USA’s Hottest Real Estate Zip Codes - Philadelphia has #2 & #3

Well, finally something that’s been touted here at this blog site for several years is proving to be true, although it comes to no surprise for those of us seeking, wholesaling and purchasing cash flow real estate investments in Philadelphia and the region.

Based on a Zillow “Home Value Index”, a slideshow released last week on CNBC’s website has two Philly zip codes coming in at second and third place in the U.S.

Philadelphia homes in the South Philly zip code of 19145 (# 2) has seen a “year-over-year price growth of 19.1%“, while the zip code of 19148 (#3) has seen a “year-over-year price growth of 16.9%”.

At sellphillyproperty.com , we have wholesaled and purchased ourselves cheap investment houses in these zip code areas over the years. They have become great cash flow investments for our real estate property investor client base. There is also a spill over effect from these zip codes too. With Philadelphia Zillow’s one year home value going down only .1%, there have been pockets of Philadelphia investment homes being purchased at great values resulting in cash flow and equity.

These are the zip code areas neighboring 19145 and 19148. The various neighborhood growth developments being acted out in the Philadelphia Northern Liberties, University City (19104 # 14 with 13.5% growth), West Philadelphia, South Philadelphia, Temple Univ. - North Philly, Nicetown/Logan (Temple’s newly opened medical school) and parts of northeast Philly, are undeniable.

Continue looking into real estate investment to enhance and manage your retirement. Learn how to purchase investment homes with your self-directed IRA.

Foreclosures To Decrease Next Year?

Forecast Expects Foreclosures to Decrease in Coming Year

Foreclosures are expected to subside in the coming year. The latest data released by UFA L.L.C., a firm located in Ann Arbor Michigan that researches mortgage activity, states that foreclosures are expected to decrease in the next year. After four years on the rise there is no doubt that it will be nice to see foreclosures start to subside.

Improvements in the foreclosure arena are seen linked to tighter lending practices, home prices stabilizing, and an improving economy. The one element working against foreclosures is the increasing unemployment which will leave some without the ability to make their mortgage payments.

The onslaught of no-doc loans and inflated home prices led to four years of increasing foreclosures. The decline of real estate values is largely attributed to an elevated rate of foreclosures. A decrease in foreclosures will be a welcome sign for a real estate market that has seen better times.

Click here to read an article at Business Week about foreclosure rates. It will takes several clicks to get to the article, but a pretty interesting read.

And check out our list of wholesale investment properties on our website. Sign up on our email list and receive the latest for properties available and refinance rates from area lenders.

Anatomy of a Short Sale

A short sale can be time consuming and complex.

A short sale is the selling of property to avoid foreclosure, the catch being that the property is being sold for less than the amount owed on it. What makes a short sale tricky is that the sale price is not up to the seller, the lender has to agree to the purchase price. The home owner isn't walking away with any money at closing in the case of a short sale so he doesn't care if the home sells for a dollar, the bank's involvement is to reduce their loss as much as possible and the buyer just wants a bargain.

The basic process of a short sale is:
- Borrower must be in arrears on loan payments
- Borrower or broker contacts lender to discuss the possibility of a short sale
- Potential buyer makes offer, knowing what is owed by borrower/owner of property
- Lender reviews loan and offer
- Borrower has to show/prove financial hardship
- Lender and broker discuss value and condition of property and examine any offers
- Lender makes final call

We sometimes have short sales available as investment properties - sign up on our email list and you'll be periodically updated.

The short sale process looks easy on paper, follow the steps and the deal is done, short sale completed. However, in reality the communication between the borrower, lender, Realtor and potential buyer is complex and time consuming. Simply wanting a short sale won't make it happen. Using a CDPE (Certified Distressed Property Expert) eases the pain and insures you better success when trying to complete a short sale. Being in financial stress is not easy on anyone and using an expert will help you get the job accomplished in a more timely manner and help create a successful real estate transaction.

As investors seek properties at discount properties, they too can take advantage of the short sales in today's Philadelphia real estate market.

Refinancing Your Real Estate Investment + Local Philly Neigborhood News Sources

If you’re a real estate investor, and active seeking real estate deals, rehabbing them, placing tenants to provide cash flow in your properties, it’s been a rollor coaster ride when it comes time to refinance your investment property.

The investors that we have wholesaled our investment properties in Philadelphia, as well as our own properties, have seen the rates stabilize a bit.

