Jason Hartman’s guest is a local market specialist in the Quad Cities area, located on the border of Iowa and Illinois. He talks about the steady cash flow and a rigorous tenant screening program, which is advantageous to the property investors. He also shares the steady job market in the area, the average property available, and the typical rehabilitation details.
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Welcome to the creating wealth show with Jason Hartman. You’re about to learn a new slant on investing some exciting techniques and fresh new approaches to the world’s most historically proven asset class that will enable you to create more wealth and freedom than you ever thought possible. Jason is a genuine self made multi millionaire who’s actually been there and done it. He’s a successful investor, lender, developer and entrepreneur who’s owned properties in 11 states had hundreds of tenants and been involved in thousands of real estate transactions. This program will help you follow in Jason’s footsteps on the road to your financial independence day. You really can do it on now. here’s your host, Jason Hartman with the complete solution for we estate investors.
Jason Hartman 1:02
Welcome listeners from around the world. Thank you so much for joining me. This is your host Jason Hartman and we are on episode number 723 723. Great to have you here today we are going to have a fantastic market profile on the Quad Cities area. And our guest today will be at our event this weekend in Phoenix. So you can come and meet him personally there at our real estate technology, software and Buying Event. And I think that’ll be a great opportunity for you to meet him. So many of you have already Of course registered for that event. But if you haven’t, there are a couple of extra seats available. We were able to rearrange the room a little bit and we’re not going to have the tables we wanted in back because we want to make room for you for Visitors in the audience to come on out and make sure we have a lot of room for you. So join us for that. Go to Jason hartman.com. To register. And that is the information you need to know click on events, of course, and register for that. Also check out some of our great educational products at Hartman, education calm. And today before we get to some of this important real estate material, as it affects and creates opportunities for us as real estate investors in good markets like this. I want to talk to you about a pressing national problem. Actually, maybe it’s a pressing global problem. It’s a big problem. And I’ve been meaning to talk to you about it before. And I don’t know maybe the reason I want to talk about it is purely cathartic. I just want to get it off my chest. I just want you Hear it, I want to vent a little bit. But it’s not about Wall Street. It’s about Main Street. And maybe the reason for me sharing this pressing, pressing problem with you is that you, as a activist listener, will rise up in your community and do something about it. Now, those of you regular listeners know that my general beliefs as they come as they relate to society and politics are of a libertarian nature. God knows I’m going to be the last person to say there ought to be a law. But, you know, sometimes I just get fed up to look, I’m human, I don’t claim to be anything else. Maybe there just ought to be a law about this pressing problem. Pressing national problem may be a pressing global problem. You know, they did make a law about this in Los Angeles? Yes, I think it was back in the 90s. In Los Angeles, California, my hometown, that is known for its ridiculously intrusive government. But maybe there ought to be a nationwide. What do I speak of? What is this pressing national problem? What is this pressing global problem? Here it is. You’re ready for this? It’s those damn leaf blowers. Yes, those damn leaf blowers have got to go. Now, I don’t know about you. But a couple days a week I wake up here in my neighborhood in Scottsdale. And there are these people with these leaf blowers and they are polluting like crazy. Not in one way. Not in two ways, but in three ways. Yes, of course. The the epidemic of modern civilization, noise pollution, yes. Noise pollution, insidious noise pollution that is stressing us out. That is upsetting our, our beings and our animals for that matter. Our animals are very upset by this noise. So that’s the first form of pollution. Those little engines why they have to be gas? Well, I know why they’re gas because they’re just more efficient than electric motors would be. But those those gasoline engines have no emissions controls. They have no catalytic converters, and they pollute like crazy. You can smell the disgusting cancer causing pollution, a block and a half away. As you’re walking to hopefully away from one of these rotten disgusting leaf blowers and the third form of pollution, they do nothing, nothing at all. They simply kick up dust and cause people have to go get their car wash more often. They invade another person’s property with their dust. They are the lazy man’s way to quote clean, unquote, they’re not clean at all. leaf blowers have got to go. This has got to end. This is my rant. I know. I only rant occasionally. You know me, your host, who’s very mellow. doesn’t have an opinion about anything. But these damn leaf blowers have got to go folks. Rise up in your community. Let your voice be heard. leaf blowers have got together They are the scourge of modern society. Okay, Wall Street is bad too. They’re a bunch of crooks, Wall Street the modern version of organized crime. You’ve heard me rant on that many times before. You’ve heard me man to rant on the Federal Reserve. But today, yeah, leaf blowers. They’ve got to go. Okay, I’ll shut up. Now I’m done with my rant. I actually feel a little better. Do you feel any better? Probably not. Well, thank you so much for listening and humoring me about these damn leaf blowers. They have got to go leaf blowers must end. Okay, let’s get back on to real estate investing. And go to our guest, who’s going to talk about Quad Cities. We’ll see you this weekend in Phoenix at our event. And maybe you can propose your action plan to outlaw leaf blowers in your City. We’ll see you this weekend. And let’s talk about the Quad Cities. Here we go. I’m here with our local market specialist for a newer market of ours, and that is Quad Cities. And first let’s ask him to define for the listeners. What is Quad Cities?
