I'm looking to connect with investors in the Minneapolis - Saint Paul, MN real estate market.
I have had experience with single family and duplex's in NY and now looking to get into garden apartments or at least more units as opposed to single family. Is there anyone in the area that I can connect with?
@Abe Cohn what are your goals for your your multi fam? Are you ok with a 4 or 5 cap in a mid range neighborhood? Any particular reason you're looking in Minneapolis/ St Paul? I've seen some portfolios of smaller properties floating around, with the changes to 1031 looming, you might want look towards some of those..
Nobody with a penny less than $250m should even consider touching anything 4cap. The most minor of market shifts, property condition shift, can shift such deep DEEP into the red and if you don't have significant capital reserves to lean back on, or sizable holdings to average out against, it's like tieing on a hangman's rope.
I work with some MEGA funds, that measure acquisition power in hundreds of millions, and they wouldn't even consider a 4 cap unless it had the most amazing and solid condition of near 0 cap-x for next decade or so, such as new built, that's it, with stellar inbound migration. That's funds who could literally burn a million $ for a weekend weenie roast, and they say it's too much risk.
If your a $1m-$10m MFH buyer, DONT rush into anything, do thorough D.D. and DONT push, the 2nd best deal you ever get is the one you DIDNT buy and DIDNT loose capital on. This MFH market is shoveling out manure and calling it gold at a rate I have never seen in 20+yrs in RE. DONT be that person buying the bag of flaming-poo just so you can be proud you got something.
Real Estate Agent · Minneapolis, MN · Member since 2019 · 10 posts · 12 votes
5y
Hi Abe, welcome to MN if you just moved here recently! Our team specializes in helping people buy and sell small multifamily homes in the Minneapolis- St. Paul area. I'd love to chat more about what you're looking for, and see if I can be of assistance.
This is the single most brutal MFH market I have ever experienced and it is death-trap for novices, to put it lightly. Are there deal potentials, absolutely, I have a board full, but it takes significant talent, work and research to dig them up they are not readily available by any stretch of the imagination.
To yourself and any looking to enter this market or one like it (Twin Cities was just rated in top 10 of most competitive in nation) you must not just have a Pro working with/for you, they gotta be a Pro-of-PRO's.
One of my clients we landed a MFH deal a short time ago and had a bit of a stretched out closing, nothing crazy just a bit shy of 90 days, closes tomorrow and we have had 7 offers on it so far, DURING pending close, and each one keeps stepping up offer higher and higher and higher, into profitable amounts so ridiculous my clients are absolutely not going to sell now because if that's gains during pending, they are stoked beyond belief what the next 6 months bring, lol.
Now take that for what you will but point is two fold, it's an absolute frenzy for MFH out there with a desert of supply, and the con-artists are flooding in taking advantage as they always do of desperation and market frenzy. DONT be one of the victims! Sometimes the best deal is the one you never bought.
Hi @ James Hamling Thank you and I appreciate the insight. I would even consider the cities outside of the immediate area and even the suburbs. I hope I can find a value add property shortly.
Investor · Minneapolis, MN · Member since 2016 · 254 posts · 228 votes
5y
@Abe Cohn what are your goals for your your multi fam? Are you ok with a 4 or 5 cap in a mid range neighborhood? Any particular reason you're looking in Minneapolis/ St Paul? I've seen some portfolios of smaller properties floating around, with the changes to 1031 looming, you might want look towards some of those..
@Abe Cohn what are your goals for your your multi fam? Are you ok with a 4 or 5 cap in a mid range neighborhood? Any particular reason you're looking in Minneapolis/ St Paul? I've seen some portfolios of smaller properties floating around, with the changes to 1031 looming, you might want look towards some of those..
Nobody with a penny less than $250m should even consider touching anything 4cap. The most minor of market shifts, property condition shift, can shift such deep DEEP into the red and if you don't have significant capital reserves to lean back on, or sizable holdings to average out against, it's like tieing on a hangman's rope.
I work with some MEGA funds, that measure acquisition power in hundreds of millions, and they wouldn't even consider a 4 cap unless it had the most amazing and solid condition of near 0 cap-x for next decade or so, such as new built, that's it, with stellar inbound migration. That's funds who could literally burn a million $ for a weekend weenie roast, and they say it's too much risk.
If your a $1m-$10m MFH buyer, DONT rush into anything, do thorough D.D. and DONT push, the 2nd best deal you ever get is the one you DIDNT buy and DIDNT loose capital on. This MFH market is shoveling out manure and calling it gold at a rate I have never seen in 20+yrs in RE. DONT be that person buying the bag of flaming-poo just so you can be proud you got something.