All Forum Posts by: James Brand

Welcome Rasheed!

Firstly, kudos on finding BP and making your first post. House hacking is a great way to get the ball rolling on your investment portfolio. My advice would be to absorb as much as you can from all the resources available here. The podcasts, books, webinars, and blogs will educate you to a point where you can bring more than just hard work to a partnership. Additionally, I would advise caution in partnering with your family friend. Make sure you guys hash out every detail regarding responsibilities. Once you cover everything figure out a compensation structure/split that make both of you happy, given what you are each investing. 

Best of luck! 

-James

Completely agree with @Russell Brazil regarding 24 hour notice. This should be the standard not just to properly respect your current tenant's privacy, but to ensure the best showing for the prospective tenant. If I showed a property and had not cleared it with the occupant a whole myriad of problems could occur the would demonstrate a serious lack of professionalism. Firstly, you might not be able to gain access to the property, and if you did, you would likely have an unhappy tenant. Not the ideal environment to show someone else the amenities a property has to offer. Look at the lease, most will have a section regarding showing the unit.

-James

Welcome Freda!

@Paul Timmins basically knocked it out of the park with his recommendation. If you are diligent and have a love for the industry you will start tearing through that material and feel more and more comfortable as you do.

Best of luck,

-James

Welcome Anthony!

I am also a Drexel Alum, how is the market in Trenton? 

I currently live/work in Philadelphia, but in 4-5 years might consider buying a house in the Yardley, PA area. There is not much of a rental market in that town it seems, however I was considering Morrisville, PA as a potential investment target. I like this area because it can access Trenton Transit Center and commuters can shoot all the way up to NYC, or  train to Philadelphia. I will continue to work in Philadelphia of course, but commuting between those two markets will open some opportunities for me. To get some inside from a local would be great. 

Let me know...

-James

Originally posted by @Justin Lee:

@James Brand Hi James, thank you for the info. I want to purchase a multi unit and live in one of the properties, multi family homes are duplexes/triplexes right? Also, how would i go about investing in a single family, how do i make profit while living in it? Lastly, how much do banks usually charge for closinh costs? I currently live in West Philly (university city) so i wish to purchase one here so i am close by.

 Yes Justin, Multi-Family properties would include duplexes, triplexes, and quads. I am very very familiar with UC as it is where I got my undergrad degree (Drexel U.), and where I have worked professionally for several years. Having a good idea of all the costs involved is definitely key to understanding what you are commiting to. To help you along with this I could show you an estimate of closing costs, as I put them together all the time. The alternative to a MFH that I referenced earlier was having roommates who pay rent. UC is a great area for this with the myriad of students and professionals in the area. PM me and we can chat about what kind of costs you'd be looking at with either strategy...

-James

Hey James!

First of all very strong name. Nice job and taking steps to getting your license. You will find that what you learn for the licensing exam is just the beginning of your studies as you need to familiarize yourself with so much that is not touched on in the 60 hours of coursework. I am in Philly as well, so feel free to reach out, it's definitely helpful to pick the brain of someone who's gone through the test for tips.

-James

Justin,

I am assuming since you want to go the FHA route that you are interested in purchasing a MFH? Conversely you could get a property with several bedrooms and have roommates pay your mortgage (and then some) for the first year. After which point you would no longer have to occupy the property personally. Its a competitive market in Philly for MFHs, depending on the area, which is why a SFH could be a workable alternative. What parts of Philly were you considering to purchase in? Also, you definitely want to have a good lender, and with this kind of transaction you are looking at minimum 45 days from getting a property under contract to settlement. I am an agent in the city, and am always on the lookout for good investments, feel free to hit me up with any questions.

Best of luck,

-James

Welcome Casey! Great advice with the previous posts. Absorb everything this site has to offer, it is an incredible resource! The motivation is key, in talking with people who have tried real estate investment, it seems that early failures have stunted or ended their aspirations. The first remedy to that is developing a very strong knowledge base, the second is having the dedication to push through the speed bumps you hit early on. Experience is incredibly valuable so any setbacks should be looked at as investments in themselves. Best of luck, and reach out any time. Love Philly and chatting about investment strategies. -James

Originally posted by @Pierre Streat:

@Mathew Gunkel - Agreed on 203k loan being a great opportunity but correct me if I am wrong, this program does require that the owner live in 1 of the 4~ units correct? If so, for how long is that owner-occupancy requried? How likely is it that the FHA authorities check to see if it is in fact owner occupied? Wondering if this could be an option for an out of state investor such as myself buying in Philadelphia.

@James Masotti - Would love to hear more about your investing in Delaware. Are you buying multi-families there? What are the price ranges like for 1-4 units and subsequent rent rolls? What is the general economy like in Delaware in order to gauge tenant profiles? GDP, household income, unemployment rates etc?

FHA 203k loans do require owner occupancy, and the time commitment for occupying the property is 1 year. It could be possible to vacate earlier IF something monumental has happened in your life, such as termination of employment, but this is something you would 100% want to discuss with your lender.

-James

Fantastic resource! I have adopted many of the steps there into a checklist of my own. Specifically love rentometer when considering buy and holds. -James