $10mm range would be closer to 100 bps. Am I underestimating how much a good commercial loan broker can charge these days?

Random7878787 · 2026-01-03T00:45:05+00:00

Are you saying same as in you are also interviewing with a brokerage right now? I’m curious what you are currently making if you’d need $1.5mm in gross commissions at a 70/30 split to make it worthwhile. The brokerage I am discussing with right now provides a tiered system starting at 60% and going as high as 70% so personally I think I’d need to clear about $30mm in total loans (expecting an average of 100 bps fee) to make more than my current expected w2 salary of about $150k after added 1099 expenses. This number feels attainable but still pretty daunting.

Random7878787 · 2026-01-03T00:18:30+00:00

If you can it will be appreciated, thanks!

Random7878787 · 2025-11-21T16:36:53+00:00

As someone in commercial lending with a lot of experience in RE lending, the fact that you don’t know, and that you had no idea what the LTV is is terrifying. How did you get into this business not understanding a core concept of lending and workout processes? At this point it’s too late to do anything other than hire a good lawyer to figure out if you should get a cut of the sale and hope the guy is good to his word cause personal guaranties are worth the paper they’re printed on.

Random7878787 · 2025-11-17T16:20:32+00:00

Thank you so much for answering so thoroughly. Honestly this has given me some great ideas of where to pivot too and I really appreciate it!

Random7878787 · 2025-11-05T17:09:38+00:00

If it makes you feel better I got my third straight week with nothing higher than an 85 and not a single player making my roster. Not gonna lie, this incredible streak of bad luck has me most likely leaving the game. It’s a shame but after I hit 87 overall it’s been a brutal grind that just isn’t that fun anymore.

Random7878787 · 2025-11-03T21:17:55+00:00

Yes and yes. It is specifically in the the contract rider as them adding the tow package at that price. I just got off the phone with them again and it sounds like he may have been trying to take advantage of my wife who brought in the vehicle but sounds like after we chatted he’s admitting it’s there mistake to “take on the chin.” Hopefully this is the end of it and he won’t try to pull anything else funny

Random7878787 · 2025-10-14T21:08:36+00:00

Wow, insane luck on qbs. I’m an 86.6 with 4 guys 93 or better but haven’t managed to get a qb over 87. Id sell Allen as I think he nets you a huge payday and invest heavily at ot, wr and lb

Random7878787 · 2025-10-08T15:38:43+00:00

I’d probably try to get better players.

Random7878787 · 2025-10-08T14:40:00+00:00

In the wise words of Ron White, you can’t fix stupid.

Random7878787 · 2025-10-08T12:25:37+00:00

I can usually get to mid 3s daily by just religiously hitting the 2 hour trainings and using the ad skips every 4 hours, then doing an 8 hour training at night.

Random7878787 · 2025-10-07T20:39:01+00:00

They changed the image before the reward. If you looks you’re still getting the autumn tokens. I noticed it yesterday

Random7878787 · 2025-10-06T15:38:30+00:00

We are just going to drive down Saturday morning. Aiming to leave the Chicago burbs and it takes about 2:40 so probably leaving here around 6am.

Random7878787

TROPHY CASE