All Forum Posts by: Paulette Midgette

Hello, @Sophia Abdullah and @Edward A., a clarification to Sophia's statement about the trash collection tax.  It is not a tax, it is a fee.  It only applies to commercial businesses and multi-family units.  Premise must equal or be less than 6 units to qualify.  If larger the owner will need to hire a private collector.  The fee is $300 per year for all eligible properties whether you own 2 or 6 units.  Use of the City's trash collection is optional and you can always opt to hire a private collection company.

It does not apply to single family rentals and if a multi-family and the owner lives in one unit then you are exempt from the fee.

Hello @Lane A., check into a gentleman by the name of Ken Weinstein (see link below).  He is a prominent developer in Philadelphia, PA.  Like you and all of us here on BP he started with very little knowledge and money.  He has program in which he provides educational training and mentorships to professional alethic with RE goals such as yours. 

Also check out a program started by Ken called Jumpstart Germantown.

https://www.linkedin.com/in/kenweinstein

Good Luck!

@Steve Babiak I was told at my the Sheriff officer conducting the seminar I attend that you could not sell the property during the redemption period.  I may have misunderstood him or he may have misspoken.  You bring up a good point to clarify.  I will try to confirm with the Sheriff's office the requirement regarding this.

Hello @Joe Boggin and @Ehab Tadrous, I think I have some information to add to this conversation they may be helpful to you both. 

I will start with Joe's original question.  This is how foreclosure sales work in Philadelphia.  It is a safe bet that if one is not paying his or her mortgage, then one is not paying his or her utility bills.  As @Steve Babiak noted water and gas are lienable. These utilities also take first position when a property is sold at a foreclosure sale. Meaning when the property is sold the proceeds are used to pay the city utilities first, what is left goes to the bank who will be in the second position. If any money if left after the bank is satisfied it will go towards paying off any debts below the bank's position or to the ex-homeowner. Now in order for the bank to provide you with clear title they must pay off all clouds on the title. Does this mean the bank's title search won't miss anything...no it does not. Just like any seller who sells their home may believe they have no clouds on their title and once you run a search something pops up that they forgot about or never knew. This is the reason the buyer should always obtain his or her own title search. I have purchased a number of REOs form Wells Fargo and I always get my own title search. The amount of money spent for my piece of mind and to CMA is work it to me.

Now Ehab, the Sheriff's office offers free seminars on the Sheriff sale process.  You can get the information on dates and times from the Sheriff's website.  I attend the seminar last summer and it was very educational.  I would highly recommend that you attend the seminar if you are serious about tax lien sales.  Title for tax lien sales are run by the Sheriff's office.  If a cloud appears on the title the Sheriff is responsible for clearing it.  The Sheriff will provide a clear and clean title if you are the winning bidder at the tax lien sale.  Again, could the Sheriff's office miss something? Yes.  Let's say the Sheriff as a rule runs the title a month before the sale, but a lien is place in the record book on the property 3 days before the tax sale.  The Sheriff won't catch this but you will when you run the title and get your title insurance.  Also, you must hold the property  until the end of the redemption period.

Paulette

Hello @Eli M.,

There is no such thing in Philadelphia has a Section 8 Broker or having a Section 8 license.  In Philadelphia there is a two step progress to obtaining a Section 8 Landlord Certification.  I live in Philadelphia and just completed the process this week.

If you would like additional information please send a message to my inbox with your goals and I will give you as much information as I can.

Paulette

@Linda D. YOU ROCK!!!!.  Congratulations on your new property, the successful construction, and tenant occupied.

Thanks you so much for follow-up with me.  Believe it or not, I thought of you from time to time and wondered how you have been making out.

I just completed a purchase and rehab of a duplex in Philly and I am researching my next purchase.  I your message came at the right time and I am suppose to turn my attention to NRIA.  I am sure I will have tons of questions, so I will contact you offline.

Happy New Year and thanks so much for not forgetting me!

Hi @James Jarmon, if you are looking for information about the foreclosure and tax lien auctions in Philadelphia there are free seminars about the process offered each month by the Philadelphia Sheriff's office.  Check the website for schedules and registration process.

I attend a class this past summer and the information provided was very useful. I learned alot about the process.

Hi @Matt Roberts,

In PA a gift tax applies in the following two instances:

1.  You receive a gift of money in the amount of more than $14,000 (but this can change from year to year due to inflation).

2. You receive an asset gift, such as, property, expensive jewelry, etc.

If you are simply adding your name to your wife's deeded property there are no 'gift tax' implications.  This does not fall under the definition of a 'gift'. 

As I am sure you know, you will need to pay a fee and file the new deed at city hall.  This applies, if you are adding your kids, parents, or neighbors. 

Hi @Account Closed,

Born and raised in Philly.  I am a buy and hold investor in the city.  You are correct in that triplexes and quads are very rare in the city when it comes to sales listings.

I believe your buy and hold strategy is a sound one for the Philadelphia area right now, I would encourage you to pursue it.

With that said, there are a great deal of duplexes to be had in the city.  Your price point of $200K - $250K may get you a turnkey or it may not...it all depends on the neighborhood.  In the prime neighborhoods (Center City, Fishtown) your price point will buy you no more than a fixer, if you can find one.  In neighborhoods such as Manayunk, Temple University area, and Mt. Airy, to name a few, you can get a fixer to a turnkey for less than 200K.

If you don't know Philly, get to know it.  This is a city of neighborhoods, housing stock and purchase prices vary greatly depending on the area.  With respect to renting, proximity to public transportation, the number of bedrooms offered, and even the street the unit is on will also vary the rental asking price.

I hope this helps.

Good Luck

Hello @Jim Roche, and welcome to BP. 

I currently have a condo in Old City Philadelphia that I would like to rent or rent-to-own.  If you have any clients looking for Center City rentals please send a message to my inbox.

Kind regards,

Paulette