Stan Bril of GFI Capital Resources, has rates in the mid-5% area, fixed rates are available for terms from 10 years to 40 years, and most times Debt To Income ratio (DTI) is not an issue. And they have refinance programs up to 75% LTV.

The best thing to do is contact SEVERAL finance sources and see what they have. Check out our website for some sources to start with. Click on the “Refinance” and “Hard Money” buttons on the left.

Investors seeking cash flowing properties might take a look at the real estate we have available in South Philadelphia and West Phila. Some are flips and some work both as flips or buy & holds.
It’s always recommended to get to know an area you’re looking to acquire property investments. You’ll find a wealth of information for South Philadelphia in the South Philly Review. For West Philadelphia, West Philly News seems like a good source. Especially check out the article on the Baltimore Ave. eateries.

We have a property on the 5400 block of Baltimore Ave.

Check out our Philadelphia investment real estate properties by clicking here.

Anatomy of a Philadelphia Real Estate Deal

Let me take you through one of our recent properties that we’ve wholesaled to an investor, and maybe you get a perspective on how you can recoup all of your money invested in a deal and have positive cash flow every month. And plus there’s a little added twist to this story in the end. This was a home in “HOT South Philly”. It was a typical Philly row home.

The ARV (After Repair Value) for this property, was at $ 110,000. Recently banks have been pushing down their appraisal numbers, so we try to stay conservative. We use comps of similar sq. ft. and within a .3 mile radius of the property, that are no more than 6 months old. With the volume of property sales taking a dip recently - we have to sometimes expand our parameters.

The comps ranged from $105,000 (which needed rehab too) to $258,000. The property we were wholesaling was a fixer upper, and the rehab was $23,000. The price for the property was $49,500, which included our assignment fee.

WHAT IS THE GOAL IN AN INVESTMENT DEAL LIKE THIS? Recoup all of your investment in the purchase and rehab of the property AND create a MONTHLY POSITIVE CASH FLOW by renting it out.

So how do the numbers work. Total into this deal for the investor was $77,239.50 - this includes purchase, rehab, closing costs and even refinance costs. After finding a tenant at $ 800, the investor has the bank refinance this property as income producing real estate. The bank ARV number was $ 105,000. $ 5,000 less than our projected $ 110,000.

The bank will give the investor a refinance loan at 75% LTV (Loan To Value) which equals $78,750.00. So, not only does the investor get ALL of his money out of the deal AND pockets $ 1510.50, but now has a monthly positive cash flow.

Realize what happend here. The investor’s $ 77,239.50 value has increased to $ 105,000 within a matter of 4 to 6 months. This is a 25% increase. Can you tell me what investment can do that?
Now the twist to the story. The investor decided to spend an extra $8,000 on the rehab.

Something I would advise against. The property manager found a tenant right away at $ 850 per month. He spent an additional $ 8,000 and received an extra $ 50 per month for it. Was it worth it? He should’ve stuck to the original plan.

We have various types of deals on our website. Take a look and sign up on our email list to get early notifications of upcoming income producing properties.
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Real Estate Investors Presented in the Media - Finally!

A fellow investor that I know in California told me about this Nightline story that appeared on July 27, 2009.


For us in the investment real estate market on the east coast, primarily the Philadelphia region, what the story claims that the buy, hold and rent strategy is the way to go.

You’ll see that he finds most of his properties from the REO/foreclosure markets. We have wholesaled several investment properties that were bank owned. Wholesaling bank owned properties is tricky and we went through our learning curve.


Every bank has its own personality and knowing their rules and regulations allows us to pass along a great negotiated price to our investors, way below ARV, sometimes 30 to 40 cents on the dollar.

Check out our available properties and sign up on our email list to receive our latest cash flow properties.


Bank owned property’s transactions can take a while to go through the bank’s mumbo-jumbo departments and manager’s approvals, but for those willing to be patient, the financial reward is there.

And the profit margins are there for those who are looking for the fix & flip real estate too.
For those of us in the real estate investment business already realize that we help change neighborhoods for the better. Removing those eyesores are what any homeowner in the areas we buy, wants to see.

Nightline video

Refinance Sources for Your Real Estate Property Investment

Buy the investment property way below the ARV - or After Repair Value - rehab it, find a tenant, go to a financial source to recoup all the money aquiring and rehabbing the property. If you did your homework correctly, the tenant's rent should pay all of your monthly expenses and you should be making a positive cash flow every month.

