If you are a landlord in Minnesota, please remember that you need to complete a Certificate of Rent Paid Form for each tenant that paid you rent in 2009. By law, you must have this to each tenant on or before January 31 2010.

For more information and the forms click here…Minnesota 2010 Certificate of Rent Paid

It’s 2010 and the experts are weighing in on the housing market. Here is the forecast according to Money Magazine (December 2009)

There is talk that the market will stabilize in 2010 but regaining equity may take some time.
Home sales are rising and inventory is going down. Experts believe the housing market will hit its bottom in the second half of 2010 but that we will still see another 5 – 10% price drop on houses.

This is still a great time to buy a home whether you are a first time buyer or buying your next home. There will be another wave of foreclosures in 2010 which will boost housing inventory. Interest rates are predicted to stay low in the first part of 2010 or at least until the extended federal tax credit expires June 30 2010 (you must have an accepted purchase agreement by April 30 2010 and close by June 30 2010). This tax credit is good for first time home buyers and other buyers who are buying their next home and have lived in their current home for at least 5 of the last 7 years.

So, what should you do?
If you are hoping to buy a home, make your move now. Right now the market is in your favor but as the economy improves the housing market will become more favorable for sellers. Keep in mind, if you are looking to purchase a lower priced home (under $150,000) expect competition, especially if the house does not need a lot of work done to improve it. If you are trying to purchase a fixer upper that is already in foreclosure or owned by a bank, expect A LOT of competition. In the Twin Cities market, many of these homes (under $100,000) end up in multiple offers within a few days). To improve your odds of getting one of these amazing deals be prepared to offer above list price, be flexible on closing time, offer more earnest money than normal or pay full cash.
However, if you are buying a higher priced home especially if over $500,000, the demand is not as great so you can typically offer about 10% below list price. These homes will still see some drop in value over the next year so offering below list price (always make sure your agent checks out the recent comparable sales in the area) will provide a cushion for this reduction in value.

If you are hoping to sell in the next year, hopefully you have some equity because most likely you’ve lost quite a bit of value on your home. If not, and you don’t have to move, experts are saying hold off. But, if you want to move or need to move, you may be able to recoup some losses on your current home by buying at below market pricing on your new home. Essentially, you can buy more house now than you could even a year ago so in many situations, you may “break even” if you have to sell at a loss but buy at a low price (and great interest rate) for instant equity.

The Twin Cities real estate market is showing similar trends – contact me about your specific situation and I’d be happy to do some market analysis for you!

Jen McKinnon
Realtor / Investor
AGENT REFERRAL NETWORK
MN Real Estate Team – #1 Team In Minnesota

612.384.1073
jen[at]mnrealestateteam[dot]com

So, it’s been 22 days since we closed on our property and so far we have had demolition, most of the interior paint is done – some rooms still need a final coat of paint and the tile is complete.
We had the door way between the kitchen and dining room opened as far as we could go – probably around 6 inches to give the space a more open, modern feel and make the kitchen appear bigger. This made a HUGE difference.
Glass block windows have also been installed into the basement – this is a good safety feature and old windows are usually leaky.   It’s always a good idea to replace basement windows with glass block and it’s actually not expensive but makes a big difference in cleaning up the basement.

The paint colors are neutral yet not the typical boring tan, white or off white. You want the house to feel up to date but no offensive with paint colors. Ie – don’t paint anything red. I like red and the dining room at my personal residence is red but not a good color to chose for an investment property.

The tile is gorgeous and extends from the kitchen into the dining area because the wood floors had been ripped out and it would be very difficult (on a budget) to get new wood floors to match. Tile also adds a texture and color element to the house. The main floor bathroom also has the same tile on the floor as well as the entire bathtub / shower surround.

I am a little disappointed that the kitchen cabinets have not been installed yet as I was told they would be installed early this week – but I’ve been assured that we are still on track to finish on time. Right now that is approximately Oct 19th.

