All Forum Posts by: Drew Y.

@Armin Trepic my advice would be two fold. 

1) Having a knowledge of the stock investing, I am assuming you have a risk tolerance level as well as ability to think long term (investing not gambling) . That said pencil out the numbers, buffer in for different  3 possibilities (worse(75%) , likely(100%) and best case (115%) example , and see if you can weather the storm of worse case scenario for 6-12 months. 

2)  Don't over analyze or look for the perfect deal. A lot of people get stuck in analysis paralysis, if you do the numbers, check them twice , three times over and they work pull the trigger, as a mentor once told me , "man the F up and put on your big boy pants" Knowing that I had done my research and ran the numbers and possibilities. 

3) Understand that **** won't be perfect, but the pains and failures that you experience will give you life lessons that will determine if you want to continue or if this isn't right for you. And its better than sitting on the side lines wondering , because if you fail and determine that its not right for you, then at least you can move onto something else and try to grow doing that instead.  

@Joe Splitrock @Jay Hinrichs agreed our cycles have moved longer than expected on this one due to unfeathered intervention by central banks, we are moving back into the non- bank underwriting more than 40% of new mortgages  from 10% in 2009. These are happening via companies like PennyMac, AmeriHome Mortgage and Stearns Lending . 

So though we might not be in 2008 levels yet, the signs are pretty clear that this is coming to a point in the next few years as Fed increases rates, junk bonds issued in 2013-2016 come to roost and buyers increase their borrowing limits. 

@Jay Hinrichs I totally agree with you that "this time its different" but as they say history never repeats itself exactly but it sure does rhyme. 

Though buyers are stronger in the sense of down payments, we are also in a situation where the buyers are in a lot more unstable situation (interest rates, job longevity,  etc) . 

As I say I think we are in the 6/7 th inning of this cycle as lenders are starting to "chase" business and loosen up standards and the folks that were hurt in the last bust have had their credit "fixed" just enough to qualify for homes again.  Like I said 2005 ...

@ Mary L. Lenders are definitely starting to loosen standards. We are already seeing 10% down rates and high usage of FHA loans in order to qualify. Also with the rise of "Fin Tech" we see a lot of secondary loans being made to questionable buyers that are starting to utilize those lines for down payments.

@Jordan Moorhead Thanks Jordan we should connect, I bought a duplex in north Minneapolis  a few months back and and starting to understand the market out there. Would love to see what other deals and inventory you might have. if you have any properties that qualify for 1-2 % rule. 

So I have been watching the interest rates as they have begun to rise and the notional value of risk free treasuries and ten year treasury bonds are approaching 3% . Given that the CAP rates in the San Francisco bay area are now approaching the 3-4 % rate do you think its time to start moving some money off the table in the coastal areas in into more risk free assets or into areas of less price appreciation and more rental yields (Atlanta, Minneapolis , Kansas City )

Hello, I am currently deciding whether to add a bathroom to a Victorian flat we will be putting on the market for rent. It is a 1,350 sqft 7 room flat in the Dobuce Triangle area. Currently it has 4 bedrooms with only one bathroom. Not sure if it would be more valuable to add an extra bathroom and sacrifice a bedroom. Or just to keep in original format with 4 beds and 1 bath. We are expecting to rent that place for around 5-6K monthly, so it will be a higher end rental. 

The negative side of adding a bathroom is that it will make it more likely that the place is going to be subbed out to multiple renter vs a family . 

That's good information. were you simply able to post on BP and find reliable whole sellers? I am looking for whole sale contacts in Indianapolis and Minneapolis .

Please send me his information . @Brandon Turner