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All Forum Posts by: Shane Hedeen

Shane Hedeen has started 1 posts and replied 212 times.

Post: Minneapolis Market

Shane HedeenPosted
  • Real Estate Agent
  • Saint Louis Park, MN
  • Posts 213
  • Votes 82

Hey @Eli Sunderland

There are a lot of indicators that indicate that we are towards the high end of what prices could allow in a lot of areas, some not quite. For example, I like to look at the long term trend of unemployment, median household income, and average home price. Of course, they are three very generic indicators, and vary wildly from neighborhood to neighborhood, and city to city in our metro area or anywhere. That said, there are some interesting trends over the last 10-15 years. I like to look at the gap between increases in average household income versus the average price of a single family home. The gap has been and is growing significantly in our area and most of the country I would argue over the past several years. Can the gap continue to grow forever? Of course not, simple math won't allow it to. Eventually, nobody can afford to live in a 3 bed, 2 bath rambler as their wages aren't allowing it to pay for the difference in purchase price. 

If you look at the gap we have currently, it's similar to the mid-2000s. Does it mean we have a whole world market about to crash again? I have no idea. Hopefully not. 

I enjoy looking at that type of data, and enjoy sharing it with people looking in a certain area if they are interested. That said, I don't ever like to play the speculator. 

If you are thinking about buying a property in the North Loop area, Uptown, NE, etc. - yes, they are all very warm seller markets. Does it mean there aren't deals? Of course not, there are deals in any market, at any time. All just depends on your goals, your numbers, type of property, etc. 

You and @Marc Jolicoeur make the perfect point. If your goal on a purchase is to buy right for the numbers now, and rent for a long period of time - what does it matter if the market shifts downward for a couple of years? Minneapolis/Saint Paul is a moderately cyclical market over the decades and years. We don't have the polarizing gains/losses in value of many markets along either coast, but we have more up and down than many other midwest towns in the middle of the country. If you are going to be a buy and hold guy - be that, and buy whenever you find a deal good enough to buy, regardless of market cycle. Just lock into financing that is more fixed, longer amortization and more stable to protect your investment should things dip. 

I'd love to grab a coffee sometime @Eli Sunderland and chat about things! Always happy to chat and help any way I could. 

Post: Investor from NYC / Long Island

Shane HedeenPosted
  • Real Estate Agent
  • Saint Louis Park, MN
  • Posts 213
  • Votes 82

@Matt Walden - great area indeed! That's a great area to own a few units in Minneapolis! How long have you held those units? 

Post: Closed my first rental property

Shane HedeenPosted
  • Real Estate Agent
  • Saint Louis Park, MN
  • Posts 213
  • Votes 82

Congrats @Nick Leonard! That's awesome that you have your first rental property at age 20. 

What were the numbers on the deal if you don't mind sharing? 

Post: I am a newbie but not a rookie!

Shane HedeenPosted
  • Real Estate Agent
  • Saint Louis Park, MN
  • Posts 213
  • Votes 82

Welcome @Art Tapera! This is a great place to learn and connect with people! Thanks for sharing your post! 

Post: First Multi- Family purchase

Shane HedeenPosted
  • Real Estate Agent
  • Saint Louis Park, MN
  • Posts 213
  • Votes 82

Agree fully with @Colton Cook in your due diligence. Unless you are sure of the condition and your needed repairs, I wouldn't let the seller negotiate/push you away from your own due diligence, inspections, etc. There may be another investor with experience willing to come in, offer a little less, but waive a lot of their due diligence because they are comfortable with that type of deal. Being that it's your first deal, that's exactly what you should be firm on to know what you're getting into. That would be my first thought and initial reaction from the description. 

Best of luck on the deal! Stick to what you need in the deal, and don't feel pressured to accept things or a cost you are unwilling to accept. 

Post: Advertising on Zillow and Trulia

Shane HedeenPosted
  • Real Estate Agent
  • Saint Louis Park, MN
  • Posts 213
  • Votes 82

I have heard similar stories to @Matt M. in what he shares. I think you can do well off Zillow/Trulia, but you have to be willing to spend a small fortune to get a lot of that business in a lot of areas. I know a few agents who just purchase a small package to become a premier agent, just to have that on their bio, and to have some of the listing features they offer to paid agents. It's part of their listing presentation. 

I would love to hear any related info people had, from those big sites or other 'lead gen' platforms out there. Thanks for posting @Jordan Schneider!

Post: Soon-To-Be New Agent

Shane HedeenPosted
  • Real Estate Agent
  • Saint Louis Park, MN
  • Posts 213
  • Votes 82

Hi @Bethany Corey

Congrats on becoming an agent. They vary a little from state to state. In MN, I would just look those rules up with the department of commerce. Your best two sources will be your future broker, who will walk through steps of getting license hung, and the department of commerce (or whatever other entity real estate falls under in CA). Your local Realtor associations will have info there too on your license, renewal, etc. It varies state to state a bit, but hopefully that's a good place to start there. 

Your second question is one you should ask your broker. If they don't have a great answer for a road map for you getting started, you might want to keep looking into another team. Does your team produce leads? Where are you supposed to generate business in your first year, other than people you know? Great questions to be asking, best of luck in getting started! 

Post: New member in Omaha NE

Shane HedeenPosted
  • Real Estate Agent
  • Saint Louis Park, MN
  • Posts 213
  • Votes 82

@Michael Hajduk - welcome to BP! This is a great community to learn, ask questions and start planning your next investments in small multi family. Best of luck! 

Post: Buy and Hold Strategy

Shane HedeenPosted
  • Real Estate Agent
  • Saint Louis Park, MN
  • Posts 213
  • Votes 82

That's a great plan to get started! Eventually, you will likely get sick of moving so often, and living in one of the units. When that happens, or when the low money down option dries up, you can always use creative types of financing or simply go to a local lender and get a loan with a larger amount down as an investment property. There are hundreds of options, just go get out there and find the right one for the first deal! Best of luck! 

Post: Taking Action and Making It Happen

Shane HedeenPosted
  • Real Estate Agent
  • Saint Louis Park, MN
  • Posts 213
  • Votes 82

Awesome @Brian Terry! Well done for you and the family, congrats! Keep on learning and building! 

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