All Forum Posts by: Steven Goldman

 Hi, I am an investor and mortgage broker in the Southern suburbs of Philadelphia. I would be glad to share my knowledge with you. It would be a good idea to lookup meetups in the southern suburbs and attend them. You will meet other real estate investors and they are usually willing to share their experience.. 

Hi Nicole, You will be eligible for a DSCR loan. The proper timing and structure of that loan are unclear from the information in your scenario. Malcomb's suggestion that you will be limited to a maximum of 75 percent of the appraised value is correct assuming the the rent will cover that figure. You should consult with a mortgage broker or lender now so you know how to maximize the LTV on the refinance. Good luck.

 Hi Charlene, It all comes down to preparation and effort. If you have a more extensive full gut rehab you need drawings depicting the work to be performed and material specifications. If you do not, you may get bids from contractors that can not be compared to each other because the contractors have a different view of the quality of work or materials you envision. It's Like comparing apples to oranges.

Hi Sharma: I am stunned that anyone would suggest that you start a rehab in Philadelphia without permits. If you do so and get caught you will have a tremendous problem. I know the Director of the construction division of License and Inspection and if you are doing anything other than cosmetic painting and maintenance you will screw yourself if you do not obtain permits.

It is a good suggestion to use contractors properly licensed in Philadelphia. To obtain a permit you will need a scope of work and sketch plan. Permits are all pulled by your contractor through a website called Eclipse. Generally speaking, contractors who are not licensed or, do not want to follow the Boca code, will suggest that you do not need permits. I would avoid those contractors. Good luck.

 Hi peter, I flip in Upper Darby, Drexel Hill and the surrounding communities. We just sold a flip in February in Upper Darby and starting another in Norwood. Feel free to reach out to me I am familiar with the costs of construction on the typical 3 bedroom, 1 or 2 bathroom houses in the area.

 Hi Liliana, All of the previous opinions are valid. Fear is the primary reason that people do not get involved in real estate flipping.  Fear can be overcome by knowledge and planning. A first-time flip using a rehab loan will require a minimum of 15-20 percent down from a lending company. You will also need to show some reserves. During your due diligence, you should connect with a mortgage broker, realtor, and contractors to gather enough information to make an informed decision. You should find a reliable rehab calculator and learn how to use it to evaluate the true profitability of your flip. Some people complain that this market makes it tough to flip and others flip for profit. Which one are you?

Everything you said is accurate. Sheriff sales are unpredictable if the house is a tear-down then you should not encounter heavy bidding. Good luck.

Hi William,  

When trying to build a good rental portfolio you should follow some basic rules:

1. Identify the area where you want to concentrate your efforts.(stay close to where you live when you first begin. It is the market you are most familiar with.)

2. Locate a good realtor and broker or lender to work with on purchase and financing.

3. Find a mentor who is willing to discuss your deals with you as needed.

4. Find a mentor who is willing to discuss your deals when needed.

5. Start small. Your first BRRR should not put all of your capital at risk.

6. Learn how to estimate the total costs of the project.(Including lending and holding costs)

7. Learn how to estimate construction costs.

8. Keep detailed records of all expenses.

9. Visit your projects unannounced as often as possible. 

Good luck on your journey!

Hi Tony, 

Bringing the project in on time is one of the keys to successfully flipping houses. There are many sources of delay. if it is your contractor you need to vet the contractor more carefully. If it is materials you need to know the availability of certain materials before you order them. Should the municipal inspections be the cause of your delay? You need to know someone in the L&I office or in politics who has some influence to keep your project moving. Others have pointed out delays may require further negotiations with your lender which is almost certain to cost you more money. Planning and careful execution should reduce your risk of delay. If you have been delayed do not hope you will get back on track start planning your response and face the consequences that the delay will cause.

Hi Will,

MY partners and I work in Upper Darby, Drexel Hill, Ridley Park, and Springfield. We BRRR, Flip, and some of us have turnkey properties. We would be glad to help you get started. We do our rehabbing. If you check out my page you will see our last project in Bywood, Upper Darby. I look forward to hearing from you.