All Forum Posts by: Dan Powers

@Joakim Ryan I have worked closely with Sherman Bridge lending on dozens of transactions, a good fit for a first time investor or someone that has 10 properties under their belt, and I have closed loans in as quickly as 4 business days which I haven't come across from another lender in the city. Let me know if you would like me to connect you.

@Marshall Secord Obviously I would never not recommend pulling permits for work. That being said the city of Philadelphia is hilariously backlogged and delayed when issuing them, taking up to 3-4 months in extreme cases and really eat into your profits if you used a hard money loan for the acquisition. Also the neighborhood your in plays a part as well, with nicer neighborhoods there is a much higher potential of an inspector coming around to check on your project.

From a resale standpoint an appraiser isn't going to look at if permits were pulled for the work at least in Philly that isn't a concern. Really the debate in pulling them comes down to how fast your contractor think they will come back  and are you willing to wait the weeks/months instead of diving right into it. Hope this helps reach out if you have any other questions.

@Bree Hansteen The majority of traditional banks need a 6 month seasoning period before you can refi for a 30 yr fixed around 3-4% interest. I have a few contacts at Spring Garden Lending that can refi and give a 30 yr fixed with no seasoning period, the only thing they require is to have tenants signed on an annual lease. Let me know if you would like me to shoot over the contact info.

@Rick Sterling Just like Eric said I would need to know more about your criteria in order to point you in the right direction. Philadelphia is very diverse in the returns it can bring in. On top of that the returns you want typically determine the areas you'll want to target.

@Swetha Mandava From an acquisitions standpoint multis in Point Breeze are a rare commodity, let alone turnkey opportunities. Multis overall in Philly are a needle in a very large haystack unless you're interested in a 6 figure purchase and a 6 figure rehab, which is the majority of multi inventory. If you're looking for cleaner multi-unit properties I would turn your focus to Delaware County, there is a much larger inventory of multi-unit properties and the permitting process is significantly easier than anything you will experience in Philly. If you do end up looking out there I would contact @Sean Watson with Rentwell for property management, I have multiple investors use his services in Delco. 

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $259,000
Cash invested: $125,000

This fantastic flip opportunity was located in the heart of the Main Line in Bryn Mawr. While this house needed everything top to bottom, it's going to make my investor a fantastic return since everything in the area is selling with single DOM and over ask.

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

What made my investor interested in this deal was the location. It's quite hard to beat the demand the Main Line brings, especially in this market. The project was a straightforward full gut rehab, while it is an expensive project being a 6-figure rehab, it's overall an easy project for my investor. Finally, the return, expecting

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

This deal was sourced through the New Western Acquisition marketplace and was sold as a first come first serve basis.

How did you finance this deal?

This deal was purchased with cash.

How did you add value to the deal?

Value is being added everywhere to this property, a complete remodel of the interior, completely new mechanicals, cosmetics, and reconfiguring the layout to add another bedroom to the house.

What was the outcome?

The outcome is going to be a completely rehabbed house, that is going to sell 515k+

Lessons learned? Challenges?

This was a smooth cash closing, no problems.

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

Dan Powers - New Western Acquisitions

@Ammar Muhammad I would very much look into the Point Breeze area as an investment property as opposed to renting it out by the room. The majority of homes that are used as rentals down there are 2 beds because you will rent to a young couple, most likely no kids yet, and still have a room for an office. You will want to look for a home that is mechanically in decent shape where you don't have to address them immediately but focus on rehabbing the cosmetics of the property (kitchen, bath, paint, floors). For a rental adding central AC in south Philly is a must so a house with ductwork in place is a big bonus.

@Buyan Thyagarajan I agree Norristown is primed to appreciate in the coming years for multiple reasons. I did a post on one major aspect being the development of a large 110 unit mixed use building on DeKalb & Main St. https://www.biggerpockets.com/... On top of this they are adding a dedicated highway exit specifically for Norristown, addressing the main problem with access to Norristown. Further out there are plans in place for SEPTA to expand their rail service to include Norristown, KOP, and Pottstown. While appreciation is not in the next 6 months it certainly is on the horizon in the years to come.

The Cobbs Creek Golf Course is set to recieve an $65 million dollar overhaul to turn the now closed course into a brand new facility with an education and community engagement center, driving range, 9-hole short course, and restaurant to be completed by 2023. The goal of the renovation includes restoring the 105 year old course to its former glory for all Philadelphians to use and enjoy as well as hosting championship course capable of hosting PGA Tour events. This level of investment should create a lot of buzz in the surrounding neighborhoods of Overbrook and Upper Darby, but it will be interesting to see how this will affect values in the coming years.

With values having already skyrocketed throughout West Philly and Upper Darby over the past 2 years with no signs of slowing down, it will be interesting to see how this will impact the market over there. The only thing I could see slowing growth in the pocket would be the FED continuing to increase interest rates, but only time will tell.

Investment Info:

Single-family residence buy & hold investment in Chester.

Purchase price: $57,000
Cash invested: $15,000

This Chester property was currently bringing in $800/month with tenants on a M/M lease. The bones of this property were solid, but my investor is going to renovate some of the cosmetic items to increase rent. With 3 bed properties in this pocket reaching as high as 1300/month, this will be a cashflow monster all said and done.

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

What made my investor interested in this deal was purely the cash flow the property will bring in, 1300/month for sub 70k all in, he's nearly going to hit the 2% rule.

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

This deal was sourced through New Western Acquisitions and sold on a first come first serve basis.

How did you finance this deal?

This deal was purchased in cash.

How did you add value to the deal?

Value is being added to the property by redoing the kitchen & bath, some new laminate, and a fresh coat of paint.

What was the outcome?

The outcome is going to be a fantastic cash flowing property.

Lessons learned? Challenges?

The only challenge with this property was organizing a cash for keys arrangement with the current tenant to give them extra incentive to move out in a timely manner.

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

Dan Powers - New Western Acquisitions