Archive for Real Estate

Investing in real estate can be a real challenge for some people, especially for those new in the field. A good way to start out is by investing in multi family houses. One building with four or less families is a good enough place which will allow you to own a property with a residential mortgage and take advantage of the low rates on interest. You will find that there are many reasons that you will want to start investing in this kind of building, but the main reason might be because it is a lot less risky than investing in many other properties. Read More→

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Published: Friday, October 15, 2010

By Evan Brandt ebrandt@pottsmerc.com

POTTSTOWN — In the face of impassioned comment from both sides of the issue, Borough Council Tuesday unanimously adopted new rental rules which some say are a long overdue measure to get poorly maintained rental properties under control.

Landlords argue the rules could drive all the “good” landlords out of town.

The new provisions require certain lease addendums which limit the number of people in a rental residence and require tenants to prevent “disruptive conduct,” which can permit the landlord to “immediately terminate the lease.”

Other rules, nearly all of which are based on an ordinance recently adopted in Gettysburg, require a nearby property manager for absentee landlords and require landlords to be up-to-date on fees, fines and taxes.

Rental licenses must now be renewed annually. Properties without a rental license cannot legally be occupied.

In the area of water, sewer and trash fees, council also unanimously adopted Tuesday night a change to borough policy that allows for the water to be shut off at rental properties where landlords have not paid their water and sewer bill — an action that was, until recently, restricted to owner-occupied properties.

The unpaid bills by landlords had piled up to more than $700,000 over the years, and at the insistence of the Pottstown Borough Authority, which owns the water system and employs the borough to manage billing, borough staff put together a procedure to shut the water off at delinquent properties that does not violate landlord-tenant laws.

Recently, Pottstown Borough Council President Stephen Toroney told a group of concerned property owners that the landlord with the most unpaid bills — Marc Simmons, who owed more than $40,000 — settled up with the borough after receiving a registered letter that kicked off the new shutoff procedure.

There was no lack of input to Borough Council prior to Tuesday night’s vote, as 12 people stepped up to the microphone during the meeting.

In the case of the landlords, they universally said the new rules are too strict and would have the opposite effect than the one desired by council — that the new rules would drive the “good landlords” out of town and just leave the “bad” ones.

“The flavor of this ordinance .. I don’t know why, but it just seems like it’s open season on landlords,” said landlord Anthony Porreca.

He said the same stringent property maintenance rules should be applied to homeowners as will be applied to rental properties.

Landlord John Owens said, “I understand it’s supposed to target the negative ones, but the side effect is that it will affect the good landlords, that will look at these heavy-handed things and probably end up going to other areas.”

Bonnie Pappas, a Realtor, said she is frustrated because she finds there is a “large pool of investors who tell me, ‘Don’t show me anything in Pottstown. It’s too hard to work there.’”

She said many landlords “are tired of being tarred and feathered in the media, or on websites,” and that the new rules council adopted have the potential to “turn some good landlords into bad ones.”

Landlord Anil Dhem said given the borough’s poor record of enforcing current regulations, he does not see that Pottstown has adequate staff in the code enforcement department to enforce any of the new regulations.

Landlord Mike Mumma said he understands the results council wants, and sympathizes with them, but said, “This ordinance goes about it the wrong way. It’s going to send people away.”

Activist Katy Jackson was joined by North Charlotte Street residents Anne Ettore and Jon Caron, all of whom outlined difficulties they have encountered because of residents of rental properties in their neighborhood.

“I know there’s a lot of heat on landlords right now and I know there’s a lot of landlords here tonight, and I feel sorry for you because there are some slumlords here in Pottstown,” said Caron. “The properties are unkept. The buildings are in poor condition. No background checks are done. Criminals, I mean, some of these people would rent out to Charles Manson.”

“We’re trying to take back our neighborhoods. We’re confronting these people. The police are called and they tell us to stay in the house or go on the back porch,” said Ettore.

“We are tired of not being able to sit and enjoy our front porches and being able just to talk, peacefully,” she said.

Jackson, who is active with the groups Code Blue and Citizens for Pottstown Revitalization, said while she supports the new regulations, she also supports more active policing and more aggressive code enforcement by the borough.

“It was never our intention at Citizens for Pottstown Revitalization or Code Blue to see the good landlords run from our community,” Jackson added. “We want them to stay. We want to work with them and we value their input into the process.”

