Real Estate Investing in Duluth, MN

Real Estate Investing is a wonderful world to get into if you have the time and perseverance to succeed. The word investing is something I think about every minute of every day. It has honestly been the most important part of my life since I was 18. For me, it was more than just investing a few bucks in a stock or mutual fund, it’s been a lifestyle for me and it’s something motivates me every day. I personally feel responsible for making people successful in this industry. I preach and teach this word day in and day out so that others can live an easier lifestyle. I could go down the list of the types of investments I’ve been a part of (including but not limited to Real Estate Investing) but I feel like the purpose of this blog is to show you that although not every person is capable of buying a 40-unit apartment complex or a million-dollar life insurance policy, this does not mean they can not be successful.

Investing can be described as going to college and bettering yourself within your education or buying a house and renting out a few of the bedrooms in order to save for a better life. Every day is an opportunity and simply investing in doing better is the easiest and most efficient way to become more successful.

“Leave everyday knowing you made an adjustment and did something better than you did before.” 

Below are two common scenarios of Real Estate Investing in Duluth, MN

Scenario #1

This is the most common tactic I have seen so far in my career; many investors will purchase a property that has 2-4 units with a 5% down payment. This gives an investor some leverage to get back in the market within 6-12 months to buy another property. Occupying a property that has 1-4 units gives you the ability to put less of a down payment down so you can continue to save up for another property. I have seen many investors turn around within 12 months to purchase another home to rent or move in to that property and rent out the unit that they were occupying.

Scenario #2

My second scenario is also something that happens very often in this market. It was very standard two years ago when the market was a little softer (Less of a seller’s market) it also happens more often in the winter months when the market slows down and contractors are not in high of demand. This is the purchase and renovate scenario. This type of buyer is looking for a property that needs sweat equity and hard work, these are the get your hands dirty type of people. The idea for this scenario is buying a home that has a high ceiling of potential but also needs 3-6 months of attention before getting your money back.

Example:

Buyer looks at a home that’s listed at $80,000; it needs paint, new floor coverings, and the kitchen and baths have not been updated since 1972. This home needs about $30,000 in repairs but its after repair value is $175,000. The buyer would be all in at $110,000, after commissions and closing costs which I would estimate ($10,000) the buyer would come out with $55,000 in equity. This scenario has been more difficult the past few years but if you work hard enough in your research and work with an experienced agent these types of properties can be found!

Interested in Real Estate Investing yourself or want more information? Contact us today and we would be happy to sit down and chat.