All Forum Posts by: Daniel Kurkowski

Hi Bryan, I believe I have found the best real estate CPA in the Twin Cities.  Feel free to PM me and I can set up an email intro or whatever you need.  

 Awesome, I'm glad to hear you have some help on that front.  I am definitely not trying to be a hater, I just wanted to help provide any perspective that I can to set up a BPer as well as possible for future success.  I wish you the best on this endeavor and hope to hear the success story later!

I know very little about sub2 in FL, but it seems there are a lot of people with real world experience in this market, using this type of financing who are trying to save you some heartache.  

Youtube and podcasts are great, but having someone who has done it help out is the most powerful educational tool at your disposal.  It can be tempting to want force deals on occasion when the market is so competitive, but patience and good fundamentals will provide the best results.

Great work getting your first deal set up.  It sounds like you have all of the pieces and just need to find something with a little more meat on the bone.

 Haha super late reply on my end, but I hire a contracting team who is a business partner of mine on other ventures.  I can't even fix myself a sandwich.

A quick google search came up with these exceptions.

https://www.allpropertymanagement.com/propertylaw/property-management-law-in-minnesota.html

Congrats Tanya. I love that market and think most people are sleeping on it. I did my second flip over there and know those deals work. What's the rehab cost and ARV?

It depends on what you will put into it.  There is more upside in commercial.  I am from the Twin Cities and had little to no trouble breaking into commercial real estate because I was extremely passionate about it and spent a lot of time and money educating myself.  I stopped taking on any residential business to maintain focus.  Before I put any client money into a deal, I used my own as a learning experience.  While still relatively new to RE in general, I am radically transparent with everyone that I meet about where I am at in my career which people are receptive towards.  

I found a better mentor than I ever could have hoped for early on (who actually turned me onto the commercial world) and have seen on the investment side that residential can't really compete.  We are able to consistently create 20% cash on cash returns through value add with giant deltas between acquisition price and market value.  I was able to do this just by picking up the phone, being personable and following through with what I said I was going to do.

There is still plenty I don't know, but know that I will have lots of opportunity as a principal and as a brokerage to get that knowledge while helping others get to their goals.  If you want it, it's there, you just need to act decisively.

If it is a residential loan type you will have an extremely hard time finding anyone to do it because there are loan standards set forward by Fannie Mae and Freddie Mac that handcuff lenders.  If you are willing to speak to a smaller commercial/portfolio lender you might have the opportunity to do so, but it is still pretty rare.

I am assuming you are looking to scale quickly or have a deal that you don't have funds for that is a good buy?  If so it might be worth trying to find an equity partner who would be OK with a preferred equity return on their down payment.  Wish I had a cleaner answer, but everyone is going to want you to have skin in the game.  The next step is finding out how to use other people's money for the down payment as well.

My property inspector is a retired structural engineer.  I would recommend using him in future transactions that may have issues like this.  Feel free to PM me for his contact info if needed.

Hi Bowman, it seems to me that your biggest disadvantage will come from the lack of knowledge about what is feasible in the market you are in, because I think that should largely affect what your acquisition strategy is.

For example you may want to buy something that cashflows but if you are in a rapidly appreciating market like we are in right now in the Twin Cities, you will have a hard time finding something to get excited about and will need to target different asset types or adjust to find another way to get your money to work for you.

In this market your advantages aren't particularly helpful as there is so much money chasing deals, that the ability to qualify for financing doesn't really set you apart.  

If I were you, I would make my primary short term objective to analyze as many deals as possible to understand what is out there to come up with a realistic target.