If you are a Philadelphia resident looking to invest in homes, you’re not alone. New research shows that investor home buying – especially for smaller investors – is on the rise.
A new CoreLogic study released in June of this year revealed that investor home buying reached a record high in 2018. In the US, investors bought 11.3% of homes. When comparing individual cities, Philadelphia was second highest in the country at 23.3%. Only Detroit had a higher rate at 27%.
There is a lot of talk in Pennsylvania and the rest of the United States regarding whether or not it is a better market for renting or buying. Most experts now recommend renting because it is cheaper. However, for those who can afford it, building equity may be better than paying someone else’s mortgage.
According to Fidelity Investments, there are a few things potential buyers should keep in mind when deciding if renting or buying is right for them:
Although men are more often associated as narcissists than women (they outnumber women two to one on the extreme end of the narcissist spectrum,) women can also be narcissists. If your husband or wife is arrogant, filled with anger, an ego-maniac or even heartless at times, don’t just assume they are a narcissist.
Narcissist often display one key trait that shadows all others; a complete lack of empathy and admission of guilt. Whether they emotionally or physically abused their spouse or ran over the neighbor’s pet, a narcissist will show zero empathy and will always manipulate the conversation to direct guilt away from themselves.
When people in Pennsylvania saw the CNBC headline about Facebook's CEO suing hundreds of Hawaiians to force them off their property, it turned heads. However, a deeper look at the article, which included an amendment with the founder's statements on the matter, may tell a different story.
A few years ago, Facebook's CEO bought 700 acres of land in Hawaii for $100 million. The CEO has raised eyebrows in the past for taking extreme lengths to secure privacy at home for himself and his family. He took similar measures in Hawaii by filing eight quiet title suits in a Kauai court. These forced the courts to find out who the land actually belonged to. Some of the owners are long deceased, but others or their descendants are still alive.
Big commercial rebuilding projects can be complex matters and will likely require large transactions of money to fund the building materials, tools and vehicles needed for the job. But to get to this point, building owners and investors may need to pool a sizable amount of financing to make the project go forward. This is why Pennsylvania entrepreneurs sometimes form limited partnerships to finance a new construction project.
Chron.com explains that limited partnerships are created between a general partner and a limited partner. A general partner has the responsibility of managing the business while the limited partner, commonly referred to as a silent partner, contributes financially to the partnership but does not have any active responsibilities in running the business. The silent partner also enjoys limited liability for decisions made by the business, although silent partners can lose their investments in the business in the event of bankruptcy or civil litigation.
Residents of Pennsylvania may have heard the story of the artist in Philadelphia who fought the city to keep his home and won. The city allegedly used eminent domain to attempt to evict the world-renowned artist so they could build a supermarket. It then offered just $600,000 for the studio, which was once appraised for $2 million. At another point, they offered an additional $40,000 and then a land swap.
The artist raised awareness of his plight, built a team of supporters and professionals, took on the city and beat its claim to eminent domain. How often is this the result for residents who many not own fancy studios or have resources worldwide to pull from? Not often enough.
While the Philadelphia real estate market may not be as hot as it was two years ago, real estate investors are still looking for properties to buy as rentals or to flip and sell. Buying a foreclosure is one way to increase your profit, by getting a cheaper property and fixing it up as a modern rental or to sell to a new owner.
Short sales in Pennsylvania offer a great opportunity to obtain property at a fraction of their actual value. However, short sales do present some risks. For starters, Redfin, a real estate brokerage firm, reminds buyers that short sales are rarely short. Thus, one of the main cons of short sales is that buyers may need a few months' worth of patience when making an offer. It takes a long time for the sale to be finalized and all the paperwork to be processed. This is not a good option for people who may need to move soon.
This does create the advantage of less competition for the home. Most homebuyers are not willing to wait for long stretches of time to secure property, even when they are only purchasing it for investment purposes. Less competition also helps to keep the price lower as the current owner and the bank may be motivated to sell the home before it gets stale on the market.
Many people choose to expand their family unit through various means. And as nontraditional families become more common, you might find yourself faced with the option to adopt a child.
In some cases, you might consider adopting a blood relative whose biological parents, for whatever reason, cannot raise them. Or in cases of infertility, you may opt for an open adoption with a birth mother in your community. Whatever the reason or type of adoption you consider, there are some questions you would be wise to ask yourself before moving forward with the process.
Some people in Pennsylvania may argue that real estate is already wealth. This is not necessarily true. Wealth requires proper debt management to increase net worth. The property itself will also need to be properly managed or an investor may find themselves paying a monthly mortgage with no return on that investment.
A common piece of advice is that it is important to have a lot of money saved to create return on investment. Buying real estate with as little debt as possible certainly helps with turning a profit, but it is possible to make a profit with very little money. Here are some tips.
Thank you for helping me out of such a deplorable situation. I appreciate all of your help and advice and dedication to your clients.
Whether you need help with a divorce, a real estate transaction or starting a small business — our lawyers are prepared to address your unique legal needs. For a free initial consultation, contact us online or call us directly at 215-253-3855.
Bold labels are required.