All Forum Posts by: Steven Goldman

Investment Info:

Townhouse fix & flip investment in Upper Darby.

Purchase price: $88,000
Cash invested: $35,000

This is a 1100 square foot row home in Upper Darby. The property was acquired form an estate while it was in mortgage foreclosure. Exterior rehab. windows, electrical service, concrete and and paint. Interior rehab includes, kitchen bathrooms, flooring and carpets. New breaker box and some rewiring. Time to completion 90 days.

Investment Info:

Townhouse fix & flip investment.

Purchase price: $88,000
Cash invested: $35,000

This is a 1100 square foot row home in Upper Darby. The property was acquired form an estate while it was in mortgage foreclosure. Exterior rehab. windows, electrical service, concrete and and paint. Interior rehab includes, kitchen bathrooms, flooring and carpets. New breaker box and some rewiring. Time to completion 90 days.

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

We are working in this community due to the recent demographic changes and the condition of the homes. It is a neighborhood in transition in the suburbs of Philadelphia. Delaware County.

How did you find this deal and how did you negotiate it?

One of our mortgage customers is a rehabber wholesaler. It was off market and about to be sold at foreclosure auction. We worked with h the heirs to open and estate and to sell the property. The purchase price was the cumulative debt including municipal liens and the payoff with an additional 20 k for the heirs. We negotiated on some judgments.

How did you finance this deal?

Private money at 100 percent of the purchase price and rehab budget less lending costs.

How did you add value to the deal?

By partnering with a wholesaler and rehabber from the area we control the costs of the rehab and give the contractor skin in the game. The rehab if performed by an outside contractor would have been at least 60k.

What was the outcome?

We are in progress and will update.

Lessons learned? Challenges?

The best deals are off market.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No. but we will use a selling agent when it is completed.

If you are planning on working in the Cleveland area you should find a team of professionals who can assist you. Agent, property manager, contractor, lender. We have found that the borrowers whop are successful put together that team and then let them run with it and present them opportunities. The real estate websites are O.K. for educating yourself but are not the place to find properties. You would be netter off looking at real estate groups on Facebook. Good luck and keep moving forward. 

@Stephanie Chapman   In doing your due diligence make sure that the location you are buying in has ample employment opportunities nearby. (Hospitals, municipal buildings, warehouses, manufacturing  etc.) if you buy in a area which is conveniently located for a tenant working in the vicinity, you will have no problem locating a tenant regardless of the time of year. The three keys to real estate are, location, location, location.

We are a busy mortgage brokerage in Eastern, PA. We have numerous borrowers who want to buy and rehab properties in the metropolitan Pittsburgh area. We need a go to private lender who can fund smaller rehab properties with loans totaling under 75k.  We want to establish a long term relationship with the private lender to allow us to better service the area.  DM us @ G2 Loans. Thanks

Casey Spence: why not get a larger HELOC on your personal property and use the money to fund another project. The primary rate on your mortgage rate is so low that I would hold on to it. If you want to rent keep in mind high end rentals are often the worst to manage. The type of tenant that rents in that space usually has reasons they can not buy a house and they are not good ones. Good luck and keep moving forward.

Benjamin Hershkovich  

I suggest you use a good rehab. calculator. The calculators here are reasonable. I use flipper force. A good flip calculator will aggregate your total costs and tell you the outcome so long as your repair estimate is close to accurate. I agree with the suggestion that you need to know all of the HOA fees and other costs to determine the accurate net profit before taxes. You can not go on the MLS and buy a listing and expect to make a profit. You will have to find off market properties or estates or other private sales in order to make the effort worthwhile. Good luck,

Wow, All I can say is follow Arnold's rules and do not listen to the naysayers. It is still possible to BRRRR successfully, it is just harder. All real estate deals are won at the time of purchase. If you purchase right you can either flip or hold and make it work. I completely agree that you should start by buying properties, rehabbing and flipping them as that scenario is far less complex. But, if you are determined to build a rental empire than it is sound practice to speak with a mortgage broker or originator to determine the parameters of the refinance before you buy a property to fix and hold. (BRRR) A goof mortgage broker will not want to get you into a bridge loan that you can not get out of. A good broker should have experience and be able to analyze the financing to determine if your deal makes sense! Good luck.

Jorge you need to go in two directions. First, start working on repairing your credit wit ha credit repair professional. Second, you can take on a credit partner who can own a portion of your LLC and be the guarantor on the deal while you provide the capital. In order to accomplish that you will need to learn the ins and outs of rehabbing and real estate so that your partner is comfortable with investing in your projects. Good luck and keep moving forward. Poor credit should not stop you!

@Daniel Tayeb, 

Flipper force has a great software program for analyzing flips. Bigger pockets calculators are great as well.  Practice by analyzing properties that look good to you whether you have the money or not. Good luck and keep moving forward.