All Forum Posts by: Rich O'Neill

How many other contractors on here are paid members? Not many! That should show you how much they want your business...

Fleming Project Management started with only one customer in mind- real estate investors. The ABSOLUTE most important relationship to a value-add real estate investor is with their contractor. It is also the hardest to create. We set out to solve that issue.

Our role is to represent you on the project. We manage the relationships with the individual trades, create and push project schedules, create and execute scope of work, and keep you informed throughout the process. We align our goals with you instead of trying to eek out the most profit we can on a job.

So we built the Fixed Time Pricing Model. We come up with a project schedule, and commit to that time frame. Our fee will be based on that proposed schedule, not the actual close date. That incentivizes us to get it done faster. You get the property rented or sold faster, you pay less in interest (or earn a higher annualized ROI on Cash), and you free up your cash sooner to do more deals in a year. We generate a higher margin, free up our team to work on more projects (maybe another of yours…), and get our subcontractors more work, which ultimately means more money for them. We understand that when you make money, you have more capital to invest in another project, which you will inevitably rehire us for, and continue the virtuous cycle.

For investors, by investors:

At the end of the day, we are very different than your standard contractor, but that’s the point. We are here to create value for you to help you reach your version of financial independence, and achieve whatever your goals in life are.

We operate in Philadelphia, Montgomery, Delaware, and Chester Counties. Lansdowne, Upper Darby, Springfield, Broomall, Collingdale, Ridley, Crum Lynn, Pottstown, Coatesville, Norristown, Royersford, Downingtown, Kennett Square, West Chester, Conshohocken, Glenolden, Drexel Hill, Clifton Heights, Newtown Square, Malvern, Avondale, Toughkenamon, and many more.

@Jay Velastegui Unfortunately we don't. If you end up picking something up west of the bridge, or know anyone who does, we hope you will reach out! 

How many other contractors on here are paid members? Not many! That should show you how much they want your business...

Fleming Project Management started with only one customer in mind- real estate investors. The ABSOLUTE most important relationship to a value-add real estate investor is with their contractor. It is also the hardest to create. We set out to solve that issue.

Our role is to represent you on the project. We manage the relationships with the individual trades, create and push project schedules, create and execute scope of work, and keep you informed throughout the process. We align our goals with you instead of trying to eek out the most profit we can on a job.

So we built the Fixed Time Pricing Model. We come up with a project schedule, and commit to that time frame. Our fee will be based on that proposed schedule, not the actual close date. That incentivizes us to get it done faster. You get the property rented or sold faster, you pay less in interest (or earn a higher annualized ROI on Cash), and you free up your cash sooner to do more deals in a year. We generate a higher margin, free up our team to work on more projects (maybe another of yours…), and get our subcontractors more work, which ultimately means more money for them. We understand that when you make money, you have more capital to invest in another project, which you will inevitably rehire us for, and continue the virtuous cycle.

For investors, by investors:

At the end of the day, we are very different than your standard contractor, but that’s the point. We are here to create value for you to help you reach your version of financial independence, and achieve whatever your goals in life are.

We operate in Philadelphia, Montgomery, Delaware, and Chester Counties. Lansdowne, Upper Darby, Springfield, Broomall, Collingdale, Ridley, Crum Lynn, Pottstown, Coatesville, Norristown, Royersford, Downingtown, Kennett Square, West Chester, Conshohocken, Glenolden, Drexel Hill, Clifton Heights, Newtown Square, Malvern, Avondale, Toughkenamon, and many more.

Check us out
https://flemingpm.com/

How many other contractors on here are paid members? Not many! That should show you how much they want your business...

Fleming Project Management started with only one customer in mind- real estate investors. The ABSOLUTE most important relationship to a value-add real estate investor is with their contractor. It is also the hardest to create. We set out to solve that issue.

Our role is to represent you on the project. We manage the relationships with the individual trades, create and push project schedules, create and execute scope of work, and keep you informed throughout the process. We align our goals with you instead of trying to eek out the most profit we can on a job.

So we built the Fixed Time Pricing Model. We come up with a project schedule, and commit to that time frame. Our fee will be based on that proposed schedule, not the actual close date. That incentivizes us to get it done faster. You get the property rented or sold faster, you pay less in interest (or earn a higher annualized ROI on Cash), and you free up your cash sooner to do more deals in a year. We generate a higher margin, free up our team to work on more projects (maybe another of yours…), and get our subcontractors more work, which ultimately means more money for them. We understand that when you make money, you have more capital to invest in another project, which you will inevitably rehire us for, and continue the virtuous cycle.

