All Forum Posts by: Matt Higgins

@Jay Hinrichs

Costco update from Minnesota.  I did the carona run, Costco was packed and I was able to get TP and paper towels but limit was 2 and they were being bought up.  I don’t get the bottled water thing.  I played tpc summerlin a few months ago and drank the water.  It looked like the kind of town that will keep the basic functions of government up and running.

The labor market is so tight I would be surprised if the business owners didn’t absorb some cost, unemployment, Government emergency spending, etc. Anybody but me!

Pictures of people being locked in boxes in China, ghost towns in northern Italy, the slow down is definitely coming.  It all depends how long it last I guess.  I bet my wife last week that there would be school closings in MN before tax day.  She laughed at me!  Fast forward a week and she’s reading every headline.  I had a dinner meeting with a bond trader the Saturday night before the market sank and he called and traded on all of this.  The bond market really is the future and the bond market is flashing recession.  

@Jay Hinrichs

You are my favorite follow on BP and I agree with pretty much everything you say, but we personally hold a pretty hard line when it comes to rent collection.  

It could be market specific, but I feel like I’m usually able to pass on a pretty good rent raise when I turnover a unit so losing a hand to mouth tenant doesn’t bother me too much.  The other side of the coin is that I don’t mind having my long term tenants paying $100 under market rent.....as long as they pay. 

@Andrea Weule

We have a large portfolio in Minnesota and 20 units in western wi

I think it’s a great time to buy in Minnesota. Sfh inventory has been slow to catch up. However it’s going to be tough to cash flow the metro. Anything under 250k is selling pretty fast. There was an article in the local paper yesterday that it’s the 4th hottest market. There are a number of areas with in an hour that are making good returns. I just picked up a (2%+) deal last week that needs minimal rehab. Like anything, you have to put in the time to become a market expert or team up with someone who is.

We have seen a lot of multi family supply hit the market in the metro.

@Jennifer Pauyo

You’re awesome

And like cutmaster dc says, it’s always better when

“Brooklyn (rents) da house”

@Jennifer Pauyo

My wife @Karen Higgins is amazing. She keeps me from making so many mistakes. Besides that she has taken me from a garbage bag full of bills to pay & collecting rent in cash, to quick books, and now to Appfolio. She’s always pushing me to go bigger, she started a property management business, and she’s active in all of sorts of real estate meetups and women in business associations.

She’s taken me from a guy who runs a real estate business to just being a sidekick. I couldn’t be prouder of her and I do think women make the best investors. She analyzes the numbers, thinks before she acts, and makes calculated decisions. Way better than drinking 5 beers and making a deal on the 16th green! If any women are the Minnesota area and want to get into real estate I encourage you to reach out to her.

@Matt M. 30 traps and never did find a mouse. The thing must have died somewhere in the house. Real bummer. The wife finally quit talking about it so that’s a plus.

@Tadeh Vartanian. Great point. Everything that’s happened has happened before. We were planning a Mediterranean cruise with family this summer but that’s on hold now. It’ll be interesting to see what the effects on travel have on a global economy.

I should add @Arshad Khan that I did the same thing when I started out.  I bought my first few properties with cash, the next 20 or so on 15 fixed, and now I’m doing 30 year am fixed for 10.  My justification is that by the time my 10 years amortization loans are up all of my 15 year fixed loans will be payed off.  In reality I just want to boost my cash flow, but that’s how I justify it. 

The most important thing is to just get started and do something you’re comfortable with.  You could always pull cash out down the road if want.  Congrats on banking that much cash!  

@Douglas Vogel

Thanks! I’m an easy guy to get ahold of.

CNBC just said avg 30 year mortgage Down to 3.34.  That should be good for real estate prices.  Maybe time to try and refi something. 

@Scott Mac

It’s going to take longer for the job numbers to work through the market than the interest rate. 10 year hits all time low today. I guess my question is will low rates help housing this summer? Does a 4% drop in the market indicate that this virus is going to shut down the global economy as falling gas prices would suggest? Will the US housing market be insulated from a global recession. I like the job market as the lead indicator and will follow that number

Hopefully we can dodge this virus and they don’t start throwing us in metal boxes like China