All Forum Posts by: Bret Lorenson

I prefer local portfolio lenders. I just did 2 deals with 2 different banks in my area. One of them was 80% LTV @ 5.00% w/ 5 year balloon and 25 year Amortization. Other was 75% LTV @5.10% w/ 3 year balloon and 30 year Am. If you already have a relationship with a local portfolio lender I would go that route. If you don't have a relationship with one, start building a relationship now so that on the next deal you will be ready to go.

I thought in Minnesota you had to be a licensed agent to be a PM?? Drop me a note when you are wanting to start to look for properties.  I am a Broker here in MN and all I do is investment properties.  I also own rental properties in Minneapolis/St. Paul and the surrounding areas.

Welcome @Shane Setzer.  I am also in the Twin Cities market.  Sounds like you have a good background in property management that should help when you get your own properties.  I assume you are a licensed agent since you were a property manager??  What areas of town are you going to try to focus for aquiring your rental properties??

I own 2 SFR rental properties in East St Paul. I agree with your statement about how even the worst parts of St. Paul and are nothing compared to other areas of the country. That being said you will find less headaches in the better areas. I found that overall the further east you can go towards Maplewood the better and also north of Maryland Ave seems to be better. But you can find nicer neighborhoods south of Maryland. Then there are the pocket areas within this area that are even nicer, the areas around Lake Phalen, Hillcrest CC, etc.

Most of the duplexes in East St Paul will be in the Dayton Bluff, and Phalen areas and primarily be older homes built before 1930.  I have found that in East St. Paul the older homes are generally in the less desirable areas.  I would look for a duplex in an area of predominantly newer (after 1930) homes.  Even if your duplex is older than this, the surrounding homes being newer will seem to elevate the neighborhood in quality of tenant, schools, etc.

St Paul does have a rental inspection program you have to deal with.  Not a real probelm, just another hassle and fee.  I think it was $175 and is good for up to 5 years.

@Brock Y.  Welcome.  I am a local investor/broker in the minneapolis area.  Let me know what types of properties you are looking for.  I have some wholesale deals from time to time.

Tim, sounds like you are on the right track.  I am a local investor/broker in the twin cities market as well.  I look forward to networking with you.

Welcome @Joel Armstrong , I am a local investor/broker in the Twin Cities doing a little rehabbing, wholesaling, and own some rental properties. Let me know if I can be of assistance in getting you started on the right track.

Welcome @joshua Johnson, I am a local investor/broker in the Twin Cities doing a little rehabbing, wholesaling, and own some rental properties.  Let me know if I can be of assistance in getting you started on the right track.

Hello Atchut, I use Joseph B. for 4 of my SFR rentals. He runs a small property management company called Homestead Plus. (763) 221-0702. They also have a website. Check it out on google. Depends on what you are looking for and what type of properties you have.

Thanks to all of you for the responses.

@, Yes, I need to add a good Real Estate CPA to my team. I am in the process of looking for one now.

Thanks for the info on the 3k limits on losses. Sounds like if I have the 25K+ in gains I can use it all, if not I am limited to 3k in losses. Follow up question for you....You mentioned you assumed it was not a flip....It was a brand new spec home, so I think it would be considered a "flip" as it was NOT ever a rental. So does that change anything on realizing the losses on the bad debt?

@Dave T, We never signed a new note as the short sale language just kept the existing note in place, but released the mortgage from the property so it could be sold. We were just grasping at straws at that point hanging on to any possibility the buyer would pay up, but they are not gonna pay.