Local Market Specialist 8:20
Hey Jason, it’s great to be with you. Yeah, we get that question a lot. You know, what is the Quad Cities? Obviously, for quad you know, four cities together. It’s on the Iowa Illinois border. So it’s Davenport, Iowa. Moline, Illinois. East Moline Rock Island, Illinois. So it’s those four cities. They’re together in on the border of Iowa and Illinois. It’s actually right in between. It’s about two and a half hours east of Des Moines and two and a half hours from Chicago. So right in between those two right on the Mississippi River.
Jason Hartman 8:54
So I guess the you know, a good way to also define that is to ask the question, if someone were to come in to Your market, what would be the airport? What would be the best airport they would want to fly into?
Local Market Specialist 9:05
Yeah, great question. Jason Moline, Illinois actually has an international airport. So major airlines fly into Moline itself. Okay, fantastic.
Jason Hartman 9:14
So tell us a little bit about why this market yes should be attractive to investors. We’re gonna you know, talk about major employers that sort of target tenant, that avatar for a tenant, if you will, and prospects for growth and landlord friendliness and all of that kind of stuff. So just start wherever you want with those, those topics.
Local Market Specialist 9:34
Sure. Well, when I think about it, I’ve been in this space for about 16 years, literally, you know, talk to thousands of folks about real estate investing on a lot of rentals myself as my partner, Matt, and for me, when I think about, you know, buying a rental property investing in real estate, I think about cash flow when I think about steady and you know, that really defines the Quad City, so I call it a steady Eddy. Market meaning, you know, in the world ended in 2007 2008. And some markets were, you know, depreciating dramatically, the Quad Cities barely saw Blip. And so it’s a very insulated market. So you’re never going to see 20% appreciation like you’re doing some places, but you’re never going to see a dramatic drop either. So it has that steady Eddy quality to it from a economic standpoint. And then as far as a demographic, I actually don’t live in the Quad Cities, but I partner with Matt there, and I invest in the Quad Cities because the demographic, they’re comparable to a lot of other Midwest cities, and I’ll use Kansas City, because that’s where I’m from. A lot of these other markets, you’ll have a portion, if you will, of that market. They have amazing cash flow properties from a number standpoint, but the demographic, if you’re to walk down the street, some of those areas would be a little bit, I don’t know. Not as comfortable. We’ll just put it that way. And that really doesn’t exist in the Quad Cities. So it’s one of those markets that not only is a steady Eddy, but the actual demographic of the people that live there. Very blue collar, very, you know, for lack of a better term Midwest, but there’s a scary part of town. We take people there all the time. And when we’re walking down the streets in these cash flow areas, people are amazed at just the demographic and the feel of the town itself.
Jason Hartman 11:22
Talk to us a little bit about that kind of avatar, if you will, for a tenant, that target tenant, you mentioned that blue collar, what kind of job might this person have?
