Episode Transcript
Speaker 0 00:00:00 Hello everybody, and welcome to episode six of the Philadelphia Wealth Project podcast.
Speaker 1 00:00:06 Wow. Did you like episode six?
Speaker 0 00:00:08 It's episode
Speaker 1 00:00:09 Six. That was really good. Yeah. Yeah. I don't know about the end or like the podcast, but maybe, maybe
Speaker 0 00:00:15 I I'm trying something out. You know, sometimes you try it out, doesn't work, you know, sometimes it works.
Speaker 1 00:00:19 I like it. Let's, let's just roll
Speaker 0 00:00:21 With it. Yeah. I mean, today I think we should talk about, we, I think we need to get, I mean, the point of this thing is it's local. Yes. You know what I mean? Yes. So I think we should talk about the different areas in the Philadelphia Phil sub, the Philadelphia suburbs that people invest.
Speaker 1 00:00:34 Yes. That is a great idea.
Speaker 0 00:00:37 I had it.
Speaker 1 00:00:37 I love it. I love it. Yeah. Investing in the Philly suburbs. So we are in Westchester, Pennsylvania. Yeah. Which is in Chester County, Pennsylvania. And it's a fantastic place to invest. There's also many, many, many other suburbs that are fantastic places to invest that are right outside of Philadelphia.
Speaker 0 00:00:57 Yeah. And you know, like I always break it down for people. I think one, we should talk about investing in the city a little bit and why we don't. Okay. Um, and then also, um, you know, basically the counties, right? You've got Montgomery County, Chester County, Delaware County, and then New Castle County, which is northern Delaware. Right. Which I kind of consider the Philadelphia suburbs, even though Wilmington is its own city with its own sort of suburb. Right. But we still,
Speaker 1 00:01:21 And there's Bucks County too. So Bucks County's literally right next to Philadelphia, but that is not somewhere that we really specialize in.
Speaker 0 00:01:30 Yeah. We're really over those other four counties on the, like the western, Western
Speaker 1 00:01:35 Southern
Speaker 0 00:01:35 Yeah. Part of Exactly. Philadelphia is where we really focus and what we really know. Exactly. Um, cool. All right. So, um, I think that, uh, we're, we're getting the Philadelphia Wealth Project kicked off by the way. That's starting what? December 10th?
Speaker 1 00:01:51 December 10th.
Speaker 0 00:01:52 It's gonna be a four hour event. I'm gonna talk you, wait,
Speaker 1 00:01:56 Who are you?
Speaker 0 00:01:57 Oh, my name's Rob Lawrence.
Speaker 1 00:01:58 Oh my goodness.
Speaker 0 00:01:59 I'm a real estate agent, real estate investor. And, uh, I run the Rob Lawrence team here at Vanguard Realty Alliance, l l c.
Speaker 1 00:02:07 Excellent. Who are you again? I am Sean Connors, managing broker, co-owner of Vanguard Realty Alliance. An investor right here in Chester County, as well as the Poconos, which is not a suburb of
Speaker 0 00:02:21 Billy. Nah. Too
Speaker 1 00:02:22 Far. Nope. Too
Speaker 0 00:02:23 Far, too far away. Yep. So, yeah, I mean, I think what we wanna talk about today is a lot of the areas that investors love and where you can invest and how you, how people are making money in different spots. Okay. I guess that's what I'm kind of thinking about. Yeah.
Speaker 1 00:02:38 That's a great, that's a great topic to discuss because there are certain parts of the suburbs that are better for cash flow, certain parts that will be better for flips where you can make more of a spread. Yeah. You know, and then there's better parts for appreciation. There's parts that won't really appreciate well, but again, the cash flow is really good. So we'll cover all that
Speaker 0 00:03:00 Today. Yeah. And I think it's, there's also like, uh, locations where multifamilies are more prevalent. Yes. Um, than singles or, or, or Well, there's more singles everywhere, but where there's more multi-families and then also different price points. Oh, yeah. Because, you know, we've got a house for every budget here and, uh, we sure
Speaker 1 00:03:15 Do. <laugh>, we got the 60,000, maybe even 30 in Chester, and then we got the multi multimillion dollar farms and estates, and it's pretty
Speaker 0 00:03:29 Crazy. Can I get some Section eight up in here, <laugh>?
