New Investor from Minneapolis

[Joseph Griffiths]

This post is long overdue for me. After reading many books and listening to all the podcast episodes I have finally come around to making an intro post. I have been reading the forums and going to a few meetups already (I would love to go to more). I plan on buying a small multi-family property within the next couple of months. 

About Me:

I am currently a Senior in college at the University of Minnesota Twin Cities. I will graduate with a degree in architecture in May 2020. I am interning at a small residential architecture firm in Edina at the moment while I finish up school. I have worked as an exterior siding contractor and have built and installed various products for luxury homes around lake Minnetonka. I have also helped my dad construct various side projects for friends or family (most recent was a boathouse for our neighbor). I have always wanted to invest in real estate and feel now is a great time since I will be wrapping up school and I will have more time and capital to use.

Goals:

My current goal - To get a small multi-family house hack going before the end of August 2020 (when my current lease ends). Unfortunately, I do not qualify for a loan right now because I am in school and working part-time so I do not have enough income. However, I did find OPM to use and it would be all-cash up to 300k. So I currently started looking for properties with the intention of buying instead of just running the numbers for practice.

Long Term Goal - I want to acquire a few multifamily properties that generate enough passive income so I have the option to quit my job (around $4000 a month). Once I achieve that I want to start scaling up my business to tackle larger properties such as a 15 unit building or partnering for even larger complexes.

[Evan Kraljic]

Welcome to BP and the twin cities investor community! There's no shortage of experienced investors here who love helping new people learn about real estate so keep doing what you're doing with going to meetups soaking in knowledge others around you. I'd recommend joining the Millennial Investor Focus Group on Facebook, it has been really helpful in building a network of contractors to reach out to and other twin cities specific real estate questions I've had.

One question/suggestion for you though, if you're planning on house hacking I think the best strategy is taking advantage of the super cheap and low down payment financing that owner occupying opens up for you. That's awesome that you've already had the initiative to raise OPM before your first deal but I'd save that if you're going for a BRRRR or a real fixer upper that wouldn't qualify for a conventional mortgage. Just a thought though, I don't know your situation and that's more something that an experienced lender would be able to help you out with better. Tim Swierczek, Conor Hesch and Kim Burke are three really good ones in the twin cities. Kim has a 0% down with a construction loan -> refinance option that I haven't used but it might appeal to you since you mentioned you have a background in construction. Good luck!