All Forum Posts by: Dan Powers

I would also check out Spring Garden Lending for any refi needs you have as well. As opposed to a traditional bank whose 30-yr fixed loan typically runs 3-4% but has a 6 month seasoning period, Spring Garden has a 30-yr fixed loan that only requires the property to have a tenant in place on an annual lease before you start the refi, no seasoning period.  A ton of my investors love this because even though SG charges 4-5%, my investors don't mind the extra percentage because they are able to pull their money out months sooner than going through a traditional bank.

@Max Busca Welcome to the Philly market! A few things you should know about the market, Philadelphia is extremely block by block, my office is in Northern Liberties where there are 600-700k houses, and a short drive north, and your in the drug capital of the city. You very much have to be aware of the block you are on because you can see your ARV values change dramatically depending on the block your on.

In this highly competitive market I will say it may be difficult to pick something up using FHA, as a lot of houses are selling cash, with no contingencies, in short closing timelines. I would focus your search in Delaware or Montgomery county as you will have better luck finding something of those parameters in the suburbs. BiggerPockets is a great resource to help build your team, feel free to reach out if you have any questions.

@John Baker In agreement with @Alex Uman + @Noelle Carter the further North + East the better you are. Once your west of 25th it becomes very block by block and almost gives the feel what Point Breeze was 3 years ago. If you drive around Wharton Square park you will see new construction on every block and this trend will continue to push west.

Investment Info:

Single-family residence buy & hold investment in Darby.

Purchase price: $80,000
Cash invested: $20,000

This property is part of the other Darby Terrace property package, with identical numbers to the other property my investor was very keen on picking this one up as well. With very little work needed, and market rent hitting $1500, Darby is a very underrated area for high cash-flowing rentals.

What made you interested in investing in this type of deal?

What made my interested in this deal was simply the numbers, he is an out-of-state investor, and will be using a property manager to manage this property. With cash flow almost touching $1000/month, he was very keen on giving himself a $12k raise each year as to when he refi's after doing some light cosmetic work he will be able to pull out most of his money.

How did you find this deal and how did you negotiate it?

This deal was sourced through New Western Acquisitions and was sold on a first come first serve basis.

How did you finance this deal?

This deal was financed with Sherman Bridge Lending, they were able to give me investor 90% coverage in the purchase and 100% on the rehab.

How did you add value to the deal?

Value is going to be added to this deal by doing cosmetic updates throughout the house. Kitchen, bath, paint, carpet.

What was the outcome?

The outcome is going to be a great cash-flowing deal and my investor is planning a few more in that area.

Lessons learned? Challenges?

This deal like the other one was a very easy transaction, my investor was quite on top of everything on his end and got everything submitted for the loan in only a few days.

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

Dan Powers - New Western Acquisitions

@Tourine Johnstone With 500k you're pretty much open to any kind of deal you want, obviously, it depends on how you plan on purchasing the property (cash, hard money, conventional, etc) but you could buy an entire block of SFH, a few 2-4 unit multis, or one larger unit property. I would narrow down a market first you want to target whether it's Charleston, maybe Philly if you're interested in looking a little north. Nonetheless, figure out a market, then focus on the type of project you want to dive into. If you want to know more about the Philly market I'm happy to help.

My firm is hosting a meetup for all Philly investors, contractors, property managers, etc. tomorrow Oct. 20th, from 6-8 pm at YD Home (1900 Washington Ave, Philadelphia). Yes, I realize this is short notice, but it's open to all who can make it. There will be food and beverages provided, and a great opportunity to connect with other like-minded individuals in the industry. Here is a link to signup, looking forward to meeting whoever can make it.

https://www.meetup.com/rei-unl...

Ah, the lovely city of Philadelphia making all of our lives easier per usual. Most likely we'll see an increase in AirBnB rates across the city due to the increase in costs. I'll be curious how much this is a deterrent or if simply rates will increase to counter it.

Investment Info:

Single-family residence buy & hold investment in Darby.

Purchase price: $85,000
Cash invested: $25,000

This property was a turn key rental in the neighborhood of Darby. It was occupied with a month/month tenant bringing in $850/month. It needed very little work to be brought up to standard to command market rent.

What made you interested in investing in this type of deal?

What made my investor interested in this deal was the lack of work needed and the high cashflow Darby brings in. Market rent in this pocket can reach $1350, with tenants paying all utilities his cashflow is going to right around 12k a year.

How did you find this deal and how did you negotiate it?

This deal was sourced through New Western Acquisitions, and was sold on a first come first serve basis.

How did you finance this deal?

This deal was financed through Sherman Bridge Lending, my buyer received 90% of the purchase and 100% of the rehab covered. He ended up only having to bring 15k to the closing table.

How did you add value to the deal?

Value is being added to this deal by redoing to the cosmetics of the house, kitchen, bathroom, paint, and carpet.

What was the outcome?

The outcome is going to be a great rental property that's going to cashflow 1k a month for years to come.

Lessons learned? Challenges?

Honestly this property was pretty stress free, no big surprises.

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

Dan Powers - New Western Acquisitions

@Troy Sheets Great project man, that area along American st. has been blowing up the past year with a ton of commercial development and new constructions popping up all over the place. 

@Ryan McLaughlin Congrats on the great project, you certainly got a hell of a deal. Manayunk has blown up the last few years and this is a prime example of that. While you might think you overpaid for the project, given the rapid appreciation of the area it's become very hard to not pull out most if not all of your money for a rental property. I am surprised though that you were able to secure this deal with a Homestyle loan given the state of the market right now, either way, congrats.