Speaker 1 00:03:31 It's crazy. I don't know what it's like in other parts of the United States, but Yeah. Within 20, 25 miles. Right. If you went from Chester to Gladwin, how many miles is that? It's probably less than 20, right? Yeah,
Speaker 0 00:03:44 Probably.
Speaker 1 00:03:44 You're literally going from a place where you can buy a $30,000 house to a 30 million estate. Wow. Within, within 20 minutes, 25 minutes.
Speaker 0 00:03:54 Yeah. It's
Speaker 1 00:03:55 That's wild. It
Speaker 0 00:03:55 Is pretty wild. I mean, it, it's really a very diverse place. Mm-hmm. <affirmative>. And I think like when people are getting started and investing, they're like, where do I invest? It's such a common question. Yes. That I get. So let me just start out with you, Sean. Where are you investing and why?
Speaker 1 00:04:09 I invest currently in Downingtown and Westchester. Cool. Why I do so is because I live in Downingtown and own a business in Westchester. I love this area. Now, it's harder to find deals in this area, right. Because it, Chester county's the wealthiest county in the entire state. So home values in the both places that I really like to be are much higher. Right. You know, so it's a little bit harder to find those deals that are going to cash flow unless you are finding them off market and solving a real problem for someone. There are still rundown properties in Downey Town that you could probably get for, I mean, I know for a fact we call it Little Jefferson Uhhuh <affirmative>. You can get a house for $120,000, but if you get four or five inches of rain, it's coming into the first floor. Oh, yeah. But you can buy a house for a hundred twenty five, a hundred fifty grand <laugh>
Speaker 0 00:05:03 Just need to, like,
Speaker 1 00:05:04 You just need funds there.
Speaker 0 00:05:05 Insurance, you just need to like, raise it up like a little bit with some jacks
Speaker 1 00:05:08 Or something. You can jack it up, you can try, but Yeah. But that's the thing. And then Yeah. You know, at the same time we have multi multimillion dollar compounds and things like that. But yeah, that's where I like to invest. I'll go within, realistically, I'll probably go within a 35, 45 minute radius of where I live. What about
Speaker 0 00:05:29 You? Um, so I, I have a property in Aston, um, and it wasn't necessarily where I picked, it was just like an opportunity that really presented itself to me, and I was like, okay, like I'm doing it, but I knew Aston. Right. And they know Brookhaven in, in those areas, and I like, I like those areas. Um, and then we've seen, uh, our friend Paul Bradley flip a bunch of houses in Brookhaven area. Yep. Um, successfully, and yeah. I mean, it's kind of like Delaware County, but it's, and it's right on the border of, of Chester, but it's definitely not Chester. Right. It's definitely a lot nicer. Um, and then, um, I have an offer out right now actually on house in Westchester.
Speaker 1 00:06:05 Ooh. Yeah. What's that? Three and three offers in as many weeks.
Speaker 0 00:06:09 Yeah. I've been firing off. Yeah. You know, been getting a little rowdy.
Speaker 1 00:06:13 Nice. <laugh>.
Speaker 0 00:06:16 I don't know that I'm gonna get this one, but I, I took a shot at it. We'll see what happens. I mean, who knows?
Speaker 1 00:06:22 You never
Speaker 0 00:06:23 Know. Yeah. Yeah. I threw out, I threw out a pretty good shot. I mean, I went over asking and, but it's like, I did it sight unseen, but I like know what the house is. Uh, you know, so I like Westchester as a potential. I mean, I think the frustrating thing about trying to invest in Westchester, maybe somewhat downingtown, is the multi-family is very limited. Yes. And the, um, the pricing on it is so high, even relative to cash flows. And I'm just like, ugh. Like I can't, there was like a triplex in Westchester that was like, I don't know, like 1.3 million or something like that. And it was like,
Speaker 1 00:06:55 It's sold for one close to that.
