All Forum Posts by: Daniel Golub

Thank you both for the valuable input. Just wanted to make sure I wasn't missing anything huge!

Totally agree 30k in expenses on a property of that size in that area is laughable, just wanted to give out some proforma for the sake of it. 

Big takeaway here for me from what you guys said is that for someone like me, who's in it to build wealth as opposed to maintain it/ hold for appreciation, stabilizing distressed properties is the way to go! Clearly this deal is more of a wealth preservation one.

Thanks again

Hey all.

I invest in Philly and my limited experience is in single family flips but want to move on to larger multifamily rentals. Im having trouble analyzing these deals and was looking for some input from people who do this type of investing in Philly. Ill give you an example:

I saw a deal for a 11 unit mini-apartment building in Rittenhouse square. The Pro-forma rent role was an annual total of $220,000 (this was fair I pulled comps). Proforma annual expenses was $30,000, then throw in another $30,000 for vacancy, and you get a NOI of $160,000 annually. So being someone who goes by ROI (I always want above 30% on single family flips), and figured 15% ROI is a fair thing to ask for on a rental project this size, the math comes out to me not being able to spend more than $1.06 million in cash on that property to achieve this desired cap rate. To my surprise, they were asking $3.5 million!! So I guess my question is, where lies the discrepancy here? What gives?

Is it just because Rittenhouse square is such an upscale area and that comes with low ROI/Cap Rate?

Any input is appreciated! Thanks.

Thanks Anthony! I'll be sure to reach out!

@Mayer M I'll message you

Hi all.

I live in Philadelphia and got into real estate last year. I purchased my first property in Philadelphia in October of last year. It needed a full cosmetic tune-up and I successfully rehabbed it quickly and it has been put on the market a month ago. This deal was an all cash deal. I am now looking for cash partners who would like to get passive income by funding my fix and flips in exchange for a 50/50 partnership. I get deals from a few wholesale companies (the same people I got my first deal from), and have several new ones in my inbox on the daily basis basically, most of which are above 20% ROI, but a few with much more potential and those are the ones I am after. Unfortunately, the private lenders I have talked to have terms which leave me very little room for profit, and that is why I am looking for a cash partner.

Once a deal comes in in my inbox that I like, we can arrange to all head out there (you, me, and my contractor who did a great job on my first property). Wholesalers like to sugarcoat the rehab price, but my contractor will be right there with us and can tell us what it will really cost to fix the house up to our specifications. I really like the wholesale company I work with because for every deal they give me a packet filled with comps in a very close proximity, with helpful information like sale price and time on market. This takes the guessing out of the picture.

Most of the deals I get are single family homes in appreciating areas in Philly. Typical price ranges anywhere from 55k to 120k, and some require as little as 30k or as much as 80k to fix up.

If this sounds interesting to you, please message me on BP, or email me at [email protected]. I can have you seeing properties with my team within a day! 

Adam,

Very interested.

I live nearby and can come out as soon as possible. Email me!

[email protected]

Hi everyone.

I have come to an agreement with someone who is very enthusiastic about being a 50/50 silent partner who funds 100% of my flips and holds. Before we move on to our first deal together (he is eager to start ASAP), I am looking for advice on which business structure is the best for this, like LLC etc. Anyone have experience with this? What path did you take?

Thanks everyone. Sorry about the delayed response, as I was busy with the property. Happy to report though that its working out great. The contractor is in and moving along.