All Forum Posts by: Daniel Okon

What type of contract did you sign with him? Usually in most contracts you are able to put in the price agreeable. What gets a bit sketchy is the added line items that specifically say the contractor can add charges due to any unforeseen expenses such as work that is needed after tearing out an area that couldn't be known until a certain wall or shingles were removed. You can make sure that those line items are taken out of the contract so you can protect your end, we have done that for clients but also try to protect ourselves due to unforeseen expenses that come up that need to be taken care of. It's a hard place to be in, on the contractors end he is trying not to pay money out of pocket for unforeseen work, but the real question is if it was unforeseen or if it was him trying to make more money. Due diligence is key, and understanding what something costs and how long it takes is key. I am a project manager for exterior construction so I don't deal with interior jobs, but you should be able to know at least 80-90% of what needs to be done and what the real cost is through estimating the project. So I would come back to looking at the contract and make sure you're protected on that side of things.

I am trying to offer on a fully occupied duplex. Trying to do FHA but my realtor says there may be problems doing it because of the lease and for me to need to move in right away due to it needing to be owner occupied. Any advice? Can I do FHA or does it have to be conventional?

I am trying to offer on a fully occupied duplex. Trying to do FHA but my realtor says there may be problems doing it because of the lease and for me to need to move in right away due to it needing to be owner occupied. Any advice? Can I do FHA or does it have to be conventional?

There is some pretty amazing software that can give you a vision of what different types of siding would look like, including stone, siding, etc. 

Our company uses Mastic Ply Gem technology to create a vision for what the different types of siding would look like. If you want an unbiased opinion then an architect might be someone to consult, not sure if a landscape architect is what you want because you are specifically speaking about siding. 

I would see if you can get connected with a building architect or at least an architect that works specifically in designing homes. They would be able to give you some renditions of your different options.

Let me know if I can be of any help in the future!

Trying to connect with wholesalers in the Minneapolis/St. Paul area, I currently work with a realtor and am working with a few people concerning partnerships for properties but I am looking to connect with a couple good wholesalers who have some great deals off of the MLS. Thanks.

@Dylan Swanson could you explain "driving for dollars" a bit? Heard about it and read about it but still not 100% sure what that means. 

I'm in a similar boat as you right now. I live in a condo and want to buy a multi in an area where I would want to live. So north Minneapolis is out of the picture. Don't want to live in Saint Paul because I am from the West Metro. I have missed out on a few properties that I really liked after the showing but were scooped up quickly thereafter. A fourplex in New Hope (meh neighborhood) I really liked someone beat me on. But all this was via MLS. As people say on here it is good to find other avenues to get properties before they get on the MLS. The market here has been pretty hot and I have put a few offers on some properties I liked but was outbid on them.

I would recommend getting connected to the local MNreia when you get here and connect with fellow investors (as many on BP suggest) as well as start connecting with realtors that work a lot with investors in the area. There are always properties being bought and sold it's just you have to have the right connections to get the good ones. 

One website I really like is Redfin which you can separate the multi families and really check out the areas you really might like to live in. I would love to live in Northeast Minneapolis so I'm looking there. Uptown is too expensive for an investment property unless you can find some one looking to get out of a property. 

Another question to ask is, what is your criteria. I'm pretty new to all this but you may want to set a standard of saying what you want the total rent to be for the place you buy. I am looking for a 1.2%-1.6% rent amount. So if the place is 100k I need 1,200-1,600 per month for the other units for the purchase to make sense financially in the present and in the future. 

Though June 2016 is only a year away, a lot can change in a year in the market. A property manager I work with said that some of their condos that are now listed at 93k were being sold for 20k two years ago!!!! Woe is me for just getting into this. But for the present time for you I would research areas I would want to live in and connect with realtors and other members of a team I would want to work with (attorney, inspector, etc.) and get some insight from them. There are a lot of helpful people here on BP that are willing to give good advice as well. 

I wish the best of luck for you. Hopefully I'll have at least 10 units by the time you get to MN though!

Daniel 

Incredible. Love to hear young investors going for it. Hope that it goes wonderful for you in the future and with this portfolio of properties! @Nick West

@David Moore yes, that's unfortunate. Was hoping to hear from someone by now. I guess I'll have to do some searching myself and networking to find out some good names!

Looking ahead and seeing who uses what type of suppliers for kitchen and bathroom cabinets in the local Twin Cities area. Minneapolis/St. Paul area would be great to connect with those cabinet suppliers that as J Scott says in his book have worked with investors and can offer an inexpensive but higher-end looking product. Also, looking for a good carpenter to do some work as well. Let me know!

Daniel