All Forum Posts by: Trent Dues

You may save yourself fees if you contact your current lender directly to inquire about the refinance. They will want to keep your business, and could incentivize you to refinance through them, versus you paying for closing costs and broker fees with a new lender. Your lender may even match your current rate or lower it

As you likely gathered in your search of the area and from other comments, the housing prices in Beaver County tend to be a bit lower than Allegheny, Butler and Washington Counties, depending on the municipality. The taxes are a bit cheaper as well, so this can definitely be a great area for an investor looking to start building their portfolio.  The population is lower, so you could in theory need a little more time finding a great-fitting tenant to rent to, but there is definitely a lot of potential here.

Keep an eye on the municipality as well. In Pa, each borough/township/city collects transfer taxes based off of the sales price, and this can quickly add thousands to your closing. Wilkinsburg will charge you 1% of your sales price, and the state of PA will take an additional 1% in transfer tax no matter where you purchase. A few streets over and you could be on a property that shares a zip code, but actually sits in the city of Pittsburgh who will collect 4% for transfer taxes, and will have extra municipality requirements before the sale can be approved.

Wholesaling can be financially beneficial for many, but don't view it as a get-rich-quick scheme. There are lots of risks involved, especially if you have not established yourself in the community with investors/ end buyers that you can trust won't back out of the deal. If your contract with the current owner requires a hefty downpayment and outlines a deadline date, you will end up forfeiting your deposit if not careful.

 The out of pocket cost you will be liable for if a neighbor sues you, or the city issues citations is tenfold the price of the permits. Set yourself up for success now. Once you're on the cities radar, every future project you conduct could face repercussions. 

Hi Tyler, just sent you a message. I would be happy to try and help connect you with agents in the Pittsburgh area that I've worked with, along with a broker if you are looking for funding options. Pittsburgh is full of many great communities, and there are great homes in this area that sell for around or less than your target price, depending how much you are willing to invest in renovation costs. 

Not getting enough quotes on repairs! On my personal home, I recently replaced my A/C unit and saved $2,600 between my first quote and 4th quote, which is the one I went with. Also helped doing some research and not going with the first name-brand unit that was offered.

It isn't a bad idea to consider investing outside of your state, but there are inherently more risks with closing on a deal for a property you may have never flown out to see in person. If that is the route you choose, be sure to pay for a reputable home inspection and renegotiate the purchase price based on the findings. And take the time to do the research on how much the closing will realistically cost you; I know in PA, the transfer tax alone on each property sale can be enough to discourage some investors. For example, if you were to buy in the city of Pittsburgh, the transfer tax of the sale will equate to 1% of the sales price paid to the state and an additional 4% of your sales price paid to the city, so before factoring in any closing costs/fees/ agent commissions etc, you are already adding on 5% of the agreed upon sale price. Every state calculates different, so doing the research upfront can save you a lot of money on the back end. 

It may be a good idea to consider JV'ing with some established wholesalers in your area who have created a solid contact list of buyers/ flippers, until you are able to establish your own name. Just be sure to thoroughly read the release contracts before signing. As in any industry, working with people already experienced and well-versed will help you build the tools needed to establish your own business.

An FHA loan is definitely a good idea to get you in a home of your own without requiring a large down payment, but be sure to read the guidelines of your loan before signing to make sure you are able to refinance out of it within a year or two to save money from the monthly PMI insurance. I purchased my home a year out of college and FHA was the only way for me to make it happen, but within a year and half I was able to refinance with the same lender and not only knock the $90 PMI/month, but also lowered my rate by a few tenths of a percent. If you find the right home, feel free to reach out and I'd be happy to help put you in touch with a great lender/broker, along with offer any title service needs!