The Ice is Out - Think Summer at the Lake!

The ice is out on area lakes and it's got everyone daydreaming about sitting on a lounge chair next to their favorite lake or casting a line, landing the big one. Since moving our family to the lake in 2010, I cannot imagine life not on the water. I love getting home after a long day of showing houses, jumping on the pontoon and going out for a leisurely cruise.  No need to pack a bag or load the boat here, we are ready to have fun on a moments notice! 


One of my absolute favorite activties on the water is "picture fishing". I love grabbing my camera, getting out on the water and capturing as much wildlife as possible.  We watched this mama loon raise her babies all the way from nesting in the spring, teaching them to fish all summer, and finally flying south for the winter.  We are eagerly anticipating the return of the loons this spring.  There is nothing more majestic than the call of the loon.


Buying a lake home or summer cabin is now more affordable than ever.  The average lake home price in the Northwest Minnesota MLS in the past year was only $233,201!  Currently in the Bemidji area alone there are 75 lake homes to choose from ranging from $59,000 to $838,000.  In the Bemidji area lake homes are typically listed between Spring and Fall.  This year we anticipate the season starting early with the exceptionally warm spring are experiencing.

Start thinking about your future now!  Many future retirees are buying their lake lot now, while prices are down so they can build when they are ready to retire.  Currently in the Bemidji area, available waterfront lots range from $9,900 to $1,499,000.  There is literally something for everyone! Whether you are looking for that babbling brook, a low maintenance CIC, a never ending sand beach, or a secluded river front property you will find it here in Northern Minnesota.  To help you decide what type of waterfront suits you best you need to ask yourself what what you are looking to get out of your lake or river?  Is it the views you desire?  Do you like to fish? Would you like an area for swimming? Do you enjoy recreational activities like jet skiing, tubing or water skiing?  Or are you in it just for the wildlife that flocks to the waterways?  These are all important questions when choosing your new waterfront property.  Once you answer these questions, contact me and I will help you find a property that would fit you.  You can also use the DNR lake finder at http://www.dnr.state.mn.us/lakefind/index.html to search area lakes to determine their classification.

As I write, I dream of summer barbecues, swimming, tubing, and fishing on the pontoon followed by unforgettable summer sunsets like the one pictured.  People come from all over the country as tourists to see the beautiful area we live in, just to stay for a week or a few months.  You can live like a tourist every day of the year!  Why wait until you are retired to live your life to the fullest?  Call me today to get out there and start looking for your dream home!

Tenants and Toilets

The next step after you purchase your investment property is to rent it.  Time to prepare yourself for Tenants and Toilets!  Most investors like the idea of rental income from real estate but they don't want to go through the motions of selecting tenants, moving them in, collecting rent or fixing toilets.  Here is an outline that you can use to minimize the headaches!

1. Prepare the home for renting.  The better condition your rental property is in the better chances you have of getting good renters.  Think to yourself, "What type of person would live in this house?"  If the house is in poor condition you will probably get renters who are in poor condition, ie. poor credit, poor job (if any), poor rental history.

2. Selecting tenants. Always use an application.  Have the prospective tenant fill it out and return it to you.  If they do not pass this step then chances are they won't pay rent on time either.  Call their references, do a background and credit check.  Make sure to ask them why they are moving and when they plan on moving early on in the process.

3. Moving in.  Use a move in check list and take pictures of the property prior to the tenant moving in.  This way, if there are damages, there will be no discrepancies in the stories.

4. Use a Home Manual.  Have a home manual for each property, outlining what to do in case of an emergency, how to check for simple problems like a tripped breaker, phone numbers for utility companies, policies and procedures.  This can eliminate those 1am phone calls about not having hot water, when it may be as simple as a tripped breaker.

5. Lease Agreement.  When at all possible get a year lease or more.  Have a good lease drawn up and make sure all your bases are covered and that it complies with the Landlord and Tenant Act https://www.revisor.leg.state.mn.us/statutes/?id=504B.  For Bemidji City codes check out www.ci.bemidji.mn.us  

6. Collect a Deposit.  It is a good rule to collect a deposit in the amount equal to one month's rent.  Keep it in a separate bank account.  You will be returning it to the renter when they vacate if there are no damages.

7. Collect Rent.  Have a clear rent payment policy in place of what forms of payment you accept and where it is to be sent or dropped off at.  If rent is not received on time charge a late rent penalty fee. 

8.  Retain Residents.  If you had good renters, try to retain them for another lease period.  This can save you a lot of headaches by not having to select new tenants.

9. Have a list of preferred contractors. It doesn't always pay to be a DIY'er!  In the long run you will probably save more in time and money by hiring a professional rather than trying to do all repairs yourself.  However, you should have a general knowledge of how the home works.

Follow my easy steps and you will be on your way to being a successful landlord.  And, if you buy an investment property from me, I offer FREE advice and resources to help you get started!

Outlook for 2012

We are all children at heart.  Especially when it comes to asking questions!  Consumers today remind me of my 2 year old daughter, asking the same questions over and over and hoping/praying for different results.
 "Can I have candy?"   "Are we there yet?"  "How about now?"

Thankfully adults have more mature questions like, "How's the market, now?"  So without further adieu I will try and predict the market in the Bemidji area for 2012!  Using local MLS statistics I have compiled some facts and some speculation based on what I have heard and what I know to be true.

•  The total number of listings in Bemidji is down 21%. I believe that more sellers are waiting until prime spring/summer season to list, because the need to sell isn't as great as it has been in the past few years.
•  There are 26% more homes pending this year than last year at this same time.  With the mild winter it has been easier for buyers to get out to look at homes.  Also, I see an influx of first time home buyers fueling the market and getting things moving.  
• 41% more homes sold.  This speaks for itself.  The market is rebounding and homes are selling.
• The total volume of homes sold is up 90%! In my opinion this shows that with the first time buyers finally fueling the market, sellers are able to be move-up buyers and move more expensive homes that in the past few years have been taking longer to sell.  Also, because interest rates are so low buyers are able to afford a larger home.
• The average sale price is up from $122,016 last year at this time to $164,313 year to date.  I believe this is due to the fact that the average buyer is able to buy a larger home because of low interest rates. 

One of the other questions that gets asked frequently is, "What effect do foreclosures have on Bemidji's market?"  I believe that we will start to see less foreclosures in our area compared to the past 5 years and that the average price of those foreclosed homes will go up.  During those past 5 years we have had an influx of lower valued foreclosures that have brought the average sale price down for our area considerably.  Homeowners with homes of greater value seem to have been able to hold on to their homes longer, but we are now starting to see some of them come on to the market as foreclosures.

I hate to sound like a broken record or like my 2 year old, but remember, NOW IS THE TIME!  Don't miss out.  I believe that the market is now on the rise and people will be kicking themselves in the future for missing out on this wonderful opportunity to buy in Bemidji!  So get out there and find your dream home, vacation cabin, or rental property today!