All Forum Posts by: Steven Hershey

I am about a year into my real estate investing career in Lancaster, PA. I have one property and  have been putting offers on others. After this second property I will need another source of income to continue my investing career. I have a full time job working over 50 hrs a week,  I've heard all the great stories on wholesaling and how you can make thousands on one deal! I do have a few questions. I've done some research and I think I will try out Batch leads for skip tracing and building my lists. I have 3 investors I know and Facebook investing sites I think I could source deals to. But here are my biggest questions.

1st. Where can i get a good contract that has a "out" if i cannot find a buyer. Is this a thing? if so should i have a real estate attorney write one up? or are there good ones out there for cheap. being stuck in the deal without a buyer on day 10 is a scary thought.

2nd. I Noticed that batch leads is a little pricey. I know I could go drive around and write addresses down, but I will only have 2 days a week/ 3 hours at a time to do this, with my busy life style  I think batch will probably be best because it already has everything integrated into their system.

3rd. when using services what works best?  postcards/txt/cold calling/direct mail/posted signs.

4th. Is there someone willing to have a chat with me on wholesaling? we could do a call or talk through BP, a Local investor preferably. 

thanks for any insight and always appreciate the education.

BP Good Afternoon!

I have this idea of creating a LLC for my rental properties and moving my current properties into the LLC along with my primary residence. I would use the LLC as the "landlord" and rent from my business. What are some down hill battles with this technique and is it even a thing? and of course all the positives too. I haven't really heard of anyone talk about this. I have not done a lot of research of this, that is why I am posting! In my opinion its a no brainer if the expenses get to be written off like I would just do as a normal rental property, I could do all renos and write them all off! It came to me because I have put over 30k into my primary residence over the past 5 years and to write them off would be WOAH amazing!

I could see this as an issue, if I would be sued from another tenant. My house would be locked up to the LLC and I believe I could possibly lose it if I was in the wrong for something. Also I guess my credit score would take a hit over the years too?

Please let me hear all your professional education, opinions and ideas!

thanks.

Good Afternoon BP!

Could I have some knowledge spread my way! Im wondering exactly how to buy a foreclosed home, the steps. From what I know its the process before the bank takes over. Then I have also heard its when the bank has already taken over the property. Just a bit confused here. If a house is listed as "foreclosed or preforclosure" what are they best ways to check the house out or put the offer in? A discussion would be great or a message works too!

thanks.

Good Morning BP!

 Im a new investor looking to buy and rehab properties in the central PA markets, Lancaster, Columbia, Ephrata, Palmyra/Lebanon, sinking spring/Wyomissing areas. I am looking for a contractor that is motivated and has their routines down, also to help with giving estimate rehab costs and their professional opinions.  I am Looking to build a relationship where someday we could possibly partner and grow both sides of our business. Im not looking to only buy a few, Id like to continue project after project. Please message me and we can chat! Any one that knows of a contractor that's looking for work message me! I currently do not have any projects lined up. Just been looking, I do have funding secured.

Thanks

@Jordan Mummau I recently purchased a home in Lebanon city 2 months ago. Everyone I spoke to was like "dont go into lebanon city" I found that prices and taxes are pretty cheap. There a lot of government money in that city also. I am getting a 16% return on the turnkey investment i bought. pretty great for a turnkey. We are currently looking for our first BRRR deal, im looking all over central pa. Ive been interested in Palmyra and surrounding areas also. I know prices are high right now and for a beginner that is a little standoffish but i know ill eventually find one and make a move. There is always money to be made somewhere, whether its in a D+ or B+ neighborhood.

@Nick Dunin keep up the hard work but remember believe in yourself and your due diligence and make it happen!

Thanks everyone for the responses! @Jordan Mummau do you know any wholesalers I could be in contact with? also what areas are you flipping in?

BP! Im very ecstatic right now! Got the first deal in the books and im ready for more! I dont even know where to begin, the 5 minutes at the closing table with the seller was worth the 21k I used for down payment, lets begin ill keep it short.

My wife and I are optimistic NEW real-estate investors in Lancaster, PA. It took me some time to get my wife on board but it finally happened. I've been in the analysis paralysis for over 2 years, we let deal after deal go by to just watch the market climb higher and higher. If we did not act, we would eventually get priced out. We were interested in lancaster city and surrounding areas and also columbia boro.... we ended up in Lebanon, PA. We found a property that was turn key and jumped on it. The property will rent for $950 maybe a little north of that and we purchased the home for 86k with a $315 mortgage payment. After expenses we will cashflow $263. Here's my monthly expense break down.

Mortgage 316,taxes 86, insurance 38, repairs 5%, Vac 5%, CAPEX 8%, MGT FEES 8%.

CoC ROI = 14%

For all the newbies out there here's a shout out! make sure you look into city ordnances, I had no idea you could not mgt a property in Lebanon outside a 20mile radius, I did not calculate for mgt fees so I lost 8% right off the top. Also make sure you are allowed to put utilities in tenants names. This was easily figured out on there city site, I just never looked. 

Here's the Kicker to the whole  experience. I was the first one to make it to the closing table between my wife and agent, they lagged a few minutes behind me. The sellers were sitting across the table and i thought what the hell lets spark a conversation about the property. Found out  that they are big time investors with 400+ units. I Started to ask as many meaningful questions possible as I sat in excitement knowing how important this conversation just got for my future investing. I now have a meeting with them for private money lending. My goal was always to brrrr. I cannot wait to start this journey with properties around our area.

Without this deal, I will probably be in the same circumstances I was before. Yes the property is not in the best of area. But the numbers work and might have helped me just jumpstart my investing career.

That's my first deal.

Great to know, thank you. If i create a LLC for my investments now, I read that I will be taxed in the 15% business tax bracket? also can there be more tax write offs with an LLC then just writing off rental property expenses?

BP Good Morning! My wife and I are about to close on our first turnkey rental property in Lebanon, Pa. This was an exciting process and we wanted to get our feet wet so we decided to go with a turnkey property. We want to grow our investment portfolio and have a short term goal of buying another at this time next year. Long term goal is to have at least 10 doors in 10 years.

We are indecisive on how exactly we want to buy for the future. Id like to brrrr when she would like to buy turnkey. Ultimately we need to do a brrrr for her to see the difference.

My question is how much will an LLC help us with our future in investing? We would possibly like to start a property management company down the road and if we had a LLC already that would be helpful im sure. But would we benefit with buying properties in a LLC? Im a quick learner and i can educate myself on personal business but I would like some good insight from someone that has done this in the beginning of there real estate investing career.

Thanks again.