Speaker 0 00:06:57 Wow. And I looked at the cash loan and
Speaker 1 00:07:00 I just
Speaker 0 00:07:00 Bought it. I know who bought it too,
Speaker 1 00:07:02 But the cash flow was, there's no way. Right.
Speaker 0 00:07:05 I know. I know. But you know what I mean? Who knows? I mean, the guy might make out. Well, it's
Speaker 1 00:07:09 Just like, I think he might be living in one.
Speaker 0 00:07:11 Yeah.
Speaker 1 00:07:12 You know, and that makes sense. But from a, a pure investment standpoint Yeah, you're right. From pure investment standpoint with the multi-families, it is definitely harder to cash flow.
Speaker 0 00:07:22 Yeah. Especially in Westchester. There's so much money in Westchester. Mm-hmm. <affirmative>, like so many investors, so many savvy people with real estate. There's some really successful real estate companies, especially ones that are holding like student rentals. Right. Which is a whole thing. Um, that it, it is, it is somewhat difficult to compete in that space, but I think, like from my perspective, you can do like a single family that's distressed, fix it up, kind of burn it mm-hmm. <affirmative>, and then rent it out and get a decent rent and kind of cash flow a little bit. You know, maybe you're cash flow in between like five to 800 a month, maybe on a, I don't know, $400,000 house. Wow. Something like that. That would be great. Yeah. I think you can definitely do that. Um, you know, cause you can maybe get 4,200 on a, on a rent in like a nice house in Westchester. I think that's not, not outta the question. Um, so I like, I kind of like that sweet spot with, with Westchester and somewhat Downingtown, though. I know you can, I think Downing town's a little bit less intense. Yeah. I
Speaker 1 00:08:14 Would say. I would say so too. And you can definitely, in the borough of Downingtown you can get a more affordable house. Yeah. You know, and, and the rents are pretty, pretty dang good in the borough.
Speaker 0 00:08:27 Yeah. Yeah.
Speaker 1 00:08:28 I mean, I mean, even outside too, anywhere in Downingtown school district, the rents are pretty good.
Speaker 0 00:08:33 Yeah. Downing town's a great school district. Westchester's a great school district. Mm-hmm. <affirmative>, you know, they have a lot of, a lot of, of, um, accolades Yeah. And wins there. That's,
Speaker 1 00:08:41 That's what I look for in investing too. Yeah. Like, that's one of the big things where I'm thinking about where I want to invest. Like, there's so many, there's so many different investment strategies. There's so many different people that don't necessarily invest close in 'em. They'll do out-of-state investing, you know, the Sunbelt states and Southwest and places like that. But I personally want to be close besides the Poconos. Right. Because you can far Yeah, I know. But I can drive there, so it's not too far. Um, but like for a long term investment, for a long term rental, I'm looking in the good school districts. Like that's one of my primary, um, targets of places in, in Chester County or in Delaware County, or even Montgomery County.
Speaker 0 00:09:24 Yeah. It's interesting. And, you know, um, just talking about like, when you go into like a really high end area mm-hmm. <affirmative>, you know, what I've noticed is the rents aren't even that great sometimes in some of these places. Like, I don't know, Gladwin or like Wayne. Right. Like the, the, the rents are not out outrageous, but sometimes these, like the, the prices that the houses sell for are really crazy.
Speaker 1 00:09:45 Yeah.
Speaker 0 00:09:46 We gotta, but
Speaker 1 00:09:46 We, I wonder where we could rent like one of those $5 million states for
Speaker 0 00:09:51 1 million a month.
Speaker 1 00:09:54 Wow.
Speaker 0 00:09:55 <laugh>,
Speaker 1 00:09:55 I don't know. 20% rule.
