All Forum Posts by: Matt Higgins

Google “the real estate cycle” and click on images.  This information has been around forever.  The market will correct when hyper supply exceeds demand.  It’s true in any industry.  Private colleges are currently under fire for over building during the boom and now less and less people are signing up and it’s only suppose to get worse.  Oil, real estate, marijuana.  When the supply is plentiful the price will come down 

If you’re paying a couple hundred grand a door for class A in a building next to 3 cranes it’s buyer beware.  Especially if you’re buying it on a 5 year arm with interest only for 2 years.  This lending is leading us into the next recession.  I’ll keep to the value adds and the smaller towns for now.  

My father in law is a 68 year old farmer in Iowa.  He told me he used to read the obituaries and think about how the mid 80s people who past must have lived a long and fulfilling life.  Now he says when he reads about an 84 year old passing away he thinks, “damn, struck down in his prime”!  We are only as old as we feel!

At 50 you could enjoy 30 years of cash flow and pay the things off.  50 is too young to take the foot off the gas IMO.  

@John Woodrich 4 sure 

@Scott V.

Ok, then get the car :)

Waiting for a 400$ Perelli tire to arrive for my new Porsche @ the dealership now bc I drove over some Small nail.  Stupid.  Never had this happen is my years in a Lexus.  I think that yellow color is trying pretty hard.  I could see people laughing at you as you fill up with gas, but just my 2 cents 

I’ve made the car mistakes.  You just don’t need a second car.  If it was your daily driver I would say go for it, but that’s a lot of money to have that yellow banana sitting in the garage.

My buddy just bought out his Optometry practice.  They had 2 offices But he still has to work everyday.  He’s on his way for sure and they’re going to Mexico with us in a couple weeks relatively worry free.  I have to imagine as a young man investing in your business has to be the thing to do.  Also, there has to be a market on buying out some retiring competition with seller financing.  Play your cards right and 10 years from now you can have a Lamborghini if you can find a place to get the maintenance done.
thanks for letting me give you a hard time.  It is a sharp looking car.  Good luck!

@Jarvis Naylor short answer is yes. Feel free to DM me if you want to discuss MN landlord/tenant or if you have any other questions along the way. Best of luck to you. Maybe ask that the seller to provide proof that current tenant is current on their rent if you’re still under contingency.

@Matthew Brzowski

Love to go where the competition isn't. Give me that 10-20 unit deal under 100k a door about an hour out from the metro. More important than the building is I'm looking at the owner. Are they managing it themselves? and if so, how are they managing it? Clearly the goal is to find someone who self manages and more importantly doesn't raise rents on a regular basis. Some of these deals are on the MLS & loopnet. Investors look at the building or the cap rate & disqualify it before digging into the numbers. Others analyze the deal on what the numbers are instead of what the numbers SHOULD be (not perform or could be). In Minnesota I would prefer any heat other than electric, property located on a busy road, in a town that has a growing population, in a city that does not require a rental license or permits, updated electric, garages would be a plus. I know GC always says he loves 100-1200 rent because "the next step is the street" well, I would disagree, I love taking 500$ rent to 700-800$ rent in rural areas to working class people. The key is being that hour out from the metro. Any further and finding handyman, qualified tenants, and management gets iffy

Hopefully this helps, we all have our own model, this is just ours

It takes a lot of real estate to make a little money in the midwest too.  50% expenses, Mortgage, repairs, employees, etc.  so Big Cash Flow is probably false advertising, but there is money to be made.  If I was trying to cash flow Minneapolis Suburbs I would be singing the same song.  

I wish I could say Minnesota is beautiful this time of year, but it’s not.  However, we do have great people and a pretty stable market compared to other places.  If anyone had interest in the great north- where the men are strong, the women are beautiful, and the kids are above average I would help in anyway possible.  

@Jay Hinrichs it’s usually 1200$ plus, 3-4 giant Folgers coffee cans . Not sure if the miles and gas on the Porsche is worth it but it sure is fun! I’m loving all the guys starting out. New year new adventure. The journey and building of this business is by far the best part of it. It’s legos for adults. Best of luck to everyone in 2020!

@Jonathan Greene

Totally agree @Jonathan Greene. I had a mentor tell me that when the economy is hot you buy farther out and when it’s cold you buy in the best neighborhood you can. A guy who had been to the top, lost it, and got back. The kinda guy that knows what he’s talking about. I make awesome returns on my properties from 10 years ago, but I also make awesome returns on my properties 50-100 miles away. In fact, the majority of my portfolio is now in them kind of cities. I love listening to all 3 Bigger pockets podcasts and grabbing quarters out of laundry machines

It’s my favorite day of 2 of the month