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People nowadays are looking for more ways to improve their income so most of them are drawn into investing especially in real estate as it is gaining its popularity in the market. Many find this lucrative and can bring larger return than your average investment. However, any type of business would always require not only knowledge in the field but also enough resources to fund your property investment. That is why there’s the presence of investment property lenders or banks to assist you with your financing. Read More→

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Jul
27

Mortgage Short Sales

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Mortgage debt

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Due to economic downturn, foreclosure rates are increasing in the United States. With a lot of people unable to make their house payments, they are confused on what to do and how to avoid foreclosure on their property. You cannot expect the homeowners to do the right thing and handle this situation without some assistance from someone who knows what to do. And there are not a lot of options out there but nowadays, homeowners can look into mortgage short sales so they can satisfy their debt with less than the outstanding balance to prevent their home from foreclosure. Read More→

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Jul
22

Buy CD’s from past DIG meetings

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“The CDs from past Diversified Investor Group (DIG) meetings are available for purchase for $10 each.  This is a huge bargain.  Going thru the past few years of DIG meetings will give you a treasure trove of ideas, money making tips, etc.  You have national speakers and a plethora of local speakers working in this area.  Even if you are on a budget as many are today, save $10 per month and this will enable you to increase your income.  $10 a month is about 33 cents a day.  I am sure you can save that to increase your knowledge, income and/or time in the future.” - John Hepner

CLICK HERE to see what CD’s are currently available for purchase.

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Jul
22

Speed Networking with DIG

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SPEED NETWORKING is back at DIG. After the success of our Holiday Party Networking event last year we knew we needed to reintroduce “speed networking.”

Register NOW!

This is a great time to sit one-on-one with the LOCAL experts at DIG. We have some new experts this time around as well as some of the old favorites. Bring a guest and plenty of business cards and enjoy the fun.

Here is the line up so far:

  • Don Beck-Landlording
  • Bill Kratz- Successful Wholesaling
  • Dennis Cline-Creative financing
  • Rich Heller- 1031 Tax exchanges
  • Anil Dham- Commercial RE
  • Tom Gilles- Section 8
  • Marc Sherby- Sheriff Sales
  • Mike Mumma-Public adjuster, Repair expert
  • Raymond Lemire-OPM, Private financing
  • Jim Kilgannon- Foreclosures
  • Marc Halpern- Lease- option
  • Jim Bennett- Hard Money lending
  • Don Rotanz- Rehabbing to rent or flip
  • John Hepner– Taxes and tax strategies
  • Bruce Shaw – Real Estate Law, Title issues
  • David Artigliere- Home inspections and 203K Financing options
  • David Witsen- REO Expert, Short sales, Investor friendly realtor
  • Doug and Deb Campbell- Recovering from Fire in your investment properties
  • Jeremy Ricci-‘investor Gadget’- Tech to grow your RE Business
  • Phil Falcone- Getting Rich using Phil’s Strategy of Residential to Commercial RE
  • Greg Davis-Environmental Liabilities AND Getting Started in RE
  • John Erdek- RE Law, LLC’s Partnerships and Corporations (oh MY!)
  • Patty Burgess- Shortsale expert, Back to back Shorts
  • Kathy Gilmore- Realtor, Business and Life Coach, Wholesaler, rehabber

Also, all attendees will be automatically entered for their chance to win a $100 gift card!

“Phenomenal line-up!!! Great diversity of topics that covers almost every aspect of RE investing!!! This type of meet-ing represents a combination of networking and education at its best. This has even more huge value for many newer investors, especially those who are somewhat shy, who would otherwise not get the opportunity to get one-on-one answers from experienced local experts. If I were not a speed netwoker myself, I would line up to absorb wisdom from everyone on the list. DIG membership is already the most cost-effective investment a local investor can make. This event enhances the DIG membership decision as a slam dunk!” – Marc Halpern

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Jul
16

Why Invest in Tax Lien Homes?

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DETROIT - FEBRUARY 14: A sign announcing a com...

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The recent economic downturn may have affected the business world but it did not stop the investors to find opportunities and ways in making more money in real estate industry. We can’t always guarantee a higher rate of return or even expect that there will be a return on your investment, but once you get to learn on how the system works in buying tax lien homes, you will know that you have found the safest form and reliable source of investing. Read More→

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Jul
05

Refinance Investment Property: Benefits

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American Dollar

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People refinance investment property to replace the present loan to another loan secured on the same property. You have an option to refinance if the prior loan had a fixed interest mortgage rate that has declined and you want to acquire a new loan with a better interest rate. Read More→

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Jun
18

Basic Concept of 1031 Exchange Properties

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Internal Revenue Service (IRS)
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Most owners or investors either just buy or sell real estate but they don’t really have an idea or lacks knowledge on the advantages of the 1031 exchange that the IRS offers to people. This article will help those who want to know and benefit from learning more about 1031 exchange properties. Read More→

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Ready for Finance

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Financing investment property is a good way to gain income. This would usually mean that you will renovate or fix the property and then sell it at a higher price, or you can have the place rented or leased to get a continuous source of income.
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