All Forum Posts by: Matthew Dekker

 Cool thanks for the info!

 Great! Is the phone number on your profile the best number to message?

 That sounds awesome! I would love to connect with you and the group.  When are you meeting next?

Hey everyone, I am just getting started in REI. I had a deal fall through in the Scranton,PA so am now looking for deals in the Philly area. I am trying to educate myself as much as possible about the area and was wondering if there are any meetups in the area? I am trying to get as much info as possible and obviously want to hear it from people who are currently working in this market. Any events or groups that you would recommend?

Thanks

 Thanks for the reply! where can i find those groups to connect with? 

 I will definitely be checking out the website.  Appreciate the reply.  We definitely need an agent so that would be extremely helpful.

Hey everyone.  Just starting out in rental property investing and want to get into the Philly area.  Any advice on some good strategies that are currently working in and around Philly? At this point, I do not have a ton of cash to spend but I don't want that to be a barrier to entry for me.  Any advice helps!  Thanks

The current value according to Zestimate is around $250K. We have budgeted around $80K for renovations. The issue with the $18K is that no sale can happen until that $18K is paid off to discharge the bankruptcy.  The court will not allow that money to be apart of any terms of sale.  Basically, because of the bankruptcy, any change in circumstance (which a sale of a home is considered) would cause the entire bankruptcy balance to be paid which would be around $50K.  Therefore, paying off the $18K first and having the rest discharged by the court is the more cost effective option.  We would not be moving in to this property.  The plan is to use it as a rental property.  The main issue is coming up with the $18K in some way, whether it is a personal loan or from savings and then how to account for that in the mortgage.  We just do not want to make a stupid financing decision especially in a situation as unique as this one.

Thanks for the reply! We definitely want to do it all legit.  Our biggest issue is trying to figure out financing with the looming $18K bankruptcy payment.  The father does not have any funds to loan to us so really all this comes down to is how we are going to come up with the $18K and then how we will pay that off.  Just trying to think of a creative way to do that since that is the first thing that has to be paid before anything else.

Hey everyone, my business partner and I are trying to get our foot in the door with our first rental property. The single-family home we are looking at purchasing is currently owned by my business partner's father. He has been through the wringer it seems with this house. He took out a HELOC back in 2014 and has a balance of about $117,000 left on it. At that time, the house was valued at about $250,000. We plan on doing some renovations to the house to hopefully drive the value up. Since we have a bit of unique situation, my business partner's father wants to sell us the house, but for a discount. Our agreed upon sale price is going to be about $215,000. This will pay off the HELOC in the amount of $117,000 and the rest of the funds will be swung right back to my business partner and I to do those renovations. The rest of the equity in the house would then be purchased over time in an under-the-table deal between our business and my business partner's father. I feel like this would be a decent plan, except there is a twist. My business partner's father, the homeowner, filed for Chapter 13 bankruptcy a few years after he took out the HELOC. Long story short, he owes about $18,000 on the bankruptcy and once that is paid, the filing will be discharged. The sale of the house cannot legally go through until that filing is paid off in full. I know with this twist thrown in, it is probably not the ideal first rental property, but seeing as we would be purchasing for a discount, we still want to try to make it work. My business partner's father does not have the funds to pay off the $18K but we want to make a move ASAP. We would need to pay off that bankruptcy balance for him. We are trying to come up with ways to finance the whole thing. Some options have been thrown around such as using our personal funds to pay off the $18K, or taking a personal loan for the amount, then adjusting the mortgage to pay that off. Either way, that $18K will come out of my business partner's father's portion of the equity. Again, i know this is a unique situation but does anyone have any advice on how we could finance both the bankruptcy balance and structure the mortgage so that this could work? Any advice is appreciated. Thanks!