All Forum Posts by: Jared Husmann

I'm an agent who has 15 years of experience and specialty in multifamily investing (and used to own a portfolio of SFR of more than 72 doors, now I own all commercial). Happy to discuss all of the benefits of Des Moines, IA and what we have to offer!

2 Votes

Des Moines, Iowa

Commercial properties will generally always use some form of bank financing. The biggest difference between residential and commercial is that a residential mortgage is sold off to the secondary market whereas a commercial mortgage will be held by the institution that made the loan (unless it is a CMBS product).

Commercial lending standards will lend on the lesser of two amounts, the Loan-to-Value (LTV) or Debt-Service-Coverage Ratio (DSCR).

1 Vote

Toronto, Ontario

I have a national account as well and for an individual it's around $500 or so per month (it varies by region). In the past I've offered my clients reports either for free, if they're a client of mine, or for a small fee I'll help pull reports and analytics.

2 Votes

Nice!

0 Votes

Originally posted by @Rene Owczarski:

Originally posted by @Drew Leonard:

With the current list prices in the DSM area, I find it hard to believe how purchasing a $50k-65k/unit is yielding positive cash flow. I'm not a seasoned investor there just yet, but I'm looking for my second 5+ unit there (distressed/value add property) and have been a bit baffled. I was presented with a 12-unit property (at about $60k/unit) and was nearly laughed out of the room when I suggested something closer to $45k. Saw a recent MLS listing for just shy of $60k (granted, in Sherman Hill) that was advertised as needing a full interior renovation. Obviously it may not sell for quite that high, but still.

Rene, I generally specialize in the multifamily investment market here in DSM and I know what you're talking about. In terms of $50k-$65k per unit, the average last year was $58,625 per unit which was up 8% from 2018 which was $54k per unit but we have seen a slight pullback this year with price per unit around $40k-$47k per unit. However, most of our sales have happened in the DSM metro while the suburbs are still pulling in $50k+ per unit. The key to understanding why they're going for so high is to look at the supply /demand curve and the fact that DSM is growing so much as an economy, thus, the tide is rising all ships. This is making it hard for investors to make money unless you can find efficiency in the operating and management of the property. With all of that being said, we are seeing the renter-by-necessity rental rates rising fairly aggressively year-over-year so that may help keep returns on investment high.

I remember about 9-18 months ago, I'd be getting emails from CBRE here in Des Moines, and it wouldn't even be an offer email, but a tombstone, about how so and so deal was sold off market by CBRE at a new record price. Now it seems like I'm getting multiple emails from CBRE about the same properties over and over. One email that the property is for sale, another for scheduling tours, and two or three notices to submit your offer. So maybe things have changed during this March-July COVID period in multi-family here in Des Moines.

0 Votes

Des Moines, Iowa

I can say from experience that finding a lender with the terms you outlined will be very hard. As for the banks who don't want to have someone behind them all I can say there is to keep trying, "not all banks are created equal." However, I will also say that many banks are not doing new loans until more is known about COVID. The last thing I will say, after owning over 70+ doors myself at one point, if you do basic math you are averaging $750 per month in rent and buying the houses at $68,750 which doesn't leave much room for cashflow, especially if you need help with the downpayment. They may cashflow at first but the moment you need to overhaul a property due to vacancy you're talking about $7,500-$10,000 per house and that will destroy years of cashflow from that one house much less the overall portfolio.

0 Votes

Sharon, I'm not based in Iowa City but I am based in Des Moines and just from a pure macroeconomic model, in order to get appreciation in your home I would look to invest along the I-380 corridor and perhaps look into North Liberty as a possible town to invest in or look to the West and the town of Tiffin which is seeing a lot of economic development. These areas should give you the greatest ability to ride the tide of appreciation in your investments! Best of luck!

4 Votes

All Forum Posts by: Jared Husmann

Jared Husmann has started 0 posts and replied 7 times.

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