All Forum Posts by: Jared Althoff

I love working with an investor.  That said, I'm an investor myself.  I think it is a great match if the agent can CALCULATE cap rates, LISTEN to what's important to the investor, and UNDERSTAND the clients long term or exit strategies.  As investors, we all have different skillsets, risk tolerances and capital.  So I think it is extremely important as an agent and investor to sit down and discuss the potential relationship and hit on all those things and the expectations that go along with that.  I love working with investors, especially those just getting into it with the goal of building long term wealth. There is so much more value I receive when I can help a fellow investor get launched and see them succeed and start stacking up more properties and trying different strategies along the way.  Being trusted to come alongside them as an educator is much more fulfilling to me than the sale.  Some agents just don't understand that, or don't yet.  So if that's the case, you move on and try to find one that knows what they're talking about and asks the right questions.  If you're in an area where you're not having any luck finding an agent, feel free to reach out to me and I can network through my channels with the goal of finding you one that will exceed your expectations.  Great post, thanks for sharing!

@Brandon Levi Eagan Dubuque, REI does a meet up every month. We have a FB page. Where are you located? Welcome!

@Nathan Fraser

Nathan, is there a specific market in Iowa that you are looking at? I might have some agent or other investor connections that are in the investment space to connect you with if you have an idea geographically where you would like to be in Iowa. I invest and sell in the Dubuque, Iowa area.

@ChaseKeller would be good to connect with if you are from out of state.

I have an interesting property that my family owns. It is a 3 story+penthouse beast of a building. It used to be a hospital boasting over 3000sf on each floor.  We have installed a new boiler (well over $100k) in the last 5 years.  Our main tenant has left the building.  They occupied 1 full floor.  Our group does not have the desire to rehab this as we specialize in new construction and are under staffed for a project like this.  This would be a great project for someone looking to get into senior living, multifamily or even climate controlled storage.  We are only asking $150k for this and it sits on over 2 acres.  A really neat space for anyone looking for a project in Jones County, Iowa.  Hit me up if you want me to send you any additional details.  We would even consider donating this to a non-profit if it was the right fit and with City approval.

Price: $150,000

Total annual rents=$31635.60 Tower utility reimbursement=$2892

@Olga Merino

I would sit down with the agent and make sure you know what all of her criteria is for your search. If you are finding stuff on realtor.com and Zillow that is not getting sent to you, something is wrong with the criteria you initially set up with her And it’s likely fixable.

I am an agent in Iowa, and I see this a lot. After initially consulting with a client their criteria changes even just a little bit after seeing what is NOT out there that fits their needs. I usually try to be proactive and expand boundaries in my criteria after hearing what they want, but it all just depends on how the initial consultation went down.

@Stevan Radojevic Do you have an agent advocating and working for you on this for advice? Every market is a little bit different so take my advice with a grain of salt. Seems like they’re coming quite a bit down in price which is a good thing. However, if there isn’t any competition or heat on you where you can lose this, I would definitely go for the inspection. It’s an inconvenience for the tenants in an inspection as well as future showings if you don’t buy it so I doubt that’s as big of a concern to the owner as finding more issues is.

@Stevan Radojevic I believe as long as you’re not competing to get this thing then you should do the inspection. There will likely be some similar findings and of course additional findings that you can make a request for repair or a lower purchase price on. And, if you are going to be competing for this place, like you said, it really comes down to your risk tolerance. But I do see a lot of people going forward with purchases from a previous inspection report in a competitive market.

The other thing to consider that has not been mentioned as what is the sellers motivation. Are they an older owner and just wanted to sell “as is”? I see that sometimes after a deal falls through and it is something that you need to respect and probably consider just going in at a lower price rather than doing the inspection. Or give them 2 purchasing options, one with an inspection and one without. Goooooood luck!

Jason, unfortunately Dubuque has a huge hole when it comes to a solid property management company.  As you have found out, they are full and fairly costly.  The challenge is they are so far overextended and do not have enough staff in my opinion.  I would suggest trying to manage this on your own if you're up for the challenge.  It would be a good learning opportunity for you right away and can better help you when it comes to interviewing a property management company and addressing how hands on you want to be down the road.  Especially if the property in its current state needs to be stabilized (rehabbed, re-rented, new policies and procedures instituted, etc).  When you take on a new property, there is typically arbitrage or tenant vacancies mainly as a result of a different management style coming in.  This is not necessarily a bad thing as you want things ran the way you foresee that they should be ran and there is an upfront cost to that.  Just be sure to account for it or set $ aside for that as a vacancy expense line item.  I hope that helps.  If you need anything else, don't hesitate to reach out.

Great advice all.  Jason, I'd be happy to sit down with you if you would like to analyze the numbers closer.  I think Sarah did a good job and I would look at things similarly and echo everything she offered.  If you would like, I can refer you to a couple of lenders as well as even show you the property as I am licensed in Dubuque if you decide you're ready to take that next step and do not have an agent to help you access the property.  The listing you are looking at is in a good location for rental and I like the mix of units that make up the building.  I am happy to send you the buyer's disclosure as well if you would like to message me your info.    Most of the deals we have been looking at are under 10%, so that seems in line with the current make up of what's out there.  Hope the little bit of info I offered helps.  Best wishes with investing in Dubuque!

Hi Joe, welcome. I'm in Dubuque as well. Check out the Dubuque REI facebook page and meet us at one of the monthly meetings. Look forward to meeting you. Let's grab coffee sometime.