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All Forum Posts by: Ronald Grams

Ronald Grams has started 2 posts and replied 19 times.

Post: RE Agent in Buck County, Pa

Ronald GramsPosted
  • Realtor
  • Bucks County, Pa
  • Posts 21
  • Votes 16

I’m an agent looking to start flipping and possible rentals. I also work with investors on both flips and long term rentals. 

Post: First time house hacker

Ronald GramsPosted
  • Realtor
  • Bucks County, Pa
  • Posts 21
  • Votes 16
Quote from @Malik K.:

Hello,

I currently live in Philadelphia but may move in the future to NYC. I was wondering what would be some good areas to consider for a first time house hacker. It seems triplexes or quadplexes are the ones that are best for cash flow with an FHA? Are they harder to manage than duplexes? I was thinking about getting a 1 bedroom for myself and then having 2-3 other 1 bedroom units for renters.

I have a fair amount of savings so I was wondering whether there’s any benefit to putting 20-25% down instead of 3.5%? It seems most properties in good neighborhoods are in the 600k+ range? Will it take years for me to be able to cash flow in that case? I’m trying to figure out if it makes more sense to just do easy investing in the stock market especially if I plan to move out of philly to nyc in the near future. On the other hand people keep telling me there’s never a “good or bad time to buy”.

Sorry for the barrage of questions but would really appreciate any advice/insight! Thanks! 

 What are the rents like in the areas you are looking?  3-4 more tenants may sound great when it comes to income, but there’s a ton of work involved with screening the applicants and maintaining the people and properties.

I’m not a fan of the one bedrooms myself. The return just isn’t there. One bedroom still needs a kitchen, bathroom, seperate electrical panels, seperate HVAC. (My first house hack was a shared HVAC. Let tenents control it. $800 electric bill later I moved thermostat. Texts at all hours to change it followed). etc. the amount of rent being paid to Cover all those seperate up keeps isn’t worth it. 

 

Post: Anybody with experience in Norristown?

Ronald GramsPosted
  • Realtor
  • Bucks County, Pa
  • Posts 21
  • Votes 16

@John Donovan

Do your homework with Norristown.

There are quite a few buildings that are considered “Historic” and will impact any construction you could be doing.

Also, if you’re thinking of maybe jumping ahead before permits are issued and getting started with some construction……DON’T. Norristown is Notorious for being very vigilant about shutting down sites with out permits.

Norristown inner city properties are also a bit on the older side. Like built in the 1800’s-1900’s older side. A few properties need massive updating. Knowing your numbers on replacement costs and shelf life is very important before diving into a property there.

Post: Is it worth it to get a Real Estate License??

Ronald GramsPosted
  • Realtor
  • Bucks County, Pa
  • Posts 21
  • Votes 16

@Omar Saucedo Cortes

Once you’re a licensed agent you MUST “work with” a broker. It’s not just an individual license to buy and sell real estate.

With that there are monthly fee's to your broker (besides the split of the actual commission), insurance fees, and rules you need to follow. You also have other overhead, MLS Fee's, Realtor associations fees (if you become a Realtor), technology fees, marketing and advertising, etc.

Every broker is a bit different. But let's say you have a license. If you're selling your own property and using your own license to market the house on the MLS. You would still need to pay your broker their percent of the transaction.

Also, once you have a license doing a For Sale By Owner gets a bit tricky and varies State to State. (You could put your license and your Brokers license in jeopardy)

So if you’re just doing it to buy investment properties it’s not a great idea. There’s a couple thousand dollars annually in overhead, and you don’t have full control.

In addition the difference between getting a license and learning how to Real Estate is like studying the history of Boxing and then trying to get into the ring with Ali. It takes months and years to learn how to navigate through all the "stuff" of being an agent. MLS, Contracts, Addendums, technology etc

TLDR: If you want to start a Real Estate Agent business, then Yes! get your license.

If you want to be a Real Estate investor, then NO. Don’t waste your time or money.

