All Forum Posts by: Richard Dunlop

 "I am no(sic) convinced"

Karen apparently you're convinced Realtors are the problem 

There are people on this site who are Realtors 

There are people on this site who like Realtors 

There are people on this site who don't like Realtors 

There are people on this site who are Wholesalers 

There are people on this site who like Wholesalers.

 There are people on this site who are confused about what you are trying to do. (me included)

All different kinds of people have tried to give you good advice in this thread and others. But you respond with insults.

I even discovered there are people on this site who appreciate @Kevin Delaney (you in previous threads)

There are people on this site who strongly dislike @Kevin Delaney (you in this thread)

See there are all types here. 

My impression is that you don't really understand the Wholesaler business model; but there are many successful ones here so read and learn.

 Welcome to BP the market that you're in is the easy to get started in but has lots of challenges.

 The gates are only so the specially bred methane free goats can mow the lawn. 

 The flip side of the argument is people attribute to to me the assumption that I think appreciation is bad.

Nothing could be further from the truth.

My point has always been I believe in my market Appreciation will be way higher than most markets AND rents are way way way higher than 2%.

Yes there was a thread about 2 months ago where one poster said he would stay clear of properties that had a 2% gross rent because he would KNOW something was wrong with it. 

 If you didn't already have 50 posts I would think you were @Olivia C.'s developer that she is in the process of vetting.

Why the enthusiasm? Most everyone else is saying she should get more.

@Olivia C. Test his confidence in his project by having him pledge his personal residence as additional security for your funding.

I don't think we are at the top yet but new developments crash fast when they can no longer presell from their models.

There are safer investments WITH better returns!

Your totally mischaracterize my points.

When I was starting out I had good credit but I had no money. I could not buy in an area that did not have good cash flow. Somebody has to pay the bills if not the tenant. Who would? 

I could keep working and pay to maintain my tenants property on the hope that property values would increase.

My question has always been why choose between cash flow and appreciation.

Why not BOTH? 

I think the market I'm in will have better appreciation over the next ten years than the market I left (CA) 

AND Cash Flow!

 No I did mean to say $20,000 per month. See the example I gave above. It is not typical (YMMV) but I have others that will be better than that one.

Jay I agree with all of your assessment and this thread is debating: "is cash flow or appreciation more important."

My question is why not both? 

You refer to the gentrification of downtown Sacramento, have you looked at the gentrification of downtown Detroit? 

My personal opinion is Detroit reached the very bottom in 2010 and is coming back way too fast! 

Downtown has 98-99% occupancy rate. Dan Gilbert has invested about $2 Billion in the past 5 years.

When I was in school in Santa Clara (San Jose) lots of areas of Oakland scared me more than Detroit does today. I've not seen it but I'm told it's coming back.

You refer to out of state want to be investors and when people approach me on BP and other contacts I insist they have to come up here and actually see what is happening. But there are many many properties where they could give away 80% of the deal and still make a fortune.

People in this thread talk about 11% gains for year over year for long spans of time. My neighborhood has done way better and I expect it to continue for years to come. Bought my house for $16,000 when it was worth $75,000. Six years on it is worth $225-$250,000 today.

1800 Sq ft Wood frame house in my neighborhood just sold for $219,900. Mine is 4700 Sq ft built out of 500lb quarried stones. But people laugh at my valuation because it's Detroit. (Over built? yes but still a great value) 

Metro Detroit has problems, Yes, But it also has SF homes that would sell for $10,000,000.00 in today's down market.

Detroit was about 60% auto industry now is rebuilding as about 9-10% dependant on auto. Like Pittsburg shed its dependance on the steel industry.

My personal prediction (I'm no expert) is Detroit will see double digit appreciation for the forseeable future. Much better than most other markets.

Detroit needs the the money changers /HML to come back.

I started with $150 (I had good credit) and now have $750,000 in Equity.

Appreciation OR Cash Flow?

Why not BOTH?

 The retirement type funds that are not associated with your current employment can probably be rolled over into something that is self directed and thus allow you to invest in RE in your area or elsewhere.

My advice would be if you're in high profit areas like I believe Baltimore to be (and may become more so with your recent events) would be to do it on a Roth basis.