All Forum Posts by: Jared Forman

Investment Info:

Single-family residence fix & flip investment in Philadelphia.

Purchase price: $45,000
Cash invested: $70,000

After 8 months helping the seller clear title form the probate, we purchased the property and have been conducting an extensive rehab from top to bottom. Currently 1 month from complete after numerious delays with the city.

I would give @Joseph Scorese a call, he has helped me out in the past. 2152905108

@Bartosz Rosol Piggybacking on what was said earlier. I would take the following steps in the discovery phase of your due diligence period:

1. Go to the property and see if it has sub-divided utilities. Take a picture of meters for future purposes. 

2. Go to Atlas.phila.gov, type in the property address, Click on the zoning tab, scroll down until you find the RCO information. Contact the RCO person and ask them who is the head of their neighborhood zoning committee. 

3. Meet with the head of the zoning committee and clearly explain the issue to them. Now wait and listen clearly to what they have to say. This might be the most important conversation you will have during your due diligence for zoning.

Not trying to scare you, but this is just my view and opinion.

1. Foundational issues, did the house settle or does it actually have structural integrity issues. You might want to get a structural engineer or someone who has more knowledge than yourself in that field. 

2. A bad roof, the problem isn’t just going to be your roof. Gravity forces water to travel down the building and it destroys anything in its way. Look at the Grand Canyon.

3. If the seller has allowed the property to have these problems then it tells how much he cared about the property. Go to the basement and look at the electric wiring, look at the plumbing, and HBAC. Do your lines look go through the rafters, do they look straight? This is an easy way to tell if the properties PEH was installed right.

4. Rather than asking the seller to make repairs have your contractor write and invoice for the work. Ask the seller to put funds in escrow at closing, add 20% to contractors estimate. You will probably spend 20% more guaranteed if it is your first house. If there are left over funds return them to the seller.

Your closing costs are in the terms of your purchase agreement/ letter of intent.

We can all agree that the goal is to get the property for the lowest amount out of your pockets with the lowest payment every month.

Closing costs with cash:

Transfer tax 

Title insurance 

Notory 

If you use a bank:

Everything above

Origination points

Underwriting fee

More title insurance

Home owners insurance

First years taxes

Other hidden bs fees

Up to 2 months payment 

Other entities pockets

Banks will get there money out of you. It is just another cost of doing business.

2019 Goals

• $300,000 Revenue from Wholesaling
  • 25 Wholesale Deals (~2/month)
  • 2 Cold Callers / 1 VA for Admin work
  • Average assignment of $10,000/ deal

• $300,000 Revenue from (Fix-n--Flip / BRRR) Construction
  • 10 houses completed
  • Less than 90 days construction/ house
  • Average Income of $30,000/ house BRRR
  • Average income of $50,000/ house Resale

• $150,000 Revenue from Leasing
  • 90 leases complete
  • Most people sign within 3 days of walkin tour
  • Sign with a 2nd developer
  • Average commision of $1,800

• $100,000 Revenue from Rents
  • 10 units
  • Average Rent $1,200/ unit/ month

• General Business
  • Hire a summer intern
  • $250,000 in bank account at EOY.
  • $250,000 in Company Asset Equity.
  • 8 High Quality People

*** The attorney from Title Agency called me today and notified me that the title company will return our original money, and that we will need to pick up the original check from them. They also asked us to file a claim for any damages caused and they will review it before issuing funds.

One detail I forgot to mention...

The sellers id was shown to the 2 guys outside the property and they said, that was not our sister.

The title company proceeded to call the apartment building the id had on it. The apartment building had never had a tenant by that name or heard of anyone by that name, The "seller" created a fake id.