All Forum Posts by: Alexander Sobrado

@Jim Goebel Thank you very much for all of your thoughtful responses on the subject. Some valuable anecdotal and fact based evidence you've provided.

Your email to the author really clears things up. I'm glad to know that international immigration is not propping up DSM. It's also very interesting to see growth rates broken in terms of percentages and aggregates. I'm suprised to see that aggregate growth of surrounding areas has matched or surpassed that of Des Moines proper. 

In any case, this is all good news and would support an investment into Des Moines. Cap rates do not seem to be indicative of a declining population but are certainly not implying a large population growth. It seems as though the city as a whole may be slightly undervalued/fairly valued given that its modest growth seems fairly sustainable. 

Hi @Anthony Wick, great points from an area local. However, I'm still concerned that this recent population growth is only temporary. 

The national trends show people moving south and west but Des Moines seems to be bucking that trend, at least for now. It's difficult to get a sense for realistic appreciation potential when so much of the growth has bee driven by immigrants and therefore will likely come to an end. 

I've been really intrigued by the Des Moines are real estate market for some time now. Cap rates look great, crime is low, and the city itself seems to be booming as of late.  Seems like a great market for cash flow that has some strong appreciation potential. 

That being said, I don't quite "get it". Most places in the midwest the population is declining - my immediate concern is whether or not this type of growth is truly sustainable. According to some articles I've read (link to one below), immigration is the cause for most of the population increase. For those of you who see strong appreciation potential in this market - why do you believe it's sustainable? I am planning on making a trip soon but having never visited I couldn't really see myself wanting to live in an area like Des Moines. Interested to hear everyone's thoughts.

Thanks,

Alex

https://www.thegazette.com/IowaIdeas/stories/immig...

@Andrew Johnson 

Thank you very much for the feedback and the excellent advice.

I wouldn't say I'm trying to have my cake and eat it too, just more looking for a market with solid cap rates (maybe not excellent but good) and modest appreciation potential (vs living at the extremes). I understand there is a trade off so looking for somewhat of a balance. 

I suppose just going city by city is probably the only feasible approach. I'd imagine there is much more value to be found in places where one wouldn't google search, though. As an example I have friends investing in places in Maine that are not very close to the Portland area, so a search wouldn't allow me to find such an area. In my (possibly naive) mind there should be some sort of service out there that would allow for a better approach. 

Hi all,

I'm a fairly inexperienced investor (have owned one property) who now lives in Southern CA where cap rates are very low. Given that there isn't all that much attractive in my immediate area (cap rates are very low), I am more or less location agnostic for my next purchase, and would be willing to fly/drive extended distances if I found property that was attractive enough.

Ideally, I'd like to be able to perform a top-down analysis, filtering out cities with very low cap rates, and then further filtering based on macro-economic data to find markets that I would consider attractive from both a cashflow and appreciation standpoint. I understand this level of granularity may be tough, but has anyone performed this type of analysis before? Are their paid resources that you need to get the right data?

I understand investing locally is (typically) best and that you need to understand the markets you invest in well. This would be a starting point for finding markets I want to spend time learning about. There has to be a better way than just googling "markets with lowest cap rates"....

Thanks,

Alex

@Justin R. Thanks for the heads up on this. Unfortunately, I will be out of town which is a bummer because it seems like a great event. Hope it goes well!

Hi all,

I recently moved to San Diego and am trying to get more involved in real estate. Instead of just asking for a mentor and not providing anything, I've decided I will offer to lend a hand (for free) on some projects and learn through osmosis vs a sit down coffee chat.

My skills: I know little about real estate investing but I work in equity research so I am very aware of the fundamentals of valuation. I majored in finance and accounting so I have a strong financial background. I wouldn't say I am necessarily super handy but I'm a pretty strong guy so I could help clean/move/paint/etc. All things equal, I'd prefer to help on the analysis, project mgmt, or scouting side of things but beggars can't be choosers.

Let me know!

Thanks,
Alex

Thanks all I really appreciate it!

Hi BP community,

I have been listening to the podcasts for a few months but this is my first post on the site. I recently moved from Boston to San Diego for a job in finance after graduating from Northeastern University.

Before I moved my stepfather passed away leaving me his condo in NH. There was little equity in the condo so I decided to rent it out and start getting some hands-on experience in real estate investing. I have some money saved and am looking to expand either San Diego or southern NH.

For those in San Diego - any recommendations on people to know or clubs to join? Looking forward to learning and continuing to grow!

Regards,

Alex