All Forum Posts by: Chris Pelc

Hey Brian, 

Im glad to hear that you are looking to get back into REI. Getting your license is definitely going to be very beneficial for you. If you are able to source your own deal from the MLS, you will likely be able to roll your commissions into the sale price of the property. If you are looking to get some insight into off-market property, i would be happy to connect.

I think the greatest asset you've earned from your previous investments is experience. Regardless if you still own them or not. That, and the knowledge of due diligence will help you immensely down the line. 

Hey Diane, 

Your best bet might be to explore some off market options if you are finding that the retail market is inflated. Have you considered property with value add?

The Philly market provides great opportunities to investors looking for rentals with great rent/value ratios. I just sent a connection request. If you're looking for a chance to connect some more, id be happy to talk. 

Hey Ivan!

Glad to see you are venturing into the REI world. Considering you're local to NJ, have you considered the Philadelphia market?? One of the greatest benefits to the Philadelphia market is the low property tax. Generally speaking, a lot of the areas in NJ have higher property taxes which tends to kill cash flow.

Turnkey properties are great, but those come with premium prices. With a turnkey property, you will either have to sacrifice the price or the area. Cheap price, area, condition - you cant have all three. With that being said, do you have a price point in mind you are willing to get into? 

And i think is an even better question is, how do you source the deals you have been analyzing so far? 

Hey Megan, 

I just sent you a college request. I have a few connections for new build contractors. Do you already have the land, or is that something you would be looking for too? 

Would love to connect!

I agree with Alejandro on this. 

At the end of the day someone needs to take the hit on the transfer tax. Most of the deals that ive sold have been full transfer tax to the buyer. But with that being said, the numbers need to make sense while considering the buyer is covering full transfer. Philadelphia is the worst at 4.28%, but the suburbs are a lot better such as only 2% in Delco, and Montco. When you are negotiating with the seller, be up front with them in that if they are unwilling to negotiate paying for transfer tax, your offer price will reflect that. If you are able to negotiate split transfer tax between the seller and buyer, it might be a good compromise for both parties. 

But to be completely honest with you, if the numbers make sense and you have a nice spread on the deal; a buyer generally wont turn away from the deal over a few thousand dollars.  

Hey Rafael, 

If the original inspection officer that conducted the inspection hasn't gotten back to you yet, maybe you try reaching out to other local inspectors to find out their recommendations? I have a couple of contacts for inspectors in the Delaware county area who i could get you in touch with. 

PM me and i can send you over their contact info. 

I would agree with all of the above comments. 

Attending local meetups is the best place to start. Surrounding yourself with investors like yourself, the best way to condition yourself for the future. Seeing others successes and failures can teach you a whole lot. Connecting with a knowledgeable agent is also of your best benefit. Do this to get a sense of the market conditions and the flow. 

Have you decided where specifically you're looking to invest? I see your profile says Bucks County.. Are you trying to stay local, or branch out to Philly, Delco, and Montco if the numbers make sense?

Just sent you a connection request. If you would like to talk a little further about these markets i would love to connect!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $120,000
Cash invested: $120,000

This house was in great condition at the time of sale. The previous owner kept up with all maintenance and repairs around the house. Comps in the neighborhood with the same exact specs traded around $190k-$210k. For this small 2 bed 1 bath home in the suburbs of Philadelphia, rental projections based off of market data show this property to rent around $1,500-$1,550/Month. Super simple cut and dry turn key rental property which will cash flow right off the bat.

How did you finance this deal?

Purchased in cash, and refinanced with a conventional 30 yr fixed mortgage.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I provided this deal to one of my repeat Delaware County investors.

You might benefit from looking into the suburbs of Philadelphia. Inventory is very low in these areas such as Delaware county, and Montgomery county. Some of the investors i work with have been strictly looking for rentals in these areas because they have an easier time finding a tenant. 

If you are dead set on investing in Philadelphia, maybe focus your search to the most desirable areas to live. Fishtown, Brewerytown, Manayunk, and close to center city. Student rentals are also a great opportunity too. With student rentals, you may also have a higher rental opportunity by charging rent per room. I personally went to Temple University, and finding off campus housing was challenging. And almost 8/10 the landlords were asking for rent by the room. 

Let me know if you'd like to talk a little more about this. Would be happy to connect. 

I think you should first address where you are looking to source your first investment property. Have you looked at off-market inventory?

There are certainly opportunities to get into land deals that come with approved plans and permits and sometimes contractors with a bid on the project already. Tax abatements are definitely the biggest attraction to new builds. Buying directly from builders leaves you vulnerable to the quality of construction. Warranties are great, but headaches at the end of the day. If you were able to manage the project and vet the contractor, you might end up with a better deal and piece of mind that the construction is quality. 

If you'd like to talk a little further, id be happy to connect.