All Forum Posts by: Pavel Sakurets

Sawyer, thanks for the tip.

I was looking to do something crazy/fun, but not sure what.

Just for fun, I though to invite my friends to one of my houses that is being rehabbed now, give them construction suits, shovels, gloves and ask them to remove construction debris...

And then take them somewhere to dinner :)

I semi agree with your banker. I had 60 properties in good areas and I sold 30 sfh because it was too much work for the money that I was getting. Yes, I had my MGMT Co managing them, and my employees doing repairs, etc. Still we didn't cash flow $500/month after all expenses were paid from each house, because each our property cost 130-150k after the rehab was done.

In my opinion, if you don't get $500 in cash flow after all expenses are paid, sfh is not an asset, it's a liability, because you always will need to spend money to replace ACs, furnaces, water heaters, carpet, paint, appliances, etc. And if you only get $200-$300 in cash flow per month from each unit, where will you get the money to pay for the repairs and vacancies?

In my opinion quads are the best, where people would pay almost the same rent as per singe family unit, but you only have to deal with one property (one roof, etc)

Then 3 -plexes and duplexes. I agree SFH are the worst, unless you buy them in getto for 12k for cash and cash flow $500/month and they pay for themselves in 2 years and then your return is infinite. But I only want to deal with properties in good areas that attract better tenants. I'm looking at my friend that has 70 houses in getto, he gets sued every month. Yes, he gets great cash flow. Does he like to get sued every month? No. But he decided that it was the best avenue for him to become rich

Casey, I would strongly recommend getting a re license and take CE classes. This is the best education I have ever had ( I also have BS in MGMT and MBA in finance), but still RE education and getting my license so I could be not dependent on anybody was one of my 10 best decisions in life. After you get your agent license, after 2 years you can get brokers license and you will not need to pay anybody except the state $180/license every 2 years.

means I can spend as much as I want to

Hi, all. I ran out of ideas. Will be turning 36 next week and invited 12 of my best friends with wives to my birthday. But I want to do something fun. No budget. Will celebrate on Friday night. Please help.

All crazy ideas are welcomed. I live in Minneapolis and will need to stay in Minneapolis because my friends have kids and need to be home by Saturday morning

 Radio  advertising sucked, we spent 10k advertising for 3 weeks. And I made it very clear to the person who I bought the ad space from, if we close one deal from advertising, I would sign a contract for 6 months. Got only 10 or 12 calls and from people that called us all of them tried selling before through mls.

Not in stock market for sure unless you want to compete with super computers which hold an average share in the entire US market for 0.008 seconds.

For those that think you ''invest'' in stock market, read the best truthful book that describes how stock market works ''Why genius failed'' and think who would know more about any given Co's stock you or CFO of that company and what would they do.

If you are referring to a property management, you only need a license if you manage a property for somebody for a fee.

If you are referring to private money, if you provide the funds by yourself for a fee you must be a licensed mortgage originator. Unless you are a partner in the transaction.

You can also contact MN Department of commerce for further clarification free of charge

Depends if you want to be actively involved or not.

If not actively involved, lend it to somebody at your desired interest rate secured by a 1st mortgage.

If you want to be actively involved, buy a commercial property on auction (It's going to be small property, improve it, rent it out, refi, pull cash out, repeat).

These are my top 5 banks that I have been working with who financed my RE deals for the last 10 years. (These are all commercial loans, made out to LLC or Corp)

Drake Bank (Used to work with Jeff Carter)

Home Federal Bank ( Jason Madson, awesome banker, if the loan over 0.5M will take longer)

Granite Community Bank (Jake, president's son, smart guy, low origination fees)

Round Bank (Andy Klassen, low origination charges)

Bridgewater Bank (Tom Johnson, the fastest banker that I love, my favorite, higher than normal origination charges though, 2.5 weeks to close a deal for him, have been working with Tom since 2006)

Merchant Bank (sucked in 2007 at the day of closing they backed out of the deal, didn't follow their commitment and instead of financing 380k for me at closing financed only 120k, I had to borrow money from somebody else at a very high rate, just to keep my word).

The funny thing is that the banker from Merchant Bank was my instructor at the University of St Thomas grad school, teaching me a banking class next year when she screwed me over the deal :)

I know Jeff Carter from Merchants, he used to work at Drake Bank and financed many of my deals, and then moved to Merchants. Good guy.

No hard feelings to Merchants Bank though, simple bankers just follow the instructions from their presidents.

Guys, also you need to look after yourself. Even with bankers that I have been working for 10 years or longer, make sure that the fees and interest rate on the HUD is the same as it was in the commitment.