There are VERY few affordable homes, all the large builders in the area have been building homes in the $140k-$180k range, while many of the new jobs comming into the area pay a rate that doesn't work well with these ranges.Anyway, we got to talking, and it seems he enjoys building smaller, more affordable homes, rather than the 3k-4k square feet homes he's been doing.So , the best thing to do would be find lots in an area and build....But there aren't any, in fact in my town there are VERY few lots to build on, and most are splits from already existing, double lots.So, after talking to him ,it seems the best way to do things would be find an area that's developable and do it.So, i'm curious to know what pitfalls thoes of you who have done this (Succuessfully) and try to learn.

Maybe you could teach all of us how to avoid the pitfalls you must have hit to cause such a crash.

Are there any pitfals to such a loan?  

Assuming you have all the financing in order I think one of the biggest pitfalls for a new landlord is the tenant / landlord relationship.

Pitfalls to watch out for?

Sounds like you have some invaluable experience that will really be useful to a lot of people, especially those looking to self-rehab or flip who need advice on costs and pitfalls.

I have personally lined up business and personal credit for real estate before and would be happy to share my experiences and potential pitfalls (e.g. when to consider or not consider a U.C.C. filing).

My comments, again are directed towards the “first timer” heading to Baltimore from DC who wants to avoid some if the pitfalls others (from DC) have experienced by expecting the market to behave in a way they are probably used to, South of 695...P.s.

All QRPs must be tied to a business (unlike IRAs) and that's were I'm encountering the greatest pitfalls.

What are the key things to look for and pitfalls to avoid?