Local Market Specialist 11:33
Yeah, great question. So and that a lot of that relates to also what we pick as tenants meaning we have a high standard of who we pick for tenants. So it’s a very, the Quad Cities has a very low rental demographic anyway, so it’s less than I think 35% or rent so it’s a high owner occupant. Demographic anyway in that in the whole Metro, but when we’re screening for cancer, We’re extremely picky as well, for example, and my partner and I, we literally have called dozens and dozens of other property management companies. And we found about the average income ratio to rent is about 2.5. Well, we’re at a 3.5. income to rent ratio.
Jason Hartman 12:19
So So explain that a little bit for the listeners. What does that mean? Like give an example what would their income be? And what would the rent be of the property? They could rent?
Local Market Specialist 12:26
Yeah, sure. So a specific example would be the average tenant out there typically has to have a 2.5 income ratio. So if they had a rent of 1000, you know, you’d have to at least be making, you know, I’ll be back into the math or I’ll have a calculator with me apologize. But
Jason Hartman 12:45
yeah, sorry to put you on the spot. That’s okay. You have
Local Market Specialist 12:47
to be making at least $400 to be able to rent for 1000. Okay, so our standard is, you know, three and a half times that and we also we’ve never found another property management company, there may be some out there, but we’ve never found any that track, even debt to income. And we track that as well. We won’t accept anybody that has a debt to income. That’s over 43%. So we actually, a lot of our local bankers and folks even come to us and say, It’s kind of crazy what you guys require. Tennessee’s folks could easily qualify for buying a house we have actually a FICO score, or a limitation we put on people as well. They have to have two landlord references. We verify income we don’t just we get pay stubs, we get income returns. So you know, no felonies we do the typical background check. So there’s no sex offenders, no felonies. So the average tenant that we have, I mean, it’s it’s a nurse, we’re talking about a qualified rn. There’s a large demographic there and some huge hospitals in the Quad City. So a lot of nurses. That’s when I say blue collar. These are individuals that are making, you know, 50 $75,000 a year. They just happen to be running. Most of them are well qualified and especially in today’s market could actually be buying property buying Home Instead of renting.
Jason Hartman 14:01
Okay, so why don’t they buy? This is a question that has often been explored by our investors. And, of course, we have a lot of thoughts and opinions on that. But tell us what you think
Local Market Specialist 14:11
that’s a great question. Some folks, you know, just don’t want to buy. I know a lot of them as we talked to them, they just have always been taught, you know, they’d rather be flexible, and I won’t get bogged down if you will into a house. That’s a great question. I really don’t know the answer to that a lot of them. In fact, the number one reason why somebody, we have an average stay for about two years on our tendency, but the number one reasons somebody ends up not renewing with us, actually, is to buy a property. So I think a lot of it is either they’re not educated, they don’t understand they could buy property, even with the more loosened up lending, you know, in 2012, or 2016. I don’t know it’s a good question. A lot of them end up doing that eventually, but some folks would rather just rent and have the flexibility I guess then being tied into one house, somebody in transition, some are recently divorced. We have a lot of professionals that have, you know, maybe recently just gone through some life changes or something like that. And so it’s a, you know, a one to two year short term situation where they’re renting,
Jason Hartman 15:11
right. And so we have a lot of tenants that want to preserve mobility. And I always say that the best thing you can have on a resume as mobility, the ability to move to where the jobs are. So certainly we serve tenants as landlords in that way, for sure, because, you know, they’ve got a one year commitment, maybe that’s a lot easier than trying to sell a house. So so that’s for sure. The other reason we talked about a lot and we’ve explored in depth is just what we call financial immaturity. And you alluded to it when you said maybe they’re just not educated not aware that they can buy a property, but some of them you know, they they remember when I first got into real estate many years ago when I was selling to traditional first time buyers, and they always have to take a step back so they could take two steps forward and a lot of them didn’t want to do that they want instant gratification of having the best place they can possibly afford. And, you know, they don’t want to do any fix up work or anything like that. And a lot of homes in that market for the first time buyer market that make a lot of sense are good fixer upper type properties. So there’s some issues like that, and it requires some saving, if they’re gonna do a down payment and so forth, and just kind of kind of more commitment, you know, less less gratification. So, there are there are many reasons we used to have this big giant list of reasons we made for that years ago. I should find that somewhere. Okay, tell us about, you know, some of the employers and you know, what the prospects are for growth and other development in the area and, and so forth, just you know, attractions, entertainment, all the stuff that would add to quality of life for people.
