All Forum Posts by: Bruce Harding

Living in this area and going to school here I know a lot of people.

Found a property through a friend.  His girlfriend inherited a couple units.

She is not out actively seeking to sell yet but she is wanting to liquidate the properties she has.  I was mentioning that I was looking for something to my friend and this is how I found out.

I have to look at the numbers so I take this with a grain of salt.  He is a financial guy and here is what he told me:

23 Units

Almost always 100% occupancy

12% Cap Rate

Built in 1993

Asking about $1.5MM

No agents would be involved in the deal on either the buy or sell side.  Private deal.

Obviously this is all preliminary as I have to look over all the actual numbers so we shall see.

Sounds like a turnkey.  Have not looked at property yet.  

Was a brief conversation so don't know who manages it.

Numbers I understand.   What I need help with is evaluating the property with regards to future expenditures - capital or otherwise and forced value.

I have no experience in evaluating a house let alone an apartment complex.  I assume there is someone or service I can hire to do this ?

Count me in as well.

I am new to this as well.   Currently looking at getting into commercial.  Just starting my networking so I am doing the same as you.

I am interested.  Is there another meetup scheduled any time soon ?

Going to start networking immediately.  

And..

Been thinking about my very first steps which I think are going to be 1) Education 2) Exploring Finance Options and 3) Start Learning How to Evaluate Deals

When I originally sent my email up years ago I did not use my real name online anywhere.   I still don't except for my business email and this forum.

Thank you to all.  You are incredibly helpful !

Wow excellent advice Tim.  I will follow it.  

Hi All.   My name is Bruce.   I live in the Minneapolis MN area.  Don't have a pic in my profile yet.

I have been comtemplating real estate investing for years and years.   Was originally considering single family or duplex properties.  What held me back are the laws here in Minnesota regarding tenants.  It takes 6 months to go through the court system to get them out should the decide not to pay.  In the meantime they can tear up the place costing 10's of thousands of dollars.  I viewed that as high risk.

I found this forum about a week ago.  As I get older I have looked around and real estate still seems to be the best business to get into as opposed to starting an online blog or youtube channel.  This forum got me thinking about multi units.   

After looking at this forum I decided that my goal (if this is reasonably possible) is to own one or two apartment complexes with a positive cash flow after all expenses and repairs over time of $8000 per month.

If done correctly I figure there is less risk if one tenant moves compared to a single or duplex unit.

I figure two multiunits  x $4000 each might be doable.  Or is it ?  Well I have this goal to start anyway.

My financial position is I have approximately $50K cash saved up.  

I own a property in the Phoenix area that I paid $190K for back when the market was high - about 11 years ago.  I have not checked what the value would be now but I would say $170K.   There is $140K left to pay on it.  My wife's son rents it out.  So lets say $30K in equity for now.

I have about $400K in retirement accounts - IRA , 401K.

I have $150K equity in my townhome.

I am guessing I probably have enough financial leverage to get started.

I am going to read the information weekly on this forum as fast as I can.   I also will be looking for a mentor.

I have always heard you make your money when you buy.  I believe good deals take a lot of work to come by so I am looking at this realistically and not trying to rush.

Minneapolis has been good for investing I have read however recently they are building a lot of capacity in the downtown area and the article said investment potential will revert to "normal."

I have a friend that purchased a 15 unit building in a smaller suburb that he says provides $4000 per month cash.  Don't know if that includes all expenses - people are not always accurate with figures.

Are my assumptions correct and are my goals reasonable I guess is the first thing I would lke to ask ?

How long would it take me to get up to speed to learn about multi-units (I know a very imprecise question) ?  I have no experience with tenants, contracts, how to evaluate the property etc...

The other thing I would like to mention is my plan would be to find a C building in a B neighborhood and fix it up over time.

Thank you.