All Forum Posts by: David Moore

Actually, if I may quote Peter Schiff, whose Podcasts I routinely listen to, inflation has already occurred.  Inflation is not rising prices.  Inflation is an increase in the  money supply, which the fed has already done, pumping more than 4 trillion dollars into the equity markets, and continuous reinvesting of revenue from those bonds, instead of buying down.  The predictions of 7, 8 and 9% mortgages in my opinion, are extremely unlikely.  What is likely is the dollar will lose value compared to other currencies or hard assets, but it will be gradual.   

Still, the rise in the 10 year bond is a real thing, and will impact our borrowing rates in the near term.  Some may say this the rising cost of borrowing money will harm the value of our properties.  Well, yes and no.  I doubt it will harm multi-unit properties.  The key in any situation, whether in rising prices, or in rising mortgage rates, as @Gino Barbaro so well stated, is to buy it right.  

If the market will not give you a good interest rate, there are other options to get a good interest rate.  If a seller of a 40 unit apartment wants x amount of $$ for the building, and I'm wrong, and market rates are 9%, then that seller  may be willing to be your bank, in order to get the price he wants.   He/she may be willing to carry you at 5% to get his price.  The key is always to buy it right.

Update...thanks for the great feedback everyone.  Scoping out meeting places this week, sending out inquiries to some of my connections.  Thanks, Nick for the Utepils idea...will check that out as well.  

I actually put my initial proposal in the Minneapolis Real Estate Discussion area....meant to put it here.  Want to make it better known we are going to start a West Metro meetup to meet monthly, to help each other become better investors, handle our rentals and acquisitions, and encourage each other.  Looking to start meeting monthly, in Golden Valley.   

Let me know if you have interest.  Looking for a meeting place right now...will send updates to all interested.  

Great response, everyone.  I'm going to look for meeting places, and then set up a meetup calendar.  More to come.

Here is a shout out to other BP members in the metro and west metro Twin Cities.  I am thinking of starting up a West Metro meetup.  We will share our experiences, network, and just plain help each other out, with trying to profitably manage our rentals, and learning together about other opportunities in real estate.   Thinking of meeting once each month, in Golden Valley.  Any interest?

@Charles A.

Would you mind sharing your multifamily story?  How many units?  My largest is a four unit.  

@Account Closed

I don't see how any person can say '90% of contractors are crooks'.  It doesn't compute in any universe I've ever been a part of.  I hate to say it is a perspective thing, but maybe in your case it is.  My contractors are gold.  They are excellent at what they do, and I pay them accordingly.  Are the prices high?  Sometimes.  But if you do a deal right, then the cost of the contractor is a factor of the deal that is on you to a) buy right, and b) estimate repairs right, and c) ask others for contractors that do good work.  

This is a market economy.  The price of labor or contractors meets the supply at a price the market determines as the fair price.  

The only contractors I'm not fond of are the ones who don't pull permits.  If they don't pull permits, I won't work with them again. 

@Joseph Lee

It seems every year, the date when we are supposed to send these changes.  It is a couple years old requirement.  The detail is at the bottom of the link...follow it.  I've heard others advice to send them with CRP's...that's when I send them.

http://www.revenue.state.mn.us/Forms_and_Instructi...

@Gareth Fisher

I'm usually a contrarian, so I don't really applaud your posting, because while venting is good, you haven't shared the why about your story.  You haven't given examples of 90% of all contractors do shortcuts or are crooks.  You haven't given us any examples of properties you tried to flip, what the purchase price was, the comps, etc.  

I don't think it is very hard at all to do what you are good at, and build a team around you of people who are good at other stuff, to help you with your real estate pursuits.  

A good example of an investor who knows their stuff, who does not really self promote, who stuck to a plan and made a great return in real estate is @Dawn Anastasi.  She is very helpful when I ask questions of her.  We've done no deals together, but  she has faced the gauntlet of challenges, and has become a great success story.  Another is @John Woodrich.  These are common, hard working investors, and we exchange ideas, and do our best to help each other.  

Wholesalers get a bad rap...I cannot fault you on that.  But perhaps you have skills that could make you a good wholesaler.  Flipping hasn't paid off.   There are other plays out there.  

I will say one thing to support your post.  I think BP has gotten away from the common investor, and glorified that massively succesful investor, like the Grant Cardones.  But in their defense, I'm not creating a real estate blog for everyone else to follow.  They are doing it, and while I may think they have lost a little, I've gained so much more, by interacting with others and listening to the Podcasts.

You can make money in real estate.  The mistakes you've made are like bars of gold.  Use those gold bars of wisdom to your advantage.  You can do this.

@Eli Sunderland

After it closes, I'd love to hear the story on the 10 unit, if you don't mind.