Post: First Deal: Buy & Build New Construction - is that crazy!?

Ronald GramsPosted
  • Realtor
  • Bucks County, Pa
  • Posts 21
  • Votes 16

@Vanessa Hammonds is the land already equipped with plumbing, electrical, etc? Are there any trees or land that needs to be cleared before the foundation is laid? Have you spoken to and received a quote from a general contractor who’s experienced in new construction?

Permits for before construction of the house even begins can take months. Designs can take weeks to months and are costly. Designs have to be done before permits can be obtained. You could be looking at 18 months to 2 years from purchasing of land to selling the property. Your current comps could be entirely out the window.

If you’re sitting on a hard money loan that entire time the cost will rack up quickly.

Post: Do I need an agent to represent me?

Ronald GramsPosted
  • Realtor
  • Bucks County, Pa
  • Posts 21
  • Votes 16

@Michael Mastantuono

Pennsylvania Real Estate Agent here. I work with a few investors and my bias is on the “Yes”.

You’d want an agent with investor experience as well as a hands on and detail oriented. Being able to negotiate a great price is cool and all, but also making sure the contract is solid is way more beneficial.

Contracts are full of loopholes (contingencies) a sellers agent is going to make sure those loopholes work best for their client and maybe not so great for you.

For example. Landlord is tired of terrible tenants. Decides to sell. Place sits for a month gets an offer at asking and he is happy.

Until he realizes rents have gone up a bit and the old tenant is already gone. Not only will a new tenant bring much more rent, but another tenant will not be renewing their lease. So two new tenants at current market value means the offer he accepted is not a good deal for him. He then spends the next 30 days while Title is being processed to get out of deal any way possible, including not submitting paperwork that’s needed.

Meanwhile buyers agent is making sure all deadlines are being met for paperwork, and vigilant about keeping everything moving forward to stay under contract. Closing day comes Buyer is Happy. Seller not so happy. Buyer agent has giant headache, but got the deal done and has happy buyer.

Post: Real Estate Agent Sterotypes

Ronald GramsPosted
  • Realtor
  • Bucks County, Pa
  • Posts 21
  • Votes 16

@Masyn Grant Barney

This stereotype is more than valid and earned. I feel like it’s shifting a bit.

I'm big on transparency. Laying out what I do and what I don't do. (Ex. "I don't market your house on Zillow, Redfin, Realtor etc. I post it on the MLS and those companies buy it from there.")

Dressing for the part is also big for me. Suits and ties work for certain clients, jeans and a polo for others.

Post: QOTW: Are you seeing any new trends in your local market?

Ronald GramsPosted
  • Realtor
  • Bucks County, Pa
  • Posts 21
  • Votes 16

@Alicia Marks Past two weeks has been a bit of a shift in the Philadelphia Burbs. Offers accepted at ask with inspections. Overpriced houses sitting a bit longer (14-21 days as opposed to 3-7)

Inventory jumped enough to level out, but not clear of a sellers market. March and April pushed a few buyers out at the mid-range $250-400k range. With a few less buyers and more inventory it’s calmed a bit.

Post: Going to school to learn how to do it all myself. Realistic?

Ronald GramsPosted
  • Realtor
  • Bucks County, Pa
  • Posts 21
  • Votes 16

@Jessica James eh.

Trade schools are fine but the learning is in the experience and the doing. Getting multiple estimates and talking to contractors is the best way to go. YouTube is also a great source for learning, although beware of who’s advice you take on YouTube.

I’m a big fan of Home RenoVison DIY.

@Ronald Grams other note: Keep an eye on both and diversify.

I’ve been around for two major bubble bursts. If there is another burst I plan to refinance properties to buy at the lows.

If you want to learn how to trade you can do it with little risk while doing your REI as well. Start with a couple hundred in one of those Etrades or Robin Hood Accounts and keep track of it for a few months or years. Low risk, monetary low reward, but knowledge you gain is big reward.