Your tenant's rent is paying your mortgage from your refinance and now you seek your next real estate investment property.

Sounds simple - real estate gurus charge would be investors thousands of dollars teaching the details and to understand this concept. As a wholesaler of investment properties, I see this false belief that there is "no refinance money available".

A few days ago, after sending out one of our emails to our investor list, I received an email asking me, “What bank/mortgage co. is still giving out cash-out mortgages?” Well, I kindly referred him to click on the link provided in the email and contact the various financial sources on our website.

In fact, our email was promoting a 6.75%, 30 year, 1 point refinance mortgage - with still providing a 75% LTV (Loan To Value). This is from a bank that just sent me their updated loan and refinance programs.

Yes, the banks have pulled back on handing out money for investment real estate - but the sources are still there. You have to look for it.

I can’t understand going on the internet and checking out several websites for prices of books or airlines tickets - but contact one or two banks, get a “no”, and you stop? Isn’t your financial goals important enough to call 5 banks, 7 banks….even 10 banks?

And if you don't have the funds to get started, there exists the hard money sources. Do your due diligence and make sure all or your costs and expenses are covered at the end of the deal.

Home Mortgage Foreclosure Help in Bergen to Mercer Counties in NJ - Bucks and Montgomery Counties in Pennsylvania

SELL YOUR HOUSE FAST! STOP FORECLOSURE! - these are some of the ads commonly seen around the country.

Here in the southeastern part of Pennsylvania and the New Jersey area, hasn't been hit as hard as some other parts of the country when it comes to home foreclosures. But a growing number of home owners are finding themselves in financial trouble.

How did this home foreclosure scenario come about? Financial experts attribute this huge number of home foreclosures to properties bought between 2004 and 2006, when the real estate business was at its peak.

But there is help. Global Portfolio Management Solutions ('GPMS') is dedicated to helping people buy or sell their homes within Bergen County NJ to Mercer County NJ and from Bucks County PA to Montgomery County PA.

If you are faced with the following:
- Behind on Mortgage Payments
- Pre-Foreclosure
- Divorce
- Probate
- Tax Liens/Delinquent Tax Payments
- Expired MLS Listing
- Or You Can No Longer Afford the House

GPMS can help you. The GPMS team provides solutions to help homeowners sell their home and leverage the equity needed to secure their financial position. In addition, GPMS works with credit challenged families looking to acquire a home but do not qualify for a conventional mortgage. GPMS' programs support facilitating fast, fair and equitable transactions for all parties involved. They strive to support the community during these financially challenging times.

This works out to be a win/win situation for both the seller and buyer. How can GPMS Find Homes for Financially Challenged People? Applicants enrolled in the Equity Buyer Programs will have the ability to work with a credit specialist and select homes from the GPMS network inventory.

If you're financially challenged, don't wait for a Stimulus Package or Job Offer to Help Your Financial Situation!

Higher Real Estate Investment Values in Philadelphia from University City Expansion

Regarding real estate investment in Philadelphia, ask anyone who hasn’t been back in University City and West Philadelphia in the last 15 to 20 years, and they’ll be pleasantly surprised of the ongoing changes taking place in that part of the city. But, “you ain’t seen nothin’ yet”.

Just take a quick glance at the map above and check out Univ. of Penn’s Penn Connects website, and see the multi-billion dollar changes that are under way now and will be for the next several years.

What does this mean for the real estate investor looking for cash flow and appreciation? Plenty. As the various colleges and universities in Philadelphia expand, it is one of the ingredients in the recipe that is keeping the city’s real estate downturn at a minimal level. Far from the debacle of areas like Detroit, Phoenix, Las Vegas and parts of California & Florida.

As wholesalers of real estate investment property, we have seen the local and long distant investor continue to move into parts of Phila. within close proximity of Univ. City. Some investors have taken advantage of the spillover effect and are presently acquiring properties within a 1 to 2 mile range of University City, at low minimal investments.

These minimal investments become positive cash flow properties with a nice chunk of equity as soon as they’re rehabbed and rented or flipped. And there are the investors that are looking for turn-key student housing that need no rehab, with students in place and positive cash flow.

Even students attending one of the schools in Univ. City or Temple are now renting rooms in the South Philadelphia, Kensington/Fishtown and Germantown areas.

Adding to this, the neighborhood improvement organization, University City District (UCD) announced the appointment of Matthew Bergheiser to “oversee more than 85 administrative, public safety, and maintenance employees, and an annual budget of more than $9 million.”

