All Forum Posts by: David Haynes

@Joe Splitrock I don't see how that contradicts with what he had said previously. In your quote, he is encouraging diligence which I couldn't agree with more. I'm not considering his book as the "Bible" of real estate investing either, but I do appreciate how he encourages both diligence and action. 

Earlier in the book is another quote: "We play the 'What if?' game. 'What if the economy crashes right after I invest?'... These words of doubt often get so loud that we fail to act."

So I disagree. I do not think Kiyosaki is contradicting himself. He is encouraging diligence, action, and creativity.

@Sean McDonnell I find the best way to motivate them is to show them what's happening. My office is selling property to investors like never before, so honestly, they are not worth my time. But I do give them a chance to join by showing them the heated activity that's happening right under their noses. 

When my properties sell within 24-hours, which is very common... I make sure they are aware that they are missing out on amazing opportunities. I think when you spend your day in a secluded office and stuck in traffic, you forget that properties are moving quickly all around you.

While re-reading one of my favorite books Rich Dad Poor Dad, I came across a powerful quote that speaks directly to pessimists and those influenced by their inactivity.

"WARNING: Don't listen to poor or frightened people. I have such friends, and while I love them dearly, they are the Chicken Littles of life. To them, when it comes to money, especially investments, it's always, 'The sky is falling! The sky is falling!' They can always tell you why something won't work. The problem is that people listen to them. But people who blindly accept doom-and-gloom information are also Chicken Littles."  -Robert Kiyosaki

While working with real estate investors in Philadelphia, PA, I have come across many who are "waiting for COVID to stop" or "waiting for the election results." I too have found, like Robert Kiyosaki, that the inexperienced, uninformed, and "poor" investors are the ones who are always frightened, stalling, and fumbling for excuses to postpone. COVID is just their newest excuse. 

For the EXPERIENCED, SUCCESSFUL, and WEALTHY investors, I have seen the opposite. They have changed their strategies, but they have NOT become INACTIVE. Losing time is more costly to them than losing profit. After all, time is our most precious commodity. These investors get it, and will for sure be the ones who succeed in the end. 

So I have a question... no matter if you're in Philadelphia, New York, or California. No matter if you're a buy-and-holder or a flipper....

Are you bracing for the falling sky? Are you changing your strategy? How are you taking action during this time?

@Davere Currie I'm selling one in Port Richmond 19134 right now. Anything I find in 19134 sells within 24 hours. Investors love this area in Philadelphia because it has huge potential for appreciation and has been doing so for a couple of years now. Good luck with your future investments! Looks like you're finding the best places by doing your research. That's half the battle right there.

@John Dennis Welcome to BP and to real estate investing! I'm working with many investors in Philadelphia, so I'm not too far from where you are. How is the rental market in Lancaster? And is that where you plan to invest?

Philly seems to have a lot of potential right now. I've noticed many investors here from New York, Delaware, and even as far as California. You seem to be in an advantageous position. As you scale your real estate investments, Philadelphia and its neighboring suburbs (Delaware County and Montgomery County) may be a great target.

Great books by the way. I'm working my way through Rich Dad Poor Dad again right now. It's life-changing.

@Martha Magalei I'm in Philadelphia working with many investors. I don't know much about the Monroe County market, but I know the Philly market is very hot. Many of my investors are from NYC and are transitioning to this area because of low taxes and high appreciation. For my buy-and-hold investors, they are experiencing strong cash flow. For instance, one recent investment in Darby (a suburb of Philly in Delaware County) was bringing my investor $480 in cash flow a month after she refinanced. All in she was at $99K, with a refinance at $133K.

If you're interested in Philly but want to avoid the city, check out Montgomery County (aka Monco) and Delaware County (aka Delco). Some hot places in the city are Brewerytown and Port Richmond. The closer you are to the nicest areas (for instance, Rittenhouse Square) the lower your expected cash flow. So be open to neighborhoods that have potential but aren't quite there yet. 

The difficult part of investing, of course, is finding the right property at the right price. Buying the right property at the wrong price can cause a headache when it comes to cash flow. I and my team are pretty dang good at finding the best deals in Philadelphia. We are finding and selling around 40 of the best off-market properties every month and have a committed following of investors. 

@Collin Boyer I'm a real estate agent in Philadelphia specializing in off-market investment properties. My experience with the MLS has taught me that most listed properties do not meet the profit margin that investors are looking for. Investing in distressed properties is risky. Basic finance teaches that riskier investments should offer higher rewards, but most MLS properties do not offer enough reward to compensate for the risk.

It will be difficult to convince your investors that a $100,000 house that needs $50,000 in rehab is worth the promised $160,000 ARV.

If I were you, I would find an experienced wholesaler in your area... emphasis on "experienced." This wholesaler will be able to find off-market properties and negotiate with the homeowner directly to settle on a price that is acceptable for your investors. Because if the numbers don't make sense to your investors, they'll never buy a property. I'm not saying all MLS properties are overpriced, but they are hard to come by. Good luck!

@Thomas Levy I just realized that I misread your post. I read "203k" as $203,000. I apologize for that. And while I don't have much experience with 203(k), I do have a lot of experience with hard-money lenders (HML). The negatives of the 203(k) would be the long process and stringent guidelines. They won't allow you to renovate the any way that you want. But I'm sure you realize that.

As you research that option, it may be helpful to see what HMLs could offer as well. I work often with a HML that has a program for first-time flippers. Depending on your credit score and experience, you could qualify for 100% purchase price and up to 75% of the after repair value (ARV). Of course, these HML loans are meant to be short term, but they can bridge the gap between rehab and refinancing.

I wish you all the best! Good luck!