Local Market Specialist 16:46
Sure. In the Quad Cities, I mean, the number one player is john deere, we’ve all heard of john deere. So the world headquarters of john deere, is in the Quad Cities. Rock Island arsenal. In fact, there’s just a movie, just out Dogs on if anyone’s seen it, but I saw it and in the movie, it talks about the rock on Arsenal because it’s the number one Arsenal in the US, which is obviously a huge deal. So like when the white house they just recently wanted a new gate put up. Well, that was put together at the Rock Island Arsenal, Jeeps, you know, they’re put together for the medical staff in the army. All that happens in the Rock Island also. So those are two significant employers there. I talked about health care, some very large hospitals there, there’s a lot of universities, Alcoa hyvee. So there’s a lot of steady again, industry there. Even though it’s a smaller Metro, I think it’s 430,000, the entire Quad City metro. And also there’s even in a word two and a half hours from Chicago. And Amtrak actually just is they’re putting in a line that’ll go directly from downtown Chicago straight to the Quad Cities. So a lot of These folks in Chicago who deal with a traffic, you know, it’s literally two and a half hour drive for them on a commute. There’s going to be a line straight from Amtrak, right downtown to the Quad Cities. And then know, tell us a little bit more about that, because that’s a big deal. First of all, how long would that take on Amtrak? And when will it actually happen? It’s going to be finished in another 18 months or talking 2018. And it’ll be it’ll be two hours. So it’ll be two hours from you know, that stop and then downtown quad cities to Chicago. A lot of these folks, as you know, want to get out in this suburban anyway. So there’s a ton of new construction right now in the Quad Cities if you went there, and we’re talking Midwest numbers, I mean, but there’s 400 $500,000 new construction homes as far as the eye can see, because there are just a lot of folks that literally want to get out of the larger metro areas and be in a smaller town like this because it’s good industry. It’s a nice, you know, Midwest town, but that certainly that connection to Chicago alone through Amtrak, we would anticipate, you know, that type of a demographic of professionals again, somebody making, you know, decent money in Chicago, you know, making a couple hundred thousand dollars. I mean, living in the Quad Cities, you’re very big fish in a small pond with those kind of numbers.
Jason Hartman 19:21
Sure, absolutely. Absolutely. Okay, good. Well, let’s talk a little bit about well, do you wanna talk about employers or development or prospects for growth anymore? I kind of got off on the tangent of the Amtrak a little bit, but did you finish that? Or there’s probably more, right.
Local Market Specialist 19:36
Yeah, I mean, again, john Dears, you know, a top 500 you know, Inc 500. Company. Certainly Genesis healthcare is one of the big healthcare employer, the rock arsenal. I mean, you know, not to get into politics, but that’s not going anywhere, you know, with recent activities, wherever you’re at the military is contained. That’s the number one Arsenal in the US So that’s a very large employer cone elevator in a lot of folks have heard of that. That’s a large employer and all of these are expanding all these companies are hiring casinos. I don’t know
Jason Hartman 20:10
though. I the elevator business really has its ups and downs, though. Yeah.
Local Market Specialist 20:18
Really bad humans
Jason Hartman 20:19
are folks on this show. To throw that in.
Local Market Specialist 20:23
Yeah. Okay. Good seals, actually, riverboat gambling actually started hers invented in the Quad Cities of all places. So riverboat gambling, in fact, there’s just a $1.5 billion casino that was just put in, in the Quad Cities. So that whole casino industry, ironically, is a steady employer there in the Quad Cities as well. Yeah, fantastic.
