All Forum Posts by: LeAnn Riley

@Naimo Khalif Hello, It is true that the City of St Paul and Minneapolis are adopting some new policies that certainly do affect landlords. Some policies like the ability to add an Accessory Dwelling Unit (ADU's) in Mpls can be good to add value to your property - only works for owner occupy right now but they are discussing open to rentals. And then there is Tenant Opportunity to Purchase Act (TOPA) in discussion right now. Yikes that would require those selling rental units to notify tenants prior to selling and give them an opportunity to purchase. It can drag out a sale to over 185 days for right of refusal. Right now only in discussion and there is lots of opposition. Then there is rent control discussion. And there is already passed the Renters Protection Policy to be in force later this year. ..Times are certainly changing.

St. Paul’s “S.A.F.E. Homes” agenda also includes what would be a first-in-the-state law requiring landlords to have “just cause” to not renew a renter’s lease. There are security deposit limits etc.

All this...Another reason why it is important to have good property management. You do need to keep up on the regulations.

What I see in the market right now ...many investors are shopping in the suburbs where it isn't as regulated. Of course, then the price is higher as the low inventory rush is on. Others realize there are more choices in the city for properties so are willing to take the risk. I see some price drops in the city, maybe because of the crime and unrest we have experienced.   Check out my you tube for a trend report on this market and I'd be happy to chat.

@Jose S. Hi, check events here on BP. For my REI Investors Club I'm doing a livestream on Mar 10 interviewing Megan Lamke who started investing in syndication and now has over 2225 units valued at over $461 million dollars..

We will discuss What Is Syndication, how to and its live so you can ask questions.

@Shauricejohnson I like your idea to invest using down payment assistance but you are correct they have terms in order for the funds to be granted over time of you living there. If you are willing to switch to conventional or FHA financing then you can do what you want. I've done deals with clients that put 3% down or sometimes less.

The best thing is if you can find a duplex that cash flows. Then if you live in one unit at least your payment will be much less than rent. Also, if you combine the strategy of adding value with this house hack, you can then gain equity faster. OR, get a roommate besides in your unit then double up on the house hack and live free, then SAVE the money for the next deal.

Hopefully you or someone you know can do the work to again build "sweat equity". I have one listed over on the find deals section here that could work using this strategy. It, of course, depends on where you want to live. 

Another way to structure a deal is to have the seller pay the closing costs....BUT in this robust market, that is highly unlikely unless you can pay above the asking price and the property appraises. That used to work but in a Sellers Market, not so much. I have done deals in the last few months though where the Seller realizes that the buyer needs that Seller Paid Closing Costs so will work with it. For the Seller it is all about getting the highest NET offer. 

Creative financing is what it is going to take. Best of house hunting!

Shaurice Johnson

2021...  There is a market correction taking place right now. LOW LOW inventory and rising prices, like Tim Swierczek said above.  It's not going to get any better in all of 2021. The new builds can't keep up with the inventory shortage.  Thank goodness there are low mortgage rates to compensate for the higher prices. 

Foreclosures...not expecting anything to happen in 2021, maybe later in 2022. It's nothing to wait for as some investors keep saying...I'll wait till the foreclosures come on. That thought pattern follows old school thinking about the last recession in real estate.  BUT this market is different. The market conditions of low inventory are shocking all the old models so don't apply old thinking.  Also, check the statistics, foreclosures are such a small part of the market. If you are waiting for something to happen in less than 5% of the market it's too small of a niche. Better to figure out what IS happening. I did some predictions, after thorough research, check my social media.

Smart investors are looking for new opportunities. I know some Realtors who are actually going into building homes. Good thought, not enough inventory....then create what the people want. Price isn't an issue. 

The result of the pandemic and people moving out of the city is real, working from home changes what people want in a house and location isn't as critical. Many people will remain working from home in the future. 