For investors, by investors:

At the end of the day, we are very different than your standard contractor, but that’s the point. We are here to create value for you to help you reach your version of financial independence, and achieve whatever your goals in life are.

We operate in Philadelphia, Montgomery, Delaware, and Chester Counties. Lansdowne, Upper Darby, Springfield, Broomall, Collingdale, Ridley, Crum Lynn, Pottstown, Coatesville, Norristown, Royersford, Downingtown, Kennett Square, West Chester, Conshohocken, Glenolden, Drexel Hill, Clifton Heights, Newtown Square, Malvern, Avondale, Toughkenamon, and many more.

Hey @Herbert Fletcher we aren’t exactly what you’re looking for but maybe we can help? We are a project management company specializing in managing rental and flip renovations. We do have our own contractors we bring with us. Let me know if there’s anything we can do! 

@Aniqah Kalam thanks for reviving this thread! 

I agree with most of what @Sheryl Sitman said (as I usually do) but I prefer not to speak (write) in absolutes. BRRRR deals DO exist, they are just much, much harder to find than a few years ago. You have to get more creative and sometimes take on a little more "risk". As such, be prepared to leave some money in the deal. One example I see is in buying highly distressed properties, the ones that nobody else is looking at for one reason or another.

I am constantly amazed at how many investors I talk to that are looking for "light to moderate rehabs" because they are "safer". I always challenge that strategy with 2 points: 1) That is what everyone is looking for, so that is where you will find the most competition, and that is why you can buy "fixer uppers" for barely any discount off of retail. 2) From a renovation standpoint, I find those deals MORE risky than a full gut and redo. I have had too many clients that bought a deal that looks good on the surface but as soon as we go to remove a wall or do a dump test, we find we need to redo all of the plumbing or electric, that wasn't budgeted originally. At least with a gut, you know it is all going away anyway so there are less unknowns.

As for the original question: everyone puts a lot of weight on those metrics, and they are important, but for someone with a few single family units or small multi-family's, I don't think it is make or break. If there is a serious trend toward the negative, or the town seems to be drying up and/or becoming crime infested, that would scare me away. However, if the population growth is stale but you can still make good deals and it has other fundamentals that are attractive to you (appreciation, rent/wage ratio, proximity to you, strength of your network in the area), then I don't believe it should break your strategy. It would be important though to look at your long term strategy as part of this. It would be difficult if you want to buy single/small multi for a few years then move to another market with better fundamentals for larger apartment buildings. Then you need to find new relationships etc. again. 

For Philadelphia specifically, the area has some great neighborhoods, some not so great, and some bad neighborhoods. @Jimmy O'Connor did a great post a while back breaking down the neighborhoods to watch. It is almost a year old now but a lot of the content is still applicable. I'll bug him to do an update... https://www.biggerpockets.com/...

Personally, I prefer to invest in the suburbs. Collingdale, Upper Darby, Lansdowne, Glenolden, Ridley, Etc. The city is very pro tenant and has implemented some policies that are a bit crazy in my opinion. It makes it tough to run a profitable business, so I stay out of there. @Sheryl Sitman knows a TON about this, so make sure to follow her. The suburbs seem much more landlord friendly and averse to accepting any of the undesirable spillover from the city's policies. 

I hope this is helpful. Please let me know if I can be of any more help! 

Thanks @Yuriy Skripnichenko! Much appreciated! 

Hey Leo! It looks like we spoke last week and you have been in contact with @Daniel Scruggs. Please let us know if you need any further assistance! 

@Owen Lee single family use is listed as "expressly prohibited" in CMX-3. Surprising that you would want to keep a CMX-3 as single family though. With that zoning you have a lot of flexibility on what do do with it, and the highest and best use is likely not a single family dwelling. Unless the house is currently gorgeous, if it is in a decent area, you might be better making a small apartment building or mixed use. If cost is a factor, there are definitely ways to make it work. 

Hey @Robert Gonzalez happy to help if we can! 

@Marshall Secord the other piece I didn't mention is the quality of subcontractor you hire. There are some out there that are very cheap, but not very good. There are some out there that are better than you need, but too expensive. It is really hard to find the person in the middle. This is ESPECIALLY true in Philly. We spend a ton of time finding the right contractors on jobs and its exhausting... 

Best of luck! Again, let me know if I can be helpful.