All Forum Posts by: Andrew Hooyman

Hi Bart, I may have one for you.  Give me a call if you haven't found one yet.

Thanks so much for the feedback this is exactly what I was looking for!!!  Especially @Account Closed and @Jeff S, a lot of really good points to look into.

No private lenders/hard money lenders out there???

Hard money lending seems to be popular in my area and every lender that does it just raves about it. I would like to know what the drawbacks are and things to look out for from the lenders perspective? Aside from having trust and knowledge of the house flipper, being in first lien position, making sure you know the market/ARV of the property, and using a qualified attorney, what are some of the numerous other things to look out for? Would love to hear any and all stories/experiences good or bad from hard money lenders that lend money to house flippers?

Hi Mark, welcome to BP.  I just started here myself as well.  Nice to see someone else from the GB area.

What are some of the key market data someone should look for when targeting buy and hold properties that fall into the 2% rule in B and C+ areas?  Other than the obvious of population growth.  Basically I'm trying to narrow down certain specific cities/neighborhoods within Wisconsin to start looking into.  I have been using city-data.com and bestplaces.net so far.  Using the statistics and information found on these two sites is there any information that would steer you away from buying in a specific city/neighborhood?

@Scott Trench  Thanks your post was very helpful.  I had heard a lot of investors say you want to buy at high cap rates going in and sell when the cap is low.  This now makes more sense to me.  Your two ways to seek appreciation are what I originally had in mind, much clearer now.

Thanks for the replies.  I am planning on targeting properties that give me a cash on cash return of 15+% with a reasonable conservative chance of 2% appreciation a year.  Hopefully this isn't unrealistic.  So basically as long as maintenance is kept up and I can raise rents I should have a good chance of achieving 2% appreciation each year?

I recently read that commercial real estate even small apartment buildings appreciate based on cash flow not on the surrounding neighborhood like single family homes do.  I am wondering if that is accurate and exactly what types of properties appreciate based cash flow i.e can it be a fourplex in a residential area or does it have to be say an 8+ unit apartment building?  I always thought the surrounding area would have at least somewhat of a factor in dictating appreciation for any property.

 Thanks Milad.  Very helpful, I really hadn't given much thought of just paying cash upfront and then refi as you suggested.