The Best Ever CRE Show JF 3968: Small Units, Big Returns, and What Most People Get Wrong About Financial Freedom ft. Derek Peterson
Jul 16, 2025
Derek Peterson, the founder of Avira Capital Investments and a former civil engineer, shares his unique insights on transforming garages into high-demand ADUs in San Diego. He discusses how these conversions can yield impressive returns by investing under $100K and earning $1,500–$2,000 per month. Derek dives into the complexities of California's approval process and offers lessons from past challenges in real estate. He also sheds light on the psychological barriers to financial freedom that many encounter, urging listeners to embrace smaller projects for growth.
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Compounding Capital is Key
- Derek Peterson emphasizes compounding capital and runway as keys to wealth accumulation.
- Keeping money actively invested and reinvesting pref returns maximizes long-term growth.
Garage to ADU Conversion Example
- Derek converted garages, carports, and storage at an eight-unit building into four ADUs, each 250-400 square feet.
- These micro-apartments near SDSU rent between $1,500 and $2,000 monthly to college students.
Network With Inspectors
- Build relationships with local municipal inspectors and officials to ease development challenges.
- Networking helps mitigate nitpicking and accelerates project approvals in ADU construction.