Speaker 0 00:09:56 Huh. I don't know. I mean, you know, it's like the rents kind of top out at a certain point. Right. Like, it just becomes,
Speaker 1 00:10:01 They definitely
Speaker 0 00:10:01 Do, it just becomes ridiculous. Like after you talking five grand a month Right. Or something like that. You know what I mean? Like, it's just like, why is this person not buying something? Yeah. Like most people with that much money are gonna tend to buy, I would say. So like, that's one thing I notice is like when you look at a rental, you're trying to stay more towards the bottom of the, of the curve in terms of the area.
Speaker 1 00:10:22 Yeah. You definitely don't want to be the most expensive house Yeah. In the neighborhood. Right. As far as rent, I don't think you're really gonna make out too well, like you're buying it with the, if everything else around you is rent for 3000 Yeah. And you're coming in like, oh, well, I'm gonna put 150 grand into it and try and rent it for 4,000. Eh,
Speaker 0 00:10:41 Might not just, just not just the, the demand isn't there at
Speaker 1 00:10:44 That price point. Right. Exactly. Exactly. Yeah.
Speaker 0 00:10:47 So
Speaker 1 00:10:47 Where are, so these are, you know, what we're talking about are the more, I would say probably affluent areas Yeah. With higher rents and people generally media on income, median income is generally much higher than other areas. So what are some good areas, in your opinion, to invest for cash flow?
Speaker 0 00:11:07 Um, I, I think I like Wilmington. I think Wilmington's the number one on cash flow in terms of Okay. Like purchase price on a multi-family. Um, versus like, like I helped a guy buy with like a 12% cap rate thousand dollars cash flow on a buck 84 purchase. Yeah.
Speaker 1 00:11:27 That's a pretty killer. Whew.
Speaker 0 00:11:28 Yeah. Nice. I mean, real nice. And I mean, I, I know, um, our broker, Steve's, you know, been investing there quite a bit mm-hmm. <affirmative>, and you know, there, there's just opportunity there in terms of there's low taxes that's not taken away from your cash flow and the prices are relatively low now you have to watch area, but maybe you don't have to watch area. I mean, it's just kind of up to you. But the cash flow, I think in Wilmington seems to be the strongest cash flow that I have seen Right. In the Philly suburbs. The problem, like when you move into, like, we talk about, uh, a 1% rule mm-hmm. <affirmative> or a 2% rule. You familiar with that, Sean?
Speaker 1 00:12:05 I think so. It's like I've heard of it
Speaker 0 00:12:07 Before. Yeah. It's like 1% of the purchase price. Right. Right. Like if it's for rent, if it's 300,000, then the rent should be like three grand. You know, if it's 200,000, the rent should be two grand. Right. Now you might start into the,
Speaker 1 00:12:18 Let's say you might be able to get that in Wilmington, but that would be very difficult to get around here.
Speaker 0 00:12:24 Yeah. I mean, in Wilmington, like that Buck 84 purchase was getting 2,400. So that was like one and a half almost. Yeah.
Speaker 1 00:12:31 Percent. That's great.
Speaker 0 00:12:32 Which is great. Yeah. 2% used to be more common, I would say. Yeah. Especially in like Chester or like Darby. Right. Or places like that. But even now, like that seems to be tougher. Mm-hmm. <affirmative>, I think things are just a bit tighter. Like people are more aware, um, with their investments and stuff like that. But yeah, that 1% rule is kind of that thing I'm usually shooting for and looking for in a cash flow. Now, when you get in a place like Drexel Hill, for example, in Chester County Right. Or in Delaware County, the taxes kill you. They're
Speaker 1 00:13:03 Absurd.
Speaker 0 00:13:04 Oh my God. I don't know who's running the tax thing there, but
Speaker 1 00:13:07 I don't know. The last house I sold there, the, the price was two 50 and the taxes were $11,000 a year.
Speaker 0 00:13:15 <laugh>. That is
Speaker 1 00:13:16 Unbelievable. <laugh>. And that was like four years ago.
Speaker 0 00:13:19 Yeah. Yeah. Like, and
Speaker 1 00:13:21 It's crazy. Right.
Speaker 0 00:13:22 For example, that triplex in Wilmington, that was a buck 84, like taxes were 2200. Wow.
