New Investor to the Pennsylvania market

New Investor to the Pennsylvania market

Rental Property Investor Ā· Hartford, CT Ā· Member since 2020 Ā· 16 posts Ā· 22 votes

Hello everyone 😊 my name is Kassy

I am new to the Pennsylvania market.

I Moved here to York, Pennsylvania last April from Hartford, Connecticut and I am finally going to start investing and open my own company.

Is their anything anyone can tell me about investing in commercial real estate or how to get a down payment when you only have less thank 5k or no money. I have read a lot of books and watched lots of videos but it seems like people want you to buy a course to tell you how to invest.

I know people talk about seller finance and sweat equity, I even tried to get sellers to let me give them more than half of the refinance value but it did not work! I’ve tried to do 7 deals now and even motivated sellers just want cash or a short sell in the York area.

I am trying to network with investors and real estate agents but that’s very hard right now with this virus closing everything and causing events to be canceled. I am studying the PA market but the good deals I do find require 50k plus down payment or cash only.

Any investors out there who is willing to help me with some info on the PA market, what should I look out for when finding a deal and how could I strike my first deal within the next few months.

By the way I am opening a rental/ leasing company sometime next month and I am using the LLC to purchase property.

I am also a US Veteran and I have Navy Federal Credit Union and I can get šŸ’Æ financing for my property the problem is I have to be the only one living their. Does anyone know a loophole to that? I want to do things legally.

Thanks so much,

Kassy :)!

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

@Kassandra Perez

Welcome to the BP family! Good to have you here! Here are some recommendations for you:

Find and connect with other BP members that are in your area: https://www.biggerpockets.com/search/users
Set up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alerts
Read Beginner’s Guide: http://www.biggerpockets.com/real-estate-investing
Check out BP Podcasts: https://www.biggerpockets.com/podcast

If you wish to tag someone in the conversation on the forum, type @ followed by their name and then select the name of that person which should appear below the comments box. He or she will be notified of being tagged so that the conversation will continue.

Wishing you the best!

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

    @Kassandra Perez

    Welcome to the BP family! Good to have you here! Here are some recommendations for you:

    Find and connect with other BP members that are in your area: https://www.biggerpockets.com/search/users
    Set up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alerts
    Read Beginner’s Guide: http://www.biggerpockets.com/real-estate-investing
    Check out BP Podcasts: https://www.biggerpockets.com/podcast

    If you wish to tag someone in the conversation on the forum, type @ followed by their name and then select the name of that person which should appear below the comments box. He or she will be notified of being tagged so that the conversation will continue.

    Wishing you the best!

  • Rental Property Investor Ā· Closter, NJ Ā· Member since 2015 Ā· 884 posts Ā· 722 votes
    6y

    @Kassandra Perez Welcome to Bigger Pockets.  First and foremost, you need to generate some income, i.e. get a job, so you can save up enough for that initial down payment, plus enough for closing costs, cash reserves (in case something breaks and needs to be repaired).  You can easily invest in real estate while holding down a full time job.  And lucky you, you are a U.S. Veteran and able to access all the wonderful benefits that the government offers to our veterans.  Thank you for your service!

  • Rental Property Investor Ā· Hartford, CT Ā· Member since 2020 Ā· 16 posts Ā· 22 votes
    6y

    @Judy Parker thank you for your kind words!

    I already have a job but it would take me a long time to save up that kind of money.

    I am trying to do multi-family deals and saving up 150k after closing cost is a bit unrealistic with my job.

    That would take me about 6 years and that if I don’t pay rent or spend any money on expenses. So around realistically 8 years to save that type of money aggressively.

    I was not sure if their was another way of locking a deal down without having to put so much of my capital down and plus that would only be for a single property. So one deal would wipe me clean in my savings and I don’t want to do that either because things do happen in life and potentially on the property as well like repairs.

  • Rental Property Investor Ā· Greenwich, CT Ā· Member since 2015 Ā· 4k+ posts Ā· 2k+ votes
    6y

    @Kassandra Perez, you can use your VA benefit to house hack a MFR. I recommend 3 or 4-unit properties, but with the prices in your area, a duplex may work just fine.

  • Rental Property Investor Ā· Hartford, CT Ā· Member since 2020 Ā· 16 posts Ā· 22 votes
    6y

    @Jaysen Medhurst thanks so much I will be in contact with my real estate agent!

    Stay safe and have a great day.

  • Realtor Ā· Portland, OR Ā· Member since 2017 Ā· 357 posts Ā· 259 votes
    6y

    Hi @Kassandra Perez welcome to BP and THANK YOU FOR YOUR SERVICE!!!

    It sounds like you're learning that investing in real estate isn't as easy as people make it sound :) But, keep going, you're doing all the right things. The quickest way to succeed is to double your rate of failure to help expedite the learning process. The more people you talk to the more you will learn how to speak with people and recognize common objections and how to handle them. 

    Starting out by house hacking a multi-family property is a great and very simple way to go; it will get you into the property and give you experience you can build on right away (hint: read that sentence again). 

    It's great you already have a realtor your can work with. Remember, Realtors are not all created equal. In order of importance, here’s what I think is important to look for in a Realtor. You want to make sure they:

    • Have worked with house hackers before; the rules change depending on what loan type you use and how many units you purchase. There are A LOT OF TRAPS along the way that can/will make the deal fall through (and cause you to lose your earnest money). You want to be sure the agent you choose has successfully navigated them before.
    • Can help you strategize the lending piece for this purchase AND purchases in the future
    • Is an investor themselves

    DM me if you have any questions about house hacking, I'm happy to help in any way I can.

  • Rental Property Investor Ā· Hartford, CT Ā· Member since 2020 Ā· 16 posts Ā· 22 votes
    6y

    @Chace Fraser Thank you so much for the advice! I will definitely be In contact with you once the state opened back up.

    Things are a bit crazy here in PA but I can’t wait to get the ball rolling on this.

    I have gone through 4 realtors already because all they care about is what profit goes in their pocket.

    I have a list of investment properties that I want to go look at soon.

    I hope all is well with you and your family!

    God bless šŸ™šŸ¼

  • Justin WindhamPro Member
    Banker Ā· Nationwide Ā· Member since 2015 Ā· 4k+ posts Ā· 1k+ votes
    6y

    @Kassandra Perez

    Welcome to Bigger Pockets!

    This is a great place to learn and network. A lot of forum members are very knowledgeable in their respective fields related to real estate investing, whether that is real estate sales, wholesaling, flipping, rentals, lending, self-directed IRA and Solo 401k investing, or tax and legal guidance.

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