I just interviewed a broker/property manager today of over 500 units LIVESTREAM and we both agreed that with the low vacancy rates, eviction moratorium and changing city rules, NOW is a great time to sell and reposition the funds. There are many options, still in real estate. Remember, those who hang on to properties for long periods may lose the depreciable front end load and re-arranging portfolios can benefit the bottom line, even in this market. It ALWAYS comes back to knowing the numbers.

For new investors....I always know there is a deal out there. You just have to be very clear on what you are looking for. Buy and hold and cash flow are what survives changing times.

***LIVE WEBINAR - TODAY (2/10) at 4pm CST. Must register in advance by clicking here.

Investment Property Management the RIGHT Way

I will be interviewing Scott Ficek, real estate broker and owner of Rental Management Guys, LLC. Scott will share how he and his team utilize a unique hands-on property management system to manage properties for their clients.

Scott draws on many years of experience owning and managing his own properties, and will share how his approach works well for clients of Rental Management Guys.

Buying and managing investment property since 2001, Scott has owned as many as 28 units in 15 buildings including duplexes, 4-plexes, townhouses, single family houses and commercial properties throughout the Minneapolis area.

Watch, listen, learn, get your questions answered. See you there!

Investment Property Management the RIGHT Way

I'll be interviewing Scott Ficek, real estate broker and owner of Rental Management Guys, LLC. Scott will share how he and his team utilize a unique hands-on property management system to manage properties for their clients.

Scott draws on many years of experience owning and managing his own properties, and will share how his approach works well for clients of Rental Management Guys.

Buying and managing investment property since 2001, Scott has owned as many as 28 units in 15 buildings including duplexes, 4-plexes, townhouses, single family houses and commercial properties throughout the Minneapolis area.

Watch, listen, learn, get your questions answered. See you there!

Investment Property Management the RIGHT Way - Save your spot for free by clicking HERE!

I interview Scott Ficek, real estate broker and owner of Rental Management Guys, LLC. Scott will share how he and his team utilize a unique hands-on property management system to manage properties for their clients.

Scott draws on many years of experience owning and managing his own properties, and will share how his approach works well for clients of Rental Management Guys.

Buying and managing investment property since 2001, Scott has owned as many as 28 units in 15 buildings including duplexes, 4-plexes, townhouses, single family houses and commercial properties throughout the Minneapolis area.

Watch, listen, learn, get your questions answered. See you there! Click here to sign up now.

@Ben Beaudoin So sorry that is happening right after you purchased. If there is no lease on that lower unit - is it a verbal lease then? Were those tenants there when you purchased? There is help both from the city and the county level for the tenant to get caught up on rent. Also, if that doesn't work, there is help for you the landlord to apply for rent assistance. Make sure you get that started.

On the repair, for sure get another bid. There are some new ways to get that done. In Golden Valley, it is part of the inspection process and many of my listings have had to replace the line. Recently it was $4500 for a house I sold in August from the house to the street, they did dig. 

I would check with a real estate attorney on whether this is enough to have them vacate and is an inherited tenant with no lease fit in the eviction moratorium? It's a fine line. 

DON'T FORGET to save your spot on today's LIVE training at go.leannriley.com/club

At 4pm CST, Tim Swierczek will be joining me to cover everything you need to know about Creative Finance for Investment Property.

Get your questions answered live! Sign up for free at go.leannriley.com/club

***LIVE WEBINAR - Must register in advance
https://go.leannriley.com/club

Creative Financing for Investment Property

I will be interviewing Tim Swierczek, an active loan originator with Minnesota-based iLoan mortgage company. Tim is a mortgage geek who is known for his knowledge of mortgage guidelines, ability to handle complex income and unique customer situations.

A business-development and origination expert who owns his own brokerage and has worked in the mortgage industry for over nine years, Tim has served on the board of directors of the Minnesota Mortgage Association (MMA) for 4 years.

Watch, listen, learn, get your questions answered LIVE. See you there!