Speaker 1 00:13:27 Yeah. That's awesome.
Speaker 0 00:13:28 My mom owns a house at the beach and Bowers Beach and the taxes are like 1800 and she owns the beach.
Speaker 1 00:13:35 Really?
Speaker 0 00:13:36 Delaware taxes are phenomenal.
Speaker 1 00:13:37 Yeah. Delaware is definitely a place to consider investing. Um, on the Pennsylvania side of things, I think Coatesville is good for cash flow. Yeah. Um, that's in Chester County. Norristown will be good for cash flow. Yeah. In Montgomery County. And then if you're looking in Delaware County, it's probably what upper Darby?
Speaker 0 00:13:57 Yeah. Eastern Darby, Delaware County. Yeah. As you get like closer to the city, it gets a little bit more cash flowy.
Speaker 1 00:14:05 <laugh>
Speaker 0 00:14:05 More cash flowy. Is that a word? Yes, that's,
Speaker 1 00:14:07 Can I use that? That's definitely a word. Yeah. <laugh>, I like
Speaker 0 00:14:09 That. And you got Potstown, we can't forget about Potstown.
Speaker 1 00:14:11 Oh yeah. For Potstown, that's Montgomery. Potstown is mainly Montgomery County, but it's also,
Speaker 0 00:14:17 It's kind of right on the border there. Right.
Speaker 1 00:14:18 Well, Potstown Borough I believe is Montgomery County, and then the surrounding parts of Potstown are generally Chester County. Gotcha. Oh, and J schools.
Speaker 0 00:14:28 Gotcha. Yeah. So it's, it's, it's like right there. Um, but yeah, pots town's a really popular place for investors to go. Yes. Again, you got a tax situation there where the taxes are relatively high, Michael.
Speaker 1 00:14:39 Yeah. Yeah. But the, the homes are pretty affordable. You know, we have an agent Anthony, and he has, oh, he probably has close to 10 units there now, dude. And,
Speaker 0 00:14:48 Uh, go to Anthony. Good
Speaker 1 00:14:50 For you, bro. Yeah, he's awesome. He does really well. Uh, he really likes Potstown and it's a good market, you know?
Speaker 0 00:14:56 Yeah. And has a lot of potential It does for improvement and, and, and rising prices. Appreciation. Yes. They're really dumping a lot of money into it. Same thing with Coatsville, right? Like building train station. We got,
Speaker 1 00:15:08 They're doing a lot in Coatsville. Our
Speaker 0 00:15:09 Buddies doing the, um, Chris, he's doing
Speaker 1 00:15:11 Jump Star Coatsville
Speaker 0 00:15:12 Jump Star Coatsville. Yep. And then I, you know, Hannah and, uh, Tyrone, they're, they're buying in Potstown, right?
Speaker 1 00:15:19 Yeah. They have a building there. I know they made an offer on a building recently. And, um, Potstown and Coatesville seem to be two like hotbed areas for redevelopment and for increasing cash flow, which is really nice. Now, NAS town on the other end, I don't, I don't know too much about it. I have worked with investors who own properties there. I sold a couple properties there. Um, it was a few years ago. They did well. Yeah. You know, um, I don't know what it's like now. I I have looked at home prices there and they haven't increased much, so you can still probably get a pretty good deal.
Speaker 0 00:15:55 Yeah. There's some really affordable housing in Norristown. I have not spent much time there either. I've had some investors, you know, talk about it or this or that, but I just, I've never done a deal over there. I've been, I've toured a lot of houses in Pottstown, never pulled a trigger with a client on one. Mm-hmm. <affirmative>, I've done deals in Coatesville, um, several multi-families, singles, you know, and stuff like that. We got Sean Phillips, our mortgage guy.