Jason Hartman 20:47
Well, good stuff. So let’s talk a little bit about the landlord. Kind of the regulatory climate if you would, whether it’s landlord friendly, if it’s anti landlord, I mean, you know, we certainly know it couldn’t be More anti landlord than the Socialist Republics of California or New York, those are very anti landlord. Yeah, you know, give us give us some feedback on what that’s like, you know what, what it’s like if you get a bad tenant there, what it’s like to evict them. What percentage of the market maybe that you deal with, if any, is section eight or government assisted housing in any way. Just give us a give us a feel for that.
Local Market Specialist 21:25
Yeah, very conservative. From a fiscal standpoint and political standpoint, so very tenant friendly, very excuse me landlord friendly laws that are so it’s a really a three day notice. And it’s easy to evict. No, we’re right now running about a 2% vacancy. So it’s, you know, we rather be proactive and scream very heavily up front, so we don’t deal with a lot of that. But certainly, if it comes down to it, very landlord friendly laws on that side of it, so it’s it makes it easy for us.
Jason Hartman 21:56
But vacant vacancy doesn’t determine landlord friendliness. I mean Right, what’s the is there fear? Do you need to fill that in with some more information?
Local Market Specialist 22:06
I was just gonna say we try to avoid dealing with tenancy issues or you know, eviction, by being proactive up front. So we don’t have a lot of that. But that should come down to that. It is friendly. There’s another question you asked it. I was trying to remember.
Jason Hartman 22:21
Yeah. Well, I don’t know if I remember either. But you know, just just want to understand that claim that I mean, you know, when you have to evict someone, God forbid, hope you don’t. But it’s, it’s just statistically going to come up in every little real estate investors career at some point. Tell us about that process, if you would, you know, how long does it take? How much does it cost? You know, I want to kind of outline some worst case scenario stuff here. And then government assisted housing. That was the other question I asked, by the way, yeah, what percentage, if any, do you have with that?
Local Market Specialist 22:54
Yeah, that was the question. We don’t have any section eight. So we just deal with conventional don’t really need to have any section eight or government housing, so we don’t. But as far as the eviction, on the rare case, it does happen. We’re usually at a 30 day turnaround on something like that. So it’s almost a moot point with the love, I could find out how many evictions we’ve had. But I know it’s a very low number of family properties we have Tell us about that target property. You know, I asked you a little bit about the avatar for the tenant. But what’s the typical property like like average price of the property, average rent, kind of the configuration, the age of the home, etc. Yeah, so our average property is somewhere between 75 to 90,000. We have some that are over that, for our cash flow inversing clients. That’s the typical pricing and then rents are going to be anywhere from 800 to 900. On that type of a property, age of the home, and when we have some properties that are upwards of, you know, 1950 builds a newer but the actual age of the home for that 75 to $90,000 purchase. Property there older homes. These are, you know, 1910 to 1940 build. And so we go through and the cash flow clients that we deal with and investors, once they see our scopes of work and understand that we’ve done a complete overhaul, meaning we’re putting 25 to $30,000 on a rehab, all new age fact, all new plumbing. So functionally, these houses are brand new, I mean, they’re 2016 houses, but they’re these older homes that have literally, you know, stood the test of time. They’re these solid, old brick stone built houses, once our investors understand they’re getting that solid of a house, the brand new guts, if you will, a complete rehab, and then the numbers that you know, play out for that they’re pretty excited to have that type of a property but they are typically older homes is what our investors skewed towards to be able to get the better numbers.
Jason Hartman 24:53
Right, right. Okay, so let’s talk a little bit about that typical rehab that you do. You said brand new systems brand new hva. See? I mean, if if you acquire a property that’s got a five year old furnace in it, for example, are you yanking that out and replacing it with a brand new one every time?
Local Market Specialist 25:13
No. And it’s rare that we have a property that has a five year old age factor enough,
Jason Hartman 25:19
but I just had balanced Yeah. So what’s the what’s the policy on HPC? I mean, it won’t always be new, right?
Local Market Specialist 25:27
No, typically they are.
