All Forum Posts by: Kurt Pauley

@Matt J. Good that i am still following this I guess. I was wondering if there is a good meetup group.

@Jason Galli

1. What are some areas to consider for SFH - Ideally looking for 3/1 or 3/2 in B - B+ areas. I have generally looked west of Minneapolis (Bloomington, Minnetonka, St. Louis Park, etc.), but that's also what I am familiar with given where I currently live.

-Richfield, Southeast Minneapolis, Midway area of St Paul, Dayton's Bluff, West 7th, I really like west st paul right now as well. Also, I like some of the first tier suburbs where you can still buy some value and prices aren't inflated like other areas.

2. Does anyone know or recommend a real estate agent / broker who understands investments?

-I am an agent and investor in the twin cities. As an agent I work primarily with investors and would be happy to help if needed. I have some decent off market deal flow and can keep my eye out for you.  I would say interview a few agents, get references, and work with someone who you have a good fit with.

3. What do you think of the current real estate market in the area? Any trends that you are seeing? I think the market is frothy, but also that there are deals out there. I also think there is an opportunity in SFH in areas with decent schools in nearby suburbs. Thoughts?

-The market has very low inventory right now and the buyer demand is very high. Many things are in multiple offers the day they list. Still some deals out there but you kind of need to make your own luck. 

If you ever want to chat just holler. Good luck out there!

@Alex Montoya

Hey Alex, I would be glad to chat with you sometime on this. The seller financing is a really awesome option to utilize. It is a great way to put low money down and set terms that can be a win win for both sides.  Do you know what interest rate he will be charging? I would just through this on an analysis spreadsheet and figure out what price it would work at and go from there. I recently worked on the numbers for a similar deal. 

I like your idea of the unsecured debt loan or debt from a friend or family. Partner is a great idea. You can always do more with a partner and split up the duties as well. Not sure your experience level but its always good to partner with people with more experience. 

Kurt 

@Gabriela C. @Satyam Mistry

Hi guys, Congrats on getting started on your real estate journey! Keep learning and you'll go far. I have a duplex in Omaha I might be selling soon also. I live in Minneapolis but invest in Omaha as well as Minneapolis. Networking is key!

@Puja Shah

Hi there! Here are my two cents. 

I think the others are right and you are shooting for maximum return.  Value-add 2-4 unit properties will give you a much higher return than a luxury condo. I am currently focused on 10-50 unit value add buildings. We force appreciation by remodeling the building and increasing cash flow. These deals are hard to find but with hard work it can be done. With the right team in place you can mitigate the amount of "work" involved and focus on other things. I like the phrase "work on your business, not in your business".

https://www.meetup.com/Minneapolis-Real-Estate-Happy-Hour/events/kfkqrrybchbsb/

HI there, This week we are talking about ADU's. RSVP on Meetup. com and we will add the ZOOM meeting info to the comments on meetup.

@Alex Moseman  It is very much property to property and hard to make assumptions over any category. Some properties have had more updates than others. You should understand the cost of a new furnace, a/c, roof, etc if those items need replaced in the near future on a given property.  Also, I would also recommend a scope of the main sewer line. If you have foundation issues you can get out a structural engineer and/or contractor that is familiar with this.  With older properties I would almost always say people don't budget high enough for the expenses. I did this in the beginning and have learned to be even more conservative. Good luck!! 

@Ilya Plugovoy

Welcome to BP! Hope you're doing well in these crazy times. 

Those terms are looking pretty good. I know Wings Financial was higher than that when I checked. Compare the fees of course and always good to start with the lender that holds your mortgage.

Good luck out there. 

@Jacori Hayes

Jacori, Welcome to MN! We are excited to have you here and I can't wait for the United home opener. This has been a tough wait. 

The Twin Cities has a really good community of investors willing to network and help each other. I think the riches are in the niches whether that be a certain neighborhood or certain asset class. Hope to see you around! COYL 

@Christopher M.

Hey there! Welcome to BP and good luck on your journey. It sounds like you have some good goals set up.  Keep learning and networking. For 203k it would be crucial to have a lender that is an expert in doing these loans. If you need a recommendation let me know. 

I think your ability to learn and be humble will take you far!! 

"As your island of knowledge grows, so do your shores of ignorance" -John Archibald Wheeler