Stay tuned for more updates.

Jen McKinnon
Realtor / Investor
AGENT REFERRAL NETWORK
jen[at]mnrealestateteam[dot]com

Demolition began this week and currently all the old flooring and carpet has been ripped out, the kitchen has been completely gutted and the main level bathroom is partially torn apart.
We have also found that the neighbors are very interested in what is going on. They want their block cleaned up and question us from time to time to make sure we are on the up and up. I guess that’s all part of the deal – they are sort of our watch dogs and let us know what has been happening at the house!
Alot of work still to be done but we’ve made a start!

Jen McKinnon
Realtor / Investor
AGENT REFERRAL NETWORK
jen[at]mnrealestateteam[dot]com
612.384.1073

We are still waiting for the final approval to get started on construction and getting very anxious. I’m a little frustrated because it’s been almost a week now and of course the holiday did not speed things up. Tomorrow, my mission is to make sure we can start the demo by Wednesday.
I’ve attached a number of pictures that were taken this weekend so you can see what we’re starting with. It’s actually in decent shape but I’m so excited to watch the transformation.

We are looking forward to getting started this week and I will try to get more pictures posted as progress happens.

Jen McKinnon
Realtor / Investor
AGENT REFERRAL NETWORK
jen[at]mnrealestateteam.com

Ok, so my husband and I just bought our first house to flip and I figured that there are others out there that may want to do the same. So, I will post as we go through the process so you can get a good feel for what it is like.

To start with we went the easy route and bought a property that was not listed on the MLS that I found through some industry connections. Most houses that will work for flipping have multiple offers and can be tough to get. None the less, we found our in a better area of North Mpls.
Step 1 – Get pre approved with a reputable lender and one who deals with these types of rehab loans on a daily basis – they are not your typical loan.
Step 2 – Find the house and make sure that you will be able to buy, rehab and cover all costs and still be able to sell at a profit. You want to know the comparables near your house so that you know what a REALISTIC sale price point is.
Step 3 – Have your contractor review the house to let you know how much it will cost to rehab and if there are any issues with the house.
Step 4 – Get your escrow set up. Please note that you will need to put at least 20% cash into an escrow account based on the total loan amount (cost of house + rehab costs).
Step 4 – Get a good title company (I recommend Trademark Title) to get you clear title. We ran into an issue on our house where there was a cloud on title from 3 transactions ago. Trademark Title is the only company that caught it! You want clear title and a smooth closing with no suprise assessments down the road. Which I have seen happen many times with other title companies.
Step 5 – Close on the house – we closed on Sept 1 and then we wait a couple of days for the contractor to get approval from the lender to get started.

So, this is where we are at in the process.
Our contractor is staging the supplies and we’ve already got people walking by on the street asking when it will be done! Hoping to be done within 6 weeks so looking to list it mid October!

Jen McKinnon
Realtor / Investor
AGENT REFERRAL NETWORK
jen[at]mnrealestateteam.com

There are a few areas in the Twin Cities where the $1 million dollar price tag is still the “norm”. According to Mpls St Paul Magazine, the cities of Woodland (a strip of shoreline along Lake Minnetonka’s east side), Tonka Bay (a south central bay on Lake Minnetonka), Sunfish Lake (between Hwy 110 and Hwy 494 just west of Robert Trail) and Mendota (just across the Mendota Bridge from St Paul) had median price tags of $1 million in 2008.

These areas are high demand because of their locations and the homes are beautiful.
Currently, there are 43 single family homes listed as active – 26 are under $1 million and 17 are over the $1 million mark. Looking for the best? There is a Tonka Bay location for $5,950,000 and 7,348 square feet of Mediterranean styled luxury. Want the biggest in Woodland? $8,500,000 will buy you 8,036 square feet on Wayzata Bay and 571 feet of lakeshore and private boat docking.

