All Forum Posts by: Account Closed

We, too, are in Mankato and we have some residential multifamily in North Mankato and Eagle Lake. We currently are doing large multifamily both syndicating and joint venturing. We are pretty much done with flipping and managing our own properties. What is it you guys are looking for down here? We live here in Kato. We are looking for multifamily 50+ if you guys are trying to find partners. Let us know - Ken and Rachael

@Michael Malmrose I think it truly depends on how much work you want to do. 1. Fix and flip - you will be involved often and have to make sure everyone is doing their job. Can be stressful if you are still working or the market turns on residential in that area. You are dependent on the sales of other similar houses in the area. The cool thing is you could get a highly discounted house because you could buy it for cash. Maybe your the type that likes to see the fruit of your own labor which we have done before but it ALWAYS takes longer than you thought and you are not making any passive income while you sleep at that point.

2. Joint venture with someone you trust, you be the money supplier and they handle the job and you guys split the profit when the project is done which might work if your still working and you have an iron clad agreement drawn up first.

3. Use it as a downpayment for a small multifamily. We have done this and are doing a long term hold on a triplex. Not bad, we get about $1200 a mo in income. It’s pretty easy once we it got all fixed up and got higher end renters in. Less drama is good! Run it like a business and you will be much happier.

4. Scale much faster, use your money to invest in a large multifamily, leave the work to someone else and make amazing returns while you sleep. You get cashflow throughout the hold which is typically 3-5 yrs then get your money plus a large chunk of the equity upon the sale too! If the people that found the deal did the right homework they found it in an up and coming matket, added value and forced appreciation right away so it is worth a lot more in year one because commercial multifamily sales values are aligned with the income not the other buildings that sold by them. To give you an idea of what people make using this passive Investing method is typically anywhere from doubling their money to even maybe 2.5 times or more. There is a reason why wealthy people invest in large apartment complexes.

5. Take some of the funds, get educated (I recommend RE Mentor) and you can learn how to find good deals in hot markets with large family yourself and you can syndicate and scale up even faster but you will have to work for this one and if you have another job it could be challenging.

I hope this gives you some ideas. Think of your ultimate goals and move forward in that direction. Take care and God bless.

@Ronald Neverenko Yellow and supposedly taping a piece of candy to the letter so it bulk up the envelope gets a better response for opening as well. Hand address as well. If you don’t have many its not bad but if you go to a community where you are contacting lots of people there are printing businesses out there that have a machine that literally make the letter and envelope look like it was hand written. This is of course at a cost.

@Ronald Neverenko

Google - doing a direct mail campaign. Also, Dave Lindahl I think it is has a youtube video about how to get people to actually open your letters and catchy phrases to begin the letter with. What color of paper even. People keep track of what works most often so dig that info up. They also say to send another after the first on like 1-2 months afterward. They say it may take several contacts but don’t get discouraged. Maybe see if you can find phone numbers too. I listened to one very courageous investor who went to their doors, knocked and asked. Have fun!!!

@William Thorn I would do what your doing! I would find people who know what they are doing with large multifamily properties in areas of the country that are up and coming so you can team up and buy low and ride the next appreciation train. There are many data sites out there that support where markets are in their cycle like housingalerts.com is one I know of. Get to some Apartment investor meetings or the best is to go to Multifamily conferences make LOTS of friends and tell them what you are doing. You mention you have money to invest or want GP in one their deals and you will have plenty of people helping you accomplish your goals or of course you could passively invest with syndicators and get good cash flow and equity on the sale of the next property and let someone else do the work for you. Just make sure you are vetting them. Best wishes!

@Ronald Neverenko in small multifamily yes but we are now doing large multifamily and from the many people we know doing it yes they have gotten opportunities at purchasing through mail campaigns. Plus as someone else mentioned in the forum going to Meetups and Reia’s in the area where you want to buy could get you one. At the ones we have gone to back here in MN they do a “Have and Wants” time where oeiple can stand up and say what they are looking for or tell people what they have available or need. Someone may know someone also that they tell about and connect you together. We have found people are so nice and generous at these! I would highly recommend them!

@Ronald Neverenko have you heard of Melissadata.com? It is a list source where you can have them sort through public data and some they pay to acquire. You can have them find people who have owned their properties for more than say 7 years, mortgage being close to paid off or totally free amd clear. People who have owned for a while maybe more likely to sell. You can put in certain demographics like age to narrow the focus because people that are closer to retirement age may want to be free of medium size apartments like that. There are many other parameters such as neighborhoods or specific building requirements like square footage that you can also add to narrow your search. You can then get a list you may even be able to get emails and phone numbers and then you could send postcards or you could literally try and contact the owners. It cost about $50 or maybe more depending on how large a list you get but I would try and narrow down as much as possible. Hope this helps!

@Andy Ramdeen We did the same thing and after having SFH's, duplexes, triplexes we have now realized in order to scale much faster we had to educate ourselves in buying large multifamily apartment complexes. We are SO glad we did because before we thought, oh maybe we can try to buy a 6 plex or 8. However, after we took the courses which weren't cheap, there was serious sticker shock I tell ya, we now are always going for 50 units and up. Plus you meet others just like you at the courses who have the same issue. They have some money to invest too but not sure which way to do it. You can find partners that way if you wanted to. We felt like we bought into an investor's club when we did it. We now have 253 units under contract which we never would have thought possible before we took courses! Have fun which ever path you choose :-)

@Deonte Ademiluyi #1 don’t let anyone tell you you can’t do it! It sounds like you have the mindset to be an investor now you have to be creative.

Idea:

Find people who really need out of their home (a mobile home that is pd off might be a great place to start) find one that doesn’t need much work besides elbow grease and paint, offer them possibly a couple more thousand than they want but say only for Seller Financing at 0% interest (look up Chris McClatchy for this strategy). Get tenants in there that can pay you $600-800 and then you make payments to the seller of $300-500 and keep the difference. There is a little more to it but hopefully you get the jist.

@Robert Schmitt We have gone to three different meetups in the cities so far. The Apartment Investors, Twin Reia and the MN Reia. Each had their own distinct niche. At two of them no one threw out anything to buy. All were helpful to network and we met great people. I would ask what your specific goal or niche in RE you want then choose. We are probably going to first try as many meetups as we can as we also are always seeking passive investors for our syndications or to joint venture with. If you have any specific questions about any of the ones above feel free to PM us.