All Forum Posts by: Shawn Connors

Hey BP,

So I met with a seller today about a property in my target area.  The house is in an "A"class neighborhood with an "A" class schools.  Here is the gist...

They bought it back in 2006 for 350k.  They were skeptical in telling me how much they currently owed, but I assumed its somewhere in the range of the low 300s or high 200s.  Now the thing is the house needs a FULL rehab.  I ran the pictures by my partner, who is a house flipper, and he said its a 100k job easy.  It 4 beds and 3.5 baths which all need updating.  Needs a finished basement, new kitchen, possibly new roof, landscaping etc...

As a wholesaler I can only offer them 185k max.  I don't know if they will go for that but I will still offer it.  The seller told me they were planning on remodeling it themselves if they couldn't find the right buyer first.  They work full time jobs and have a limited amount of cash so it would take them a long time to fix and a serious amount of money.  I am trying to come up with a creative solution to their problem and was throwing it out there to see if anyone could help???  Thanks in advance.

@Bill Gulley

Thanks Bill

Hey BP,

I got 2 good leads yesterday on commercial properties in Montgomery and Bucks counties in Pennsylvania.  I am not familiar with commercial real estate and was hoping I could find someone on here with expertise or some knowledge in the area.  

-How do you determine the value of each lot?  

-Is it possible to wholesale commercial properties?

-What are commercial investors looking for in regards to ROI?

Thanks

@Mark Nolan

If you are interested, PM me.

I have a SFR house under contract in Delaware County, Pa. This is a property for a buy and hold investor. Here is the info...

• 722 Poplar St, Sharon Hill Pa 19079. 3 beds, 1 bath, 1616 sq ft, 1 car detached garage, front upper balcony, 2 stories, water and sewer- public, heating and hot water- oil, off street parking.
• Purchase Price- 50k
• Estimated Closing Costs- $2750
• Needs the Following - New Kitchen, Finish Hardwoods Throughout, New Paint Throughout, New Heating System, Updated Bathroom, New Gutters, Minimal Landscaping (small yard), New Doors Throughout.
• Approximate Repair Estimate- 30k-31k
• Recently Updated- New Roof and New Windows Throughout
• Approximate Cash Needed- $83,250
• Estimated ARV- 100k
• Will rent for $1150-$1250
• @ $1200 gross rent
• Monthly Expenses- $712 includes; Vacancy at 8%, CapEx at 8%, Repairs at 8%, Sewage, Water, Garbage, Insurance, and Property Tax at $3278 or $273/month

Year 1

• Cash Flow= $488/month
• Cap Rate= 7.2%
• Purchase Cap Rate= 12.2%
• NOI= $5854

Year 2

• Cash Flow= $499/month
• Cap Rate= 7.4%
• NOI= $5985

Year 3

• Cash Flow= $510
• Cap Rate= 7.5%
• NOI= $6117

Year 4

• Cash Flow= $521
• Cape Rate= 7.7%
• NOI= $6253

Year 10

• Cash Flow= $593
• Cape Rate= 8.8%
• NOI= $7119

Year 30

• Cash Flow= $898
• Cap Rate= 13.3%
• NOI=$10,771

Return on Investment Approximately 12 years

Numbers are based on a 1.5% Income and Property Value Increase and 1% Expense Increase.

*Please only contact me if you can meet the following requirements

*Buyer must have POF and $2000 non-refundable Earnest Money Deposit.

*Pictures upon request

Hey BP,

I have a SFR house under contract in Delaware County, Pa. This is a property for a buy and hold investor. Here is the info...

• 722 Poplar St, Sharon Hill Pa 19079.  3 beds, 1 bath, 1616 sq ft, 1 car detached garage, front upper balcony, 2 stories, water and sewer- public, heating and hot water- oil, off street parking.
• Purchase Price- 50k
• Estimated Closing Costs- $2750
• Needs the Following - New Kitchen, Finish Hardwoods Throughout, New Paint Throughout, New Heating System, Updated Bathroom, New Gutters, Minimal Landscaping (small yard), New Doors Throughout.
• Approximate Repair Estimate- 30k-31k
• Recently Updated- New Roof and New Windows Throughout
• Approximate Cash Needed- $83,250
• Estimated ARV- 100k
• Will rent for $1150-$1250/month
• @ $1200 gross rent
• Monthly Expenses- $712 includes; Vacancy at 8%, CapEx at 8%, Repairs at 8%, Sewage, Water, Garbage, Insurance, and Property Tax at $3278 or $273/month

Year 1

• Cash Flow= $488/month
• Cap Rate= 7.2%
• Purchase Cap Rate= 12.2%
• NOI= $5854

• Cash Flow= $499/month
• Cap Rate= 7.4%
• NOI= $5985

Year 3

• Cash Flow= $510
• Cap Rate= 7.5%
• NOI= $6117

• Cash Flow= $521
• Cape Rate= 7.7%
• NOI= $6253

Year 10

• Cash Flow= $593
• Cape Rate= 8.8%
• NOI= $7119

Year 30

• Cash Flow= $898
• Cap Rate= 13.3%
• NOI=$10,771

Return on Investment Approximately 12 years

*Please only contact me if you can meet the following requirements

@James Enright

I'm not looking to quit my job until I have a secured income from another source.  I am trying to figure out if there are any Real Estate companies that pay salary.  My wife is a teacher so I'm covered with Heath insurance haha

Hey BP,

I am not exactly sure how to go about this but I will give it a shot.  I am new to the business and am looking for a way out of my current career very soon.  I am willing to work for someone and learn the business, but I intend on going out on my own someday.  I am not sure if there are companies that take on non experienced investors and if all they offer is a commission position?  I am willing to try anything.  I don't want to quit my job unless I have a secure income opportunity.  I know this may sound delusional to some, that is why I was hesitant to post it, but I figured I would give it a shot because this is my future.  Any feedback would be great.  Thanks

@Stephen Chatto 

Hey Steve, thanks for the good advice about the attorney and title office.  Can you send me a link to your meetup in Trenton?  My wife's parents are from Yardley so we are in the area sometimes.  

Also, the Cap Rate is 14%