All Forum Posts by: Jimmy O'Connor

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Hey @Jason Cook! I would suggest using a different metric than cap rate when you are talking about single-family properties in C-D neighborhoods. Cap rates in low-income areas are inherently high since a cap rate is just a ratio of how much money you bring in (usually high since C-D a competitive rental market with fewer homeowners) to property value (obviously C-D neighborhoods have lower values). Despite what most people think, cap rates are less of a function of revenue/return are but instead an assessment of risk. Higher value neighborhoods usually have lower cap rates since the values are so high, but a low cap rate does not make it a bad investment since those areas appreciate more aggressively. 

In your situation, high crime rates and bad school districts usually mean amazing for cash flow, and if executed with the right systems. Picking the right tenant is HUGE for this business model. There are good people in the hood just as there are in the A-class neighborhoods. Unless you are picking up a ton in a short amount of time issue, one issue with going to low-income areas that are not clear on the path to progress is slower wealth building since there is not much more you can borrow on the house over the years. 

Go to meetup.com and see if you can sign up for every virtual meet up you possibly can as well as attend any possible free webinar on this platform @Dajuan Wortham. The more you know about what it takes to be a solid investor, the better acquisitions specialist you will become.

Let's go @Jay Hinrichs!!! Congrats that you're killing it amidst the insanity of 2020-2021

I can vouch for the services @Rich O'Neill offers, I've referred multiple clients. All have been more than satisfied with the results.

@Dajuan Wortham ! Welcome to wholesale. It's a grind. I really want to back up what @Stephen DeThample stated. We are in the business of somehow getting the seller a price that satisfies their needs while presenting a discount to your investor while still looking to get compensated for your efforts and hustle. Wholesale is made SIGNIFICANTLY easier from repeat business. Most of my success has some from a handful of relationships I've worked on and did right by my clients on BOTH sides of the transaction. Not every deal will go smoothly nor leave a pleasant taste in everyone's mouth, but strive to do so. You and I happen to be in a wholesaler dense market in Philly, it explains why every other light post is littered with "We buy houses cash" bandit signs (don't do that). Build your reputation on integrity, that ALONE will set you apart from 99% of the standard wholesaler in this market. Might not get you a quick and easy buck in the beginning, but it will pay dividends later. A majority of your early deals probably won't be that juicy, I would suggest taking a haircut to gain relevance to your back end buyer or seller. The bigger fees will come later, and when they do, know you earned them. I wrote a reaaaallly long  breakdown of what I consider best practices in a post a couple days ago: The 10 Commandments of Philadelphia Wholesale

 Be cautious of "gurus" and do not pay for their courses. There is no secret sauce, this is a game of hustle, discipline, and consistency. If you hear the pitch "Will you be thinking about the $ ##,###.## investment after you've closed so much more from what you'll learn in this method??" then turn the other way. These kinds of courses are predatory and lure you in with some obscure and trivial nugget of info that to make you think they are holding a bounty of knowledge. Then they offer a more affordable way of paying for it if you bring a buddy or two along. Experience and impromptu conversations with your valued investors will teach you way more than some overpriced video course that tells you what font of mailers and the basic functions of prop-stream.

Shoot me a message anytime you want, I'm jealous that you started your journey this early in life. 

I fully second @Rich O'Neill. South Philly, as a prime example. A market where it is incredibly apparent that it is on the up and up but the only inventory left are full gut rehabs that need to underpin basements. If you are able to create systems where you can efficiently dig/underpin at cost, this will allow you to pick up the deals left. 

@Ruben S Paul Getting a Multi in those areas is tough but not impossible. How much work would you be willing to put into the house?

@Ruben S Paul welcome to Philly REI! Multis, no matter where you go in the city, are going to be overpriced since everyone is looking for them (one of the pitfalls of this platform is that everyone has been taught to house hack). What areas are you considering good areas versus rough ones?

@Rich O'Neill runs a tight ship! Investor turned project/contractor manager.