All Forum Posts by: Matt Whitermore

Hello BPers,

Hoping to bounce some ideas off of some Greater Philadelphia area wholesalers who have had some success in the area. Let me know if you have some time to chat.

Thanks

Matt

Hi all,

Looking for some input on where to start my direct mail campaign in the Philadelphia area. My experience in real estate has made me cautious about going into the super hot areas, like South Philly. I realize flippers are going crazy for South Philly but my philosophy is to avoid the most competitive areas. Any input would be appreciated.

I like the Fairmount / Francsiville 19130 area as it seems like a mix of families and yuppies but seems to have plenty of room for growth. Also have some interest in Delaware Counties. 

Where are people having success as wholesalers in the Philly area?

Thanks for your input.

Matt

I am a full time commercial real estate finance professional with 3 years of experience as an acquisitions associate for a real estate investment company. I have extensive experience coordinating marketing campaigns for generating investment leads. I am also skilled in financial analysis and real estate research. 

If you are a busy investor who needs a knowledgable professional to take some tasks off your plate then I would like to talk to you about how I can help you grow your business. I am looking for a part time, flexible schedule.

@Edward Karcher

What areas are you looking in? Most small multifamily properties 2-4 units will be priced based only on comps, and not on income and cap rates. I have found that you need to look at 5 units or more to get income approach values, and unfortunately a lot of these are priced by residential agents who have no idea what they are doing. Then the owner gets the outrageous value in mind and thinks they can get it, and then the property sits for a year.

Thanks @Jennifer Lee - glad I'm not the only one.

@Steve Babiak that is great insight, thank you

@Mike Girard

I've had a similar experience. Even listing agents don't return calls/emails/ texts. I think unfortunately you have to work hard to find a good agent.

@Steve Francis

Thanks for the input.

I love when a listing agent claims the listing is an 8 cap and shows that the NOI is the gross rental income minus only the tax expense.

It seems like most "8-10" caps (according to listing agents) are actually 4-5 caps when you apply realistic expense figures. Its kind of a joke.

When analyzing deals (multifamily rentals, usually 4-20 units) I have found that it is rare that a deal meets my criteria (even when it meets the 1% rule). I am typically looking for at least $100 cash flow per unit and at least a 10% cash on cash return.

I like to be conservative when underwriting annual expenses, and my typical underwriting guidelines are:

Could it be that most listings are grossly overpriced or am I being too conservative? Any input on my expense figures would be greatly appreciated.

@Account Closed

Thanks for the insight. I am familiar with how the structure works - just looking for a sample agreement before engaging an attorney.