All Forum Posts by: Bradford Behrins

@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. 

@James Palassis Hi James. Just something to note, in Florida you can quit claim properties in and out of a LLC for $150, provided you are transferring the property to a LLC 100% owned by yourself. It is a called a "mere change transfer". In Philadelphia, even for a mere change transfer, you need to pay a 4%+ tax based on the assessed value of the property! This leaves Philly investors in a conundrum, do you close in your individual name and obtain a conventional loan, spend a few thousand dollars deeding the property to a LLC, and run the risk of having the mortgage called? Or buy in your name, and purchase a few million dollars worth of umbrella insurance. It is a big pain and I have not found any good answers yet. From experience and speaking with many different investors however, having the mortgage called does not seem to be a real concern. Just have your mortgage payments automatically paid each month so you never miss a payment and I don't think the servicers will want to bother you.

I invested with HF for 2 deals, a multifamily in Indianapolis and a 10 property portfolio with SFRs in Indianapolis and Dayton. My funds have been invested for a little over a year now. Cash on cash returns have been 4.26% for the multifamily and 4.75% for the portfolio. Both investments are unencumbered. I am rooting for these guys to pull off some refinancings within the next year to boost returns. There is definitely some equity in the SFR portfolio, and apparently HF mismanaged or misjudged the costs of rehabbing and turning the units in the multifamily which I imagine they will not do again on transactions in the future. Not trying to poo poo on HF, but this is where my investments stand, and I am rooting for them to perform better. Good luck everyone.