All Forum Posts by: Vincent Brunetto

Hey @Kevin Salamea I'm an agent/wholesaler in Philadelphia and there is a lot of potential here, especially at that target price point. Are you looking to flip your first property or make it a rental? As far as the next step goes, setting up an LLC isn't a bad idea. A good amount of lenders will require you have one set up anyway. Also, I would recommend getting your financing in line before finding a deal. It would be a shame if you found a deal you loved but financing wasn't ready to go and you lost out on the opportunity.

I may be impartial to it but I recommend looking into the Greater Phildelphia Area market. Feel free to message me and we can discuss specifics in more depth and see if this is the right spot for you. I'd gladly get you in touch with anyone that might be of assistance.

So I’m an agent/wholesaler in the Greater Philadelphia area that works with investors that use both of these financing options when buying properties from me. I always flip flop which I would prefer my Investors use. I understand that everyone's financial situation is different but I'm just speaking generally here. Obviously cash is king when it comes to having a smooth closing. There are no issues with lenders being ready on time or an appraisal done that has comps that are pulled from a mile or two away (Yes, this has happened to me). However, when my buyers use hard money, it frees up capital so that they can get multiple projects going at once.

When it comes to hard money, you eat away at your profit margin with interest, inspection fees, and origination fees. However, you are putting less out of pocket and leveraging someone else's money to get your deal done. So there’s a tradeoff between profit and risk exposure. Also, there are a ton of lenders out there and not all are the best. So it is definitely important to have a couple of lenders in your pocket that are quality and offer fair pricing, which I do have.

I have a few questions for the BiggerPockets community…

What is your preferred way of financing deals?

If you have used hard money, what was your experience like, and will you continue to use this method in the future?

If you use both methods, what is the deciding factor when evaluating your deals?

Hey Art! If you are looking for multi-families around that price range I would suggest looking into Delaware County and West Philly. I have been able to source a good amount of multis for my investors in those areas lately. How do you feel about buying occupied multis with tenants on leases?

Philadelphia's market has been on fire! I wouldn't say there's a ton of homes for sale but the ones that do go on the market are selling very fast. In fact, in July houses sold at the quickest pace in history. Averaging 9 DOM!! If you are researching markets to potentially investing in I'd recommend looking into the Greater Philadelphia area. 

Source: https://6abc.com/real-estate-buying-a-home-homeowners-coronavirus/6382290/

Hey Emilee! Building an All-Star team is huge when it comes to investing in real estate. You want to make sure you have the right people on your side going into a deal. I've been working in Philly for a couple of years now and I'd gladly get you in touch with some All-Stars I know that have been fruitful for my investors.