As far as rentals, you might need to venture west or north to find properties that will produce cash flow.  

Generally, I recommend DIY with everything.... except anything that involves an attorney :)Forking out the cash up front can save you a lot of money and headache in the future.But I guess it really depends on what you are trying to do.

My partner in this venture is a contractor, so it's primarily a cost of materials.

I would venture to guess that's why it hasn't moved.

I'm planning to do this only for residential properties, but may venture into commercial hard money lending if the opportunity is appropriate.

Maybe I can initiate my RE venture by investing in a duplex and living in one of the units for a couple years.

The other investors often have a less active role in the project and may even have no active role, relying on you and your knowledge to bring them a return.It sounds like you're looking more for a partnership or joint venture.

Unless you know them well enough to do a JV (Joint Venture) agreement with them as a business partner, control the deal.

But I would assert that inflation is a given, the appropriate timetable to assume is not so clear - But, I would venture to say that we will begin to see such pressure within the next 3 years.

Like Brian stated, if they can't state specifically what is causing them to hesitate, forget this deal and find some other investors to work with that don't mind doing joint ventures.