All Forum Posts by: Sam Steadman

Congrats @Tim Johnson!!

I am 23 years old and currently looking for my first investment property. It is cool to see that you are doing it at such a young age and having success. Great job with doing house hacking and I love the "go getter" approach. 

Nice work!

Sam 

Congrats! 

I've given it a try. It is time intensive and highly frustrating at times. 

Brandon,

I am an agent in MPLS. I potentially could help you with that.

Want to connect sometime?

Sam 

I am not aware of one, but I'd love to connect and hear about it when you do fine one. 

Sam

@Lou Palazzo

You are asking some great questions! I'd love to try and help answer some to the best of my ability. I'm an agent in Minneapolis.

1st. A lead you uncovered yourself. Very often these leads will have already assumed that on the buying side an agent will be used to purchase their home or this property. This means they have built in the buyers agent commission costs and plan to include that agent. They do this simply because of supply and demand. Why would a buyer agent bring their buyer if they were not going to be paid. They would pass and move onto the next property. That means even if you "found the lead" have your agent schedule the showing and walkthrough the property with you. Again, they can give their opinion and maybe it is a bad deal. Not every property not posted on MLS is a killer deal. ALWAYS... Buyer beware.

2nd. Even gaining more experience I would say use an agent. With that agent you receive their contacts and connections. As well, you have contact with their broker who could have 20+ years of industry experience.  The Agents job is to make your life easier and less time intensive. All well run businesses delegate work and tasks, which cost money but saves you time. Why not do that with your own company or portfolio of investment properties? 

3rd. If the seller does not have an agent A.K.A For Sale By Owner (FSBO) than often times your agent can write in the commission payout in the contract/offer. Many times this is not an issue with sellers because they will assume they are paying a buyers agent. From their perspective they don't want to use a seller's agent b/c of the addition 3.3% commission rate. If they refuse to pay a buyers agent, then you can pay the agent at closing and build that into your model or move onto the next possible deal.

I hope this helps! 

Sam

@Steven Pesavento

Sounds good! I'd be happy to chat.

Sam

I believe that in the Twin Cities you would receive a higher cap rate with a multifamily unit. However, it is important to look at cap rates in comparison to how much you will have in returns based on how large your investment will be. 

I don't know if you are trying to make comparisons between residential and commercial or simply using it as a platform to better understand the overall market trends in certain cities.

Continuing, you would have to ask more seasoned investors in the MPLS marketplace as to what they hope to receive in cap rates for SFH. As of today, deals are hard to find and I know that many investors are cutting back on cashflow and appreciation evaluations to find deals that will be accepted. For me to better understand what you are specifically looking for I would have to talk to you in person or over the phone! I don't know your personal goals, business endeavors, or ideal lifestyle for the future. All of these are factors that play into what you might be looking for and the types of returns you would need to "pull the trigger" on many properties.

I hope this helps and I'm sorry for the vague response. 

Hi @Steven Pesavento,

The market in MPLS right now is a crazy one. Many homes are selling quickly and for an amount that is over the asking price. As of right now, it is hard for investors to find properties that make financial sense because of the large competition in the marketplace. Areas like Golden Valley, Saint Louis Park, Northeast, Richfield, Uptown, etc. are great areas to purchase run down homes and then fix up with a great return on investment. Those areas are also places that attract renters and usually attract great tenants. Yet, in this marketplace, there is very little inventory that holds those type of qualities and the ones that did have been purchased by investors. 

With that said, if you are looking for a property that will bring you a strong cash flow or appreciation in value you would really have to look and throw multiple offers until maybe getting one to be accepted and close. It could possibly be a longer process and take many offers. Yet, there are still opportunities and I would love to help you find an investment property. Even if that means taking the time to look at many properties and throwing multiple offers. Let me know if you want to connect sometime and I hope this was helpful.

Sam

@Peter Kostka!!!

Welcome to BP and all of the resources and connections it has to offer. Feel free to reach out if you have any questions or real estate needs. I am here to help! 

Sam