All Forum Posts by: David Barnett

@Nathan Downing I might be able to help out if you're still looking.  Please send me a message and happy to share a banking contact I have at a regional bank that I know is interested in expanding their real estate footprint.

 North Minny?

 I'm open to discussing why Columbus is a good market to invest in.  Please shoot me a private message if you'd like to discuss.

Phew!  I'm glad to know that investing in a Target is safe!

All joking aside, I'm not very motivated to invest further in either Minneapolis or Saint Paul due to the recent ordinances/regulations.  I might get a little flack for this, and think that there will be some selling from more mom and pop landlords out of the cities due to some of the regulations and perhaps other issues (burnout, hassle, uptick in vacancies, tenants that are playing eviction moratorium games, etc.).  I'm anticipating that with the recent regulations, more "professional" operators will come in and fill the void.  I envision Minneapolis and Saint Paul transitioning more to a "big city/coastal market" (think New York, Boston, Los Angeles, San Francisco, Washington D.C., Chicago, etc.) where bigger operators come in and scoop up inventory.  Not all big operators are bad, however, if this comes to fruition, I could see it having a negative affect on current renters in those cities.

I don't have rentals in Columbus, and this thread showed up on my keyword search because the original poster said he was from Boston.  I figured I would jump in and mention what I've learned living in Boston and investing in the Midwest.  However, I'm thinking that Columbus is quite a bit different (market wise) than the Twin Cities.

I would recommend working with an independent insurance agent (think of anyone but State Farm, Progressive, etc.).  The agency insurers can only sell their policies/products, whereas, an independent agent can shop multiple insurers for the best possible deal.  For my rentals, I use Insurance Warehouse out of Golden Valley.

@Zeke Liston A little north and to the west of Columbus (Minneapolis/St. Paul - Twin Cities Metro).  The other thing that I think is a consideration is are there direct flights from where you live to the market that you are choosing to invest?  I find it extremely important (pre-COVID) to be on the ground at least a few times a year, ideally, quarterly.  I always learn a ton being in the market and seeing (and hearing) directly from folks that live in the market on a day to day basis.

@Max Tedford Pick me!  Pick Me!  All smart aleck responses aside, I invest in the Twin Cities from a distance and have been in the Twin Cities market for a little over 4 years.  Happy to discuss and/or help with your challenges, if I can.  I agree that investing from a distance does have some built in challenges, however, I think it is going to become more and more prevalent as people adjust to the "new normal" with COVID.

My 2 cents are that it sounds like this company gets off market wholesaler deals, which is why you'd be responsible for the buy side commission for the agent.  In the past, I've paid buy side commissions for the agent that found the deals for me (they were off market and the commission flowed down to me at closing).  If it's a good enough deal, it's worth paying the commission.  If you do push too hard, you may risk the agent funneling the best deals to the clients that pay them the most.  

Buying out of state is certainly possible (I do it).  My main question is, how well do you know the Columbus market?  I understand that you went to college there, and were you paying attention to real estate while you were attending college?  If so, that might be a good market where you may have a competitive advantage over other out of state investors.  In my opinion, one of the biggest risks to out of state investing is to make sure the wool isn't being pulled over your eyes by your on the ground team.