Minnesota Investment Real Estate

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“Get up and do something, anything! What are you waiting for?”

I never rant on this blog. I never put people down (except stupid property repairs). I never want to upset anyone.

Maybe I need to step outside of my Minnesota nice exterior and introduce you to a pattern interrupt. If you have read every real estate investing book, ordered every late night-infomercial program, attended multiple expensive training “boot camps”, but still have not or can not pull the trigger to buy investment property, this is your day.

As buyers, we are seeing some of the largest roll-backs of prices in recent history. Who would have ever predicted that we would see capital deflation in the housing market? I understand that statistically the market is only down 5-10% (depending upon who you ask), but every day I find properties that are currently selling for 25%-50% of their pre-2005 values. Talk to your neighbors, watch what is selling.

Whenever anyone asks me how the market is going these days I tell them it is smoking hot. Then I always say the same thing: “If you have money, now is the time to spend it”. Are you waiting for your Internet stocks to rebound before buying property? Do you think those government bonds are going to bring you extraordinary gains?

Let me explain why your excuses for not getting into the market and buying investment property simply do not hold water:

1. I am waiting for the market to go down more. Tell me how you are ever going to know where the bottom of the market is…If you are holding an investment property for 5-10 years, who cares if you miss that extra 2-3% in price drop when you are buying a property at 25-50% off its previously highest sale values.
2. I have heard that the market is going to get worse before it gets better. Possibly…but I am not telling you to leverage everything you own and put your family in jeopardy to buy investment property. Do something that you are comfortable with, can afford, and sleep well at night, but DO SOMETHING!
3. I don’t want to own property in North Minneapolis. OK…There are fantastic opportunities everywhere for any size and type of investor.
4. I have a busy job/family life/hobby and don’t have time to manage properties. No problem…Put them into property management or partner with someone who has time and experience!
5. I don’t know how to be a landlord. I didn’t either when I started…Get around other people that do it and simply figure it out. Call me, I’ll talk you through it. You are going to make mistakes, accept that fact. Just do the best job you can and learn from them.
6. I have heard that evicting tenants can take months. No it doesn’t. It takes some landlords months to make the decision to evict. The process takes about 2-3 weeks.
7. What if my tenants don’t pay their rent. See #6.
8. My [insert name of person here] owned rental property and said it was a terrible experience. For every negative experience…I would say I know people that have made millions owning investment real estate.
9. I don’t have any money. Now that may be a legitimate reason…But even there I may be able to show you how to get started in this market.
10. Everyone says the tenants will trash my property. Maybe…but if you are doing a good job at screening your tenants, you will minimize that risk. Additionally, that is what the damage deposit is for.

I can continue to address your concerns and hear your objections. This is the best market that we have seen in a long time and it may be another long time before we see it again. Ultimately, you need to decide if you are really serious about buying investment property or just pretending.

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 Minnesota Investment Property.

This entry was posted on Monday, April 14th, 2008 at 10:30 pm and is filed under Buying Property. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.