More proof that the investment market in Philly is red-hot even with the national economy melting-down all around us (if you believe the media hype that is). I just put a property under contract that was on the market exactly one week, and that sold for 11% over asking price with multiple (5+) offers! Even to an eternal optimist like myself this was a shockingly easy sale in what is supposedly a rough market. If you've got cash or good credit there really hasn't been a better time to buy, at least in the Philadelphia market, in the past 5 to 10 years.
Happy Investing!
James E. Yoakum
Long & Foster Real Estate Inc.
Independence Hall Office
601 Walnut Street, Suite L-10
Philadelphia PA 19106
Office: 215-409-6900
Cell: 267-496-7739
Email: james.yoakum@lnf.com
How many times have I heard my investor clients say "I'd like to buy this house but I'd really LOVE to buy this whole block!"? I hear it all the time!
In Philadelphia making a good real estate investment is just as much about the block, street and neighborhood that you buy into as it is about the property itself. This means two things for investors:
1. Don't base your buying decision on the property alone, look at the zip code, neigbhorhood, street, and most importantly the individual block on which the property is located. The desirability (and value) of a property can be vastly different depending on the dynamics of the block on which it's located. This is pretty simple to understand just from walking around.
2. The second, and maybe more important thing for an investor is that buying an entire block of properties usually has way more profit potential than just buying one property. When buying one property you can spruce it up and make it look nice, but the neighboring homes may still be in total disrepair, making it hard to rent or resell your property for top dollar. However, if you can spruce up an entire block all the homes become much more valuable all at once and you reap all the benefits because you own them all! Additionally, if your investment is spread over a full block it begins to make sense to invest in things like setting aside vacant lots as pocket parks, installing high-end street lamps, or planting sidewalk trees - all things that make a block feel a truly special place to call home. This doesn't even take into account the fact that it's much easier (and less-expensive) to renovate and manage multiple properties when they're all on the same block than if they're spread throughout the city.
So, I'd like to offer a twist on a tried-and-true piece of real estate advice. You've probably heard that you should buy the smallest/cheapest/worst-condition house on the best block/street/neighborhood. Well I say you should buy the cheapest/worst-condition/most-distressed block in the best neighborhoods/zipcodes/city.
If you'd like to learn more about the actual process of acquiring a full block in Philadelphia (it's a long and complicated process but well-worth the effort) please give me a call or email. I currently have two listings on a block in West Philly that would make a great start towards acquiring about 70% of that entire block over the next one to two years. There are also similar opportunities all over the city and I'd be happy to find one that can work for you.
I sent this out as an email to all my past and present clients this week to give them an update of the developments I'm seeing in the Philadelphia real estate market. If you have any questions about Philly please give me a call!
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