Investors Keep Buying Real Estate - Are You Missing Out?

Why does this happen? In the stock market - most people buy high and sell low and they lose money. Common sense would tell you to buy high and sell low = make money.
Well, shouldn’t that same principal apply in buying real estate investments? For the smart Philadelphia and nationwide property investor, it has. According to an April 6, 2009 article on Direct Investor News, “Homes that were purchased for investment were counted among strongest segments of real estate in the year 2008″.

We’ve seen the number of Philadelphia real estate investments we’ve wholesaled increase last year. People see a good buy and take action. They don’t allow others to swipe a property from under their nose. As I once heard from a Philadelphia based real estate guru, “your money is made when you buy”.

But here’s a statement from the article that we’ve seen the opposite occur. “Investors stayed relatively close to home when looking around for investments. A good rule to follow is to invest in markets that you know best. Often times this is the market that you live in.”
The real estate investments we’ve wholesaled in 2008 primarily were gobbled up by “out-of-state” investors. Mostly from North Jersey, New York City and a few from Washington state and California.

Are these “long distance” Philadelphia real estate investors seeing something that the local investors are not? Why would local investors sit on their hands and allow long distance investors buy properties that are sometimes 30 to 35% of After Repair Value (ARV)?

Also from the article, “far larger numbers of investors bought their units in distress situations - one out of six was a foreclosure or trustees sale.” We also concur. With the rise of foreclosures in 2008, there were bargains to be had. Ourselves and our investors had taken advantage of purchasing some nice cash flow properties.

Learn how to profit from college student rentals.

Philadelphia Real Estate Investment Enhanced by Infrastructure Funds

211 million - that's the number that will go to urban areas of over 200,000 population in Pennsylvania from the $27 billion Federal stimulus funds. $ 30 million is for mandatory "transportation enhancements", which include projects such as sidewalk repairs, bicycle paths and beautification projects, according to a Philadelphia Business Journal article.

As the article states, these projects "don't involve vehicle or mass transit related items". As we seek investment properties, we have seen the resurfacing of streets and repaving of sidewalks already. These projects have been attractive to property investors looking in Philadelphia for the past several years and add to a neigborhood's value.

Areas in Philadelphia such as the Market Street El corridor have already been worked on. Arch Street and a good number of the smaller streets running north and south have have been repaved (Arch with even a bike path) with new sidewalks. After many years, the Market St. el project is in it's final stages.

Cash flow investment properties are available on the north side and south side of Market St. At the present time, we have an investment property in the 57th & Market Sts. area. It can be acquired under $ 30,000 and about $ 25,000 in rehab work. After improvements, equity will be about $ 20,000, with positive cash flow every month after refinance.

On the south side of Market St., we have a property available on the 200 block of S. 57th St. The ARV will be $ 120,000 after rehab - it can be purchased for $ 42,000 and needing $ 38,500 in improvements. This property will also translate into positive cash flow and equity of $ 30,000. We also have one available in the 60th & Chestnut Sts. area.

There are many that would say that this stimulus package will not create jobs or really help the economy. I'm not here to argue that. What I am saying is that the stimulus money is coming - like it or not. Position yourself to take advantage of it and help your personal economy and financial future.

Refinance Your Investment Property - How Does 4.87%, 30 Year, 1 Point Sound?

If you’re a real estate investor, it’s been a tough go in the last few months when it comes time to refinance your investment property. But things have changed in the last 2 months that can increase an investor’s cash flow rental property.

The investors that we have wholesaled our investment properties in Philadelphia, as well as our own properties, have seen the rates come down to nice levels. The cash flow potential as increased with these lower rates and terms. On top of that, effective March 1, 2009, Fannie Mae has lifted the 4 property financed property limit to 10. Although the qualifications are still a bit tough, as Skip Lucas comments from Creative Mortgage Broker.

One of our financial sources, MAC Investments, has a refinance program of 4.87 %, 30 year with 1 point. MAC Investments has both hard money and refinance programs. Of course it depends on your own situation, credit score, income, etc.
To have seen rates like these just 2 months were unheard of. When we refinanced two of our properties in late December, our rate was 6.7% for 25 years. That was great! Back then. How things change in two or three months.

In all, for those that are active real estate investors, these terms will be able to add to your monthly cash flow - your bottom line. The best thing to do is contact SEVERAL finance sources and see what they have. Check out our website for some sources to start with. Click on the “Refinance” and “Hard Money” buttons on the left.

