All Forum Posts by: Douglas Peterson

Dear Fellow Investors:

Does anybody have a good source/chart of historical SFH or apartment rental rates in the US? I am looking for a source that has tracked rates over the last 100 years but at least over the last 50.

Thanks

Manuel:

You will want to use an attorney to close the loan. They will have the documents. The additional cost will give your lender more peace of mind, and it gives you more credibility when talking with other potential investors.

One thing I add in my note is the term of the note (3-5 years) and the option to renew. If the lender does not want to renew, I need to know 1 year before the end of the term. That gives me 1 year to either get another loan or to sell the property.

Welcome, Curtis. I am a buy-and-hold investor in Durham, NC. I have been at this since 2007. TREIA can be helpful, if you connect with the right people. Sometimes they bring in speakers who are merely trying to sell their stuff. Sometimes the stuff is good and sometimes it's a waste of money. If you can connect with seasoned investors from the area, most of them will gladly help you for free.

Higher rates will slow down retail buyers.

For investing, I have been using private investors, so the rates won't impact me yet.

Thanks for all your inspiring goals. We should compare results next year this time.

Whenever I see lists of goals it reminds me of Robert Fulghum who says he makes a list of all his major accomplishments from the prior year (2013) and then puts that year's date at the top of the list and writes: New Year's Resolutions for 2013.

Maybe it's one way to avoid feeling bad about missed goals.

Is a tool on BP or online that can help me quickly calculate what to offer on a house if I pay all cash now vs. owner finance at various rates and terms?

You are just bumping into the tip of the iceberg of partnerships. Having clear exit plans is a start. You now must address the reasons why the exits happen. Almost always it's due to partners fighting. One major issue is not having clear expectations of who is going to do what in the business and how decisions will be made.

After you have flipped several properties and started to build a consistent business, do most flippers grow by flipping even more properties or do you start adding rental properties?

I am curious whether the majority of successful flippers see the end goal to be a portfolio of rental properties or a bigger flipping business.

Thanks,
Doug Peterson

A lot of residential zoning and Hoa rules allow for a small day care in a home, even if they do not allow any other business; there seems to be a special exception for that business

Your only means of stopping it may be your lease

Remember that with each property you buy, you add risk, management work, and short and long-term maintenance expenses. With 1 or 2 it seems quite manageable. The more properties you add, the less you will be able to wing it. For example, if you are out finding new properties and raising money, who will be doing the daily management and maintenance? As you grow, you will need to develop systems for running the business. I am thinking through all of this in my business, for too many things are starting to fall through the cracks.