All Forum Posts by: Account Closed

@Whitney Hutten. Thanks for reaching out I appreciate your input! It seems like things are changing fast in lending and it takes a community like this to help navigate. I have had lenders recently tell me that they can’t do cash out refis anymore and then actually tell me that “no lenders” can do cash out refis anymore. They weren’t necessarily lying but they were taking what was their reality and assuming that was every lender’s reality. That is why I love this group! My reality no longer is defined by by where I live or who know personally. Encouraged and grateful!

@Rene Owczarski Thank you for reaching out. I will keep looking around. In Ames it is very enticing to flip instead of BRRR as the rental rates are low and property values are high so just trying to maximize my capital on a BRRR.

Does anyone have a lender in Central Iowa that will do do a 80% cash out refi based on appraised value using a conventional 30 year mortgage? Purchasing a SFH as a BRRR next week and have talked to every bank and credit union in Ames, IA and all are only 75% cash out. Any leads would be appreciated as I am looking to build a relationship with a local lender that is BRRR friendly ;-)

Thanks!

@Tobins Tobins. If you decide to start wholesaling please let me know I am always looking for deals in Ames. Ames has been a strong and expensive market for real estate but things are always changing and given some of the stresses on the university and students change could be coming sooner than later.

Best of luck - BW

Current tenant is renting a SFH as he transitions his technology sales and service business headquarters from another city. He stays in the property during the weekdays when needed so he is an ideal tenant as there is little “wear and tear” and is a low credit risk. Recently his monthly rent has been late due to the fact his business is cutting the rent checks. He has asked for me to convert the lease agreement from him personally to his company. His reason is that he has to complete an expense form, get it approved (by himself) and then his accounting department has to cut a check and mail it. He states that if it was the company’s lease that it would be easier as it would be a monthly expense. My concern with this is liability but would love to hear your thoughts! Thank you all!

Nathan, Welcome to BP! My full-time job is as a General Manager for a local building material supplier that delivers drywall throughout Central Iowa. This allows me to keep a pulse on the construction market because drywall is needed on almost all projects (commercial, multi-family and residential). If you are looking for SFH Des Moines has opportunities for both appreciation and/or cash flow. I personally invest in SFH in Ames and it the inventory is very limited, sale price/rental rates are not great and appreciation has leveled out as well. Plus, on October 10 they are planning on putting a “6 month freeze” on the conversion of SFH to rental properties. If you are looking for Multi Family I would stay away from Ames as the vacancy rates have spiked (estimates are 10% and could rise by end 2018 to 15-20%) because of out of state developers building large apartment complexes and A LOT more units are under construction currently. Multi-Family in DSM is very different because there are a lot of sub-markets. Good luck and hope this helps!

I am also new to the BP community and real esate investing. I sat on the sidelines for 10 years and always wanted to wait for the time to be right. After 10 years I found that the time is never going to be right so I pulled the trigger and closed on my first SFH in North Ames last month. Ames is a very expensive market and will require a lot of networking and effort to find a deal. SFH are up about 30% over last 4 years and finding a public deal on a MFH is going to be tough given the vacancy rates are extremely low and rental ratest are high. I have been told by multiple large Ames RE investors to focus on SFH and save up cash. My motto is that they can no longer build a SFH under $200k so I am focusing on BRRR under $180k. Flipping in ames may be possible but I havent found a deal that the numbers worked yet (remind you I am not a seasoned pro by any means). Hope this helps give some insight.