I have an opportunity to lend on a rehab project in Harrisburg PA area but I have no experience in the state. Ive done many loans in MD (both as rehabber & lender) but this is my first one for PA.
Can anyone shed some light on both: 1) location of the rehab project & 2) PA specific loan terms
1) The house is in the Drexel Hills neighborhood of New Cumberland, approx 3000 sq ft. How is this part of town for desirability and resales? Do good quality rehabs tend to fly off the MLS listings or sit for a bit? Is this a safe area with decent schools? Anything odd I should be aware of?
2) Are there any unique private lending issues in PA? It's a first position lien, I plan on asking for lender title insurance and loss payee on insurance policy and theres plenty of space in LTV. I'll also require a personal guarantee but its a loan to an LLC. Are there special mortgage clauses I should require for foreclosing options? Do I need a commercial loan affidavit?
I appreciate any feedback.
I'm also interested in the answer to these questions... I have 4 properties I'm looking at in the next month that are in the Eastern pa area.
Can't speak about location, but the thread in link below has posts from an attorney in PA who has clients that do lending:
@David Krulac might be able to discuss that location.
@Steve Babiak Thanks. i know New Cumberland very well, have lived there and have owned 32 properties there. @Charles Williams I like new Cumberland a lot, obviously. There are around 7,000 people live in New Cumberland which is in Cumberland County across the river from Harrisburg in Dauphin County. Drexel Hills is a desirable area, I sold a house there last year. as far as your legal questions I'd ask an attorney in PA familiar with real estate, perhaps the attorney doing your settlement?
@Theodore Xenos Hey bud, I just want you to be aware that Harrisburg is more South-central PA. I'm currently working in Lewistown (super central, pretty much right between State College and Harrisburg) and the answers specific to Harrisburg may be very different from those in Eastern PA. Best of luck!
Thanks for the heads up. I'm setting up for some auctions through xome and other sites in the next two weeks. Looking for an attorney in my area (Berks) that can also help with the closing in 30-60 days.
Hi Charles. I grew up in Drexel Hill, although many years ago, but still have many friends and parents of friends that still live there. It a multi generational town where kids grow up and move down the street from their parents. Great private and catholic schools. Its Norman Rockwell type of suburb. On the lending side, grabbing yourself a good full service brokerage is your best bet. You want multiple options and to have someone quarterbacking your transaction from start to finish. Knowing a lender is 20% of a transaction to a close once appraisal and title ordered. I highly recommend www.11capitalfinance.com. 3 minute loan application with multiple loan offers in under 24hrs. No one is better. Although you have experience, your time is money. Best of luck! CP