Looking for guidance from mentors/experienced BRRRR investors in Philadelphia area?

Question

Hi guys - I am looking to get into the BRRRR space and am looking for some advice from someone who has experience in investing in the Philly area.

I'm looking to understand the following better -

- What neighborhoods are good to invest in? I am hearing multiple things like - "go explore Strawberry mansion or Brewery town" - "try Kensington" or "go to Cobbs Creek"? or "be near Temple University" I am from NJ/NYC area and am looking to identify the next big/upcoming neighborhood in Philly?

- Do you have any reliable contractors who have experience in doing rehab work for your properties?

Thank you in advance!

Anwar Nasir · Answer

Greg - Thanks for responding and congrats on your success. I guess that it's true that good things come to those who wait, or at least are patient. Jumping into any investment without knowledge can be a recipe for disaster or great losses. Knowing a market and being within a reasonable distance just seems to make sense especially if you are either working solo or with a small newly formed team. This new virtual investing seems risky and something that requires skills beyond those of a newbie. It seems that most new investors fail to realize or understand the importance of digesting a market and knowing a deal when they see it. They also dont know that every market does not present the same opportunity. But even that depend what your end goal is. A win for one person, is a total loss for another.

Greg Kasmer · Answer

Anwar - Sounds like it would be great to chat! Message me and we'll connect. I invest in the suburbs now becuase I know the areas well enough and feel confident in the values and when I can spot a "good deal." It's also an area I can get to for projects within a 30-45 time frame, which is also important to me. Many will talk about investing in "landlord friendly" areas and I know typically cities don't fit that criteria, but in my mind knowing the areas well and having a proximal location are important, but not talked about enough. Good Luck!

Anwar Nasir · Answer

What is it that you find most attractive about investing in suburban properties and do you invest in the city at all?

Sharma Parth · Answer

Thanks you Greg! I will DM you

Greg Kasmer · Answer

@Sharma Parth - I agree with Jake on the networking with MeetUps within the Philadelphia area. The largest residential REIA group in the area is DIG  (Diversified Real Estate Investor Group | Real Estate Education in Bucks County, PA (digonline.org)) - I would go there to investigate the meeting schedules and locations as they have many opportunities to network and connect. From my perspective, when BRRRR'ing the most important aspect is the quantity of deals you can secure at values below the ARV in a given area. For example, if 3/1 in an area typically sell for $200k per home are their any listed at $150k or below because they need work/rehab? Knowing the price per square foot in a zip code helps and knowing when you can spot "value" is very important. When you talk about path of progress that is important to upside/appreciation, but I place a higher focus on finding "value" from the start. I invest in the Philly suburbs and would be happy to chat. Good Luck!

Jake Baker · Answer

This forum has good meetups https://www.biggerpockets.com/forums/521

I did a quick search and found this one: https://www.biggerpockets.com/forums/521/topics/1189480-phil...

You can also try meetup.com

Sharma Parth · Answer

Can you suggest a good place to find one in New Jersey or Philly area?

Jake Baker · Answer

@Sharma Parth

The best way to find mentors in your area is to attend local meetups and conferences. Ask to tag along on an ongoing project. You'd be surprised how many investors are receptive to that.