All Forum Posts by: Kevin M.

@Mary Hasnon I have some options for you on for both your legal and property management needs. Sent you a connection request. Best of luck 

@Joseph ODonovan Under Governor Wolf's shutdown order, in Pennsylvania you cannot conduct "physical operations" relating to Real Estate Leasing. Not sure if they'll let me post a link but I'll try;

https://www.governor.pa.gov/wp-content/uploads/2020/03/20200319-Life-Sustaining-Business.pdf

Philadelphia is trying to be consistent with state guidance now, so I imagine they feel the same way. I would think the only possible compliant solution would be to offer virtual tours, as this would not be a physical operation. We do not allow self-tours through lockbox access, and even that may violate the "physical" prohibition since it would require prospective tenants to appear in person. Strange times. 

@Anna L. a common question right now. I would call a few agents and get their take on the sales atmosphere. From what I’ve heard it’s dead. Lenders are pulling funding and going into holding pattern for a few weeks AT LEAST. Cash deals may still be closing.

We do detailed YouTube videos of all our listed properties so we can offer virtual tours. People still need places to live. People are still renting apartments. I don’t think it’s been specifically assessed but I think there is a fair argument to leasing as an essential service. If you’ll be renting them yourself just make sure you have a thorough vetting process in times like these.

@LaMar S. Blake yes In Pennsylvania a property management company needs to operate under a licensed Broker of Record. You will be able to manage properties in your own name, but if you want to manage for other owners you will need to register under the direct supervision of a broker, and if you personally are engaging in real estate activities you will need to be a licensed salesperson. 

@Uzoma Chibundu a few brokerages I know are suspending all closings until further notice. Too many issues right now with lenders pulling out financing. I think everyone (well a lot of people) are pulling back for a few weeks just to see how things shape up. Unfortunately it’s a tough time to close a deal. Take a detailed video to post on YouTube so you can offer a “virtual tour” and adjust price. Those are the only tips I can provide. Good luck 

Although I am not a rootologist, I wanted to chime in and note that Philadelphia License and Inspections has been particularly harsh regarding building foundation assessments over the last year. They have implemented new rules regarding engineer involvement in any work affecting foundations and have been handing out unsafe structure tags left and right. Keep this in mind as affecting the risk climate. Good luck  

As a heads up, this is straight from the Municipal Courts;

The Philadelphia Municipal Court's landlord-tenant officer will not perform any evictions for a two-week period beginning on Monday, March 16. The landlord-tenant officer's office, however, will remain open to process new work. The landlord-tenant officer will contact landlords to reschedule evictions already scheduled during the two-week period. Patrick F. Dugan, President Judge Bradley K. Moss, Supervising Judge John J. Joyce, Deputy Court Administrator Marisa Shuter, Landlord-Tenant Officer

Remains to be seen how this will shake out in the coming weeks, but the tea leaves suggest evictions will be put on hold for the immediate foreseeable future. 

We are currently waiving late fees for two weeks into April (upon request) and will consider rent deferment on a case-by-case basis to show some solidarity and flexibility during these times. What are other landlords or managers currently considering?

Stay healthy.

Wow thanks for popping this news @Yuriy Skripnichenko. You seems to have the latest info on these types of things. In theory this sounds like an amazing step to fix one of the biggest administrative nightmares in Philly real estate. Let's just see how it works in reality...

I have a few multi-family units in Philly. Some commentary- 

Multi-family market is very competitive right now. I see prices creeping up faster than SFH. Off-Market deals will be your best bet

Danger zone is anything with potential zoning issues. There are a ton of illegal multi-family homes operating in the city without proper zoning and certificates of occupancy. Make sure this paperwork is all lined up or you are fully prepared to legalize it. 

Overall I’ve had good experiences. You can really see great cash flow from multis. Be aware that triplexes in Philadelphia require 24/7 monitored fire alarms with wires smoke detectors and larger sprinkler system annually certified. Build these costs into your analysis.

Contractors are one of the most disappointing parts of real estate here. The city makes it very hard to run a business and it seems impossible to find high quality reliable contractors and subs that last.

Hope this helps

You will need to make sure you have solid contracts to use with your subs. The benefit of working with a GC (in theory) is that you only have to enter into a contract with one entity and that entity has to answer for everything. Once you become the GC, you now need to enter into contracts with subs individually. What happens when you schedule your plumbing work for Tues/Wed and when your drywall team shows up on Thursday ready to work none of the piping is installed?  You are on now potentially in breach of your agreement with the drywall contractor and liable for damages.

There's a lot that can go wrong but I guess there's not a better way to learn how to GC than on your own property!