All Forum Posts by: Andy Schornack

10 properties, it's not driven by location as much as by Fannie and Freddie rules. Here are Fannie's rules for instance. Good luck!

Let me know if you have questions,  always open to talking and do a lot of deals. 

John Caylor...send me a private message and I can share contact information. 

There is certainly two market dynamics going on in the Minneapolis marketplace. You have the larger multifamily segment, 10+ unit properties, and the smaller 5 or less unit projects. The larger you get, the lower the cap rates and the more competitive the local market has become. I have my concerns on the top end but have been wrong for the last couple of years as rates have fallen and rents have continued to increase (perfect storm for multifamily investors). 

The smaller rental market it is still very competitive but we have a seen a number of deals that have been attractive to investors.  I don't agree on the winter vs summer optionality. The number of "deals" are probably immaterial in the big scheme of things. Usually it's the best time to buy on an improvement deal because you want to go to market in the spring/summer on rents. 

The best deals right now require some work, i.e. building out an additional bedroom, updating units, etc. that drive improved rents. It may be tighter as is but maybe through some small improvements, rents can more than offset the cost to improve. Particularly in good locations, these units have been renting fast. Otherwise, I would venture out to more first ring suburbs looking for deals if you are more focused on good cash on cash returns vs driving most the returns through real estate appreciation and debt reduction. 

Best of luck to you!

I think he meant Frogtown... Probably good to review the neighborhood maps again. Short link i found http://besttwincitieshomes.com/neighborhoods-St_Paul.htm

Hi Marlon, I can send you a couple local names and contact information as well on Twin Cities CPAs that do a lot of real estate investors. Just send me a private message. 

Welcome to the forum!

There are some good 1031 companies in Minnesota if you want me to share a resource or two please private message me. The major commercial title companies all have them, Commercial Partners Title, Stewart Title, etc...

Agreed, don't build it and ask for forgiveness. This is a bad strategy. I would either work with a local contractor or go through the title work challenges on changing ownership. Good luck!

My colleague and I have used it successfully to do transactions. It is an extremely efficient use of capital for experienced real estate investors when you are doing deals but be sure you are following the rules, i.e. if you get it in your personal name, you buy in your personal name, etc... good luck.