Speaker 1 00:16:17 He's got two there now. He's
Speaker 0 00:16:19 Got two there. Yeah. And he's, he's doing a live and flip in Thorndale, which is technically Coatesville School District. But, um, yeah. So we see a lot of, a lot of people over there, um, moving into that and Yeah. It's like cash flow is, is nice. Right. You know, and it's, but it's also awesome to watch like Vince again, like doing a flip over on the mainline our berth, you know, making like 400,000 on
Speaker 1 00:16:43 One product. Exactly. And that's, you know, that's the difference between investment strategies. Like if you're, if you're looking to buy and hold, like yes, you can get a decent one in a better school district. It's just a little bit tougher. You know, there's a lot, people have a lot more equity in their house, so they're not always under some kind of distress to want to sell quickly. Um, but then you can flip properties. Yeah. You can get pretty decent flip opportunities where you can make 50, a hundred, 1 50, 200, 400 on the main line. I mean, this is real.
Speaker 0 00:17:20 Yeah,
Speaker 1 00:17:20 It is. This is real life. People are really doing
Speaker 0 00:17:23 This. I know. It's kind of crazy. Like when I first got into real estate and then seeing like, you know, you see the numbers on TV and you're like, man, my salary $70,000 a year. And you see someone make 70 grand on one project and you're like, this doesn't seem fair. You know what I mean? Yeah. Like, this doesn't even seem like it should be real. Right. But it's like you, like we just talked to 2, 2, 2 podcasts ago about your commercial building where you're making over 200, probably like 400
Speaker 1 00:17:45 Closer. Yeah.
Speaker 0 00:17:45 Yeah. It's unbelievable. Right. One deal.
Speaker 1 00:17:47 And that's in Westchester.
Speaker 0 00:17:49 In
Speaker 1 00:17:49 Westchester in a place where people are like, I can't find a deal. You know?
Speaker 0 00:17:52 Yeah, I know. There's a lot of, uh, a lot of that. And look, it is not easy. No, it's not. Especially if you're not
Speaker 1 00:17:58 An expert. Not, it's really not.
Speaker 0 00:17:59 But y you know what, actually, I was just on the phone with, um, a cold caller earlier today. I think I'm be hiring, I'm gonna be doing some off market marketing and uh, nice. I know you're gonna get excited about
Speaker 1 00:18:10 That. No, find me a deal, man.
Speaker 0 00:18:11 I, Hey, listen, you gotta pay the man <laugh>
Speaker 1 00:18:14 <laugh>. I'll pay 'em
Speaker 0 00:18:16 <laugh>. Yeah. I mean, you know, there's deals to be had, there's a whole, um, thing around marketing for deals. Mm-hmm. <affirmative>, you know, a lot of people do that successfully. And it, it's not rocket science, but you know, you have to solve other people's problems. Right. And it can happen anywhere in the Philadelphia suburbs. The thing I think that's good about the Philadelphia suburbs is that the cap rates make sense. You're at least able to outpace your interest rates. I would say, like, you know, and get an 8% cap rate is not impossible in the Philly suburbs. You know, it's, it's fairly achievable. Right. Um, and, you know, interest rates, whatever, maybe you borrow 'em. I actually just saw you could borrow money at 5.625 on a five year arm for an investor. So really? Yeah. The arms are really, uh, uh, becoming way more popular right now. Yeah. Because of the spread.
Speaker 1 00:19:05 You're hearing a lot about buy downs as well.
Speaker 0 00:19:07 Yes, yes. Yes. I believe our friend Sean is, uh, working on a video on buy downs. Yeah.
Speaker 1 00:19:12 Um,
Speaker 0 00:19:12 Which is
Speaker 1 00:19:12 Great.
Speaker 0 00:19:13 Yeah. I gotta learn, I gotta learn these things. I think right now in this interest rate environment, the better. You know, I was thinking the other day, it's like, man, if I could get money at 1%, like every deal makes sense. Yeah. Right. And it's like, but obviously that's an EAG exaggeration, but it's like when you can do the financial strategies to get those better interest rates and to get better financing on the same deals that other people are looking at, you may be able to see an opportunity.
Speaker 1 00:19:38 I wish I would've knew about that. Cuz there was one that came up in Downingtown. I scheduled a showing for it. I was listed at two 50. Yeah. Need a lot of work. Mm. You could probably get it to appraise depending on the amount of work for four.
