Archive for July, 2008
Investment Seminar: To llc or not to llc, that is the question!
If you’re new here (and you like what you read), you may want to subscribe to my RSS feed. Thanks for visiting! ScottReminder: This seminar is Tuesday, July 22, 6:30pm, in Burnsville.
A common question that many newer investors ask is: “Do I need an llc to buy investment properties?” or it might be: [...]
Reminder: This seminar is Tuesday, July 22, 6:30pm, in Burnsville.
A common question that many newer investors ask is: “Do I need an llc to buy investment properties?” or it might be: “How do I protect my personal assets and myself if I am sued?” In these days of frivolous litigation, it is important to have all the pieces in place in case you find yourself on the defendant side of a lawsuit. Or, maybe you already have an llc or two set up, but are not sure if it was done correctly or if it would protect you.
Attorney Matt Engel has helped many investors get their corporate liability shield set up (or fixed). Matt will
talk about why to set up an llc, how you should hold your properties (personally or in the llc), what documents
you should be preparing annually to have a fully functioning llc, and lastly what can happen if you don’t do all the above.
This seminar is geared for both the newer investor or the investor that feels like they need some help in these
areas, and much more! This will be a workshop format to allow you time to get your questions answered in a
group setting.
Register for the seminar by sending me a message here.
Future seminar dates are: Aug 26, Oct 28
On Vacation-Again!
Sorry for neglecting my readers and not writing more, but the market is so busy that I am working 15 hour days to keep up.
But, hey its my 40th Birthday this weekend-so me and some guys are getting away to the cabin until Sunday. I will work to get more ink on the page in [...]
Sorry for neglecting my readers and not writing more, but the market is so busy that I am working 15 hour days to keep up. 
But, hey its my 40th Birthday this weekend-so me and some guys are getting away to the cabin until Sunday. I will work to get more ink on the page in the near future!
Scott
Minnesota MLS Down
The NorthstarMLS Matrix system and MLS Co-op are temporarily unavailable due to a major power outage in Vancouver where the servers are located. The city originally expected to have the power restored by July 14, 5:00 p.m. central time, however it now looks like it will take longer because of underground electrical fires that need [...]
The NorthstarMLS Matrix system and MLS Co-op are temporarily unavailable due to a major power outage in Vancouver where the servers are located. The city originally expected to have the power restored by July 14, 5:00 p.m. central time, however it now looks like it will take longer because of underground electrical fires that need to be cleared before the damage can be repaired. The Matrix system will be restored as soon as possible after power is returned. In the meantime, click the MLXchange icon to the left to access Northstar MLXchange. We are very sorry for this inconvenience.
Source: RMLS
Don’t Trust What You See or Read on the MLS!
Is that a bold enough statement for you? Over the years, I have just learned to trust very little information that is supplied on the Minnesota MLS when it comes to investment property. Typically the only items that are correct are:
Address
City
Price (usually-see below)
Taxes
Even then, I have had one occasion to find the price [...]
Is that a bold enough statement for you? Over the years, I have just learned to trust very little information that is supplied on the
Minnesota MLS when it comes to investment property. Typically the only items that are correct are:
- Address
- City
- Price (usually-see below)
- Taxes
Even then, I have had one occasion to find the price was actually wrong! My customer put in an offer, that I felt was reasonable, on a house in North Minneapolis. The listing agent eventually came back and said that they had recently dropped the price on that house by mistake and it should actually be $20,000 higher! I told her I thought the wrong list price was actually the true market value! Unfortunately, she didn’t honor the price so we passed on the house.
Otherwise, NEVER trust the following items in the MLS for Investment Real Estate:
- Rent
- Square footage
- Owner expenses
- Bedroom count
- Age of house
As part of our process to purchase investment properties, we research each one of the above items (and more). Now I don’t want to criticize my fellow real estate agents, but I am not sure if they are simply lazy, they don’t really understand how to input an investment property in the MLS, or maybe they are just not investment property real estate agents. Either way, never trust the information.