Want more information on these types of homes?
Contact me
Jen McKinnon
Realtor / Investor
MN Real Estate Team – #1 Team in MN

612.384.1073
jen[at]mnrealestateteam[dot]com

I knew that Short Sales were frustrating but just had a recent scenario to share….

A client and I put in an offer on a short sale property recently. The listing agent does ALOT of short sales and as usual, forwarned us that it would probably be at least 30-60 days until we got a final accepted offer. Just this week – about 30 days in he tells me that the offer is dead because the bank will no longer take anything less than the full amount owed by the seller. This amount is approximately $50,000 more than our offer so, NO, we were not going to resubmit a new offer.

To make a long story short, the bank conveniently waited for the sherrif sale to go through so that now they no longer have to accept the short sale.
Essentially, they are forcing the seller into foreclosure which means 7-8 years of not being able to buy a new home versus being able to try for a new loan in a couple of years. PLUS, my client lost the option to buy this home for the nice low price that he wanted to buy it for.

In the end, no big deal for us because we can go find another house but I feel bad for the seller who is now in a bigger mess and will have a foreclosure on his record.
Gotta love the banks. Bottom line, stay away from short sales or make sure the listing agent has full information on what the bank is planning to do. I do believe that the agent I was working with had everyone’s best interest in mind but the bank did not communicate correctly with him.

Jen McKinnon
Realtor / Investor
612.384.1073
jen[at]mnrealestateteam[dot]com

So, I get alot of questions about the new $8000 tax credit and what is involved.

Here are the VERY basics and of course, you should always contact a tax professional if you have any questions specific to your situation.

1. $8000 can be yours if you are a FIRST TIME HOME BUYER
2. Who does the Government consider a First Time Home Buyer? Anyone who has not owned a principal residence for the last 3 years.
3. This tax refund DOES NOT have to be paid back IF you hold the residence for at least 3 years.
4. This tax credit is available for homes purchased January 1 2009 to November 30 2009

Here is how you can take advantage of the tax credit for your 2008 tax year:
1. The tax credit can be applied against your 2008 tax return that is generally filed on or before April 15, 2009.
2. If you have already filed your 2008 tax return, you can immediately amend your return once you purchase a home and you should receive a refund in 30 to 60 days.
3. If your home is scheduled to close after April 15, 2009, you can file an extension until October 15, 2009 to file your 2008 tax return to take advantage of the tax credit and receive your refund.

If you are looking to buy in the Twin Cities please give me a call!
Jen McKinnon
Realtor/Investor

612.384.1073
jen[at]mnrealestateteam[dot]com

Real Estate Investing 201 Seminar – Saturday, March 21st, 12:00PM-?
North Minneapolis Bus Tour
I am frequently asked where the best deals are for investors in the Twin Cities area. Right now North Minneapolis has the largest concentration of amazing investment property opportunities. For several years now, the majority of North Minneapolis has been going through a transformation. North Minneapolis Crime is down, rental demand is strong, foreclosures are running rampant, and good deals are everywhere. Nice properties in nice parts of North Minneapolis are selling for $49,900, $39,900 and even $19,900.

We have put together a program for new and seasoned investors to capitalize on this perfect storm of investing and buy up properties that sold for up to $200,000 just years ago. Our team has assembled real estate agents, a general contractor, leasing agents, property managers, and the financing to make this a rare turn-key investment.

If you have ever been interested in the great opportunities in North Minneapolis, let us show you around. This is a rare bus tour where we will drive you around the areas, show you both rehabbed houses and for sale properties. The tour will leave at noon on Saturday, March 21, from nearby Robbinsdale and will take approximately 2-3 hours. We handle parking, finding the properties, and logistics. You simply sit back and listen and see how so many investors are taking advantage of these great deals. Because of limited seating, a reservation is required. Contact us now!

Future Seminar Dates: April 28, May 26
Please call me at 612.384.1073 or email at jen [at] mnrealestateteam [dot] com

Jen McKinnon
Realtor / Investor
MN Real Estate Team