All Forum Posts by: Kevin Uzelac

Investment Info:

Single-family residence buy & hold investment in Philadelphia.

Purchase price: $65,000
Cash invested: $30,000

This property is in a nice rental pocket that should see some decent appreciation in the coming years as it continues to gentrify. My investor bought this for $65k using our HML Sherman Bridge Lending. His rehab budget is $50k and the ARV appraisal came in at $151,718. The lender required 20% down, 3 points up front in fees and 11.99% interest on the loan. He plans on refinancing after three months when the project is finished.

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

The rental rates versus the cost of real estate in this area are what interested my client. He is going to rent this out for around $1300/mo for 1 year or so, allow for some appreciation, then sell. There is a rental right down the street getting $1300/mo with no central A/C. I am excited to see how this project turns out!

Investment Info:

Single-family residence buy & hold investment in Philadelphia.

Purchase price: $65,000
Cash invested: $30,000

This property is in a nice rental pocket that should see some decent appreciation in the coming years as it continues to gentrify. My investor bought this for $65k using our HML Sherman Bridge Lending. His rehab budget is $50k and the ARV appraisal came in at $151,718. The lender required 20% down, 3 points up front in fees and 11.99% interest on the loan. He plans on refinancing after three months when the project is finished.

He is going to rent this out for around $1300/mo for 1 year or so, allow for some appreciation, then sell. There is a rental right down the street getting $1300/mo with no central A/C. I am excited to see how this project turns out!

@James C. sounds like you did your due diligence on this. These scammers will go to extraordinary lengths to make the scam and unfortunately they work on a lot of people. Definitely just go with your gut. 

@James C. if something sounds too good to be true it most likely is. If it was true HM lenders would not be able to compete.

There are plenty of private lender scams that will ask for money up front. You will also run into wholesaler scams, lead generation scams etc.

One thing I would ask for going forward before working with any private lenders or anyone else in real estate is ask for referrals. Depending on what they do licenses and insurance could help verify them as well.

@Anthony Brown I have some contractor connections that are looking for work. DM me and we can work something out.

@Michael Marrero and @Amar P. I have several good licensed GC connects that are looking for projects right now. DM me for referrals. 

@David Chen it depends on your price range. Rental property near Saint Joes is pretty expensive. You could get some good deals around the temple area and rent out to students by the bedroom. You can cashflow pretty nicely right off the bat in that area. Obviously you have La Salle, UPenn, Drexel etc but rentals in those areas are hard to come by. 

I think the play would be to buy a near turnkey student rental for your first deal using hard money. Cash out refi after a year or so and pay that hard money loan back. This way you have some cash flow coming in to put towards your future projects. 

The month of June 2021 saw an increase in number of homes sold, an increase in median price and a decrease in DOM in comparison to May of 2021. 

According to the MLS, homes between $100k-$450k sold 6 days quicker on average. In total, 157 more homes sold and the median price increased by $9,900. The median sold price was $259,900 and the total units sold was 1499. This goes to show the market is continuing on its bull run in Philadelphia.

@Jonathan Saft I would agree with @Will Gaston in that you should always incorporate a management fee into your analysis. Although, I would say you should be able to manage the property even after you move 10-20 minutes away. Many parts of South Philly are good rental pockets with higher rent so hopefully you're getting better, more reliable tenants in there that don't require as much management. Best of luck to you. 

@David Emanuel I would consider a lead as someone who is looking to sell their home quickly for a personal or financial reason. The best deals are going to be from sellers who are distressed and need to get out of their home as soon as possible. Most municipalities have free public information on people that could be a motivated seller. Someone saying they would sell for $700k when the ARV is $150k obviously isn't distressed. The "leads" I would track in your KPI's are the kinds of people that are motivated to sell.