Wish I had, Wish I had..

In my lifetime I have had the pleasure meeting amazing individuals. From visionaries, who have shaped the destinies of great countries, like Canada, Japan, Indonesia and France to individuals like the Dali Lama who shaped a religion. Each of these people have had one thing in common…their pile of things they wish they had done was a lot smaller than other peoples!!! And their pile of things they did do was perhaps a little bigger than many others. 

Why because these people were greater than everyone else?

Maybe…but having meet them, enjoyed their conversations, their sense of humor and their stories, I can say one characteristic was clear above all else. They were willing to reach…to attempt things beyond what others have done, beyond what was safe, beyond what they could have hoped they could have achieved!

Sure these people were thoughtful in their approach to their goal. And often they created a little luck and enjoy a little luck from the universe.

So the difference…say “Yes” to your dreams. Don’t be like the person that says “Wish I had…” at the start of the most interesting story you tell when you are in your sixties! Wish I had bought that house, Wish I had invested in that fund, Wish I had join those guys in that project. BE the person whose story starts ” When I…

A Wiseman once said ” All your dreams can come true, or not, your choice!”

Until next time…

Cheers,
Dean Duperron

Dollar Spent Wisely

So many people buy Multifamily Complex’s and just assume that the property will continue to meet the previous owner’s NOI…WRONG!!

For novices this often results in feelings of blame. The novice blames the inspector for missing something, the file audit for missing something, the previous owner for hiding stuff or inflating profit or delaying repair, or putting unqualified people on the property to keep up the Occupancy Percentage. And guess what the Previous Owner probably did all those things!!! Maybe even a little more…

So what do you do? Sue the inspector? Sue the auditor? Sue the previous owner? While that might play through your head, unless there was malicious intent…suing is a waste of time, energy and money.

What you really do is set aside a cash reserve which ideally should be a month of expenses AND a capital reserve to fixed the EXPECTED Deferred Maintenance, ALSO cover removing the unqualified tenets AND set up the “curb appeal” of your property. Expect to spend anywhere from 1 to 3 years on this project.

Remember don’t spend your money wildly or in reaction without a plan. Because if you do the reserve disappears and the problems remain.

But with a plan and some hard work Multifamily Investing is Simple, Enjoyable Business.

Till next time…

Cheers,
Dean Duperron
The Duperron Group

Interest Rates

Wow…can you believe it?!? Interest rates have gone up a whole percent! That means the cost of money has gone up. In fact, depending on where you were getting your money and the terms, it just cost you 25% to 30% more for your money! Why, it means you might have to pay a whole 4% for long term loans.

Sounds terrible doesn’t it.  Except when you stop and think about the average interest rate for the US from 1971 to 2013 was 6.14% or 54% higher than the 4% people are worried about today. In fact you have to go back to the late 1950′s to hit interest rates down at 4%. Here something, did you know what the interest rate was in say 1798? 10.04%…1824? 5.19%…1842? 11.49%…1857? 9.91% (source http://www.arborresearch.com/bianco/?page_id=46908)

The point is, yes interest rates have gone up and after being at record lows for awhile it is sometimes startling to see a jump. Especially a jump of 100 points. But in the big picture we are currently enjoying wonderfully low rates. And if consumer confidence is coming back. If consumer spending is coming back. Rent increases are happening at steady pace. In particular those in HOT MARKETS…ie Houston. Then, perhaps, those of us in the rental business can still feel bullish on purchasing a few more building and taking a few more mortgages at these record low rates.

Does not mean don’t watch the interest rates. And I would certainly recommend you lock in your loans at these current rates for as long as you can get. But panic…let’s save that for another time. 

Cheers,
Dean Duperron