All Forum Posts by: Brittany Kuschel

@Richard Peterson

There is definitely a need for effective and responsive property managers in Duluth.  I am personally familiar with a number of local pm companies, but I cannot comment on their customer satisfaction, as none of my clients have had the opportunity to use them.  Overall, I'm inclined to think that currently no one company is providing extraordinary service.  My inclination is further confirmed by the fact that all of my investor clients and contacts currently manage their own properties.  That being said, I think being a property manager is a great idea.  I have even considered the path myself. 

Getting your license also will help a great deal in your search for your first investment purchase.  By having your license, you can easily view properties immediately as they come on the market and view essentially as many properties as you want and as your schedule permits.  Part of finding that deal is looking at piles of properties...sometimes hundreds.  This is made so much easier when you are the agent and can go view the property yourself.

If you end up going the property manager route, let me know.  I'd be happy to share your contact information with my investor clients.

@Richard Peterson

I really can't say whether I think increasing rates and more shoppers create a market favorable for flippers.  I do feel strongly that any market is favorable for investing, as long as you are willing to put in the hard work and find a deal.  Sometimes this means finding something off market, but not necessarily.  Presently in the Duluth area, properties which require work/significant updating/unique financing are still sitting, and I see properties every week that sell at a significantly reduced rate from the initial asking price.  

Your concern about purchasing a flip and selling it in a couple years is a very valid one. Given current market trends, I would highly advise against holding a flip for two years. At some point, I think our market will start to even out and if you overpay for something now or have holding costs of 2+ years, you may find that the property values have depreciated in two or three year's time and you could end up losing money, or worse...getting stuck with a property. If I were shopping for an investment property today, I would be looking for one of the following: something to fix and flip within 2 - 3 months, a house-hack (live in and build equity with practical and strategic upgrades that reflect a good ROI for the neighborhood), or renovate and rent in a low vacancy area (buy and hold for 5+ years).

Hope this helps!

@DuWayne Jones

Refer to Minn. Stat. 513.52 through 513.61 https://www.revisor.mn.gov/statutes/?id=513 for seller required disclosures.  Also, the standard MN realtor purchase agreement form does reference and provide direction for addenda and disclosures which should be included with a written offer to purchase (with the exception of lead-based paint addendum, which should be included if the property was constructed prior to 1978).  I previously worked as a transactional paralegal for a number of real estate attorneys and we always ensured that our clients either completed the disclosures required by law or specifically agreed to waive those disclosures in writing (Minn. Stat. 513.60).  I now work as a licensed real estate agent and always explain to my clients that disclosures are really their best protection from getting sued.

One of the attorneys that I worked for has been practicing transactional law for 50+ years and would sometimes create a simple purchase agreement form 3-10 pages tailored to the specific transaction.  Typically, such a form ends up costing the client more, as it has to be revised with each new transaction.  Also, even in those instances, he was careful to include the appropriate disclosures.  There were also many instances where we were asked to draw up a purchase agreement using "realtor" or "bar" forms, and applicable disclosures/addenda were always included.

Your most cost effective option is likely have your attorney provide you with the purchase agreement (and applicable addenda/disclosures) for you once all of the negotiations have been ironed out.  Ideally, he or she would charge you a flat rate fee for such a service.  Also, you should be careful to consider that your city and/or county may have specific point of sale inspection and/or disclosure requirements.  These too should be taken into account when preparing your purchase agreement forms.

In a society that has grown to be litigious as ours, drafting and executing contracts should be left to the professionals, whether it be your real estate attorney or licensed real estate agent.

Hope this is helpful.

@Richard Peterson,

I'm in the real estate business as an agent and have found business to be good in Duluth.  The market is pretty incredible right now and unfortunately, not a great time to be a buyer if you are looking for something move-in ready under 200k.  It's still a good time to be an investor though, it just seems like it is taking my clients a bit longer to find what they want.  The market is still accommodating flippers as well, if you can secure a property for the right price and get it turned around quickly.  DOM are shorter than ever!!!  My husband and I have personal investing goals and I am presently working on building capital to purchase our first investment property.  I too have an interest in flipping, although margins are tough these days if you're planning to hire contractors (which we would do, as we have little know-how ourselves).  It will be interesting to see what the market does in the next couple of years as rates increase and more buyers flood the market : )

I'd love to meet up and grab a cup of coffee some time f you're interested in talking about local market trends, as well as some investment strategies that work nicely in Duluth. 

Hello @Richard Peterson.

Welcome to BP!  There's tons of great information to be found on this site and absorbed through the podcasts.  My favorite feature is the alerts you can set up to get email notifications when people on the forums are talking about topics that interest you.  This has been an invaluable feature for me!

Happy Investing!

@Jesse Bryant, I would recommend looking in East End, Chester Park and Kenwood. All of these areas have low vacancy rates and are close enough to the colleges that you can easily secure student tenants if need be. The market is very competitive right now, so you will likely have competing offers on any MLS listed property that is fairly priced, but there is more and more inventory being dumped onto the market every day.

Feel free to DM me if you have additional questions!

Sincerely,
Brittany Kuschel

Hi Kevin:

Welcome to bigger pockets and welcome back to MN!  I'm an agent based out of Duluth as well with personal investment goals. Unfortunately, I don't know that I can offer much insight on the non-conventional financing, but I'd love to connect some time and talk about local market trends, getting started as a new agent, etc. I do have a local mortgage broker who might be worth chatting with as well and I'd be happy to connect you with him. He has been able to come up with some creative financing solutions for a past client of mine.  Shoot me a private message if you are interested in connecting.

Brittany

@Jason M., I don't know much about the Cottage Grove market, but I am a licensed agent in Duluth, MN.  If it were a local property and an investor client asked me about this, I would not recommend spending the extra money to repaint the trim and cabinets at this price point unless they were in poor shape.  

One cheaper/quicker option to update the kitchen instead of paint might be to use a gel stain on the cabinets to give them a darker, more contemporary look.  General Finishes is the brand I would use.  If you choose your color wisely, it might even tie very nicely with the new floors.  

Hi @Garron Torma:

Welcome to bigger pockets! I am a licensed realtor in Duluth, MN and work with a number of newbie (and more experienced) investors.  I too came across the podcasts a few months back and have been soaking up as much information as possible.  I've not listened to every podcast but I am working my way through them.  My husband and I also have some personal investment goals which we hope to get started on within the next year.  Next time you are in Duluth give me a shout and we can connect over coffee.  I'd love to discuss market trends and find out more about your investing goals.

@Jeremy Vidmar, I am always looking for reputable contractors to add to my list of resources for investor clients (as well as future personal investments).  If you are contemplating a return to Duluth, I would love to discuss opportunities that might be available to you.  Shoot me a message and let me know!  Also, please feel free to reach out if you have any questions about local market trends, vacancy rates, upcoming development, etc.

Brittany