All Forum Posts by: David Ross

Hey all - thanks for the suggestions. Wholesaling isn't really an option because it's an REO. The agreement of sale is assigned to me. From my understanding, the bank does not allow these to be re-assigned or wholesaled.

Thanks @Mike H. - I appreciate the words of wisdom. It's very enticing to look at a project and think that if everything goes right I can make $$$. Chalk it up to naivety or over eagerness. 

Even if I take a loss on this and move forward, I feel good about knowing I'm in the game instead of sitting on the sidelines. Onward!

Thanks @Account Closed I'll IM you the details and also post in Marketplace. Thanks

Hey everyone! Long time listener, not much of a forum guy but I thought you might have some good advice.

Back story: Renovated my own house. Grew up in contractor family. Ready to branch out and invest like a saavy investor. I met a partner through BP and we have around $45k to invest collectively. 

Looking to make my move into real estate investing, I jumped at an REO last month in the hot Brewerytown area of Philadelphia. Did lots of research and planning, but I may have bit off more than I can chew. Let me know your thoughts:

3/1 Philly row home. 904sf. ARV $125-135k.
Needs a full renovation $60-70k (using GC). (3-month renovation)
Purchase $30,500
All-In: $100,500.
Net potential profit after closing closing, holding, taxes, etc: $6,500-$26,500

There were a dozen or so cash offers from investors and I edged them out and got the property under contract for $30,500. Two days later I was submitting 10% escrow ($3,050) and started looking at detailed renovation quotes.

Here I am, excited, nervous, and ready to make it happen. My credit union is willing to do a renovation loan for me at $100k (20% down and $80k in draws)

While this planning was going down, partner lines up a much easier property and we get that too under contract:

3/1 Philly row home, 960sf. ARV $115-$120.
Needs LIGHT renovation $20k (using GC). (3-week renovation)
Purchase $60,000
All-in: $80,000
Net potential profit after closing closing, holding, taxes, etc: $13,000-$18,000

So while we were ready to stretch ourselves thin, we are feeling it's our best interest to drop the first property and walk away from $3,050. Yes, $3k, burned to a crisp before I even start my real estate journey.

It's painful, but a more focused effort on the second property and the better risk/reward make this the right decision.

Hey, that's the price of education I guess. It's still cheaper than some guru course!

There are many factors. Could be $40k, could be $80k. Are the neighboring houses three story houses; will the house support it; is there room for another set of stairs...? You're going to have to have a contractor look at the property for a more accurate price.

You're looking at $110-$130/Sq. Ft. for new construction at mid-level quality. If you're looking at a two story house, it would be much cheaper to just renovate it and add a third floor. Or find a lot to develop because there are many available.

Philadelphia does not require parking with new residential builds. This should be viewed as a good thing. Still, a lot of high-end new construction builders try to include it.

It's more than just a nightlife, Tim, or you'd see more professionals on South Street instead of teenagers. All of these growth neighborhoods are walkable, have nice restaurants, easy access to transit, and have developers building homes and apartments that attract young professionals. And - the kicker - 

The article @TimButler posted focuses on neighborhoods that have very established and proud African-american communities that are seeing development and professionals for the first time. There is a lot of fear of being priced out of their neighborhoods, fear of change, but the article skips over any of the benefits associated with rising property values.

If you're looking for Hot areas in Philly, look at where the new construction builds are between $300-$400k.

Hi Ken!

I am looking for both. Send me a message and we'll talk further.

Hey Everyone!

I'm new to the BP site, been an avid listener to the podcast for over a year.

I just finished my personal residence renovation, a 1,500SF, 100 year-old row home in the Fairmount neighborhood of Philadelphia, PA (27th and Poplar). I'm pretty handy and did most of the work myself (hired an engineer, HVAC, and electrician).

I have always wanted to renovate, and now that I'm finished, I'm getting the itch again! Looking to purchase some of the beautiful, older homes near my house in Fairmount/Brewerytown. Probably looking to follow a similar format from my house.

I hope to meet some other teams doing similar work, mentors, investors, or just other like-minded people. Thanks!

David