All Forum Posts by: Tim Swierczek

@Daniel Mortigo Espinel These are both great offers. As a lender, I can tell you credit unions are price leaders. It's unlikely you will find a significantly cheaper loan option. Credit unions lack product selection and lender experience. To save on costs they can't pay their staff nearly as well, leading to good employees leaving for better opportunities in the for-profit space.  They can handle basic transactions but normally lack the skill and experience to tackle complex transactions.

The MN first-gen loan origination fee and interest rate is set by the state of Minnesota and cannot be changed by a lender. This means that the other fees lenders charge could be different but in essence, all of these loans are priced the same.  Consequently, when you get a DPA loan sponsored by the state, you look for expertise, care, and quality from the lender because there is no significant difference in price.

@Carliss Robinson here is an analysis of the property that we did live on Facebook on July 16. it will give you all the details and our assumptions, plus the comps we used and didn't use. etc

https://www.facebook.com/tim.swierczek/videos/46921123574172...

@Brad Schaeppi is the best Real Estate Attorney in Minnesota

@Anthony F. First, I completely support doing any deal that is so far below ARV. Great job, it sounds like you have a lot of connections. @Matt Vohnoutka is correct you should get that thing under contract. You can always write a long closing if you need more time but don't let the seller change his/her mind.

However, I am going to offer an opposing view to the STR idea. It's rare that vacation rentals on Lakes in MN make money. You get about 3 months of rentals, maybe 4, and that must pay 100% of your expenses for the year to break even. I've talked to many clients and investors who consistently lose over 10K per year on MN Cabin STRs. I would strongly encourage you to investigate long-term rents. A lake home with a hot tub that's remodeled should be appealing and it's worth a look.

I hope it goes well either way but look into it and feel free to hit me up if you want to talk more about it.

Quote from @Andrew Beilke:

Hello,
I'm exploring setting up a short term or medium term rental for a large single gamily house in Minneapolis, MN! Looking for referrals on good full service STR Property Management companies with good knowledge and track record in the Twin Cities area. Please message me with any referral recommendations. Thank you!

@Adam Tafel if the property is in St Paul, but he will not manage anywhere else. He is a master of St Paul.

@Brad Schaeppi is your guy. He's helped me and my clients countless times.

Quote from @Brett Riemensnider:

Hi everyone. I recently got a quote from a GC on work for one of my units. There’s a slight language barrier and I don’t quite think the person I spoke with understood the work I’m trying to get done. Looking to get the unit decent and livable not perfect. 

Does anyone have advice on how to open conversations with a GC, prices on services or recommendations for GC’s in the Minneapolis area? 

Hey Brett, 

The smaller the job the less appealing it is to your contractor.  The better the contractor gets the higher their minimum work becomes. Your description makes me believe you are looking for a job that is not worthy of a GC. I'd search for a very skilled handy man, this would be a good job for that person, or look for the individual trades and "GC" it yourself.  Anything else is trying to fit a square peg into a round hole. You will get sick of beating your head against the wall.

@Lynn Gupt I've worked in lending for 22 years. I've never seen an appraisal list an apartment building nearby as a reason for a lower value or as a negative price. Gas stations on the other hand do affect value.  I think many buyers will not want the extra traffic and noise they feel comes with an apartment and that will likely affect marketability. Could that keep you out of multiple offers or force you to accept a lower offer to sell? Yes, possibly but if the vacant land looks bad it could help you slightly. Most newly built apartments are nice and may give you a minor boost in appeal for your block. It's hard to say but I think it's fair to say your value is not tanking because of this apartment, any movement in value is likely to be small enough to be negligible.

Quote from @Zach Kirchoff:

Hello,

Looking to speak with an expert in the spec home lending space. Smaller developments (2-10 homes at a time) and lower price point (under $500k). Please let me know who your favorite lender in this space is!

Do you have experience? If so, my wife has a few outlets. She brokers commercial lending and has both a small bank and a hedge fund investor. All want experience right now so you must be able to prove you've successfully done it before to get funding right now unless you put crazy money down.

You're going to want to build out a local network. I'd recommend talking to @Adam Tafel he has a built-in network of contractors and property managers to help you get going. Adam an I do a weekly live deal analysis on his Facebook page. You can visit it and see his expertise and the last house we looked at was an off-market duplex in Saint Paul, MN that was greater than a 1% rule which is hard to find nowadays.