Local Market Specialist 25:30
So I mean, obviously the cosmetic stuff. In fact, I’m just looking over the last five or six scopes of work that came across my desk today and they range between 22 to 35,000. So completely cosmetic Lee new usually a brand new h fac and we have licensed plumbers and licensed h back on staff. So we’re able to get this done with very good pricing because they’re actually employees of ours. We’re not outsourcing this to someone else. We’re able to accomplish this and still do it at a reasonable cost. But typically brand new plumbing out to the street, brand new h fac. Certainly new cosmetics from the, you know, complete redoing of the cabinetry. But everything, Windows a lot of times completely done. Okay.
Jason Hartman 26:20
Generally like do you want to share maybe what your average cost to the rehab is?
Local Market Specialist 26:24
I would say it’s right around that 25,000 for rehab.
Jason Hartman 26:27
Yeah. Okay. And that’s typical rehab. Okay. What else do you want people to know about either the market or the rehabs? Do you use what kind of like what kind of flooring what what kind of paint and I’m not talking about necessarily what type of brand but you know, just any of your philosophies on on how you do your rehabs? Sure.
Local Market Specialist 26:48
Well, yeah, what I would have them know is everything number one is in house meaning we in house acquire the property. We rehab it and then we tenant it and we deal with the property manager. Judgment. And my opinion on property management, that’s the key to everything meaning, oh, yeah,
Jason Hartman 27:06
that’s where that’s where it lives or dies, folks.
Local Market Specialist 27:09
Yeah, yeah. And that’s been our experience being on the the other side of it. So, for us the fact that the left hand knows exactly what the right hand is doing, and we’re, you know, congruently managing that property from stem to stern is a big deal. And on the property management side, we literally take zero profit out of that meaning every even though we have 15 employees on staff, even though we’re you know, managing hundreds of properties and we you know, I’ve done over 1200 properties right there in the Quad Cities, we never take a penny out of the property management side because always pushing costs down to create a better experience for our clients would rather sell them more properties and you know, try and nickel and dime because we’ve been on that side of it even, you know, 25 $50 maintenance here and there that that adds up. So we’re always pushing down on the property management costs. We do all of that in house, which is, you know, in my opinion, a big deal.
Jason Hartman 28:04
Let’s talk about management fees a little bit. Yeah. You mentioned that you don’t take profit on the management company. What do you charge as a percentage for management? And then, you know, what are some of the other charges in terms of lease up fees? And just the whole shebang?
Local Market Specialist 28:19
Yeah. 9% is what we charge across the board. lease up is half a month’s rent. On a renewal, we don’t charge any thing for renewal, which is a big deal. We keep a ratio of 50 to 150 houses to one employee, which we’re pretty proud of that number, which is why we have such a large staff. Again, we create a situation where we literally have one staff member all their responsibility is is a relationship manager. We’re actually proactively calling out to each one of our our owners every month, walking through proactively their statements with them, seeing if they have any Questions. And so we like that not only handling the property well, but also our other clients, you know, our owners and proactively reaching out and you have a one contact relationship here with our relationship manager. And so there’s never a question of, you know where to go and what to do because we’re actually reaching out to you every, every month on that as well. Okay, do you charge a markup on repair fees? I mean, you have some of the staff done in house, but I assume you you’ve got to outsource some stuff. I mean, you know, it’d be very expensive to have experts for every everything in house right or tell us about that. Well, it’s I mean, not to say that some of the I mean, we literally are only with 15 employees, the great majority of it is done in house. That’s not to say some of them might have some independent contractors but everything from any kind of maintenance issue you can name, it’s typically done with our in house and it’s a licensed individual from an H fac plumber. We don’t have too, and also goes to how quickly you can respond to something when you have a plumber. And on staff that works for you, you know, we’re not waiting for somebody to get out and take care of an issue should something arise or H factor or anything like that. I mean, there are employees. So the response time on that, again, it’s all handled internally, as much quicker as well. So it does get expensive, you know, which is, you know, we charge 9%, which is a pretty standard fee. But we just return all those dollars back to the model to be able to maintain that kind of staff.
