All Forum Posts by: Andy Schornack

I think you are skewed in Canada. Local Minnesota market still okay with deals being had. Now not the screaming deals of 2012 and 2013 but still good value. 

Not often I hear this complaint if you are indicating you are going to live in it. I have a couple contacts you could check out depending on what your needs are. Feel free to PM me.

@Brian Wagner any points of advice since you have done a number of rehabs in Minneapolis?

I thought this was interesting. Particularly the heat map of Investor owned real state across the country. http://www.realtytrac.com/news/company-news/analyz...

Always interesting to see the activity across the country. Certainly seeing this dynamic in my backyard Minneapolis/St. Paul area. 

Ditto on Zachary Robins. He appears to be active in this area locally.

Depends on the legwork and amount of elbow grease you want to put in. I have seen a lot of successful investors work in the area without security cameras. The best prevention is an attentive landlord/property manager.  Just expect to spend more time at your properties getting to know tenants and neighbors. 

I am a little confused. When you mean you won the rights to the Sheriff's Certificate do you mean you actually bought the Sheriff's Certificate?  It is rare for a bank to provide an option vs just selling the Sheriff's Certificate. Particularly because of titling issues.  I would be curious on how the contract between you, auction.com, and Wells Fargo was drafted. What does it specifically say in regard to the transfer of title (what when where) .  

The obvious reason for asking is that you would be entitled to the interest during period from the date you bought it until the date it was redeemed.  Sometimes this is a good, relatively nice return. It certainly can get messy and I have not heard of transactions like this through auction.com before. 

Agreed that a good attorney could help clarify but it is a very interesting situation. 

I would advise not doing an office building as your first deal unless you have a built in tenant (i.e. your own business taking some or a lot of the space). The risk in office leases is tenant improvement allowances and broker commissions that are needed when the property turns over. Your lease outlook is fairly short based on the comments so expect more cash liquidity needed in near term as leases are renewed and/or turned over.

@Michael Schmalzer commented on the cap rate. Certainly tighter but little was provided on the sub-market, location.  I am less concerned about the tenant mix. 

Yes most definitely, either @JeremyHoese or I could answer your questions!

The Duluth/Superior market is an interesting market as it is a mix of college rentals, multifamily, and traditional single family rentals.  We have found it an interest market to lend into versus the Twin Cities marketplace. Rents are lower, vacancies still trend positive but the affordability is better with higher expected cash flows.  The largest challenge we have seen is the age of the properties and higher expected maintenance and repairs cost so you will not want to go into this area without a capex plan.  Some valuable information in the City of Duluth's July 2016 Housing Report: http://duluthmn.gov/media/517578/2015-Housing-Indicator-Report.pdf