All Forum Posts by: David Moore

@Matt J. 

Welcome Matt.   I live in the Twin Cities, and I invest in southern Minnesota.  I think your instincts about Duluth are good.  From your own words, you know the market.  I think that UMD is a big plus, though I don't invest in Duluth.   You left some key data out.  Do you and your wife have good paying jobs.  Good paying jobs and good credit are important to lenders.  Investing in Duluth, however, could snag you a portfolio lender, who does not resell the loan you get to a secondary market, but holds the loan.  And I've seen some of the prices....not too bad.   I've found the primary lenders in the Twin Cities have sky high application and loan processing fees, and sky high closing costs (Wells Fargo).    But I have a portfolio lender in Southern Minnesota.  Approval of the loan is not even considered, really.  I just contact them and let them know I'm buying x # of houses in the next few months, and they are like, ok, let us know.  Very different from US Bank, Wells Fargo, etc.  Plus my loan officer is the same guy.  

Now, your asking about suburbs around the Twin Cities.   What does that tell you?  I like J Scott's book on Flipping Houses.  It is not only about flipping.  It describes the importance of locating your own 'back yard'.   A lot of good tips. 

Does anyone struggle with 'Black Friday' syndrome in the winter like I do? The opportunities for investments in the winter months are plentiful, sellers are desperate, and almost no one is buying (I'm in Minnesota, for perspective). I'm eyeing four properties, all looking like plums (2% rule plus), a couple of them HUD's, and I'm finding it hard but necessary to wait, wait, wait, and not bid against myself. It is tempting to ignore my home markets past patterns and think I have to secure one of the plums now, before someone else snatches them. But one week from Thanksgiving and five from Christmas tells me to hold off on offers. What are your thoughts?

@Mark Turnbull

Glad to see Pavel followed up his post with more insights.  I kept thinking about his reply last night, and I wanted to communicate that my approach is pretty much Provers 21:5 - "The plans of the diligent lead to profit as haste leads to poverty".  Not knowing Pavels situation first hand at all, I've heard of, in Minnesota, and seen examples on BP of RE investor burnout, going so fast so soon to acquire real estate that burns 'em out.  I think it is much better to acquire more slowly, and maintain cash reserves.

Personally, my wife and I rehabbed one house last year.  We won't do that again.  Going forward, we pay $$ to have someone else do it.  Or we'll wait for another investment that takes less time to work on.  We've had success going slow, and by following great advice from others on BP about tenant screening, how to buy, etc.  One principle I've learned here is to buy with the idea that my property won't appreciate one dime.  Assume in 15 years I have to sell it for the same price I bought it.  

Remember, this is the USA.  We do everything super fast.  We have to have diets where we lose 10 pounds in  two weeks, and the late night infomercials tell us we can get rich quick.  I say, instead of getting rich, have fun with this.  My father in law and I are having a blast.  This is fun.

@Mark Turnbull 

I actually started investing in Albert Lea when my parents in law had a terrible housing situation, and we bought them a house (that they rent for us - really good deal).  I have to give credit to God...once this was done, I prayed and sensed His leading to acquire wisdom.  I joined my local reia and found books by J Scott, which is how I landed on this great site.  I would not have known about the 2% rule if not for the other people on BP like Dawn Anastasi.  I then started looking online and found houses that were in a good neighborhood and would make good rentals.  My father in law lives in Albert Lea, is retired, and LOVES helping me with the properties.   We have other relatives in town, so it makes it a good place for us.  Also have gotten to know some other landlords, and I have a portfolio lender. 

We are now looking at two houses in Albert Lea that will crush the 2% rule.  We are also now looking into commercial properties in the Twin Cities.  Trying to build slow, keep a good cash reserve...not get too carried away.  Brandon and Josh are always saying on podcasts that rental is not something that gives huge $$ immediately.  It is a slow and steady game. 

I didn't know Isanti (Cambridge) was as chock full of deals.  I'm happy you are finding good opportunities.  Let's stay in touch. 

Greetings Mark,

I invest in Southern Minnesota, but I'm branching into the metro, as I do live here.  Just going where the best deals are.  What areas are your interested in?  I'm not a realtor or anything like that...just a fellow investor.  Welcome!

I don't use property management companies, but I can echo some of what Alan said.  I do not accept the 'Renters Warehouse' definitions of fair pricing.  Every investor wants someone who is known for 'getting after things'.  Be proactive.  Be affordable.  Add on fees for evictions, late notices, new tenant fees are such a turn off.   Make a simple fee structure.  Also, be on the lookout for your investors.  They always want good investing opportunities.

Greetings Caleb: 

I generally see a place first before I start doing number crunching. In my market, some of the deals that make a lot of sense on paper don't work so well when you see them in person.  But it might also be a good deal.  It cannot hurt to go look at it, and get impressions.  One piece of advice J Scott gives in his books is to go look at a bunch of properties for sale, just to get an idea of what types of homes are out there...to give you a baseline for what condition properties are in.  Then run the numbers.  I looked at a place once in my home market that the sale fell through on.  I was running the numbers, and then looked at it. The basement and outside condition had me seeing a cash cow.  Then I saw the 2nd level.  The more I looked, the more $$$ I saw had to go in, making the deal worse and worse.  I passed because the repair cost and the layout just didn't look profitable. 

@James Snyder 

Welcome to BP! I'm a Minnesota investor, also interested in Quad's, but my market is sourthern Minnesota. I'm a member of the Minnesota REIA, and I've found Fish MLS is good working with investors. They are housed in the same office as North Title Co, which is very good working with investors. I'd recommend calling them. Just google them. I've also heard Keller Williams is pretty good with investors, but I have no first hand knowledge. Even if you find one who knows investments, all the reasearch is really on you. But some are out there. Your best option is to get wisdom....learn, learn, learn, and Biggerpockets is a great place to learn. I also recommend the Minnesota REIA. You will learn a lot there.

Greetings Raj.  I hope Emily isn't upset at you for posting that.  I'd be on the couch for about a year if I said that.

@William Watson 

Greetings. I am an investor in Minnesota. I just attended a great training last night in Minnneapolis at our MN REIA meeting....the place was packed..about 80 people in this field...lots of vendor contacts. The meeting was on determining MAO on fix and flips. Fix and flips sound easy, but there are many, many factors, to consider. I've studied quite a bit on this, and still got blown away with new info last night. I suggest joining the MNReia. Just google this, and you'll see some info on the website about how to sign up, classes, etc. I think if you are looking for good info on flips, the REIA is the best place to go.