All Forum Posts by: Amit Shenoy

Craiglist and the one i am doing in germantown right now i got off from MLS from a realtor i have previous business relationship with.

Thanks

Amit

There is still a lot of cash flowing areas if you are patient . Deals are hard to come by.

Example: Currently in germantown if you are in zip code 19144 -- get a house for 60k and fix it up add 40K. You can rent it out for 1250 all day long.  

19141 -- If you get a house for 85K and there are plenty you can pull 1100. There are a few deals even on craiglist where someone is selling a package at 100K for a house in this neighbourhood and is pulling 1300. 

So define what you mean by cash flow and see the returns. Some people look for 20 percent. Some people look for 9 percent. It all depends on what your expected return is and what you are happy with.

Granted the deals of getting a house for 45K and getting 900 are gone.

I just finished a duplex in 19140 . I am all in for 90K and i am asking 1000 a floor and i already have applicants.  So it depends. 

So just look at houses patiently the market is already correcting with people dropping prices. Like they say a C and D neighborhood looks good in a rising market and when the tides turn its interesting to see who will be left with no clothes on.

Cheers

Amit

Hi Eric,

Will speak to my ppl on the foot tomorrow give me a couple of days to report back.

thanks

amit

Verona - school district is not the best. There some areas of Verona like just west of a particular road and all houses just sit. I looked to build a portfolio there like 3 blocks from the golf course. The golf course has been closed and now low income housing is coming there so lot of us didnt decide to pursue it.

you may want to go down there and then speak to the locals and get news. I didnt know it myself and my contractor when talking to a local car repair shop heard this news. On further research and have more of my ppl on ground researching we found its true.

Good luck with ur research.

Cheers

A

Mathew,

I think i understand where i am coming from.

You are assuming u can get the house whose ARV is 200k for 100k . Do it with HML since its takes time with a bank . As soon as ur done - refinance to a long term and get 160k ,

1. There is no HML without points. So kiss 15k out of ur deal right there.

2. All banks will ask for a lease . So lets say u do get one -- now u have a pissed off HML and good luck finding ur next deal . U need relationships to build ur portfolio. Lets say u still manage this .. let me ask u why would a house of 200k be sold at 100k. The mkt in philly right now is overvalued or fairly valued so those gems are gone.

But even taking that aside --  a bank is going to come in and do a whole inspection themselves and they are going to make sure they give u a number 10% below fair value to protect their interests.

So in the end for all teh dancing for 3 months u may have 40k. But the banks dont blindly do 80 LTV they also wil take into acct ur lease. So u cant have a 600 dollar lease and expect the bank to give that loan. It would need to be close to 2000 and good luck getting that without u putting some sweat equity into it.

Sorry if i am being a negative nelly but just putting things on the table .

Cheers

Amit

There is no cost to PGW gas line . Done it numerous times with all bank properties. For some reason they luv to close off gas lines if the property is more than 6 months vacant. 

I am surprised its a 2 week turnaround usually its more  a month good u got lucky.

Cheers

Amit

DM -- me ur info i have a blank one from my realtor for a similar scenario. Hopefully it works for u.

Cheers

Brian,

If you are in the philly or pittsburgh area -- i dont mind working with u and hand holding.  No one taught me but i have been burned and bruised enough that i am better investor atleast thats what i hope. So if ur in those areas let me know.

Cheers

Amit

Hi,

Very interesting comments . But no one has addressed the other side.

Blogs are written on how you can generate 100K a year with BRRR strategy and with 2 real estate deals in 5 years. If you read carefully -- the person says he is will sell in a couple of years. So lets take in 5 years you have a house and u have a tenant in place . Dont you become a turn key provider of sort to sell to another person. And if a person has never sold a house with a tenant in place that is an equivalent lie and really in ur real estate life in order to maintain a fixed life style you will always in the end shed ur least friendly area real estate as u scale into better neighborhoods.

So like others said to do it on scale in various states i dont think so. I am a very active investor in Philly and very familiar with ABC model. They do make a lot of their money on the front end of the deal since from what i heard from talking to ppl they try and get their properties at about 20 - 25K and then its the regular reno. 

In the end -- if the area is good and the ROI is there i would say go for it. I am setting up a similar turn key operation in Pittsburgh where in i buy the house like i would want for my portfolio -- i have my construction crew and then working with my friends to help them get a 13 - 15 ROI . If in the end i can do it for them then i am happy . If they dont want it i am happy to keep it . Win - win. Not all of us can invest in every state but each individual person in each state does the same i do then together like crowd funding and syndication etc u grow.

So look for that concept. In the end after ur all in if u get the 500 per door after u mortgage it out ur good. If ur skeptical -- add a clause of appraisal needs to happen before u take possession this way there is no BS and if the person can stand behind his product he shouldnt be afraid of an appraisal.

Cheers

Amit

If the houses are in Philadelphia , New Jersey then u can use First Trust bank. They dont need a seasoning period.

For Pittsburgh oh my Gawd even delayed financing I think i have better luck pulling a teeth out of an elephant than getting a loan from a bank.

Cheers

Amit