All Forum Posts by: Jhanel Wilson

PFCU gives heloc but prefers cash out refi loan. 80% ltv 20 year amortization 

I own 4 properties on woodland. I would say keep it. 

Can you please tell us what title company this was. I need to make sure I never use them. 

Diversified Settlement Services is a good title company if you’re looking for one. Very thorough. 

If you're buying with an LLC, there is no 10 loan limit. So don't feel you have to pay off houses to buy more.

Do you plan to buy “move in” condition properties? Or do you want to brrr?

But in general, if you want to scale fast you have to leverage. So saving up money and paying 100% of the cost is going to take long. Save up just enough to pay the down payment. Or use your home equity loan for the down payments on multiple properties. 

As far as the permit goes, they are that expensive.  I did 5 last year and were 1k a piece. My plumber showed me the receipt. The street opening alone was $550. Then They charge you for a new meter, $200, and a couple other charges. 

How long has the house been vacant? I’ve heard things like, if it’s and old line and it’s been sitting for years then it needs a new tap and new line.  For a lot of properties, that the City knew were vacant for long periods of time, they would take the water lines out. So that when someone finally rehabbed them, they would have to get a new, better, Water line. 

If you do decide to get it, you could probably get it done for a little cheaper if you call around, $3500.  

I like Direct Mortgage Loan Company I think their rate is 12%. There are some with lower rate but DMLC is so easy to work with. 

I also hear Spring Garden lending is good too.  I think their rate is 9% but is more of a process. 

PFCU is my favorite lender right now. 80% LTV 20 year amortization, 15 year loan.

I DO NOT recommend univest. I just refinances 4 of my loans out of them. I find their lending practices predatory. They are only good for temporary construction loans and good luck getting them approved in a timely manner. With Univest I waited 2 months for an approval before I gave up and went back to my hard money lender, at DMLC, who closed on my loan the following week!

As for refinance, they are only 5 year loans (No they don’t just reset the interest rate at 5 years) the loan ENDS at 5 years and you have to refinance again! Paying a kinds of fees and pay for appraisals! AND they have prepayment penalty’s up to 5 years!! The people are nice, bad loan products. 

My current strategy is brrring duplexes in west philly. There are vast differences in the areas of west Philly to invest in. Near the colleges which is an expensive area, Wynnfield and Overbrook which are nicer areas much less expensive than the college area, but is more like an area to flip. Then there are the areas that I guess are C areas. I like those areas. The houses are cheap and since you have 2 units to generate income the cash flow is great. Multi family's are hot right now so they don't last on the MLS too long. And they are over priced. Best bet are to find wholesalers.

ARV's range from 130-150k depending on number of bedrooms. Therefore not often am I able to pull a lot of "extra cash out" based off the purchase and rehab but if I break even I'm happy. If I want to make more money from the cash out I'll buy a single or triplex. However I don't like buildings with more than 2 units. More things to deal with such as the fire alarm monitoring and certifications, more trash, and more personalities to clash.

Philadelphia federal credit union. They are our favorite lender right now. 80% LTV 20 year amortization.