All Forum Posts by: Matt Higgins

@Amber Gonion agreed, I could have made money on at least two of the properties I saw today.  One I would have put a renter in and collected a check.  I know that eventually it would have needed a cash infusion, but I hate to put My client in a property w knob and tube, boiler heat, among other thing that would eventually need attention 

The other was a two bedroom that was an easy cosmetic rehab.  I actually might still do it.  It would also be a great hold with carpet  kitchen  and paint.  The porch probably needs to be jacked.  It needs 20k on the front end and I hate to tell an early investor to put down 30k, invest 30k, and run a break even deal.  Like @James Hamling it might not be the area for this particular client, but since I’m managing the properties I’m not that interested in going to the range or sw Minnesota.

@James Hamling if you had to start in Minnesota today for cash flow where would you go?  I have a buyer in brainerd and even that marked has moved to over 150k for a starter home.  Do you think the iron range is the next stop?  I always thought Austin would be an ok market but they have some challenges as well.  I recently picked up a portfolio in western Wisconsin that’s done well.  It’s proximity to the cities is appealing.  

You all were right.  No winners under 130k In East St Paul that didn't need work.  I might have been able to make a couple work for myself, but difficult to make them work for someone who isn't looking to get into a project.

thanks guys

I'm going to look at a few now, I'm probably not allowed to post addresses, but frog-town and greater East.

I appreciate you all setting expectations.  I had been looking in St Cloud, but if its apples to apples wouldn't you rather be in Saint Paul?  It's getting pretty thin for investment properties in St Cloud on the low end as well.  I purchased a 15 unit near st cloud a few months ago so I'm not afraid of the market, but I would think long term st Paul would have a better shot at appreciation.  

 

Hey BP, I’ve been tasked with building a portfolio from scratch for a couple guys.  When I built my portfolio I started in the suburbs and moved to some out state markets that have become my niche.   The prices in these smaller markets have doubled over the last couple years and I’m afraid to put these guys in markets with limited upside do to location.  I have a couple rentals in north Minneapolis and I have flipped homes in Both Mpls & St. Paul, but I wondered if anyone who lives, invest, or flips in these neighborhoods has an opinion as to where they would begin their portfolio.

n Minneapolis 

frogtown

Phalen

North end 

Greater East 

West 

Highland park

These seem to be the neighborhoods where you can find some inventory near a 100k and make a little cash flow.  Does anyone have a preference?  For whatever reason investing for others has been a lot more stressful than investing in my own real estate.  

@Jordan Theisen

We are also @John Woodrich truthers

@Andre Jernigan

I shouldn't have said FHA, I should have said a conforming 30 year Freddie Mac loan, but I talked to @Tim Swierczek today and he said he could give me at least 20 reasons why A commercial loan is a better product. The 10 year bond was getting crushed again today so who knows how low rates will go, maybe a commercial loan is the way to go.

Out of school I took a job in Northern Wi at a window plant.  Every morning I picked up every news paper I could find and watched the clock for 10 hours.  I couldn’t do it.  Plus, not much to do when you’re 22 in a small town besides date your employees and go to bars.  It wasn’t going to work.  Leaving that job was a big deal at the time because I had student loans and my parents didn’t have the money to pay them.  When I started the bail bond hustle it had to work.  
I would stay aggressive.  My wife’s grandpa built a multi million dollar farming business, started from nothing coming out of WW2, and most importantly lived a great life.  He told me, “the biggest problem most people make is that they don’t take enough risk”.  He was the kind of guy that you listen to.  You only have one life to live so you might as well take your shot.  if you fail take another.  You should always be able to get a another sub 100k paycheck somewhere if you have to so what’s the risk?  I would start real estate nights and weekends to see if you like it first.  There are a lot of agents, paying a lot of fees, and not closing a lot of deals.  Commercial seems harder than residential to me, especially in this current low inventory market.  Real estate rock stars is a great agent podcast btw.  It might be my favorite podcast at the moment.  I do worry about the long term viability of the real estate agent commission structure.  Margins have to come down someday.  6% agent commission if you get both sides of a million dollar home is a sweet deal.  

One thing I might consider trying in that area.  Ask around to see who has the big farm in the area that hires on help from out of town.  I have an apartment in rural Mn where our tenant is the owner of this farm and they put in tenants as needed.  It works pretty slick.  

As a licensed real estate brokerage that almost exclusively focuses on our property management business it really only makes sense to offer a product like this.  

Is there a better term than “turn key” for a service where the Brokerage assist in the purchase of a home, conducts repairs similar to a rental turnover, and manages the property for the investor?  I haven’t really heard a term for the service we are trying to provide, but I do think there is a need for a service like that.

My wife’s family lives in storm lake Iowa.... when you get to Jackson turn south on highway 4, get a sandwich at the Kum&go, and drive fast through the cornfields! 

good for you for getting started Lucas.  There are ton of cash flow opportunities in that part of the state.