All Forum Posts by: LeAnn Riley

@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!

Livestream webinar. LeAnn interviews Tim Swierczek, loan originator from MN. Tim is an active investor and mortgage geek who is known for his knowledge of mortgage guidelines, ability to handle complex income and unique situations. Also an investor in SF, Multifamily and syndications.  Take a look at LeAnn's page under Events to find the registration link - free. 

@stephendropkin I agree with others you need an attorney from Minnesota to help structure your LLC and your brother and you as members. You can quit claim the property to the LLC but just know there likely is a due on sale clause in your mortgage. Creatively you can work with all this but that's why you need an attorney who understand real estate. Maybe a trust is better?

I structured many properties with separate LLC's. Some under my name, some under my then husband, some jointly. It is all part of the estate plan. One other thing about real estate in MN. One person to buy and two to sell if you are married. So even though the other person isn't on title, they need to sign documents and participate in a sale. All this can be handled by an attorney and a great title company. Let me know if you'd like a referral.

@Michael Donnadio   First, congrats for being a home owner and realizing that there is wealth building in real estate investing. Like most, getting to the buy and hold is the goal. It can be so easy to hop all over the internet and learn bits and pieces. My suggestion is to pick one or two mentors that you can follow and learn from so you stop the shiny object chasing. It's great to dive in, read the books, watch the videos but the real learning happens when you get in action. Just realize that wholesaling is a marketing business, you need to find deals first but then also have the buyers. It's a system that has a learning curve. 

My first suggestion is for you to find someone in your area who is active at the strategy you are working. Volunteer to help on anything they need. Connect and watch, even if it is for free. Standing in the deal is where you get how it works. 

Next...choose a coach but be sure they are active in your strategy AND that they offer some sort of group coaching or individual coaching along with the program. Watching the videos and learning how is one thing. People who reach success quicker have a coach or mentor to help them in the heart of the deal. 

When you are a beginner, it is critical to have guidance as you find a deal, what to do next, how to structure, what is the ARV, does this work, where do I get the proper forms, what do I say, etc. all those questions need answers IN THE MOMENT. The right mentor can be the turning point in reaching success and sticking with the learning curve to become a success in the many strategies of real estate investing.

***LIVE WEBINAR - Must register in advance

Click here to sign up for FREE

How to Prosper in an Uncertain COVID Real Estate Market

It's an uncertain time, yet there's a lot going on in real estate. I will personally take you through these topics and more.

• Low inventory effects
• COVID shift in buying and selling
• Two-sided fear
• Multiple offer tactics

As a national Real Estate Coach and Trainer, LeAnn helps ambitious people build real estate investing income without confusion or fear by using a proven system to acquire cash-flowing properties. Her PROVEN PROFIT FORMULA COACHING PROGRAM teaches how to get started and how to scale a real estate portfolio. She's a Real Estate Broker with Realty Group in Minnesota, and leader of the Encore Investment Team of Realtors.

Her experience includes building a multi-million-dollar portfolio of residential, multifamily, commercial, condo development and vacation properties in MN and across several states. With over 25 years experience in all aspects of real estate, LeAnn knows the pulse of the real estate market.

Click here to sign up for the LIVE event for free.

I second what @Josh Feyen is saying. It's all about the team and you need to start with an agent who understands investment property and fix and flip, etc. Maybe you have friends or family you could enroll in the money part if you don't qualify at this time. Best to figure out how to get the money before an agent will want to spend time showing any property. 

I do love properties that are on the MLS but something looks a little off. Just closed today for a client on a duplex that was WAY over priced and had bad photos. I took an investor there and wow...the baths and kitchens had all been remodeled. It was great. We still had to battle to get the price down. Even in today's market we got it for $49,000 below the list price. AND there was no bidding war as no one was looking at the property.

You have a good eye if you can spot a deal. And, maybe the hospital bed in the photo is a good sign. BUT, you need to "have your ducks in a row" and be ready to evaluate the deal, finance the deal and move quickly in this market. 

 

It depends on the size of the multifamily you are looking for. I listed a 3 unit in Columbia Heights recently that is a 5.28 Cap Rate. On a duplex or 4 plex, I don't suggest using the Cap rate as the measure. It is Cash Flow that is the measurement. On smaller properties and residential loans, it is based more on the borrowing power of the buyer.

On a 6 unit I listed recently in Columbia Heights the Cap Rate is 6.13. On larger multifamily then the Cap Rate is a better measure. The bank is using this as a tool on a commercial loan (5 + units) and also the debt ratio of the property to decide on the loan risk. Commercial loans are based on the asset and it's performance.

Also the location and the condition of the building are crucial factors. If it is a value add situation then the Cap rate is likely lower and a location with a higher crime rate will usually have a higher Cap rate. So...it isn't always the measuring tool, all has to be factored in.

A mortgage professional could surely explain this in further detail. 

Hi, Are you asking whether condo investing is a good idea?  I say YES. 

Condo:

a) Fix & Flip - smaller than SF to rehab, many just need cosmetics. No roofs, exteriors, etc to fix. A few of my savvy investors have fixed and held as rentals. Cash flow isn't super (because of HOA fees) but is positive - Then when the market climbs, like it is now for Sellers - Sell at a greater profit or hold for equity.

b) One level living - very popular for mature people moving out of the big house to downsize into. Always a market when the location is right. Sold many Edina condos to my downsizing friends. 

c) Condo's work if you don't have a large sum for down payment. They can be purchased for a lower amount. Pricing of condos is less than housing and the difference is made up in higher dues for the amenities. So it allows those with less down to get in and just make sure the numbers work and that the assoc allows rentals.

d) Caution is on the association and maintenance. Who is managing, is maintenance up to date or is there a coming assessment.