We are experienced Investors and would love to help you!
Both Sheryl and Stefan at The Petrashek Group are confident in the power of Real Estate Investment. Having been invested in multi-family and residential rental Real Estate for years, you can trust our Team to lead you through the process. We will look after your interests as we look after our own.
Property Investment takes many forms including Single Family Rental Homes, Townhome Rentals, Duplex, Triplex or 4-Unit Buildings, Apartment Buildings or Commercial Space. We have extensive experience with a variety of property investments and are eager to share our insights with you. Investment Real Estate is generally more complex than traditional residential sales and entails a different set of risk factors.
If you are a first time investor, please be sure to have an experienced Realtor working for you. Explore the options on this page to learn more and call or text us to set up an Investor Consultation in person or via phone!
Investing in Single Family Homes or Townhomes
Single Family Homes and Townhomes are in huge demand in the Rental Market.
Large Wall Street funds and Corporations are buying up single family homes for the purpose of renting them out. It is estimated that in 2021, the percentage of Single Family homes purchased by corporations or investment groups for rental purposes was 15% of all homes sold nationwide. In 2022 that percentage jumped above 20%.
These large corporations have done the research and believe there is a large marketplace of people who desire to live in Single Family Homes or Townhomes without the maintenance, upkeep or risk of owning the property.
The reasons include financial considerations such as not qualifying for a mortgage, not wanting to save for a down payment, or not wanting to spend money to update or maintain a home. Additionally, many people want the freedom to move at any time, subject only to their lease terms, and not dependent upon the real estate market conditions.
The marketplace for Single Family and Townhome Rentals is growing quickly and small investors have an amazing opportunity now. Owning, managing and leasing property on a smaller scale allows the owner/investor to connect with tenants and maintain properties in good condition. We believe the small investor will have the edge over large corporations when it comes to positioning their properties for lease.
Leasing services are offered by The Petrashek Group, both Stefan and Sheryl are experienced with marketing rental property, tenant showings and screening procedures, plus writing and finalizing leases. We routinely offer these services for our clients!
We assist our clients in all aspects of investing in Single Family Homes and Townhomes. We will help you select property well suited for investment purposes. In addition, we provide a complete analysis of the current value of the property, likely rental rates, and information about the long term costs, rental potential and resale value.
Duplex, Triplex and 4-Units
Duplex, Tri-plex and 4-Units are often referred to as Multi-family Housing. These properties are unique in the marketplace. The ‘economies of scale’ begin to work for investors in this type of property. Additionally, these properties can be purchased with standard mortgages, both Conventional Mortgages and FHA and VA mortgages.
It is possible to purchase a 4-Unit property with an FHA loan and pay only a 3.5% down payment. This type of mortgage does require the Buyer to owner occupy 1 of the units for a specific time frame. Many first time investors use this approach to get started, renting out the other 3 units and saving money for the next property.
We Love Listing and Selling Homes! Each Listing receives a custom online Sales Presentation with all the details of your property. Your home receives a fully customized Marketing Plan, outlined and scheduled for 6 weeks. We create a Google Drive folder and calendar for your property so you can follow each marketing task, email, post, blast campaign and see results.
Small Apartments
Small Apartment Buildings are the next step for many investors, offering even great economies of scale. These buildings usually have between 5-12 units, often with a mixture of 2 bedroom and 1 bedroom units. These small apartment buildings have laundry facilities, off street parking and often garage spaces. They generally do not have amenities like outdoor pools, gyms or meeting rooms.
Gross Rental income per month in our area for these types of apartment buildings will average over $1000 per unit/per month. Apartment buildings are an attractive investment because the increased number of units lowers your risk. Ideally, the number of units allows for a few vacancies at any time, while still cash flowing the building.
The costs of upkeep and maintenance will include the exterior of the building, parking lots, garages, common areas, along with more costly insurance and taxes.
This type of property requires a Commercial Level financing, usually done by a smaller community bank where the loan can be held in portfolio or brokered between banks. This type of financing will often require 25% or more as down payment, environmental studies and commercial appraisal projections.
Economic Factors
Many external economic factors influence the Real Estate market, including inflation, mortgage interest rates, Federal Reserve’s Mortgage backed securities policy, the Bond market and Unemployment rate. Important internal market factors include Housing Supply, Mortgage Application Rate, Distressed Sales and the Rental market. We monitor and assess this information daily in an effort to best advise our clients.
Negotiating Experience
Maximizing your equity while minimizing risk is how we protect your interests. Our in-depth knowledge of the MN Purchase Agreement ensures favorable terms for our clients. Such terms include Mortgage Pre-approval requirements, Earnest Money, Financing Deadlines, Inspection and Appraisal Timelines. Our experience Negotiating over 1,200 Residential Sales guarantees we will anticipate and prevent the most common issues.
MANAGEMENT AND LEASING
We are experienced Real Estate Investors and Property Leasing Specialists. We provide Rental Market Research, Leasing Advertising, Showings, Lease Negotiations and Contract Services. We are skilled at establishing Tenant Relationships resulting in long-term lease agreements and low turnover rates. We can provide a Rent vs. Sell Analysis to help determine if leasing is right for you.
Investing in Commercial Properties
Pricing Real Estate is equal parts science and art form, experience truly counts!
We focus our analysis on the Four Fundamentals of Value. First, the Location of your home, using city or school districts. Second, the Total Finished Square Footage and Foundation Size of the property. Third is the Year Built of the home or date of major renovations. Fourth, we consider the Style/Floor Plan of the home.
We then consider amenities which the property offers. These amenities include number of bedrooms, baths, garage spaces, porches, decks, walk-out basements, luxury baths, fenced yards, landscaping, views, upgraded appliances, size of kitchens, granite countertops, sprinkler systems and more.
Next we factor in the condition of the property. This includes the age of major mechanical system such as furnace, AC, water heater, septic systems. Conditional factors also include the overall appearance of flooring, walls, cabinetry, lighting, trim, ceilings, and exterior items.
Lastly, we look at current economic factors which influence the value of real estate. This list of economic factors can vary and includes interest rates, unemployment rates, number of competing homes for sale, new construction homes and inflation.
Our thorough analysis ensures that we can recommend a precise value for your property.
Economic Factors
Many external economic factors influence the Real Estate market, including inflation, mortgage interest rates, Federal Reserve’s Mortgage backed securities policy, the Bond market and Unemployment rate. Important internal market factors include Housing Supply, Mortgage Application Rate, Distressed Sales and the Rental market. We monitor and assess this information daily in an effort to best advise our clients.
Short Term Rentals
Pricing Real Estate is equal parts science and art form, experience truly counts!
We focus our analysis on the Four Fundamentals of Value. First, the Location of your home, using city or school districts. Second, the Total Finished Square Footage and Foundation Size of the property. Third is the Year Built of the home or date of major renovations. Fourth, we consider the Style/Floor Plan of the home.
We then consider amenities which the property offers. These amenities include number of bedrooms, baths, garage spaces, porches, decks, walk-out basements, luxury baths, fenced yards, landscaping, views, upgraded appliances, size of kitchens, granite countertops, sprinkler systems and more.
Next we factor in the condition of the property. This includes the age of major mechanical system such as furnace, AC, water heater, septic systems. Conditional factors also include the overall appearance of flooring, walls, cabinetry, lighting, trim, ceilings, and exterior items.
Lastly, we look at current economic factors which influence the value of real estate. This list of economic factors can vary and includes interest rates, unemployment rates, number of competing homes for sale, new construction homes and inflation.
Our thorough analysis ensures that we can recommend a precise value for your property.
