Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
×
Try Pro Features for Free
Start your 7 day free trial. Pick markets, find deals, analyze and manage properties.
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Matt Higgins

Matt Higgins has started 10 posts and replied 204 times.

Post: When and How Did You Start Your Business? - Career Advice

Matt HigginsPosted
  • Property Manager
  • Blaine
  • Posts 209
  • Votes 276

Andre, well said,


I assume you’ve read both rich dad poor dad and cash flow quadrant, if not, read them.  I made all my startup money as a bail bondsman, I know not very prestigious sounding, but it got the job done.  I grew my income from 100k to 600k over the course of 15 years, now I have sales team that makes the money for me.   I used to gladly put 90,000 miles a year on a car because I had control over how much money I made.  Remember, try to work yourself from employee=>self employed=>business owner=>investor.

the whole time I was driving that car, I was flipping properties, buying real estate, and learning. I wasn’t satisfied just making a great income, a lot of people can make great money, but not many can take $1 and turn it into $5.  Now, a lot of people in my circle are willing to invest with me because I have a track record.

So build that track record!  Find a way to make more than you spend.  Tonight I was reading my 8 year old rich kid smart kid and I explained to him how the rich don’t work for money.  I showed him pictures of this junked house I bought today.  It was so bad you could barely open any of the doors.  It was probably the worst one I’ve ever been in.  I told him that most of america lives in houses like that, they spend half of their life at work to pay for it, and for many it’s a house they will never own.  Meanwhile, your dad can show up, be too scared to walk inside, buy the house on credit, use more credit to pay someone else to fix it, and 6 months later put it on long term financing, pay the bank back their money, and charge some poor guy 1200$ a month.......the rich create money and don’t work for it.  If my 8 year old can get it so can you!  Once you build your track record the bank will gladly give you money. 

Things I would change

I would have bought real estate instead of paying off my student loans first 

I love my Porsche now, but I would of drove a Honda Accord instead of Cadillac's and Lexus while I was putting on all them miles 

I bought my first 5 or so rentals with cash in 2008, 09, 10.  If I had to do it again I would have financed all of my real estate during the recession when it was so cheap And bought apartment buildings 

instead of using commercial bank loans I would have bought my first 10 properties using FHA financing

If I Were You....

If you’re making over 6 figures cut down on your expenses and start buying real estate now. If you’re not, find a job where you have control over your destiny.  Nights and weekends real estate would be a good way to get into the 1099 side of the tax code and have some control over your destiny.  I would hang my license with KW or whoever has the best training program and caddy for the most successful agent in your town.  in bail bonds I want my agents to make well into the 6 figures because the more money they make the more money I make.  The real estate hustle is the same so team up with a high volume agent.  Then I would buy some of your own real estate, network, and build your track record!

good luck Andre!  Lmk when you buy your first deal and let’s go TWINS.  Hell of a lineup-not much pitching

Post: First step to Financial Freedom!

Matt HigginsPosted
  • Property Manager
  • Blaine
  • Posts 209
  • Votes 276

Hey Brian, good luck to you!  I know of a light rehab duplex 40 minutes outside of Minneapolis well under 100k that you could buy today!  I say this not to sell you a deal, but to tell you that they exist.  I agree with everyone else that the Mpls/St Paul metro has gotten pricey, and that a category 2 rehab in St. Paul or cleaning up a tish report in Minneapolis is going to cost more than 20k. My rehab prices have been running 30k-40k.  That being said, I purchased a house today for 175k, 35k rehab, and I know it will appraise at 250k when I’m done unless the economy goes sideways.  What I would recommend is buying your investment in your own name, financing for 6 months, and getting that 30 year low interest money.  I also suggest you hookup with a turn Key operator or find a way to make it work in your own back yard.  

Today I was doing what it is that investors do, meeting with commercial brokers, and begging them for a deal.  It seems no one in my market has an apartment deal, but I still try to suck up all of the knowledge I can.  Today I met with a young broker whose dad runs our market,  it was a bonus that his dad joined us for the meeting because I know he is a busy guy.  The son is doing the property management for several commercial properties and he showed me the software he was using to do it.  the software is called tracfax and here is what it does
1.  Take a picture and describe work to be performed.  The picture is sent with a geo tag so the contractor knows the exact location of the problem

2.  It sends the work order to licensed and insured contractors for a bid.  The contractor is unaware that 10 other people received the same potential job description.  Then you can look over the bids. (this could be amazing for flipping) 

3.  It sends out electronic and legally binding contracts to the contractor and allows you to set a time limit and track the progress 

4.  It allows you to pay the contractor electronically 


I guess it’s a Minnesota company and I’m not sure if it’s specific to our market.  Great idea though and this broker sure seemed to be satisfied with the service they are getting from it.  If anyone has used it I would love to hear about it and if not I will contact them to find out more. 


