Philadelphia Hard Money Lender
There are a number of private money and hard money lenders in Philadelphia. Getting the money right is an important step in the real estate investment process. Make sure you choose wisely. Most hard money lenders in Philadelphia will only fund 60-70% of the purchase price. Rehab Financial Group lends for house flips and home rehabs exclusively and we can fund 100% of the purchse price and rehab costs (not exceed 65% of the ARV). To learn more about your lending options, view Flipping 101, Getting Rehab Funding Right.
Once you have your lending solution, you'll need to decide where to invest. Real Estate Investing in Philadelphia is a great opportunity currently. Local Expert Pamela Graham provides some insight.
Real Estate Investing and Hard Money Lending in Philadelphia
Philadelphia and the surrounding counties are a hot bed for real estate investors. In Montgomery and Chester Counties, we are seeing investors becoming more interested in high end house flips. Along the Main Line, many of the homes are older and in need of substantial repair. Recently, we've seen more investors purchasing a home and tear it down to the foundation and re-build, and then turn it over for a six-figure profit.
We are seeing investors buying again in the Pottstown area, a location that has in previous years not been lucrative. If an investor is building a portfolio of rentals (passive income), Pottstown is now becoming more interesting to them because of the need for affordable rentals due to lack of inventory on the market.
Some smaller towns such as Royersford are putting a push on for revitalization and many investors are looking there to get in early. The school district is good, the taxes are not too high and the local government is focused on revitalizing the town.
Port Richmond Area
Profit Potential = 10/10
Port Richmond is not really gentrifying but re-inventing itself. The town has always been well kept and diverse. New restaurants and beer pubs are springing up and it is becoming more interesting to the millennials as a new neighborhood to populate as the neighboring Fishtown and Northern Liberties become harder to afford.
You can still find properties in Port Richmond that are a deal in the mid to low $100K (and sometimes less). If you put another $50K to $75K into it, you can sell in the high $200K to mid-$300K now.
Profit Potential = 8/10
Kensington is an area that has typically be blighted by socio-economic reasons including drugs and homelessness. However, the outer edges of Kensington like Old Kensington and the eastern and western edges are enjoying a gentrification brought on by lack of affordable homes in the neighboring Fishtown and Northern Liberties neighborhoods. There are areas here that could be lucrative for an investor to flip but holding as a rental would be difficult. I would suggest a more modest rehab in this area depending on the exact location.
Point Breeze Area
Profit Potential = 10/10
It is being said that Point Breeze may be the next most lucrative area in Philadelphia. As the Graduate Hospital area becomes more pricey, people are looking further out to the Point Breeze area. It is still relatively accessible to the City and more and more restaurants and beer pubs are opening. There are very affordable investments still to be had there and last year's increase of median home values of nearly 30% here are telling us this is a good place to invest your money.
Advice from Pam for REI's in the Philly Area:
I always tell my first time investors to get involved in a group of like-minded investors (like DIG - Diversified Investor Group) so you don't have to reinvent the wheel. You can build your "team" with the help of others who have already been there. The most important part of rehabbing and/or flipping is the contractors you choose and other investors can refer you to the good ones.
You can also learn about the more intricate parts of investing such as wholesaling, hard money lenders, and how to calculate the ARV (after rehab value) of a property. For my more seasoned investors, I can help them identify properties that others may leave on the table, such as short sales and REOs, and help them get into those. I will prepare a comparative market analysis for all my investors to let them know whether or not they are getting a good deal, what the market value of the area is, how the home values did in the previous year, and how long it will take to sell or rent once it is rehabbed.
Pamela Graham, Limerick, PA
Pamela Graham, the contributing author, epitomizes honesty, integrity, and hard work in every aspect of her career as real estate agent. Pam worked in the legal field for over 30 years and in 2006 decided to combine her love of real estate with her knowledge of the law by becoming a Realtor with Keller Williams. Pam is the Short Sale Director for the office in Limerick, PA and is also a mentor for new agents, guiding them to become the best agents possible within the Keller Williams culture.
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