Meet Jack. Jack is a typical investor (not a real investor but an amalgam of many of the investors we work with). Jack has done almost a dozen deals now with hard money lenders in Chester County PA. He’s a relatively new buy and hold investor in Chesco, who has spent the last three years focused on acquiring, improving and renting out single family homes, condos and small multi-family units. He holds properties in West Chester, Downingtown and Phoenixville. But finding deals that interest in him is getting harder so he’s been looking into Parkesburg, but fellow investors have been urging him to check out properties in Kennett Square and Chadds Ford.
Like many buy and hold investors these days, Jack is investing on the side and not looking to quit his day job as a dentist. At first he bought homes that were rent-ready or in need of light rehabbing, but now he mostly buys properties in need of medium to high levels of rehabbing. By getting funding from hard money lenders in Chester County PA, Jack has been able to acquire properties more quickly, get them rehabbed, rented out and then refinanced. Here’s the three steps he followed in becoming a buy and hold investor.
1. Research the real estate investing opportunities in Chester County
Jack lives and works in Chesco. He was attracted to the county when it was ranked the 4th best county in America to live in by Movoto (2014). Chesco has the highest rate of owner-occupied housing in the region and the highest median housing value. Jack saw the opportunity for both decent cashflow now from rental properties and long-term appreciation. Before investing in Chester County or anywhere else, it really is important to research and make sure the area is is right for your investment strategy.
2. Work the numbers and be patient as look for a good deal
This is a beautiful, picturesque county and an attractive home might catch your eye, but the best investments have numbers that work on paper. Look at the cashflow potential, cost of repair and project return on investment in year one and subsequently. Be patient for the good deals and if they don’t come, expand your reach to further communities.
3. Line up financing with your top choice of hard money lenders in Chester County PA
Chester County is part of the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD Metropolitan Statistical Area which is one of the top ten places for real estate investing in the US. There are many hard money lenders here, but you want to find a lender who understands your investment strategy and can work with you in expanding your portfolio more quickly.
Legacy Capital works with many buy and hold investors just like Jack—career professionals who are choosing to invest in real estate and expanding their portfolios in Chester County. We’d like to show you how we could finance your deals and the advantages we could bring to your investment operation as compared to other hard money lenders in Chester County PA.