All Forum Posts by: Alec Kearns

I agree with Eric, most of Philly is not at risk of major flooding. Aside from 1 instance in the last few years when the Schuylkill river flooded homes along the river banks there isn't much risk of major flooding.

Philly is very unique, especially with the new construction tax abatements of the last decade which caused a major push for new developments and some areas faired better than others.

I had a new investor buy a very nice 4 bedroom in Brewerytown which he rented out for $2,550/month. The first tenants were in their 20's and I remember the father came to help them move in on key exchange day and he flipped out because of what he saw on the 2 blocks he walked past to get to their street. He wasn't from the area and didn't realize that starting around their street the property values changed dramatically and about 2 blocks in the other direction you had some of the nicest eateries and brew pubs in the area.

So yes, Philly is a unique city! Good luck and shoot me a message if you need anything!

Good Luck Tiffany! There are a lot of protections in Philly for tenants and it can be hard to get the eviction process moving. I also have heard that the systems used to start the process are continually crashing and making it near impossible to even begin the procedures. I would think the easiest way is just pushing that cash for keys scenario and trying to get them out through conversation the way you have been is the easiest route at the moment!

Good Luck!

Congratulations and have confidence! I am sure your goal was to make this investment work and not simply to mitigate losses! I am located on the Main Line and we work with investors in this area. I don't know if you live in Philly or the suburbs but there are some good groups that meet out this way from what I have heard.

My understanding is that it shouldn't create any issues other than slightly more complex taxes because your LLC will now deal with an additional set of state taxes.

I have seen buyers register LLCs in Delaware for properties in PA so I don't think it would require a new LLC.

I think LLC is the way to go for both the liability and the financing opportunities. I have worked with clients around the Philly area who have used some of my connections to establish and LLC, get creative financing from SBA and other lending opportunities afforded to LLCs, and use the funds to purchase commercial or residential properties.

Do you already own property by chance? One way I have personally seen a lot of investors get into the game is by tapping into equity from their home with HELOC's.

Another great strategy is to get 1 or more business partner,(s) form an LLC and tap into small business funding with equity injections through SBA or other financing. I have several clients who have utilized our connections at Meridian Bank specifically to tap into creative financing that could be used for purchasing investment properties.