Speaker 0 00:19:51 Okay.
Speaker 1 00:19:53 Um, and then I was thinking, you know, buck
Speaker 0 00:19:55 50 spread, what do you think you need in work?
Speaker 1 00:19:57 Probably 80, 85, maybe closer to a hundred. But even if you have $50,000 in equity, it's not like I'm trying to cash out and sell it, you know? Yeah. I wanna keep it for a rental and I'm okay with leaving some money in it. Yeah.
Speaker 0 00:20:10 You'd be able to pull up most
Speaker 1 00:20:11 Your money when I put in six and a half percent interest. Mm-hmm. The payment was like 2100, even with 20% down. Wow. At 400.
Speaker 0 00:20:21 Mm-hmm. <affirmative>.
Speaker 1 00:20:22 Mm-hmm. <affirmative>. And then you can only rent it for 2200
Speaker 0 00:20:25 At two 50 you're saying, right?
Speaker 1 00:20:27 No. So the, the ARV was
Speaker 0 00:20:30 Four, like if you were reifying out or whatever.
Speaker 1 00:20:32 Yes. Gotcha.
Speaker 0 00:20:34 Got you. Yeah. I mean, the arms, um, are really attractive right now. There's more and more arms. People weren't using 'em at all when the interest rates were super low.
Speaker 1 00:20:42 I got arms,
Speaker 0 00:20:43 Dude. Nice arms.
Speaker 1 00:20:45 <laugh>.
Speaker 0 00:20:45 Have you been <laugh>?
Speaker 1 00:20:47 I've been arming
Speaker 0 00:20:48 <laugh>. Yeah. You've been arming
Speaker 1 00:20:49 At the gym? I never skip arm day.
Speaker 0 00:20:51 Nah, dude. Every day's arm day. <laugh> <laugh>.
Speaker 1 00:20:54 But no, arms are good.
Speaker 0 00:20:55 Yeah. I mean, adjustable rate mortgage, it's, it, it's like, people are like, ah, it's so risky. I'm like, well, what's the risk? I mean, you're going to definitely pay a higher interest rate for the next five years. Yeah. Or maybe to adjust in five years up to about where it is now. Right.
Speaker 1 00:21:10 <laugh>. I, I don't, I truly don't think it's that risky.
Speaker 0 00:21:13 I don't either. Don't, interest rates will be back down and, you know, okay. Don't sue me, please. But like, you know, <laugh>, I think the
Speaker 1 00:21:20 Interesting they will go back down.
Speaker 0 00:21:21 Yeah. Eventually. I mean, you know, especially if you're in a 10 year arm and you can save like one, 1%, one and a half percent. Like that's gonna make stuff work. Um, you know, I I think also I want to talk about like the, so the, like investing in Philly suburbs, you can get decent returns. There's a good renter pool. There's always high demand for rentals.
Speaker 1 00:21:40 There's always,
Speaker 0 00:21:41 Yeah. That's
Speaker 1 00:21:42 The thing. Right. That's important to think about too. Like, this area is very, especially, I mean, Chester County, Delaware County, Montgomery County, people want to live here.
Speaker 0 00:21:54 I like living here. I
Speaker 1 00:21:55 Love living here.
Speaker 0 00:21:56 I love Westchester. It's like one of
Speaker 1 00:21:57 The, you know, I came from Philly and I love living here. You know, it's, it's amazing to me.
Speaker 0 00:22:02 So you don't wanna go back to the northeast?
Speaker 1 00:22:04 No. <laugh>. I will not <laugh>. I it's very in demand here. Yeah. You know, like, this is, this is a place, especially in the, that's why I look at better school districts. Yeah. Because those better school districts, people are always going to want to live there. It's almost like we're in this bubble, you know? Yeah. Like, yes. Interest, high interest rates affect us, inflation affects us, but the values of homes just keep going up, you
Speaker 0 00:22:29 Know. Well, I think a lot more people are discovering this area and I mean, Chester County and like, it, it's got rolling hills and wooded areas and park parks and great schools. And the taxes aren't outrageous when you're looking at like, let's say like New Jersey Yeah. Or something like
Speaker 1 00:22:47 That. Or New York. Yeah.
