Flipping Rich

Having just read the SouthWest Journals article Priced Out First Time Home Buyers Face Real Estate Sticker Shock I find myself in my own state of shock!

I have quite a few problems with the article. Its goes a little something like this. First, yep first time buyers should have a wake up call. No, you cannot have everything you want for less than what it is worth. Sorry. Second first time buyers, adjust your expectations, period! Third, there are plenty of affordable homes in the price range near $350,000 in great condition!

Now, if you hadnt heard, Linden Hills is probably the number one most desired family neighborhood in Minneapolis. If you think there are loads of deals there, wake up. However, there are plenty of nearby neighborhoods that are as equal distance to lakes, Uptown, coffee shops, trails, parks, etc. I live in one. In fact, I am currently in my third home, that I have owned and lived in, perhaps my fourth house I might be able to buy what I want or desire in Linden Hills. But guess what, I probably could not have before this.

And heres a tiny investment tip. Those homes that are under priced or priced lower that need work, thats called opportunity. I have never (in my 3 owner occupied homes) bought a home that was move in ready. Buying those maxed out pretty homes, thats called making the other guy rich, thank you very much. Its why guys like me buy the rundown homes, fix them up, and resell.

It reminds me of a recent conversation I had from an anonymous person that called my cell. Its abbreviated, but right on track.

Caller: I heard you have some foreclosures for sale.

D: Yes I do, they require a lot of work and are not in condition that would allow normal financing.

Caller: How do I buy them?

D: Get your financing in order and plan on doing some work.

Caller: I really dont have any money and my credit is so-so.

D: Are you able to do any home improvements?

Caller: No, I have no idea how to do that, can you tell me how much it would cost to hire someone?

You get the idea. If you want to invest, you really need one of two things, money, or the ability to earn it. There is “making your money work for you”, but no “money tree”.

Now, if you are looking for a home in Southwest Minneapolis, I can show you plenty that are priced under $350,000. In fact I have an awesome listing coming up in the Nokomis area that IS move in ready, shows like a million bucks, and will be priced around $260,000. Its also 1 block to a park, 2 blocks to a lake, and a hop skip and a jump to a neighborhood coffee shop. They do exist.

Also, Linden Hills is far from the definition of Southwest Minneapolis. By the way, I grew up in Linden Hills. 4512 Washburn Ave S, and then 5149 Abbott Ave S. From there we moved to Edina at 5001 Arden Ave S. I live in Kingfield with my family now.

I know some are concerned about the character of a neighborhood. Which is great. But the day I hear someone selling a home say they are willing to sell for substantially less than market value to promote home ownership is the day I know the community is really concerned. If you are concerned about affordable housing, here are a few ideas. First, back the City of Minneapolis and developers on creating more apartment buildings. From a developer perspective, building apartment buildings is not a money making venture, unless they are building high end rentals, which does not serve the purpose. Second, help with the building or conversion of property to make more affordable housing. Condo conversion actually fill a gap, believe it or not, and the City is about to close that door. Third, start funding mortgages for low income people. If you think its glamorous owning rental property, try funding a mortgage, and deal with non payment after that.

Folks, if you want a nice house in Minneapolis, in a good neighborhood, near parks/trails, lakes/creeks, coffee shops/eateries, near public transport and safe, I can show you plenty under the $300k price. Just understand this, you are not getting your dream home your first go round, it just doesn’t happen for most of us.