All Forum Posts by: Bradford Behrins

@Nashid Ali crickets... 

Hey BP. Does anyone know of any Opportunity Zone Funds that purchase and develop SFRs/duplexes/Triplexes/Quads in Philadelphia? I heard through the grapevine one fund purchased up a bunch of properties in Strawberry Mansion earlier this year, but not sure if there are individual investors out there looking for properties to utilize the benefits of investing in an Opportunity Zone Fund. For those investors who do not know, essentially Opportunity Zone Funds purchase and develop properties in designated Opportunity Zones. The proceeds of the investment can come from the gains of another investment that is not real estate related; for example, you sell x number of shares of Microsoft and you have a 100K gain. You can defer a large portion of that gain if you invest in an opportunity fund that purchases and develops properties in an opportunity zone. There are tons of legal requirements and criteria that must be met and I am not an accountant or legal expert so I do not want to get into the details. There are tons of podcasts out there about Opportunity Zones that you can review on your own. Maybe Brandon and David should have an expert on Opportunity Zone Funds on their show?? Anyhow, I am just looking to start a conversation with anyone actively doing this kind of investing in Philadelphia. Thanks.

Try Center State Bank they do cash out refinancings for out of state investors.

Generally speaking I do not enter into equity partnerships with anyone on a one off SFR buy and hold deal. The LLC will probably require a K1 and it is my understanding that may cost an additional $1500 to pay an accountant to prepare each year which eats into the bottom line. Also, things can get sensitive when dealing with an equity partner, maybe best not to get too involved with a best friend, especially if it's not a home run. Or, maybe one partner can be the equity and the other can be the lender. The lending party would need a high enough return to be compensated for not receiving any of the depreciation and tax benefits. Just seems dicey in my opinion but I am happy to hear from other BP'ers about this scenario.

With limited knowledge of what appraisals and notes you are looking at, the answer is yes, renovated SFRs in certain areas of Philly can be worth 120k and much higher. Small developers are moving into the areas and buying up all those run down row houses one at a time, renovating them and flipping to first time buyers, or renting. In certain parts, larger developers are renovating warehouses or swaths of a neighborhood which is raising property values in the immediate vicinities. Will this momentum continue I guess is the real bet. I think it will continue even if there is a recession or slow down in the global markets. Feel free to message me to speak further. Good luck. 

@Mark Fries learn something new every day

There are tax deed sales once a month. Check out the duval county calendar for a list of the properties and do as much due diligence as you can beforehand. The bidding is online and goes very quick and appears to get more competitive each auction. Be careful not to over bid. Note you cannot purchase title insurance on these properties until you pay for a clear title action which will cost you around 3k for an attorney to complete over a few months. This limits your refinancing and flip options until title is clear. Good luck 

Do a search in the local county records to confirm your entity owns the property. If not, then you should definitely hire an attorney and perhaps contact the local authorities in Philadelphia because it sounds like fraud. Good luck. 

Hi Cindy. There may be some slick people on BP with a formula for you to calculate rehab cost, but to be safe you should really get a GC or two in there to assess the situation and provide you feedback on potential costs. 

@Matt Bowles  Matt. I am a former client of Maverick and previously purchased two Philadelphia properties from ABC Capital. The fact you continually do business with ABC and continue to vouch for them as a reputable operator to mostly newbie investors, with the full knowledge of the all too numerous complaints from numerous customers, I think illustrates what kind of business you and Phil are running. I've since purchased a few other properties in the Philadelphia market and have learned a great deal. ABC, and by extension, Maverick, has one of the worst reputations on the street amongst the local real estate professionals. In the process of maintaining the 2 properties I purchased from ABC at Maverick's direction, I have encountered bankers, appraisers, attorneys, property managers, and even former ABC salesmen, all with stories of ABC's shady, unethical, and borderline criminal dealings. As I told Phil in an email when he had the nerve to ask if I was still interested in purchasing another property in Philadelphia, shame on you.