Here is a great example of bad information. My customer found (and we toured) this property which was located in a part of Minneapolis at a typical price of $32k. The buyer knows that at that price, it was going to take some rehab to get the property in shape. When I booked the appointment, they told me their was a security system on the premises that I had to deactivate. At this point, I am thinking it must be pretty nice inside to keep a security system running on a vacant property.
We started our tour of the property, driving up to see a cute looking house in a nice neighborhood (I have removed the address to protect the guilty). On the kitchen counter was the below marketing brochure saying that a buyer could “Move Right In”.
(Click on the pictures for larger versions)
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| Only Picture on MLS (not bad looking) | The marketing sheet on the counter says “Move Right In” |
That is about where the cuteness ended. The house had all the copper stolen, plastic keeping out the rain on one window, no appliances, a nasty kitchen floor, a bathroom ceiling that was falling in, and a pile of pigeon dropping almost 24″ tall on the totally shot roof. See pictures on this disaster house that you can have your tenant “Move Right In”:
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| All the windows needed to be replaced. | Do you think this kitchen is move-in ready? |
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| An 80 year old rusty boiler. | Ceiling falling in from a leaking roof. |
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| Think that plastic on window will pass a | Yes, that is a 24″high mound of pigeon |
| Section 8 inspection? | droppings! |
After being through this house, I was almost tempted to start another stupid property repairs category and call it stupid investment property marketing!
Are you searching for investment properties on your own and running into similar properties?
Scott Ficek is a Minnesota Real Estate Agent with RE/MAX Advantage Plus in Minneapolis and helps new and seasoned investors buy and own Minnesota Investment Property. He owns and manages almost 30 investment property units from single family to multi-family. Find his website at www.minnesotainvestmentrealestate.com or use it to search the MLS for Investment Properties.
Attention Section 8 Landlords: Carbon Monoxide Alarms Required
According to Minnesota State Law, effective August 1, 2008 Carbon Monoxide (CO) alarms will be required in all single family homes. All Minnesota multi-family properties (including duplexes) will be required to have CO alarms by August 1, 2009. These alarms must be installed within 10 feet of any sleeping room. If you [...]
According to Minnesota State Law, effective August 1, 2008 Carbon Monoxide (CO) alarms will be required in all single family homes. All Minnesota multi-family properties (including duplexes) will be required to have CO alarms by August 1, 2009. These alarms must be installed within 10 feet of any sleeping room. If you have sleeping rooms on multiple floors, you will need them on each floor.
The key change is that Section 8 inspections will not be expecting these alarms to be in place and you can fail an inspection if they are missing. Plan ahead and get them installed!
Listen to me on the Radio
This Saturday, July 12, from 3:00pm to 5:00pm, I will be sharing the microphone with Rob Bonahoom and Ryan O’Neill as they discuss real estate. This fast moving and fun Minnesota radio show allows callers to ask us real estate questions.
Ryan O’Neill and Scott Wollmering have been doing the show every Saturday for years [...]
This Saturday, July 12, from 3:00pm to 5:00pm, I will be sharing the microphone with Rob Bonahoom and Ryan O’Neill as they discuss real estate. This fast moving and fun Minnesota radio show allows callers to ask us real estate questions.
Ryan O’Neill and Scott Wollmering have been doing the show every Saturday for years and it will be fun to spend the 2 hours with them and Rob Bonahoom, from Cornerstone Mortgage, to discuss investment properties in Minnesota.
Tune in on Saturday at 100.3, KTLK, or check out the Podcast after at the Minnesota Real Estate Show.
Scott Ficek owns and manages almost 30 investment property units from single family to multi-family. Find his website at www.minnesotainvestmentrealestate.com or receive his blog via your RSS Feed or in your Email. He is also a Minnesota Real Estate Agent with RE/MAX Advantage Plus in Minneapolis and helps new and seasoned investors buy and own Investment Property.