Post: Thoughts on the Minneapolis Market?

Matt HigginsPosted
  • Property Manager
  • Blaine
  • Posts 209
  • Votes 276

@Bruce Runn

It sounds like you have some good systems in place and put a lot of time into it. I’ve found that it’s not always a matter on “if” you’re willing to self manage, but it’s more of a matter of “if” you are good at it.

A lot of the people who are self managing are running month to month and not increasing rent while their expenses go up. It might not matter over the course of a year, but it adds up over the course of a decade. The same people aren’t running their financials correctly and have no clue on how profitable their investments are. The same people don’t collect rent on time every time, screen properly, advertise vacancy effectively to reduce missed rent, respond timely to tenant request or repairs to reduce turnover, have modern management software, or the time needed to provide safe and affordable housing.

That’s not you!, but for the average guy they get a lot for that 8%. I would suggest a new investor starts with property management. There, I stumped for our industry. Thanks for giving me the opportunity.

Post: Thoughts on the Minneapolis Market?

Matt HigginsPosted
  • Property Manager
  • Blaine
  • Posts 209
  • Votes 276

I would find it hard to generalize Minneapolis as a "market" just because there are so many different neighborhoods and price points. I dont think setting up an MLS search will nhelp you too much with 15+ unit deals that mostly funnel through the brokers. It wouldn't hurt though and I have seen properties listed there in the past. I follow the commercial listings everyday and I'm not seeing them come through.

You can still buy a sfh for 100k in n Mpls, clean it up, and get 1300$ in rent, not bad.  You can also spend 300k a door near the lake or 200k a door in uptown. I have a client who is trying to house hack or buy a multi family in NE.  We have walked through some really nice properties that I thought would be cash flow positive. 

I disagree that the property management company takes all the profits, but I’m not sure who Bruce has used in the past.  

If I was going to cash flow I would go to north Minneapolis.  If I was going to house hack I would to to NE.  There are investors who own a number or properties in Minneapolis and are looking to cash out.  It might be worth checking the rental license list and doing some reverse prospecting.  


Post: 1st potential BRRRR...advice and recommendations needed!

Matt HigginsPosted
  • Property Manager
  • Blaine
  • Posts 209
  • Votes 276

@Gus Muller

I have sold flips that I knew were good holds and kick myself all the time. A great property is a great property and always should be. I think you hold this one as long as you have a good handle on your expenses. Make sure you’re going to cash flow. 20k rehab is pretty light so I’m guessing there will be some cap x in you future.

I see that on yelp renters where house is rated a 1.5 off of nearly 300 reviews.........

Post: Hi, I'm Troy Warling a newbie from Minneapolis

Matt HigginsPosted
  • Property Manager
  • Blaine
  • Posts 209
  • Votes 276

Let’s do it @Troy Warling! People ask, how did you acquire so many properties?, and the answer is 1 at a time!  I’ve had some newer people reach out and a couple years later they still don’t have a property,  don’t be that guy!

Post: Who are some great real estate attorneys in Minnesota

Matt HigginsPosted
  • Property Manager
  • Blaine
  • Posts 209
  • Votes 276

@Jarvis Naylor @John Woodrich is our CPA too. he Definitely changed my attitude towards accountants.  You’re In good hands.  I’ve been with him a few years and I wish I could say longer......it would have saved me some money!  You shouldn’t need an attorney to manage a duplex (knock on wood). You might need a property management business and if you hire the right one you will be able to avoid the attorneys.

I have heard that it’s a good idea to have an attorney on retainer, but I don’t know?,  I’ll pay ya when I need ya Is my mentality.  The only person that says no to money is a really good friend, and definitely not an attorney! 

@Joseph Hammel

A landlord has no obligation to provide a reference at all. Any information you get from a previous landlord is a bonus and should be taken with a grain of salt. People will lie just to get a bad tenant out of their building.

Post: Investor friendly title company

Matt HigginsPosted
  • Property Manager
  • Blaine
  • Posts 209
  • Votes 276

@Seth Mceleney I’ve had good luck with Kristine at Executive Associates Title in elk river