All Forum Posts by: Tim Swierczek

 I don't see anything. Can you please PM me here or PM me on FB messenger?

@Spencer Perron check the data. Determine what it would sell for on a comp-based approach as a 4 unit (they don't sell based on cap rates) and determine what it would sell for as a Cap rate 5 unit. Try hard to find 5-7 unit property cap rates. Buyers of 5-unit properties are different from 10+ unit buyers. This data should give you a better answer than we can give. Randy is correct on the insurance, check out those rates. and then make your decision.

 I just clicked it and it worked. You can try going directly to my Facebook page https://www.facebook.com/tim.swierczek it's the video from July 16th. Our most recent video from July 30th would be another example, although I would call that one an outlier.

Happy to help. One of the things that make "Agency" guidelines good is that they are standardized across all states so you will not find many differences in Conventional, FHA, VA, or USDA loans. Having said that Minnesota does not have termites due to our weather so we don't do pest inspections, we don't require hurricane insurance, or earthquake coverage, but many but not all lake properties require flood insurance.

We do have some local portfolio lenders who can be accessed through brokers. I do not broker those but my wife does. I can connect you if you ask.  I think your big difference will be in local rental laws which vary by city. St Paul is the most strict, followed by Minneapolis.  That being said I'm under contract to purchase a duplex in St Paul using a local portfolio lender so I can definitely run through my thoughts on a zoom. 

I do a weekly "live deal analysis" on my Facebook page if you are interested, it's public so you can view it without friending me. This may give you some insight into the Twin Cities. Feel free to reach out if you want to talk.

@Daniel Mortigo Espinel I get it. You're Realtor should help guide you and your loan officer should be able to answer your questions. They can't help you if you don't let them know. I have on occasion learned that my client would ask the Realtor questions about the loan that I didn't know they had. Don't be timid about asking questions. Feel free to reach out if you need help.

@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.

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