All Forum Posts by: Tim Swierczek

Hey, @Daniel Vikhtinski There are a lot of factors in what makes for fair compensation. In larger transactions, the role you are suggesting is called a KP (Key Principle). Those deals are typically in the multi-million range and the loans are typically non-recourse which changes the profit at a lower percentage and it changes the risk as being non-recourse. Your experience as the operator is another factor in what the split would be.  I'd be willing to talk and possibly buy the deal from you. PM me if you're interested in chatting more.

Hi Zach, I've syndicated 6 assets.  PM me if you'd like to connect.

@Mason Vitalis @Bill B.'s reply covered all the bases. Feel free to call me if you want to discuss it any further.

Great post @Jeff Schemmel Lots of great points. The most underrated is a tenant who pays by cash. It's a huge red flag.

I do think this will have an impact. I think it will be messy at first and eventually, the industry will fall into a new normal. However, in the short term here are the issues I see:

Some buyers will try to save money by going to the listing agent.  This will lead to buyers with less representation, and irresponsible offers without the guidance of a buyer agent I can see agreed-upon prices exceeding the compatible sales and deals that have appraisal issues, and/or buyers who agree to terms they would not agree to if they had representation.

Other buyers will shop for representation based on price. This should be interesting as better agents who have more business will naturally keep the firm at higher commissions, leaving less experienced agents with more low-priced business.

Uninformed sellers will push back on including buyers commissions in the sales price resulting in less competition and lower prices on those homes.

Uninformed buyers will self-sort out of the market unless they meet a great agent to explain their options. This will force some out that would have been purchased under the previous system.

In the end, I don't see this as a major problem but I suspect it will cause more friction and decrease the overall satisfaction of both buyers and sellers for the next few months as we get used to working in this environment.

Quote from @Eric Vest:

I'm in the beginning stages of learning about real estate too Samantha and located in the Minneapolis area as well! I wish I had more advice, but just wanted to congratulate you guys on taking a step toward your investing future! Keep pressing forward!

 Hi Eric,  welcome to BP Twin Cites. Reach out if you want to chat about investing.

Quote from @Samantha Casillas:

Hello! My husband and I are beginning the stages of learning about real estate. We are preparing our house to turn it into a long term rental unit and plan to house hack a duplex or fourplex (along with our 4 kids 😜). We are unsure of which market we want to invest in yet and are in the research phase and learning how to calculate good properties. We are open to other ideas!

Hi Samantha,

Welcome to BP Twin Cities. There are a lot of great investors who will share their time and expertise. Meet-ups are fairly common and a good way to get network with other investors. Reach out if you want to grab coffee & chat house hacking.

Quote from @Mimi Wright:

@James Hamling Thank you for your reply.

There are not that many multi families in Shakopee from what  I saw. 

My main concern here is that you have to go down 7 stairs to be in the main living area (living room/kitchen), the main window is a little bit small. 

I would have a positive cash flow with the price they are asking for ($350,000/ was originally priced at $400,000). I am just worried if it would be difficult to sell it in the future if needed with the split level situation.

 Split levels are not as desirable as other designs, but every house has a price that the market will pay.  My guess is this house has an issue with either condition or the split level aspect since $350K is a low price for a good-condition suburban duplex. Does it currently get market rents or are they low? Low rents could indicate that renters don't like the layout, although there are many reasons for low rents, conditions, and bad management will also lead to low rents. if you like it and its cash flows make an offer that you can't pass up and see what happens.  

Quote from @Christopher Martin:

Hi! I'm a little new to real estate.  I am interested in diversifying my investments away from public equities markets and am learning about a variety of real estate investment opportunities.  I am based in Minnesota and also have connections in Louisiana.  I am looking forward to making connections on the forum.  Thank you!

 Welcome to BP. I'd be happy to grab a coffee and talk about Real Estate investing. PM me if interested.

Quote from @Dalton Dillon:

How are your building plans protected for new construction when shopping around for quotes from General Contractors? I'm currently in the process of building 2 new SFH in the Houston suburbs. We've been met with a few hurdles; one being staying on budget. My current GC has quoted me roughly 10$ over his original price per sqft from when discussions first began. He suggested shopping around with other GC's to see if they could beat the numbers he was getting. I have another GC in mind from a friend who is also an investor. This other GC of course needs to see the full set of plans to give me an accurate quote. I'm concerned now and for the future loosely sharing plans that have costed me and my partners a good amount of money. Does my LLC name being attached to the plans protect them from being utilized by other builders/investors/Contractors? Am I overthinking this?

 You are absolutely rethinking this. The builders don't care about your plans but even if they did it will not affect your ability to use them.