All Forum Posts by: Greg Bishop

Greg Bishop has started 8 posts and replied 30 times.

Kim,

I've found that local/regional banks are the quickest and easiest to work with if you don't have anyone personally you can go to. Do a google search, get a list, and call banks asking what HELOC products they have. Write down the best rates and go meet them, with donuts of course. Before lunch if you can. You'll having them begging to give you money.

Good Luck

-Bishop

The Bishop Real Estate Collective

2 Votes

Bobby,

I'm not personally in the ST game, but some aquatints of my my are getting healthy returns. From what I figure, it depends on the area. Philly has at least 40 'hoods and growing. Places near schools and commercial areas that do not have adequate conventional ST housing option are the places to be. Especially in the up and coming areas.

You should probably link up with a realtor that knows the county to get you some insight.

Good luck with your journey.

-Bishop

The Bishop Real Estate Collective

1 Vote

I would say go ahead and get an LLC set up anyways if you can spring for it. In PA a setup is around $400 with a lawyer, about $200 if you do it yourself.

It's my understanding that only a LLC of the two can protect your personal assets in the wake of a lawsuit or something. Plus with the new tax benefits, the LLC is also a good call.

This way it has time to "season." If you're going to use institutional lending, quite a few banks want to see a history. It helps down the road if your looking for credit and such.

Good Luck, Hope you get you first deal.

-Bishop

The Bishop Real Estate Collective

3 Votes

Originally posted by @Rob Beeman:

I have found from personal experience to check with the local license inspections department (L&I). In New Castile County Delaware, almost nothing short of an addition needs a permit. However, 10 minutes away in Pennsylvania, the rules for work requiring permits adjusts from township to township! The same with New Jersey.

Don't even get me started on Philadelphia requirements. They wouldn't even let me pull my own permits (since it was owned by my LLC...not TECHNICALLY me), only a licensed GC (or the INDIVIDUAL property owner) can pull the permits. So, I gained a GC license, just to control permitting on my projects (Yes, I AM a control freak).

So, I always check out the permit requirements tied to work type with the local municipality. I find that it avoids fines and stop work orders. Plus I sleep better at night.

Amen Rob on the GC license in Philly. And don't get me started on that 25 hour OSHA course that they make you take to get the license.

Anyways,

@ Trisha

In my experience, the simplest way to think about it is...If you have to open a wall you probably have to get a permit.

In terms of selling the property, in most states you have to disclose certain known "issues" in a sellers disclosure. Whether or not it matters that the upgrades have permits is usually up to the buyer and they could possibly use that in negotiations so be prepared.

Congrats and Good Luck

-Bishop

The Bishop Real Estate Collective

0 Votes

Originally posted by @Max T.:

Any plans to refi some/all of your capital back out? What do you expect the new value to appraise at?

We do plan on refinancing in December to pull out some of the cash for a purchase in 2020

We are expecting an appraisal of at least $425k and pull out roughly $40k.

-Bishop

0 Votes

@Peter

Yes, they did that exactly how you would imagine it. However, we just went through another purchase 6 months later using that same strategy and couldn't do that as easily.
I was told that there was a recent federal clarification with proceeds directly going to "interested parties" on closing. On typical investment property loans, "interested parties" purchasing the property may only receive up to 2% seller assist on the HUD statement . So the commission can't go directly to closing costs any more.

It stinks because we used to be able to come to closing with considerably less cash and it helped us when were getting started scraping together monies for our first few properties. I feel bad, for people that are trying get into investing and yet another barrier has been put up in the progress of financial freedom, but I digress.

Anyways, You can still get a commission check, even if its inflated. Now you'll have to either have the cash available to close, or borrow it short-term then deposit the check back into your account. Doesn't make any sense, considering they just make you take another step. I guess someone just trying to cover their butt.

I would speak to your broker in advance and let them know what you intend to do so they understand don't take a cut from those additional proceeds. If they don't understand, I would suggest shopping for a more investor friendly broker.

Hope that helps. Good luck and god speed

-Bishop
The Bishop Real Estate Collective

Originally posted by @Peter Dunne:

Well done @Greg Bishop

I live and work up that way as well. I'm curious to hear more about how you technically leveraged your commission into the closing costs. Did title simply redistribute the funds or did you use your own money, essentially being reimbursed with the commission funds?

I am a Realtor as well. Curious.

0 Votes

Maneesh,

We own and manage a couple handfuls of units in Philadelphia and that's never been a question. We just call them up and get coverage.

Maybe its different with each company. We use Allstate. If you'd like their info I'd be more than happy to share. Shoot me a DM if you'd like.

Good Luck,

-Bishop

The Bishop Real Estate Collective

0 Votes

@Chris Harper

I just use Redex.

Hope that helps.

-Greg

The Bishop Real Estate Collective

2 Votes

@Marvin Tomlinson

We rent in pretty stable areas of Philly, around the major schools and the “suburban” areas of NE&NW Philly. We get stable rents and modest appreciation. Especially since the center city keeps a growing band moving people outward. Much of the city seeing modest growth.

To save yourself some time take a look in the following areas that are definitely up and coming with some meat still on the bone for people just getting into the area;

-Brewerytown

-South Kensington

-Parts of South Philly

Hope that helps. If we can be of any assistance let me know. Not sure what ur timeframe is but there are some other parts of the city that are less sexy but still very solid for long term opportunities.

Good Luck and Godspeed

-Bishop

The Bishop Real Estate Collective

1 Vote

Investment Info:

Single-family residence buy & hold investment in Manayunk.

Purchase price: $180,000
Cash invested: $39,000

Single Family Rental.
1st 100% rental purchase.

What made you interested in investing in this type of deal?

It was not on the market.

How did you find this deal and how did you negotiate it?

I found the owner via Craigslist just before it was set to go on MLS. I used an auto generator to uncover the lead.

How did you finance this deal?

Conventional bank loan

How did you add value to the deal?

Made some minor upgrades to kitchen, floors, and removed a wall to add space. Commanded $500 in increased rents.

What was the outcome?

Commanded $500 in increased rents.

Lessons learned? Challenges?

Dealing with contractors. Spelling out exactly what the expectations are for projects. How to pre-rent.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My wife and business partner brokered the negotiations. After upgrades we gained approximately $50k in equity.

0 Votes

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All Forum Posts by: Greg Bishop

Greg Bishop has started 8 posts and replied 30 times.

Post: HELOC - The best lenders

Post: How good is Philadelphia for Short Term Rental

Post: Buy and Hold - did you form an LLC or DBA?

Post: Inspections and permits on BRRRrs

Post: Value- Add Manayunk Tri-plex

Post: Value- Add Manayunk Tri-plex

Post: Getting Homeowners Insurance for a rental property

Post: Finding Philadelphia Pre-Foreclosure lists

Post: Investing in Philadelphia

Post: Craigslist Single Family Gem