All Forum Posts by: Scott Martinson

I love the Twin Cities of Minneapolis and St Paul.  Downside is winters are long and cold.  It is a great place though.  All 4 major sports, highest per capita Off Broadway plays/theaters in the nation.

But I don't want to plug my own city. My wife is from the Kansas City area. KC is similar to Minnesota. 2 major sports and a thriving arts/entertainment scene. I haven't looked into REI there, but I know RE prices are lower than MN. The climate is good there too. Easy winters, but hot summers.

I was in the Navy so I've spent 5 years in CT.  2 in Groton and 3 at a Nuclear Facility in Windsor no one knew about.

@Account ClosedGary Keller is the main author.  He's one of the founders of Keller Williams Real Estate.  One of the co-authors, Jay Papasan, has a good episode on the podcasts.  I listened to Paul Pant's podcast on BP.  I read the intro and thought she would be some smarmy person I didn't like.  I found her episode to be insightful though.

Listen to Podcast 162. It had a lot of good information regarding taxes. My take away was: If you are a passive investor and LLC is probably best for you. If you are an active investor (flipper, RE Agent, Property Manager) you probably want an S Corp. The one big difference is that with an S Corp FICA Taxes can legally be avoided. Make sure you consult with your accountant and attorney as she mentions in the podcast. They will know your situation best.

@Account Closedmakes some very good points.  I swear by the podcasts.  I periodically do some delivery work and use the drive time as "education time".  I have learned tons from the podcasts.  I own duplexes and a small commercial building.  The info I've learned in the podcasts is going to help me take the next step.  I have specifically learned a lot about financing and finding deals.

Rich Dad Poor Dad and Casfhlow Quadrant were good philsophical/ideological books about the importance of wealth creation and investing.  Millionaire Real Estate Investor gives more detailed knowledge about how you go about it.

@Gunnar BarbeeI'm not a lawyer or an expert, but I believe an S Corp and LLC are two entirely different entities. You are either one or the other. An S Corp is a type of Corporation. The S Election determines how the corporation is taxed. An LLC is a different type of ownership entity with it's own tax rules/laws. Which did you use and specifically why? Or did you just go by the advice of your advisors?

@Charlie LytleI used Jim Wahl of Monroe Moxness and Berg to setup the LLC I used to purchase a commercial property last week. Google search for the firms website and his bio is listed on it.

Best of luck

I own a lawn care landscaping company.  I have also had various paper routes for about 15 years.   I get agitated with a lot of the class warfare that goes on today.  People suggest they won't ever be rich.  If I can get my net worth into the top 10% nationally by mowing lawns and delivering newspapers I would think anyone could do it.  One time a girlfriend asked me if I would ever get a "real job".  The answer is apparently no.  Fortunately I have a great wife that is very supportive.  4 duplexes and one commercial building now.  I hope to significantly grow from here.  

 Absolutely true about a property management company.  My dad invested in rural MN and this house was in Fort Dodge, IA.  One unfortunate thing where I grew up was there are no property managers.  Just not that much rental property.  I don't know about Fort Dodge.  This was back in 2003.  The primary point of my original post is that Tax Liens in Podunk America can be a good thing.  We could probably write a book on what happened after the tax lien was bought!

 How come you didn't like the Hopkins Duplex?  Hopkins is a great little community with good rental demand.  If the building was bad I understand.  Don't write it off because you don't like Hopkins.  It doesn't have the appeal that Mpls does, but the prices are much better.

 I bought a duplex in SLP for $300,00 and get $2600 in rent (good building middling investment).  2 years ago I bought a short sale duplex in Robbinsdale for under $190,000 and get $2550 in rents.  You do want to be in a great rental market but you need to make money too.  Consider places like Richfield, SLP, Hopkins and Robbinsdale.  Real Estate prices are much more favorable and you will get only slightly lower rents.  I will get better appreciation in SLP, but I love the cash flow I get from Robbinsdale.

A lot of good points made previously.  Duplexes appeal to owner occupied so the prices are more reflective of houses as a whole.  Perhaps you should consider a small multi-family (4 to 12?).  Prices should be more  reflective of cash flow.   There are a lot of strategies on BP as to how you could get a lot of property with $100k.

Good luck.

@Don EnriqueI've never bought a Tax Lien.  However, I once bought my dad a tax lien book and he did some investing in Iowa with Tax Liens.  I say this because it was also hick town like Renville County.  He bought a tax lien.  Never got paid on the taxes so he got the house instead.  He kept the house as a rental for a period of time.  I suspect he made his initial investment back in a few months rent.  The house was worth around $35k

Weird part of the story.  Dad died, mom received keys in the mail from tenant.  We went down to Iowa and found the house full of mold because of a water leak.  Thank God the insurance policy did not exclude mold/water damage.  My mom got paid out about $30k and sold the lot for about $5k.

Maybe you know a lot about Tax Liens.  I just wanted to point out that my mom and dad made more than $30k on an investment of less than $1k.  This was in Fort Dodge Iowa.  Literally one of the most depressing towns I've ever gone to

My $.02 FWIW.

I don't recall the episode number but it was earlier on. I've probably listened to more than half of the episodes. One of the keys I have learned is that you likely need to find an off market deal to find a good financial deal. Many of the smaller properties in MN you find on the MLS are break even at best. Don't settle for break even.

One strategy I personally will be able to use is through my landscaping company.  I get around my town a lot and know who my older customers are.  Once I get financing in place for my next deal, I want to start telling all my older customers I'm an investor.  I may be able to find an older fixer upper that way.  I also know where the distressed properties (condition wise) are located.  I can send letters to those property owners.

Do you have some special insight that you could put to work?