One of the things we’ve seen over the years is that an investor will call ONE bank and get a lousy rate quote or strict qualification limits and then say that they can’t refinance. It’s like shopping for a TV - you go to several banks (preferably small ones), call several financial sources, and see what’s available. AND DO THIS WHILE YOU’RE LOOKING for an investment property, not when the rehab is done.

Fannie Mae Removes Its 4-Financed Property Limit

Last Friday, Fannie Mae rolled-back one of its least popular mortgage guidelines updates of the last 12 months.

Effective March 1, 2009, real estate investors can once again own and finance up to 10 individual properties. The restriction reversal does come with new minimum requirements, however. Homeowners buying a 5th, 6th, 7th, 8th, 9th or 10th home must meet the following standards, as set forth by Fannie Mae:

• 720 credit score
• 25% downpayment for a 1-unit (30% for a 2-4 unit)
• No mortgage delinquencies in the last 12 months
• 6 months of reserves for each investment property

In other words, Fannie Mae is re-opening the lending spigot for real estate investors with good credit, a sizeable downpayment and ample reserves.

According to Fannie Mae, the change rationale is that experienced investors can "play a key role in the housing recovery". Until now, foreclosure auctions have gone at less than full speed because investors unable to pay cash have been halted by the existing 4-property Fannie Mae limit.

Going forward, expect a more expedient foreclosure liquidation nationwide which should, in turn, provide further support for the housing market.

And lastly, not to be forgotten, homeowners with more than 4 properties can finally participate in the ongoing conforming mortgage Refi Boom. Until now, they've been stymied by the 4-property restriction, too.

This decision gives confidence to the real estate investors out there whose goal is to build a portfolio of properties and a substantial passive income. Contact us at Sellphillyproperty.com and take a look at the real estate investment properties we have available with positive cash flow. Some can enter or add to their portfolio with limited or no cash of their own. Call or email us.

Temple University = Profitable Real Estate Investing

Considering investing in Philadelphia residential real estate? If you plan to purchase Philadelphia real estate and rent your property, you may want to invest in Philadelphia’s developing neighborhoods and one of the best, hot places is housing for Temple University students.


Consider these points about Temple housing:

• Temple can only house their freshmen class. This leaves a great demand for student housing in the city.
  
• Temple is located in the area of North Philadelphia that has gone through and is still in the process of revitalization. This creates great opportunities to purchase property as a great investment with monthly CASH FLOW.
  
• Temple students pay anywhere from $ 375 to $ 700 PER ROOM for rent, giving you positive cash flow every month.
  
• You must make sure your property is zoned properly.
  
• Students begin looking for housing from May to August.

We have available an investment property that falls into all of the criteria above. Now is the perfect time to take possession of an investment property near Temple University. The timing of rehab needed, will allow an astute investor to have this property ready for the fall housing period.

And not only do properties around the Temple area provide a nice cash flow and also appraise at a high After Repair Value (ARV) but the taxes are very low compared to other major cities. The annual real estate taxes on the above mentioned property is $ 119 per year - that's not a misprint. $ 119 PER YEAR!

With the recently announced 1.6 million dollar grant that Temple will receive to develop new technologies in pharmaceutical waste, the Temple area continues to play a major roll in Philadelphia's employment and education. Philadelphia residential real estate investors would be smart to consider this the area of Philadelphia real estate growth. Contact us at www.sellphillyproperty.com.

Philadelphia Bucking Trend in Real Estate Sales

Investing in Philadelphia residential real estate? Despite news reports about a downturned real estate market, it seems that Philadelphia is bucking the trend.

In a Philadelphia Business Journal article from January 7, 2009, ” the Philadelphia area bucked not only a national trend but a Northeast trend as well, as activity in the Northeast region fell 7.2 percent from October to November, and was down 14.6 percent in November compared to a year earlier.” The index used “increased 24 percent” from October to November.

When considering purchasing investment property - consider the Philadelphia area. It has one of the country’s lowest percentage of real estate taxes and with it’s business growth and the uniqueness of having four medical colleges within the city limits.

Philadelphia is one of those unique and best kept secrets for finding real estate investment properties. We specialize in finding and wholesaling investment properties that show a monthly positive cash flow and in many cases, extra cash back at refinance. To see our current list of available investment properties, go to our website.