All Forum Posts by: Max Tedford

@Ben Bolingbroke Did you end up going with the mentorship program? If so, how is it going?

@Matt Nettles, great info, thanks for sharing. I'm looking to pivot out of small multifamily and into large multifamily, so I'm also exploring mentors as I make the jump. I'm curious, have you been able to pull off any deals since you started in Tim's coaching program? If so, how did they work out for you?

@David Barnett, heck yes! I'll DM you directly and we can chat :)

Thanks @Daniel Anshus! I just messaged you for the meetup details.

And thanks for the suggestions, too!

@Mack Benson I'm focused on small multi-family residential at this point, 2-4 unit specifically. I've considered expanding to larger buildings like you're focusing on, but I've got a lot more to learn before I'll be ready to dive into the syndication realm.

@Daniel Anshus That's great that you ran a meetup pre-covid! If you start it back up at some point and are open to remote attendees please let me know. I'm always interested in more meetups. Regarding your questions I'm facing as long-distance investor, here are some examples of challenges I've faced in the Twin Cities that I haven't with my investments here in DC:

1. I can't drive for dollars so I have to find a bird dog I trust to do that for me on a regular basis, and usually have to pay them for their time/energy
2. When I do find an off-market lead I'm unable to attend the initial walkthrough myself, so again I need to find someone I trust to do that for me. This often means involving an agent, a contractor, or some other local contact that's willing to interface with the seller on my behalf on the walkthrough and either FaceTime me while there or write up a VERY thorough summary of what they saw.
3. I'm unable to pop in on in-progress rehabs in person, so I need a SUPER communicative contractor that sends updates very reliably. Having someone else available to do in-person pop-ins is also helpful, though not necessarily required if the contractor is good.

There are a few others as well, but more generally I've found that as an out-of-stater I have to a) have effective systems in place far sooner than I did for local investments, and b) need to find teammates and other partners much earlier than otherwise, and often have a way to pay them for their contributions.

@Noah Chappell Absolutely. For me it's actually more about personal circumstances than data reasons. My wife and I both have family in the Twin Cities and (in a normal year) split our time between our primary residence in DC and our families' in MN, so when we decided to start branching out to long-distance the Twin Cities were a natural fit. Having a network of friends and family in the area is a big draw and having an organic familiarity with the market was a competitive advantage for us compared to other markets.

Hi everyone!

I'm an out-of-state investor expanding my portfolio in the Twin Cities and I'd love to connect with some other investors in the area, specifically any other out-of-staters that are investing there. I've joined many of the Twin Cities real estate meetups and made an effort to attend remotely whenever possible—which have been fantastic and I plan to continue attending those—but I've found that some of the challenges I face as a long-distance investor are different from those of many local investors. Is there anyone else out there investing in the Twin Cities from a distance that would be interested in commiserating?

Thanks!

I grew up in MSP and my wife and I now invest there long-distance from our home in Virginia. I’d be happy to Provide you contact info for our team in the area. Coincidentally we use Rick and @Amber Gonion as our PMs and would highly recommend them. Feel free to private message me if you want to connect or if there’s anything I can do to help!

This is a bit facetious, but I like to consider the Twin Cities an ultra-long-term investment in that it's a healthy, active population with a terrific quality of life that will be a very attractive relocation target to potential climate change refugees relocating from the coasts and the south in 50-100 years.

Question for the hive mind:

I've just started to branch out into portfolio loans for my small multi-family purchases and most of the loan products I'm seeing local lenders offering make it seem incredibly difficult to achieve acceptable cash flow, even when some of the properties on the market hit the 1% rule or higher.

For example, lenders are generally quoting me loans at 4.65-ish% interest on a 5-year term, amortized over 20 years, with an 80% LTV.

The problem seems to be the 20 year amortization. I can find a reasonable number of deals in my market that hit the 1% rule and would give me nice juicy CoC returns of 12-15%+ when working with conventional 30-year fixed rate loans, but when amortized over 20 years it blows up the cash flow to the point that the CoC falls to 1-5%.

Based on the research I've done, these terms seem pretty standard for portfolio loans, so my question is do I just have to find and buy more triples and homeruns when using portfolio loans? How do others achieve their desired cash flow when working with loans that amortize over shorter periods? Am I missing something?

@Troy Warling

Welcome! Building a business to hand down to your child is a wonderful goal to pursue and such a precious gift to give. Best of luck in your journey!