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Ross Hyman
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Wholesaling in Philadelphia

Ross Hyman
Pro Member
Posted Jan 9 2023, 08:14

I'm a licensed New Jersey agent, who was born and raised in Philadelphia. I am interested in wholesaling in the Philly market. I've watched the recent trend in Fishtown and past trends in Manayunk and Northern Liberties. Is Philly a worthwhile market for wholesaling? If so, which neighborhoods should I focus and do you have any advice or guidance? 

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Eric Greenberg
  • Investor
  • Philadelphia, PA
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Eric Greenberg
  • Investor
  • Philadelphia, PA
Replied Jan 9 2023, 16:04
Quote from @Ross Hyman:

I'm a licensed New Jersey agent, who was born and raised in Philadelphia. I am interested in wholesaling in the Philly market. I've watched the recent trend in Fishtown and past trends in Manayunk and Northern Liberties. Is Philly a worthwhile market for wholesaling? If so, which neighborhoods should I focus and do you have any advice or guidance? 

I live and invest in Philly but dont wholesale myself but do get a number of email blasts from multiple wholesalers in Philly everyday. It honestly seems like a very hard business to get into without spending a good amount of money/time trying to find leads up front. 

If it were me Id reach out to some of the local wholesalers and talk to them to understand if thats really the path id want to go down  again matters your goals & strategies to get there  


I do know there are newer laws that you may want to review

https://www.phila.gov/services...

Thread

https://www.biggerpockets.com/...

 

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Rich O'Neill
  • Contractor
  • Chadds Ford, PA
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Rich O'Neill
  • Contractor
  • Chadds Ford, PA
Replied Jan 10 2023, 07:30
Quote from @Eric Greenberg:
Quote from @Ross Hyman:

I'm a licensed New Jersey agent, who was born and raised in Philadelphia. I am interested in wholesaling in the Philly market. I've watched the recent trend in Fishtown and past trends in Manayunk and Northern Liberties. Is Philly a worthwhile market for wholesaling? If so, which neighborhoods should I focus and do you have any advice or guidance? 

I live and invest in Philly but dont wholesale myself but do get a number of email blasts from multiple wholesalers in Philly everyday. It honestly seems like a very hard business to get into without spending a good amount of money/time trying to find leads up front. 

If it were me Id reach out to some of the local wholesalers and talk to them to understand if thats really the path id want to go down  again matters your goals & strategies to get there  


I do know there are newer laws that you may want to review

https://www.phila.gov/services...

Thread

https://www.biggerpockets.com/...

 

 @Eric Greenberg is right. There is a ton of competition in the city. https://www.opendataphilly.org... makes it really easy to get data, therefore people get bombarded by wholesalers. This is at least partially why those laws were passed. 

I think there is a big opportunity in Delaware County or Chester County. I get tons of email blasts and it seems like the only Delco and Chesco deals that come through are ones that the wholesaler stumbled upon. If someone focused on that market I think there is a lot of opportunity. Flip side is that I have heard that Delco sellers are difficult to negotiate with. 

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Nashid Ali
  • Realtor
  • Philadelphia
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Nashid Ali
  • Realtor
  • Philadelphia
Replied Jan 15 2023, 19:24

I agree with the previous posts that the competition in the city for wholesale properties is fierce not to mention new laws in this area make things a little tense. If you're looking for a new market to tap into....believe it or not....I would consider the city of Chester. As development continues to be overwhelming in Philly, investors will eventually seek other viable areas nearby that make sense. Chester hasn't redirected it's political will towards housing and redevelopment just yet but it will sooner or later just as Camden, NJ did years ago. Why not get in on the ground floor while properties there are still relatively inexpensive?

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Dustin Verley
  • Wholesaler
  • Newark, DE
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Dustin Verley
  • Wholesaler
  • Newark, DE
Replied Jan 16 2023, 19:51

What are everyones' thoughts on surrounding areas are Philly- more so South of it. Think Sharon Hill, Eddystone, Chester, etc. The more suburban areas around there... opportunities present?

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Rich O'Neill
  • Contractor
  • Chadds Ford, PA
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Rich O'Neill
  • Contractor
  • Chadds Ford, PA
Replied Jan 16 2023, 20:32
Quote from @Dustin Verley:

What are everyones' thoughts on surrounding areas are Philly- more so South of it. Think Sharon Hill, Eddystone, Chester, etc. The more suburban areas around there... opportunities present?


 I have a few in Sharon Hill. They are ok, but I find the tenants to be a little tougher. I like a little further north better, in Collingdale. I am not a fan of Chester or Eddystone. There are plenty of people that make good money in those areas, but you need to be ready to deal with tough tenants. 

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Nashid Ali
  • Realtor
  • Philadelphia
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Nashid Ali
  • Realtor
  • Philadelphia
Replied Jan 16 2023, 20:37

Property taxes in these outlining areas will kill most buy & hold investments (except maybe in Chester). However, you need to be absolutely clear about your investment goals first before tackling any of your aforementioned boroughs. 

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Dustin Verley
  • Wholesaler
  • Newark, DE
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Dustin Verley
  • Wholesaler
  • Newark, DE
Replied Jan 16 2023, 20:43
Quote from @Rich O'Neill:
Quote from @Dustin Verley:

What are everyones' thoughts on surrounding areas are Philly- more so South of it. Think Sharon Hill, Eddystone, Chester, etc. The more suburban areas around there... opportunities present?


 I have a few in Sharon Hill. They are ok, but I find the tenants to be a little tougher. I like a little further north better, in Collingdale. I am not a fan of Chester or Eddystone. There are plenty of people that make good money in those areas, but you need to be ready to deal with tough tenants. 

Good feedback. I’ve always been curious about the wages nearby (thinking employers like Kimberly Clark or Evonik) to name a few. I figured tenants would be a little tougher to deal with, but didn’t know that the scope of tough tenants spread out that far, but definitely crucial to know.

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Rich O'Neill
  • Contractor
  • Chadds Ford, PA
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Rich O'Neill
  • Contractor
  • Chadds Ford, PA
Replied Jan 17 2023, 02:58
Quote from @Nashid Ali:

Property taxes in these outlining areas will kill most buy & hold investments (except maybe in Chester). However, you need to be absolutely clear about your investment goals first before tackling any of your aforementioned boroughs. 

Property taxes are tough there, but I was able to get most of mine reduced 30+% by appealing them. I have an attorney that handles the whole process for half of the first years savings as a fee. More than reasonable in my opinion. 

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Nashid Ali
  • Realtor
  • Philadelphia
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Nashid Ali
  • Realtor
  • Philadelphia
Replied Jan 17 2023, 09:11
Quote from @Rich O'Neill:
Quote from @Nashid Ali:

Property taxes in these outlining areas will kill most buy & hold investments (except maybe in Chester). However, you need to be absolutely clear about your investment goals first before tackling any of your aforementioned boroughs. 

Property taxes are tough there, but I was able to get most of mine reduced 30+% by appealing them. I have an attorney that handles the whole process for half of the first years savings as a fee. More than reasonable in my opinion. 

 Awesome!