All Forum Posts by: Sean Schellenger

Im disappointed that no one has chimed in on this so Im going to expand!

Right now many Americans want to purchase a home but they cannot. The main reason being that the banks have tightened up and require the buyer to put down 20%. Most homeowners today would not own the home they live in if this were the case when they made their purchase. If you bought a $250,000 home five years ago(250k being fair market value), you could do so with about 30k. Today you need about 55K. There are many hard working people with good credit, who pay all their bills on time, and do all the right things but still cant manage to get far enough ahead to buy a home for themselves and their family. If the insallment sales agreement were used more often, it seems to me that the buyer pool would expand greatly which would lead to more transactions. The way I see it, the banks are the only ones losing out. Furthermore, there are incentives for both the buyer and seller.

Buyers:
No longer pay rent
Much less cash needed
minimal closing cost
Home ownership
tax benefits of home ownership

Sellers:
Possibility for higher sales price
Increased cash flow
No more management costs
Deferred gains tax

Any thoughts??

I believe you can find profitable markets somewhere within most us cities. In my opinion, the best opportunities exist in areas that are run down and have been targeted by the city or state for improvements. In philadelphia these areas are called empowerment zones. Furthermore, if there are new developments already happening or better yet about to happen in or near that area, it gives you good reason to speculate growth there. I invest in philadelphia and believe that philly has some of the best investment opportunities in the country. Gentrification is happening all over the city, and high income home owners are actually buying beautiful rehabed and newly constructed homes in somewhat low income areas. There arent too many places where you have a trend like that! PM me if you ever wanna talk further about investing in philly!! Good luck!

No problem.... glad I could help!!

James,
All of my jobs are pretty big so im not sure where the cut off is; however, any renovation project which requires a building permit and set of plans definetly qualifies. You just have to fill out and submit a bunch of forms once you get your project approved by the city. Many real estate lawyers in philly offer the service of getting it for you. If you want to do it on your own, you can find the forms at http://brtweb.phila.gov/brt.apps/OnlineApps/abatement_home.aspx.

Sean

When we build new homes or do a major renovation to an existing structure in the city of philadelphia, we are able to get a ten year tax abatement. I am trying to figure out how much of that 50% goes towards taxes for most investors. I know it varies depending on the area....

Im looking for feedback from those who use the 50% and 2% rule. Should I be adjusting the number's slightly based on the fact that my tax expense is 0? If so, who much??

I have been talking with some folks who view the use of an installment sales agreement (contract for deed) sort of like a lost art. Apparently at some point in time it was the most common contract used. Aside from learning a little about the ISA agreement in college, i have very little experience or knowledge regarding the contract. However, Im beginning to wonder if there may be some value in learning exactly how it can be used to increase income on performing rentals, as well as sell properties at good prices. Their website is www.ourahi.com. They are calling it the American Homeowners Initiative. im thinking the system they use might be good to impliment if you are the owner of a performing apartment complex. You could convert units to condos and offer existing tenents the opportunity to own!! Does this make sense or am I wasting my time..... and everyone elses, lol

You can do whatever you want with this one. If you are looking to add more passive income to your portfolio, this deal is definetly a great way to do so.

You could also wholesale the property to make a quick 20-30k.

Another option is to purchase the property, make the repairs, and market as a turn key investment which will allow you to maximize your profitability.

Regardless, it sounds like a great deal that will work no matter what you decide to do with it. If your numbers are accurate, you should definetly get this under contract asap.

There are many great areas to invest in all over the country right now.

If you are looking for maximum cashflows however, I suggest looking into student housing. Many colleges have old run down housing that will rent for top dollar once updated.

I am currently in philadelphia focusing on Temple University's Medical School area in the North section of the city. Philadelphia also presents great opportunities to flip in the south(more specifically, point breeze and the graduate hospital area). Check it out!

Iv been doing flips for a few years and have recently started focusing on rentals. In north philadelphia, near the temple hospital and temple medical school im converting row homes into duplexes and holding them for myself and on behalf of a few investors. The two i have in my personal portfolio at the moment are still in hard money (14%) and they still cash flow. Im in one for 205k and the other for 215k. one is being rented out for 3600 a month and the other is almost completed and ready to be rented out. I found several more properties in the same neighborhood that will produce numbers in the same ball park. im thinking these numbers (especially once we get into conventional financing) are better than most of what im seeing on the site. What do you guys think?

Whats up guys? First off, I am new to this site and I absolutly love the idea and what iv seen so far. While I am still learning how to get the most out of the site and havent even herd of a pro account until now, I agree that it would be nice to have a way to only deal with people who are already in the know and can discuss topics on a higher level of sophistication... more importantly, discuss business opportunities with people who are actually capable of doing business. Its great that people can get on here and educate themselves; however, many of us have spent years educating ourselves and are looking for people to make money with.

Regardless, the site is awsome and I look forward to helping it become even better!

Sean