All Forum Posts by: Matt Higgins

https://urbanland.uli.org/economy-markets-trends/in-brief-minneapolis-san-diego-are-top-u-s-multifamily-markets-for-2019/

I saw another article that had more info on yahoo finance this week but I am having trouble finding it 

Be interesting, maybe john has an opinion, but curious as to what the new tax plan will do to properties with high property taxes in states with high income taxes (like ours).  New York already seeing a population drop.  Minnesota has always been a steady market, but my guess is the new tax plan could change that. 

Having someone who knows what they’re doing assisting you is 100% the way to go.  There’s always a deal somewhere.  If there wasn’t money to be made in great properties in great locations there wouldn’t be cranes everywhere  

Ha, good to see u in here John.  John is my accountant.  He’s literally changed our life.  Any free advice you can get from him is a real value.

Too bad you just come in here just to brag up your deal and make me feel like I missed out on one.  

I’ve been there starting out.  Trust me, working on you’re own properties will make you hate this business.  The less contact you have with the tenant and toilets the better.  

Everyone knows the 1 percent rule.  Can you find a 1 percent deal out there?  Where are you going to find the “significant rehab” properties cheap?  If you don’t pay the GC you will still be paying the holding cost while you spend your nights and weekends trying to fix that place up and not collecting rent.  Sounds miserable to me.  

Like I said earlier.  The best part of buy and hold is that you should be able to know how much money you will make when you buy.  I would suggest it would be hard to budget the rehab on cost and time if you don’t have significant experience.  Regardless, run the numbers before you buy anything.  

I have one property that loses me money.  My wife wants me to pay that property off, but I keep it to remind me how much holding a loser sucks.   

I have to chuckle at the “lil appreciation” comment.  I was buying homes for less than 50k out in Cambridge and 30k in milaca and now you’re over 150k and 100k respectively in them towns.  Literally that appreciation happened in 1 to 2 years.  I agree that I don’t like them markets at current prices, but towns like Austin have 30k people in them, a company like Hormel that has been there forever and 50k houses that rent at 750.  A lot less risky than trying to cash flow that 400k golden valley duplex Imo.    

I was doing great on my flips a few years ago, but my preferred method of finding deals (online auctions) dried up.  I’m an agent and I still find some flip deals on the mls, but it’s tough if you’re not buying now and selling in the spring.  

That being said l wish I would have held all of the flips vs paying the capital gains and never making another dollar on them.  They all would have cash flowed.  Probably could have still made my 10-20k on the rifi, but that would have hurt the Cash flow.  

Best part of buy and hold is that you should be able to predict how much money you will make every month when you buy the place.  

Worst part of buy and hold is being patient enough to stack them 300$ a month profit checks until they add up to some real money.  

Appreciation, depreciation, and accumulation is where it’s at. 

I got all my good properties back in 11, 12, 13, maybe 14 in the north metro.  Then I went to the the surrounding areas of of Cambridge, milaca, Princeton, foley, st croix falls, etc.  Soon I was getting priced out of there and now thinking of moving even farther out.  

Just read an article that listed Minneapolis as the top rental market in the country this year.  I have been flipping homes in north Minneapolis and I’ve held a couple that have been appreciating steadily.  It is possible to cash flow there too, but it’s hard to give someone a 120k for a preoperty they bought 5 years ago for 20k.  Also, the area is still pretty sketch.  Showed up one day and “oh great” a family moved into the garage, now what?  

A guy I know who crashed out in 08 gave me some good advice.  Buy for cash flow.  When the market is hot you just have to buy farther out.  I guess that’s been my strategry and I haven’t had to change my criteria 

Why Minnesota?  Just curious.  I have apartments and sfrs here and I don’t feel like it’s a particularly good market.  Low cap rates for the Midwest, tenant friendly, lots of competition, value add has been extremely hard for me to find.  

I have a brother from Milwaukee and his group buys in Minnesota too.  I will ask him their thinking over the holidays. 

I was looking at stuff in nw Iowa closer to you or Milwaukee closer to him.  I personally haven’t had a lot of luck finding deals around here.  Maybe we all think the grass is greener on the other side 

I noticed lack of qualified tenants for the first time last month.  Lots of showings too.  I always thought it was a numbers game but after my last turnover my opinion has changed.  I think everyone (including the banks) are chasing yield.  The 3% down loan is back and leverage is at an all time high.  Might be awhile, but the next meltdown is in the making, and I can’t wait for it to hit.  

I have been selling my flips to the people I used to rent to. Sold a 200k house to a kid that just turned 22 last week.  (Way to go millennial)

We have to adjust.  After 15 showings, 3 returned apps, we just had to take “good enough”.  I personally wouldn’t take cats or dogs.  I would much rather take an applicant with sketch credit.  

Criminal history, no evictions, and ability to pay might be my 2018 criteria.  

I know it doesn’t matter, and it doesn’t do any good, but it sounds like there are still people willing to give this scumbag their business, so I guess it’s still worth repeating.  In my opinion this is 100% fraud.  We all paid this guy to process our payments.  That was the only thing we paid him to do.  Well, my payments weren’t processed.  His webpage made all sorts of “promises” and claimed his business was backed up with insurance.  I still don’t have my money.  Crazy to me that if you rob a convenience with a gun for 200$ bucks you get 5-10 years in jail.  If you supervise an operation that has millions taken from your customers you get to turn off the phone for a week and then try to find new victims.  This rick is a horrible person, this company is a sham, and they are a disgrace for continuing to take people money when deep down they know they aren’t smart enough or honest enough to handle other people a money.

There, I feel better already