Looking to make the leap, from Delaware County, PA

Looking to make the leap, from Delaware County, PA

Engineer · Media, PA · Member since 2013 · 13 posts · 4 votes

Hi everyone! My name is Dave, and I am currently living in Media, PA working as an engineer.  My parents always told me to buy a house right out of college so my living expenses would be going towards an asset rather than a rental which would get me nowhere.  I followed their advice, but after reading Rich Dad, Poor Dad a few years later I can see the flaws in their strategy, and see that while it is safe it will never get me ahead.

Now I have cut my expenses as much as possible, have begun paying the minimum on my mortgage instead of the most I could bare, and have been saving as much as possible to put towards my first house flip.  My goal is to pursue a series of flips to gain enough capital to start acquiring buy and hold rental properties which I hope can eventually generate enough income to replace my full time job.

To date I have saved up $30,000, which does not seem like enough to complete a flip on my own, but I am getting antsy to get going. I feel I have read up and have the knowledge necessary to take on my first deal, but need to find out what options I have to get there. I have a realtor sending me MLS listings every other day so I can be up on what is available, but just don't have the capital to move.

I joined BiggerPockets to help me make that leap into my first deal, and to share my story and learn about the stories of people like me.  This looks like a great community and I look forward to being part of it.  Thanks for reading!

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  • Investor · Chicago, IL · Member since 2014 · 169 posts · 29 votes
    12y

    @David Huppman Welcome to BP!  If you haven't already, make sure to listen to the podcasts.  Especially ones about flipping if thats what you're interested in.  Good luck with everything!

  • Flipper/Rehabber · Allentown, PA · Member since 2011 · 1k+ posts · 701 votes
    12y

    @David Huppman I don't understand what the flaw was in their logic? 

    That being said, can you afford/qualify for another mortgage? You can flip properties using conventional 20% down mortgages. Or you could start wholesaling. 

    What about bringing in some roommates to cover your mortgage? 

  • Real Estate Agent · Beverly, MA · Member since 2013 · 353 posts · 93 votes
    12y

    @David Huppman 

    I recommend that you look into local networking events to pick the brains of local investors. Once you get to know these local investors, you may find that one of them would make a good partner on your first deal. You could get into a deal with the money you have available as well as gain experience and prevent making significant mistakes. Keep in mind that partnerships are like marriages, so get to know these potential investment partners on a personal level. Ask about their experience and why you would invest with them.

  • Engineer · Media, PA · Member since 2013 · 13 posts · 4 votes
    12y

    @Tim Coppola

    Thanks for the well wishes!  I have begun listing to the podcasts starting at the beginning.  It makes for good listening while at work.

  • Engineer · Media, PA · Member since 2013 · 13 posts · 4 votes
    12y
    @Mark Gallagher

    I only mean the view that a primary house is actually a liability rather than an asset.  I can certainly see how owning a house costs a lot more then the monthly mortgage payment, and if I could do it again I would rent a place with some roommates before moving into a place of my own.

    I have excellent credit and could qualify for another mortgage, but I was told that would only cover the price of the property itself and not any rehab costs.  If I were to put 20% down on a house I would not have much of a buffer left to cover that rehab and if I ran out of capital before finishing it seems fairly risky.  I am fully aware that I do not know all of my options though!
  • Engineer · Media, PA · Member since 2013 · 13 posts · 4 votes
    12y
    Originally posted by @Brian Ortins:

    @David Huppman 

    I recommend that you look into local networking events to pick the brains of local investors. Once you get to know these local investors, you may find that one of them would make a good partner on your first deal. You could get into a deal with the money you have available as well as gain experience and prevent making significant mistakes. Keep in mind that partnerships are like marriages, so get to know these potential investment partners on a personal level. Ask about their experience and why you would invest with them.

    Thanks for the tip! I looked into the local REI clubs and the closed to me I saw was the Montgomery County Investors group which is a little distance.  Do you know if there is one centered in Delco?

  • Flipper/Rehabber · Allentown, PA · Member since 2011 · 1k+ posts · 701 votes
    12y

    Talk to a local lender about Fannie Mae HomePath Renovation Loans and Fannie Mae HomeStyle Renovation loans. Both would include rehab funds. HomePath is going away soon though. I can refer someone if you'd like; send me a message. 

  • Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    12y

    I would recommend you try DIG - Diversified Investors Group - that meets in Fort Washington the last Thursday of the month in Jan thru Oct.  The next meeting is the Vendor Tradeshow where allsorts of "trades" will be having tables / booths: contractors, lenders, flooring suppliers, kitchen cabinet suppliers, Home Depot - that's just a short sampling.  If that interests you, send me a colleague request with a brief message and I will discuss some more privately.

    Website for DIG:

    http://digonline.org/

  • Engineer · Media, PA · Member since 2013 · 13 posts · 4 votes
    12y
    Originally posted by @Mark Gallagher:

    Talk to a local lender about Fannie Mae HomePath Renovation Loans and Fannie Mae HomeStyle Renovation loans. Both would include rehab funds. HomePath is going away soon though. I can refer someone if you'd like; send me a message. 

     Thanks for the advice!  I met with the mortgage broker at my local bank and he made no mention of this program.  I guess they don't offer it in their office.  I will definitely be taking a look!

  • Engineer · Media, PA · Member since 2013 · 13 posts · 4 votes
    12y
     @Steve Babiak
    That certainly does interest me.  I am always looking to absorb as much information as possible and believe learning is always valuable.  I will be in touch!
  • Investor · West Grove, PA · Member since 2013 · 74 posts · 25 votes
    12y
    Hello and welcome. I'm up the street in aston. Currently working on two major rehabs in Ridley and boothwyn, either of which a traditional bank would lend on- however there are a few out there- call them all.. I'd also chat with a hard money lender, that could be beneficial in landing a deal, given the amount of cash you have available- ive used rehab financial group on the mainline- and would recommend them. Lastly - delco is extremely competitive - jump on Mls leads ASAP, as they go quick- I wish you luck.!
  • Hanford, CA · Member since 2013 · 5k+ posts · 1k+ votes
    12y

    @David Huppman  

    Welcome to Biggerpocket!

    A personal property is only a liability if you let it be. Many people we know rent out their rooms having someone else pay for their asset and they live there free. We personally love buying as many "future" rentals as possible as personals. My husband has a transient job, the Navy. We buy personals properties and renting them out when my husband is transferred (Navy). We also buy pure rentals when the number works. our market is class A properties managed all over the country as "home" is only relevant to the current set of orders.

    Definitely check out the podcasts, blogs and forums. They are awesome resources. While everyone agrees on investing in real estate, that is where the similarities end. Everyone has their own niche, rules/business plan that is their key to success.

    Another great resource is individual signatures. Many of us, including myself have websites/blog located in our signature that we discuss our strategy, plan, etc. This is a great way to find more about a specific personals "niche"/"strategy".

    Everyone has their own unique strategy based on what works for them. 

  • Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    12y

    Welcome to BP community @David Huppman  It is a great place to meet new friends and learn about various aspects of real estate and more. 

    Set up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alerts

    Wishing you the best! 

  • Dave VisayaPro Member
    Moderator
    Audio Engineer and Investor · Cebu City, Cebu · Member since 2013 · 7k+ posts · 881 votes
    12y

    Hey @David Huppman welcome to the site! You made the right choice in checking out BiggerPockets. Definitely jump in the forums check the blogs, and interact! Also, use keyword alerts on the upper right to get notified whenever keywords, example your target area is mentioned.

    BiggerPockets
  • Brandon TurnerPro Member
    Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
    12y

    Hey @David Huppman welcome to the site! Definitely start jumping into the community here! Be sure to read through The Ultimate Beginner's Guide to Real Estate Investing to help you get started.

    Also - be sure to check out House Flipping: The Best of BiggerPockets. There is a ton of flipping resources there.

    Finally -be sure to setup some keyword alerts - especially for "Media" so you can jump into local conversations.

    See you around the forums! 

  • Engineer · Media, PA · Member since 2013 · 13 posts · 4 votes
    12y
    Originally posted by @Dave Shellenberger:

    Hello and welcome.
    I'm up the street in aston.
    Currently working on two major rehabs in Ridley and boothwyn, either of which a traditional bank would lend on- however there are a few out there- call them all.. I'd also chat with a hard money lender, that could be beneficial in landing a deal, given the amount of cash you have available- ive used rehab financial group on the mainline- and would recommend them.
    Lastly - delco is extremely competitive - jump on Mls leads ASAP, as they go quick- I wish you luck.!

