All Forum Posts by: Cory Ohl

@Jason Appel Hey Jason, I would love to connect. Real estate is all definitely all about having those solid connections! I'm an agent but work solely in wholesaling and dealing with investment properties. 

@Janene Smith Congrats on jumping in and doing your first investment property! 

First I would say you should study some of the areas in Philadelphia that you could potentially purchase. Philadelphia is a super hot market right now, what neighborhoods did you have in mind? Some of my investors love Port Richmond, Kensington, Grays Ferry, Cobbs Creek, and Strawberry Mansion just to name a few. Second, I would say you definitely want to talk to a hard money lender to get this funded, I'm not sure if you planned on funding with your business partners FHA pre-approval - you can only use FHA for investment properties if you plan to use it as your primary residence.

Other than that it seems like you're on the right track. Depending on your level of expertise in rehabbing, the only other thing I could suggest is getting in contact with a reliable general contractor. 

I'm not sure if this was the answer you were looking for but I wish you the best of luck on your endeavors!

@Steven Ocampo Congrats on taking your first leap into real estate investing! I would recommend finding a trusted contractor (licensed and insured) who is willing and able to perform the amount of work you want them to. Make sure you call references so you you can ask people how professional they are and see pictures. Next you'll need to get in contact with a hard money and/or private money lender and see what terms they can offer you. You'll also need more than $1000, even when borrowing from HML, you'll need to bring the difference in what they aren't lending (some HML's do 75-80% purchase and 100% rehab), and closing costs.

So concrete things to do, we usually tell our investors to have a minimum of 30k cash and start finding contractors and hardmoney/private money lenders that will work with you.

@Matthew Mehring Welcome to BP! You've got quite an impressive list of accomplishments under your belt already at a young age! Remember, real estate is very plan oriented, and you are definitely on the right track! I feel as though these forums bring very like minded people together, there's an extensive amount of resources and information at your disposal here. If you would like to connect, feel free, I'm always looking for positive goal oriented individuals to join my circle! Good luck with your investing journey.

Hey @Sean O'Reilly! Welcome to BP!

I am from Roxborough however my office is in Drexel Hill. We're seeing lots of properties move in that area. It's definitely a good area to start because you can pick up investment properties a little cheaper than Philly generally, and the transfer tax is a decent amount lower than Philly as well. What books have you been reading to prepare you?

Always happy to help, just reach out!

Hey @Matthew Tierney,

Hard money is definitely a good way to leverage your cash to be able to do more deals, you just want to make sure you've got all your key players in place so you don't waste time with the rehab because the interest rates and points can eat away at your budget. I have an point of contact with a HML at Sherman Bridge I can pass your information to if you want more information on terms/how the process works.

Let me know if you’re interested, always here to help!

@Matsa Sundara From my experience the best spot for buy and holds are typically in the lower end areas like West Philly, North Philly, Strawberry Mansion, etc. These are areas you can purchase at lower price points and can charge in the $1000 range for rent.

@Matsa Sundara Congratulations on all your success! The biggest thing is getting in the right mind set, having a positive attitude, and just GOING FOR IT! I applaud you on overcoming the obstacles, but that's the best way to learn. I am currently investing in the Philly area also and love hearing these stories from the City of Brotherly Love.

Keep up the great work!
 

Hey Kenneth,

I would say it depends on what perspective you are looking at. Are you talking about the split for one transaction, or for the entire year? As a wholesaler, I can tell you that the investor doing the rehab makes significantly more. Of course we charge fees for creating the relationships, negotiating deals, and putting a house under contract. Our fees usually range between 10-20k depending on the purchase price of the house. In most of these cases the rehab investor will be making more along the lines of 40-70k.

The main thing though for the rehab investor is to make sure the numbers are right for them and that their contractors are able to complete the work.

I hope this answers your questions!

Cory