All Forum Posts by: James Cloman

More specifically, what are the contractors charging per squarefootage? 

Hello all!

I am curious on what typical Flippers, Landlords, Contractors or Developers budget when it comes to Painting a property that needs rehab or tlc. I know it can vary depending on how much a quality job is needed. 

This question is specifically towards anyone local in the Philadelphia/Bucks County Market. However, anyone's feedback is appreciated.

thanks!

Being a contractor helps with the projects for sure. No need to overdo but make sure its still a great job. You know your numbers better for sure in that sector. Make sure you run accurate comps on after rehab values including sellers assist and other possible factors depending on your market. That was a mistake in my area, appraisers were taking in 6% sellers assist for transactions which of course takes out of profit and overall AVR numbers. 

Obviously every property isn't the same. 

Renovation cost estimates - per square foot vs per project..

What do you usually deal with from contractors? Do most give a estimate per square foot? 

Looking to get feedback

Any legitimate debt consolidation programs in Philadelphia area?

Asking this for someone I know and for my future knowledge. I don't have any experience with them. Online companies seem to obvious. I want to make sure I don't get anyone in trouble legally and financially. One firm wanted him to sign a legal agreement and they would negotiate lower balances with his creditors while taking on a new payment from the legal firm itself. In the mean while they advised him not to pay on the credit accounts. Seems very dangerous. 

No, your agent would be considered a buyers agent. Are these homes REO/bank owed? Most for sale bank owned homes are under the same listing agent or agency within a given area. Those agents focus primarily on the REO properties. This is common at least where I am at.

Thanks guys. I forgot to mention I do have other credit accounts with no balances. I didn't think of it because I was to worried about doing the deal. Found out the hard way. Did look into the utilization rates though. 

I'm curious on how people manage larger lines of credit

Just finished my Second property using the BRRRR Strategy under my personal name. However ran into a issue with my credit which cost me some cash. It dropped about 85 points within 2 months.

I leveraged accounts I had on hand. Did not have to much in savings but my salary could manage the monthly payments. 

I used a Hard Money Lender 12% 3 year (Amortized at 10 yr), Personal 30k Line of Credit 8% Interest, 30k Credit Card Line 4% Interest Balance Transfer Offer w/ Credit Union no transfer fee, wrote myself a check.

65k Purchase Price
10k in Closing costs (Including the Hard Money Loan fees, Title costs and the escrow in taxes and insurance). The Hard Money Loan required 35% down but the only document they required was a credit check. Before I did this transaction, my credit score was 755. 

26k approx Renovations
135k Appraisal
75% Cash out with about 3k in refinance costs.

730 Mortgage w/ Insurance/Tax
Rented at $1350

My mortgage broker advised me if I want to get the best rates for an investment refinance (Fannie Mae/Freddie Mac) I had to have at least a credit score of 680 which I missed. My credit dropped to 670. So my interest on the refinance 30yr mortgage was 1.125% higher. Ended up refinancing at 5.125% could of been around 4%. However, I was able to pay off the lines of credit as well as the original hard money loan. 

I understand its unsecured debt, and half of it was essentially credit card debt but my question is does anyone else experience this? I do have another mortgage, some regular debt and I know my DTI was hit hard. I am 24 yrs old so my credit history isn't as long as lets say a 30 yr olds but I am trying to build a line of credit with my bank high enough so I don't have to leverage different accounts. If anyone has any advise in this matter Id appreciate it.

Hey Nathan, those areas are stable along If you find good cash flowing properties. Tacony is great as well.  Mayfair is declining however the city knows that. They are currently implementing programs for revitalization. Tacony is undergoing one as well. A new charter school is being build, along with the new Dietz and Watson warehouse Along state road. I grew up in mayfair and a current realtor for the NE Area. I live borderline tacony and mayfair. I dont like seeing areas going downhill and i do what i can to keep it nice.

Hey Mike,

If you are looking in Kensington, ld stay right around Frankford ave side (Closer to I95). I drive the area maybe once a week (realtor in area). The redevelopment  in fishtown looks to be moving up through Kensington/East into Port Richman. It could move west as well, don't know that area to much but thats what i have been seeing. Havnt driven much past the other side of Kensington ave.