    Hi there Dave! Good to hear from someone doing the same type of projects in my area. I am certainly trying to review the MLS quickly when I get it each day. I was looking into getting a real estate license for myself but it didn't seem cost effective, at least until I get a couple deals under my belt. Thanks for the tips on lenders, I will keep looking.

  • Engineer · Media, PA · Member since 2013 · 13 posts · 4 votes
    12y
    Originally posted by @Elizabeth Colegrove:

    @David Huppman  

    Welcome to Biggerpocket!

    A personal property is only a liability if you let it be. Many people we know rent out their rooms having someone else pay for their asset and they live there free. We personally love buying as many "future" rentals as possible as personals. My husband has a transient job, the Navy. We buy personals properties and renting them out when my husband is transferred (Navy). We also buy pure rentals when the number works. our market is class A properties managed all over the country as "home" is only relevant to the current set of orders.

    Definitely check out the podcasts, blogs and forums. They are awesome resources. While everyone agrees on investing in real estate, that is where the similarities end. Everyone has their own niche, rules/business plan that is their key to success.

    Another great resource is individual signatures. Many of us, including myself have websites/blog located in our signature that we discuss our strategy, plan, etc. This is a great way to find more about a specific personals "niche"/"strategy".

    Everyone has their own unique strategy based on what works for them. 

     I was not very forward thinking when I purchased my house originally and got one that is not well organized to support bringing in a renter.  I have one extra bedroom with no closets which is directly next to my master bedroom.  There is also only one small bathroom for the entire house.  If I could do it over again I would have though more about a potential renter, because it is something I wish I could do now.  When I do eventually move I plan to rent the whole house out, though, since it is in a pretty good location right in the heart of downtown Media.

  • Engineer · Media, PA · Member since 2013 · 13 posts · 4 votes
    12y
    Originally posted by @Dave Visaya:

    Hey @David Huppman welcome to the site! You made the right choice in checking out BiggerPockets. Definitely jump in the forums check the blogs, and interact! Also, use keyword alerts on the upper right to get notified whenever keywords, example your target area is mentioned.

    Originally posted by @Dmitriy Fomichenko:

    Welcome to BP community @David Huppman It is a great place to meet new friends and learn about various aspects of real estate and more.

    Set up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alerts

    Wishing you the best!

    Thank you both for the tip on using keyword alerts, I am still learning the forums functionality as well!

  • Engineer · Media, PA · Member since 2013 · 13 posts · 4 votes
    12y
    Originally posted by @Brandon Turner:

    Hey @David Huppman welcome to the site! Definitely start jumping into the community here! Be sure to read through The Ultimate Beginner's Guide to Real Estate Investing to help you get started.

    Also - be sure to check out House Flipping: The Best of BiggerPockets. There is a ton of flipping resources there.

    Finally -be sure to setup some keyword alerts - especially for "Media" so you can jump into local conversations.

    See you around the forums! 

     Thank you, Brandon!  I am actually reading the Ultimate Beginner's Guide as we speak, and will queue up the House Flipping link you sent as my next read for this weekend.  There are so many good resources here it is a little overwhelming to know where to begin, but I am not complaining!

  • Investor · South Jersey, NJ · Member since 2013 · 338 posts · 22 votes
    12y

    Weclome to BP, I am not the biggest fan of the book but that is truly a great lesson that I learned from Rich Dad Poor Dad also.

    Great luck.

  • Real Estate Investor · Lansdowne, PA · Member since 2013 · 1k+ posts · 656 votes
    12y

    @David Huppman Hello and welcome to BP. Come back again and again to learn and network all you can here. Happy and prosperous investing to you.

    Kudos,

    Mary 

  • Engineer · Media, PA · Member since 2013 · 13 posts · 4 votes
    12y
    Originally posted by @Account Closed:

    Weclome to BP, I am not the biggest fan of the book but that is truly a great lesson that I learned from Rich Dad Poor Dad also.

    Great luck.

     Greg,

     I can certainly see how Kiyosaki can rub people the wrong way, but I am trying to use what I read in his book as an inspiration more then an exact blueprint.  I like to take in as many different points of view as I can to see what fits best for me.  

    Thanks for the well wishes!

  • Investor · Philadelphia, PA · Member since 2013 · 348 posts · 111 votes
    11y

    Hey @David Huppman, how are you doing? I invest in Delco, and if you need any help, I strongly suggest the Delco Property investors meetup. They meet every first tuesday of the month at the Clarion Hotel, by the PHL airport. 

    delcopropertyinvestors.com

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