Looking to Connect w/ Other Out-of-State Investors in Twin Cities
Hi everyone!
I'm an out-of-state investor expanding my portfolio in the Twin Cities and I'd love to connect with some other investors in the area, specifically any other out-of-staters that are investing there. I've joined many of the Twin Cities real estate meetups and made an effort to attend remotely whenever possible—which have been fantastic and I plan to continue attending those—but I've found that some of the challenges I face as a long-distance investor are different from those of many local investors. Is there anyone else out there investing in the Twin Cities from a distance that would be interested in commiserating?
Thanks!
Hi @Max Tedford, what is your investment niche? I'm looking at 20+ unit apartments in the area with a JV or syndication and I know there are some great residential investors on here too.
@Max Tedford I know some Wisconsin investors investing here but that's not long distance like you. What challenges do you face? As somebody who had a meetup pre-covid I would be interested to see what your challenges are and see if there's a way we can educate others on that.
@Max Tedford what brings you to Minneapolis and St Paul if I may ask?
@Mack Benson I'm focused on small multi-family residential at this point, 2-4 unit specifically. I've considered expanding to larger buildings like you're focusing on, but I've got a lot more to learn before I'll be ready to dive into the syndication realm.
@Daniel Anshus That's great that you ran a meetup pre-covid! If you start it back up at some point and are open to remote attendees please let me know. I'm always interested in more meetups. Regarding your questions I'm facing as long-distance investor, here are some examples of challenges I've faced in the Twin Cities that I haven't with my investments here in DC:
1. I can't drive for dollars so I have to find a bird dog I trust to do that for me on a regular basis, and usually have to pay them for their time/energy
2. When I do find an off-market lead I'm unable to attend the initial walkthrough myself, so again I need to find someone I trust to do that for me. This often means involving an agent, a contractor, or some other local contact that's willing to interface with the seller on my behalf on the walkthrough and either FaceTime me while there or write up a VERY thorough summary of what they saw.
3. I'm unable to pop in on in-progress rehabs in person, so I need a SUPER communicative contractor that sends updates very reliably. Having someone else available to do in-person pop-ins is also helpful, though not necessarily required if the contractor is good.
There are a few others as well, but more generally I've found that as an out-of-stater I have to a) have effective systems in place far sooner than I did for local investments, and b) need to find teammates and other partners much earlier than otherwise, and often have a way to pay them for their contributions.
@Noah Chappell Absolutely. For me it's actually more about personal circumstances than data reasons. My wife and I both have family in the Twin Cities and (in a normal year) split our time between our primary residence in DC and our families' in MN, so when we decided to start branching out to long-distance the Twin Cities were a natural fit. Having a network of friends and family in the area is a big draw and having an organic familiarity with the market was a competitive advantage for us compared to other markets.
@Max Tedford Yes I absolutely plan on restarting my meetup as soon as I can. I decided not to do strictly virtual meetups as I know a lot of the value is lost in online meetups. Also, my meetup was more so catered on networking. I would have local investors and people who investors need i.e. 1031 intermediaries, attorneys, property managers tax accountants etc. I would stream them live on my facebook page. Feel free to message me and I can let you know the name of it.
As far as the challenges you are facing it sounds pretty similar to what all long distance investors go through. My mentor is an apartment syndicator and owns 1,000+ doors all over the country and he can sometimes struggle with that as well. Of course he has a team but even still sometimes he has to fire a property management company or go visit his properties to check in on them. I don't think there is a magic answer besides doing what you are already doing. Making partnerships/ teams. Maybe you could have your family bird dog for you? Ask if any of them are interested in REI. Partner with more local agents who can send you off market deals. Reach out to local wholesalers. Talk to your PM and see if they have any off market properties or know people you can talk to to help. Hope this helps out.
Thanks @Daniel Anshus! I just messaged you for the meetup details.
And thanks for the suggestions, too!
@Max Tedford Pick me! Pick Me! All smart aleck responses aside, I invest in the Twin Cities from a distance and have been in the Twin Cities market for a little over 4 years. Happy to discuss and/or help with your challenges, if I can. I agree that investing from a distance does have some built in challenges, however, I think it is going to become more and more prevalent as people adjust to the "new normal" with COVID.
@David Barnett, heck yes! I'll DM you directly and we can chat :)
@Max Tedford I've only just started my journey in REI. I'm currently working on my RE license. I'm also saving up for a down payment on a 3-4plex in the area. I don't know if I could be of assistance as boots on the ground but I would be more than willing to fill any gaps in your strategy in turn for the experience.
Hey Everyone - I own a Duplex & Triplex in the Uptown area and have definitely had some headaches managing from a distance. Mainly that I am new to the Minneapolis area (I am supposed to be moving there for work, so bought the triplex on house hunting trip - not the best standalone investment basically could live in 1 unit and other 2 cover the mortgage & maybe rent a room and push rents to cashflow a little) but due to Covid have yet to move and am in Boise Idaho. My biggest issue is I have seemed to have a ton of problems and just finding people to trust to do the work (roof leak around the chimney flashing, back outside stairwell railing broke, toilet leak caused the ceiling below it to cave in, shower body broke but couldnt find anyone who would replace it so had to pay Mr. Rooter, having to find snow removal etc) a lot of this stuff I would do myself so I get paying for being distant but would love any tips you have?
@Brendan Leach join the Facebook page millennial investor focus group. This will change your life.
Also one other thing is how do you manage leasing/screening/showing tenants? Do you just use a PM? I have 2 tenants on month to month that are long term but they are under rented (2/1 in uptown currently at $1300 - would like to get at least $1400 ideally $1500) and a 1/1 that is very spacious(seperate dining room, kitchen, living room) 1st floor of the triplex for $1200 I would like to get up to $1350 but these tenants have been there awhile and have never said anything. Where as the 2/1 tenant I feel like every week its something new (granted a lot of times its general maintenance that should be done).
Thanks,
Brendan
Originally posted by @Daniel Anshus:@Brendan Leach join the Facebook page millennial investor focus group. This will change your life.
Thanks for the tip will definitely check it out!!
@Brendan Leach you can use zenlord pro to help manage your property. Or talk with @Cory Pflipsen to work with a great pm
Max, I don't check BP forums as often as I should but just saw your post. I am also a long distance investor in Minneapolis. I have had a duplex there for the past two years. I am in a similar situation as I chose the area because I have family that lives there and we go back at least once a year. I had quite a few struggles initially, trying to get repairs done from afar but in the last 6 months have just let my property management firm take care of everything. I would be happy to commiserate with you if you like.
Hi! Following this forum. Newbie here! I have not invested in Minnesota but I am interested. I am in the process of selling my duplex here in California and I am thinking of investing out-of-state, particularly Minneapolis. Would love to hear other out-of-state investors' journey and experiences and hopefully connect too.
Thank you :)