All Forum Posts by: Noah Chappell

@Tim Swierczek great thanks! 

Hello BP'ers. I'm looking to clean up my LLC containing a duplex, make a solid plan going forth, & file taxes in most advantageously way possible. I've searched this question & have gotten good leads but doesn't look like its been asked recently. Can anyone give references on the best real estate CPAs and attorneys in Minneapolis area? Thanks!

Do the following, go to assessor's website of county you live in, locate GIS data organizing properties by number of units, download excel spreadsheet of addresses/owner info, import into google maps using site such as batchgeo, drive by and identify 15-30 properties you're interested in, skip trace owners to find current address, text/email/call owners, be consistent & do this every 1-2 weeks, you find a property in 1-3 months. 

Hello and greetings from another Noah! Welcome to the Twin Cities market. Can you give us more of a picture of your 5-10 year objectives, and what your ultimate goal in RE investing is? Thanks. 

I'm slightly confused about the metrics you're asking about, first is GRM and then cap rate/COC. Anyways sounds like you're mostly asking cap rate. I think here you want to be specific about property and location. Cap rate is used for >4 units while comps are used for <4. If you want to use cap rate for <4, may be inaccurate, but you might expect 6-8% depending on area with 9% and up if area is rough and you're willing to get creative with your deal. Midwestern cities like Minneapolis, Madison, Chicago etc will are equity markets similar to costal cities, while other midwestern markets are good for cash flow. Check out Marcus & millichap North American investment forecast for some info on good markets.

Sounds like a good idea about tapping into equity with a low DP option in CA, if that where you want to con't living, though if you plan to make this property a rental I'd make sure the numbers make sense before buying. To find a decent midwestern property, I think you'll be taking a major risk unless you spend 1-3wks in a city to feel the pulse of the local market & do some team building. 

Congrats, the Twin Cities is a great place to invest! All the areas mentioned are great, though the NE just seems to be really expensive, & you want your multi family to work as an investment property if/when you choose to move out. I might suggest looking into areas contiguous with the B+/A areas & those in the "path of progress". Some ideas might be the Midtown Phillips or Hawthorne neighborhoods. Best of luck. 

Congrats on your first deal!! Now you're really in the game. I think we can all agree the best deals come from networking and relationships, so I admire the fact that you went beyond the MLS on this one. Follow this trend and you'll do great things. I also think you have a very realistic view of how things will progress, you're not aiming to be Cardone tomorrow, but want a few small multi's before jumping into a larger apt. I'd recommend transitioning over to a prop manager when you can, this will allow you to get comfortable with this system so you can scale. Good luck!

I'll try no to reiterate what others have said. For stable relatively recession proof investments with decent cash flow & stable modest appreciation I'd look at one of the midwestern urban centers with diversified economy and positive population growth. I would take a 1-2 week "vaca" to one of these cities and walk specific neighborhoods each day to look at properties on the MLS, to get a feel, take notes. During that time I would build a team by connecting with a realtor, prop manager, credit union/community bank, bounce ideas of these ppl. By the end you'll have a good understanding if the neighborhoods & prop values, & have a decent team in place. Then jump in. I'd advise against a big fixer upper at first, a ready to go property should be ok - these markets are forgiving given the good rent/price ratio. I would DEFINITELY advise walking the cities before investing, these places can be spotty with one block good, the next horrible.

I'd definitely submit a letter with the offer, and make an attempt to communicate personally with the seller when possible. I kind person will be swayed by your enthusiasm, & if the seller is heartless, it will likely be neutral at worst. 

Seller financing with good terms is fairly coveted, & if there were some go to resource (ie if it were easy to find) everyone would be doing it. Instead I'd focus on the dirty work of marketing & prospecting for deals, & sooner or later you're going to find a motivated seller (ex older investor with lots of equity looking to liquidate portfolio) who'll do seller financing. In this case you don't have money, so you'll have to replace it with time & hustle.