All Forum Posts by: Account Closed

I’ve been flipping/developing for 6 years in the Minneapolis area. However, I’m currently in the midst of the biggest acquisition slump of my career. I’ve always been diligent with my mailings, but in this (unsustainably?) appreciating market there simply is someone willing to pay you more than I am for your property. I know I need to evolve with the market, but I have a very hard time not sticking to the model that’s worked for me over the years. The way I conduct my business, I could absorb a market pull back. I sleep well at night with this strategy, but I can’t honestly say it’s not frustrating striking out so frequently. As odd as this may seem, I almost found things easier in a softer market a few years back. My local market feels saturated with guys doing the exact same thing as me. I’ll hang up and listen.

@Joshua D.  @Steve Vaughan  @Russell Brazil

Here's a response from the CE course instructor: 

My personal favorite is Hopkins. Charming small town feel, with close proximity to everything that MPLS has to offer. It's where I do almost all my investing. In my humble opinion, no better place to park your money in the Twin Cities right now.

Originally posted by @Russell Brazil:

It is actually still illegal to do this type of flipping 

Please explain how it is illegal to do this type of flipping. I understand the HUD memo. However, it does not prohibit or regulate property flipping within 90 days when a buyer's mortgage is not insured by the Federal Housing Administration.

@Russell Brazil

Here’s where we agree: in 2015, the FHA re-instated the rule banning the use of an FHA-insured mortgage to buy a home that was being resold within 90 days of purchase.

"A property that is being resold within 90 days or fewer following the seller's date of acquisition is not eligible for an FHA-insured mortgage."

- Page 144 of the 2016 FHA Single Family Housing Policy Handbook

Here’s where we disagree: “it is actually still illegal to do this type of flipping.”

It's an FHA buyer restriction, not a seller restriction. A seller can certainly sell before day 91, just not to an FHA buyer. It’s important to note that the FHA market share in 2015 hovered around 15.0%. There would be absolutely no 90 day seasoning requirement for conventional loans, cash buyers, or transactions with seller financing. 

@Joshua D. & @Steve Vaughan

Glad to hear someone else felt the same way.  Up votes all around!  

No matter the avenue, successful real estate investing involves a tremendous amount of time and effort.  No two ways about it.  

I was taking care of a necessary evil earlier in the week:  continuing education to maintain my MN real estate license.  I came across the following question...

As an agent who primarily uses my license to invest, this bothered me.  According to Investopedia, 'Market Value' is "the price an asset would fetch in the marketplace."  By definition, isn't the price a retail buyer is willing to pay market value?  

Hi Alex,

I'm a real estate investor (& Realtor) and my niche is flipping houses in Hopkins and St. Louis Park. Here's my last few projects in your neighborhood:

130 7th Avenue North: http://www.spacecrafting.com/fxz4

322 11th Avenue North: http://www.spacecrafting.com/fejy

110 Park Lane: http://www.spacecrafting.com/fkwj

I'm currently working on my first new construction (210 8th Avenue North).

You're in a prime market for flipping!  I'd love to sit down with you sometime and tell you what I know. 

- Brandon Hayes 

Thanks for the reply, Roy.  

I've had issues with this in the past (people not understanding exactly what I do).  I've tailored my mailing to be as straight forward as possible now:  "I pay cash for homes in as-is condition."  

I've been investing in the Minneapolis area for nearly 5 years now.  Here's my last few flips:  

http://www.spacecrafting.com/fejy

http://www.spacecrafting.com/fxz4

http://www.spacecrafting.com/fvvn

http://www.spacecrafting.com/fkwj

Only recently have I begun to seriously put money into marketing (mostly direct mailing) to find non-MLS deals. Like yours, my local market is hot and I'm growing increasingly frustrated with the MLS competition. Anything priced remotely well is in multiples. I wrote on a MLS listing the other day that had 40+ offers. FORTY. I decided it's time to find other ways to acquire properties.

Here's my dilemma:  

I got a call this morning and when I answered the caller hung up.  I immediately called back a couple times with no success.  I reverse searched the phone number to find it's a land line in my target area.  I had mailed a letter to them a few days prior.  Looked into it further to find that there's at least 75% equity in the home.  Jackpot!  

I call again and leave a voicemail (in a tone of voice that is much friendlier than I actually am).  

I live in the area, so I did a quick drive by.  The garage door on the detached two stall garage has completely fallen down.  Appears to be recent.  My best guess is she got fed up with homeownership that day and decided to give this pesky investor a call.  All speculation of course...

Long story short, I simply can't get a hold of this individual.  Thought I'd crowdsource this one!  

*  How aggressive is too aggressive when it comes to following up?  (read:  how many times can I call per day before she considers restraining order options)

*  If she won't pick up the phone, I was going to follow up with a hand written note.  Any verbiage you've had success with?

Thanks in advance everyone.  

- B. Hayes