Lancaster and Reading, PA Reviews

[Roberto Westerband]

Hello BP World,

I went to Lancaster yesterday to look at some properties (single family and duplex). My overall outlook on the area was mixed. After researching the area, I've seen that the crime rate is very high compared to other areas of PA. Does anyone have experience investing in Lancaster, and can you give advice as to whether you've found this high crime rate to be true? Is it something that has been improving over the years?

I saw lots of trendy shops (hipster-ish), large development projects underway, and commercial/retail (Park City Mall etc.). 

I'm also interested in seeing Reading - would like to know if anyone has experience of the Reading area as well. 

Very interested in Class B properties at the moment.

Thanks!

Roberto

[David Krulac]

@Roberto Westerband

I did Bigger Pockets Podcast #82 in which I talked about Credit Unions.  I've bought and sold over 900 properties, and the first 11 were 100% financed.  The last 100 were all 0% financed.  One of the Credit Unions that I deal with has a "Signature Loan" product which is an unsecured line of credit.  Once set up, you go to the teller to make a withdrawal just like from your own account.  I've used for down payments, rehabs, etc, paying it back and re-borrowing.

Since i go to the Lancaster REIA, I do know some people there, but I don't really know many people in Scranton.

Of the 10 biggest banks in the country only Wells and PNC have offices in the area.  But there are some larger regional banks and there are some small local banks, some only have a few offices.  I tend to deal with the smaller banks where I can walk into the office and deal face to face; I think the personal contact is important.  One of the largest credit unions in the area and state only has 3 offices and most people deal with them on line or on the phone.

I do a variety of investing including buy and hold, rehab, flips, property management, group homes, land subdivision and development.  I have about 20 different acquisition methods, and am always both a buyer and a seller, no matter what the market conditions are.  I've written here on BP before about having tenants stay for more than 30 years.

I think Central PA is a great area to invest and offers reasonable prices, good rents and economic stability.  Both Pittsburgh and Harrisburg have applied for new Amazon headquarters HQ2, which will bring with it 50,000 new jobs.  There are many other applicants, but Amazon already has a presence here with 3 local facilities and plans to hire 5,000 more people in the next year.

As you know people in NYC do much on line shopping for items as mundane as toilet paper and diapers, so that they are delivered and don't need to be lugged on the Subway.  Where do you thing much of that comes from?  Right here in PA.  PA is the Keystone State and is within 1 days transportation from half of the population of the country