All Forum Posts by: Alan Mackenthun

Those are some pretty tough criteria. I haven't found one of those yet.

Welcome Jerry. BP is a great resource. I'm also from the twin cities area focusing in the SW metro. I sent a colleague request.

You might be able to get away without it for a while, MN does require flippers to have a builders or remodelers license. The requirements are spelled out here: http://www.doli.state.mn.us/ccld/RBCWho.asp which is probably what you referenced above. There are a few exceptions, but it sound like you likely wouldn't qualify. If you lived in the houses while fixing them, you'd likely be ok without.

When I sold my own home last fall, I listed it on the MLS with professional photography, then scheduled an open house on the MLS and put up signs. Before the 2nd weekend I had a couple hundred postcards sent out to select homes in the neighborhood generating a lot of traffic again for the 2nd open house. I got a full price offer the evening of the 2nd open house 8 days into the listing. Open houses aren't fun and postcards aren't free, but the traffic it generated created an air of scarcity and sold that home when the market had just started to turn for higher end homes.

J Scott, everything you say is true, but I have to say that I haven't ever been able to find contractors who'll work for $15/hour. Maybe it's where I'm based (Suburban Twin Cities, MN) or maybe I haven't been looking in the right places.

My other thought is that I'm not necessarily trying to maximize my income as an investor, but rather I'm trying to build a real estate business with sufficient income so that I can get out of the rat race of software consulting services at something close to the same income (to start anyway). (My actual long term goal is to never have to to another timesheet again, but that should probably have been left unsaid.)

I suppose I should spend some time figuring out how to find decent, better priced contractors.

Very well said. The thing I like best about working independently in real estate is that it is my choice (as long as my wife's ok with it ;) ). No doubt, money is important, but it's certainly not the only thing. Choosing what you do yourself and what you contract out is important, but there's no shame in jumping in and doing projects. When I bought my 1st little house back when I was going to college one of the best feelings was realizing I could knock down a wall andI didn't have to ask anyone (except my wife...).

Good for you Moe.

Thanks Brandon. Your older post you pointed me to states it quite well.

Brett, I perfectly understand #1 in the case of a flip. On the other hand, there are always going to be opportunity costs, but there's also an opportunity cost for not doing any of your own work. I can't spend all day, every day looking for new deals. I generally buy and hold, so I'm not looking to flip it quick and find another deal. I can spend a few minutes a few times a week checking on new listings and other time networking for financing to looking for deals other ways, but I can also add value to my deals with physical labor. On other deals, I can make a little cash acting as an RE agent for other buyers or sellers. If you've got the skill and the time, there's nothing wrong with swinging a hammer and the pride of craftsmanship shouldn't be overlooked.

I used signs in a borderline area (ok - a pretty bad part of town). I didn't like the results at all. I can't handle meeting people to give them an application that they have to take to someone else to fill out most likely because they couldn't read. Then I have to go back to pick up the application and back again to sign a lease, but of course it never went that far as I could never approve any of those brought in by the sign. I don't think so. I really like the idea of putting up a sign pointing the user to the craigslist add. My 1st criteria for tenants is you have to be able to get online.

It's worth checking with a local RE attorney. You may actually be able to do a short sale. I'd recommend riding it out as most here advocate, but it's good to know your options and the options do vary state to state and lender to lender.

Brandon Turner instigated an unofficial Bigger Pockets meet up last night in St. Paul, MN. It was my pleasure to meet Brandon and a number of other local BPer's. Later I found myself thinking about something Brandon said when I should have been sleeping (thanks Brandon) so I figure it's worth a post. I've heard others say the same thing before around here (or maybe Brandon just repeats himself?) and I never liked the thought much possibly becuase it hits too close to home.

Basically, the thought was "I wish I didn't know how to swing a hammer as I'd be a much better RE investor".

The assumption this rests on is that swinging a hammer and actual physical labor is beneath an investor (at least that's the way it hits me). It seems to me that the ability to actually lay hands on a project and constructing, improving or even repairing someone's home is nothing to be ashamed of. I work with software and people pay high rates for my services. That's all well and good, but I enjoy helping out my renters with problems when I'm able and I simply sleep better at night when I can look back at even a small project and see that the place is somehow better. I've bought cheap run down homes in the city and spent way too much time and effort fixing them up. It may not pay as well by the hour, but when passing by I'll detour a bit to drive by and see how these homes are doing. I don't think I'd have nearly the pride in the improvements if had only been a passive investor. Certainly there's a time and a place for contractors and delegation, but I don't see any downside to being able to swing a hammer when needed and time allows. Thoughts?