Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Adam Widder

Adam Widder has started 15 posts and replied 133 times.

Post: Where to store rental reserves?

Adam WidderPosted
  • Real Estate Agent
  • Minneapolis, MN
  • Posts 138
  • Votes 87

@Jody Sperling Are you currently doing this then? 

So the monthly contribution is going into the policy, earns the minimum 4% (upwards of 6.5%). Of the monthly contribution, 85-90% of it is available as cash value you can take a loan against. 

Therefore, that loan can then go to work. Example, I use it to fund renovations on a flip. 

In your last paragraph, you're saying the money is protected from lawsuits or other life misshaps?

Post: Where to store rental reserves?

Adam WidderPosted
  • Real Estate Agent
  • Minneapolis, MN
  • Posts 138
  • Votes 87

@Thomas Rutkowski Can you explain the --

"That means you have a choice between 100% of your savings earning 0.5% or having 85% of your savings earning 5 to 6%."

Post: Where to store rental reserves?

Adam WidderPosted
  • Real Estate Agent
  • Minneapolis, MN
  • Posts 138
  • Votes 87

We're going on 3 properties, and I'm wondering where others store their reserves for their rental properties? My general rule of thumb was 6 months of PITI, which I have in a savings account. As we go to 3 properties, this amount is now enough to purchase another property! So there has to be a better way to store this money.

So far I've been researching putting it into a:

high yield savings account, very boring, very low yield, very safe, and can be withdrawn quickly.

Mix of a stock/bonds in a taxable investment account, shoot for a 4-6% return. Better return, liquid, but if i needed the money, I'm taxed.

Infinite banking. My understanding is I could over time, fund the policy annually, have a cash balance I'm able to use right away, have an immediate death benefit, and it gains 4-6% growth, and I can take a loan against it.

Post: Minneapolis and Saint Paul pass rent control!

Adam WidderPosted
  • Real Estate Agent
  • Minneapolis, MN
  • Posts 138
  • Votes 87

@Randy Bloch 100% I've read the whole thing and yes it's definitely the most restrictive in the country. But there's going to be investors making money. People will always want to live in one of the cities, imo.

One exception, that if you make improvements you should be allowed to make a reasonable rate of return. A savvy person will be able to exploit the city for that. I don't think they're prepared to answer that question. Now you have a government deciding what a reasonable rate of return is for private investors. It just get so grey. 

Post: Minneapolis and Saint Paul pass rent control!

Adam WidderPosted
  • Real Estate Agent
  • Minneapolis, MN
  • Posts 138
  • Votes 87

Seems that May 1 2022 is date they're sticking too, although @Bruce Runn is correct, it should be today. Would be an interesting exercise for the city if all of the sudden questions were being sent to the city from Landlords. They have no way to process this without a department so it's kind of a wild wild west. 

People have been so down about this, it's kind of frustrating to see how people are debbie downers. There's rental investors making money in every market and every neighborhood on the globe and likely doing it ethically too. I don't think the Sky is falling. To think your property or rental is now a bad investment is likely false or limiting belief.

One aspect, now you don't have to estimate rent, just raise it 3% every year! Done, easy! 

Post: Twin Cities of Minneapolis and Saint Paul are SAVED

Adam WidderPosted
  • Real Estate Agent
  • Minneapolis, MN
  • Posts 138
  • Votes 87

I think there's a lot of water to go under the dam here. The Mayor announced he'll sign the amendment to remove new construction, which is a relief, the legality of this is in question. All my properties are in Saint Paul. Long term this could change again in 15 years. 

Looking long term, I believe these become more valuable for owner occupants. More people will see these as ways to decrease a housing expense while living close to where they work or having option to live work play, which is why people live in large cities anyways. 

Post: Newcomer to real estate market

Adam WidderPosted
  • Real Estate Agent
  • Minneapolis, MN
  • Posts 138
  • Votes 87

Hey John, I'm an agent and I'm actually doing a VA loan house hack right now! I close at the end of the month! I'll send ya a pm, happy to be a resource!

Post: What type of account for holding deposits?

Adam WidderPosted
  • Real Estate Agent
  • Minneapolis, MN
  • Posts 138
  • Votes 87

In MN you just have to have them in separate holding accounts. Check your state or city laws and see. Personally, I put mine in a basic savings account, then rent comes through the checking. All bills, insurance, rent, taxes are paid through a checking.

Post: House hack Question for rookie

Adam WidderPosted
  • Real Estate Agent
  • Minneapolis, MN
  • Posts 138
  • Votes 87

Whatever software you use, zillow apartments.com etc, should have built in background search, credit search, and then I like to  look on social media as well. Do some stalking. 

Post: Evicting Tenants on 4 plex under contract

Adam WidderPosted
  • Real Estate Agent
  • Minneapolis, MN
  • Posts 138
  • Votes 87

I would go for the 60 day notice. If the language barrier is an issue, could you hire an interpreter for 1 hour? There also is likely one member of the family who speaks english so maybe you don't need the interpreter. But you have law on your side since there's no lease. Cash for keys will be quickest, do like 200 upfront, then 800 once they're out?