Jason Hartman 30:30
So in other words, though, in your model, you have to decide on what those repair costs and service call fees are. There’s not a markup since it’s your person doing it, but you’re certainly charging the investors for that. It’s always a question of which is more efficient. You guys have definitely found it to be more efficient to not deal with outside contractors. And you have enough volume that it just makes sense to have all those people in house right?
Local Market Specialist 30:54
Yeah, it’s a volume game for sure. Absolutely. And even on when somebody licenses you No, we get a discount on pricing. So when we’re buying equipment we don’t. We’re licensed so we get discount, sir, but we don’t sell. We don’t resell to anybody. But we get it when you
Jason Hartman 31:10
say licensed, do you mean contractor’s license? What license? Are you talking about?
Local Market Specialist 31:13
I’m talking about plumbers. h fac. Oh, okay. They’re licensed.
Jason Hartman 31:18
No, absolutely. Okay. Okay, good. Good stuff. What do you do about late fees on the management side? Do you keep those or do you split them with the owner? I some property property managers do that kind of differently in different places. So I’m just kind of curious about that. They’re always asking me,
Local Market Specialist 31:34
um, yeah, we keep those late fees.
Jason Hartman 31:38
And everything is due on the first late by the 15th. And in what are you charged as your late fee percentage or is it just a flat dollar amount? It’s a flat dollar amount of $50 $50. And then what about every day after? It’s just a flat? it probably takes them till the fifth I assume, right? Oh, okay. So it’s just 50. And then you go from there, and if they don’t pay, it’s two It moves to a unlawful detainer type of thing. Correct? Right? Yeah. Okay, good. Good stuff. Okay, good. Anything else you want to share as we wrap it up?
Local Market Specialist 32:09
Yeah, one thing that we have a lot of investors that come to work with us understand the power of the Quad Cities is is private banking. And we were talking a little bit about this offline, but
Jason Hartman 32:20
Oh, yeah. Thank you for bringing that up. Yeah.
Local Market Specialist 32:22
So a lot of individuals believe that they’re capped, you know, at 10, or maybe 20. rental properties, because everything has to be Fannie Mae or Freddie Mac back. But the reality is, the Quad Cities is one of the most competitive banking markets in the US. And so we have a lot of local banks that work with our investors. And normally what’s a portfolio loan meaning it’s kept in house, it’s never sold on the secondary market. So those are decisions that are made by that local bank. And those are, you know, kept as in house loans and the benefit to some individuals who have you know, good credit score’s as your credit isn’t getting dinged, and I’ll use Matt my partner’s an example he has over four Hundred properties, literally two of them show up on his credit report and they were the first two he bought back in 2005. I think he didn’t understand this. And so you can you’re not limited on how you can purchase and invest over time, you’re not capped at a 10 or something like that. And these local banks are very competitive. And so with our relationships and them understanding our team, and what we’ve done there having done over, again, 1200 properties just in the Quad Cities, they love to work with our investors, get them in typically in today’s rates, it’s 20 to 25% down, and the rates are right at conventional maybe a quarter point more. So you know, today we’re at about a four and a half percent rate on those. Typically they’re at 20 to 25 year amortization is the typical situation on those so that’s something our investors enjoy. If they want to have a substantial portfolio, they don’t feel like they’re capped at 10 properties are such
Jason Hartman 33:56
so 20 to 25% down right or 25 percent down. Did you say 20 or 25?
Local Market Specialist 34:01
Depending on the bank.
Jason Hartman 34:03
Okay. And these are local community banks that are actually funding the loans. Right? Correct. Okay. And you said 20 to 25 year amortization. So those are amortized loans. And those rates are really at typical Fannie Mae, Freddie Mac rates. It’s pretty amazing, actually.
Local Market Specialist 34:21
Yeah, right now, I mean, we just did several in the last month or right up 4.5 point 4.75. Mm hmm. Good, good stuff. They’re competitive. very competitive. Yeah.
Jason Hartman 34:32
Good stuff. Okay. Well, hey, thank you so much for joining us. And we look forward to seeing you at our next event soon. And I know you’ll be speaking at one of our upcoming events, and we will look forward to doing more business together. So thanks for joining us. Thanks, Jason.
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