Speaker 0 00:22:47 Or New York. Right. And there's good jobs, you know, and Yeah.
Speaker 1 00:22:53 There's great, great business around here.
Speaker 0 00:22:55 Yeah, exactly. And, and like you're, you know, you're two hours from the beach, you know, you've got a big city nearby, you can go do anything you want. Really. And it's, it's, it's relatively a good value. Right. That has, you know, and people talk about that. Like, oh, Philadelphia is one of the cheapest cities. Like if you're looking at Boston, New York, Washington DC Yeah. Like on that, on East Coast. Besides East Coast besides Baltimore I think is cheaper.
Speaker 1 00:23:19 Could
Speaker 0 00:23:19 Be. I think it is. But like Yeah. Whatever. <laugh>. Yeah.
Speaker 1 00:23:25 They're cities, so Yeah. Yeah. They come with city problems. Yeah. City.
Speaker 0 00:23:28 Yeah. And that's what too, like, so people talk about, well, Philadelphia, like, why aren't you investing in Philadelphia? And it's like, that place just scares me, <laugh>. You know what I mean? Like, I get scared over there. I'm like, I'm just like over there. I'm like, is somebody gonna kill me? <laugh>, I got this friend who's a cop and he is showing me such crazy things that he's dealing with over there. Like, just shootouts in the middle of like the day and like, you know, people are nuts.
Speaker 1 00:23:53 Yeah. People are crazy. People are crazy everywhere. That's
Speaker 0 00:23:56 True. Right?
Speaker 1 00:23:57 I'm
Speaker 0 00:23:57 Crazy.
Speaker 1 00:23:57 Um, I I just say with, with with Philly, you know, with big city comes big city problems. Yeah. Right. That's why I don't, that's why I don't invest there. Not that I think everywhere in these city is bad. Right. But for me it's like big cities bring big city problems. I don't want to deal with that. I feel very comfortable investing where I live, close to where I live and where I really know, you know? Yeah.
Speaker 0 00:24:23 I, you know, the things, the downsides I hear about Philadelphia. Right. And there's a ton of opportunity in Philadelphia. I mean, there's flips hitting the market every second in Philadelphia
Speaker 1 00:24:31 All the time.
Speaker 0 00:24:32 There's so many houses. Um, and there's, you know, there's more multi-family. There's just Yep. There's a ton of stuff. And I mean, you know, in the good areas, stuff is very expensive actually. Um, but like I, I believe if you have a tenant who stops paying,
Speaker 1 00:24:48 They can stay.
Speaker 0 00:24:50 Yeah. And they decide they don't, they wanna stay the city on their behalf will hire a lawyer for them so they can fight you. Yeah. Which is fun.
Speaker 1 00:24:59 Squatters or tenants that go past their lease, tenants that stop paying, you can stay. I've heard, I've literally heard some crazy, crazy shit with people staying like four years, five years, four years. I actually heard of a guy staying somewhere. He stopped paying the mortgage. This was in Coatesville. Yeah. Six years. Wow. He lived there.
Speaker 0 00:25:22 That's amazing. Yeah.
Speaker 1 00:25:24 But Philly's like, yeah, you can, you can do that and, and get away with
Speaker 0 00:25:28 It. Rich O'Neill um, friend of ours, he was talking about, um, how there's like a lead paint requirement and like if you, you can't get a rental permit unless you get a lead paint certification. And the tenants sometimes will refuse to let the people in to do the lead paint certification and then say like they, they'll kind of like use it as a justification, not pay rent because you're not taking care of the place. But they'll refuse to let the inspector in <laugh>.
Speaker 1 00:25:55 I believe it. Yeah. There's a lot of work around. And that's, that's what I'm saying with big cities or big city problems. Yeah. Not that this can't happen anywhere. Right. It just happens more prevalently in Philly.
Speaker 0 00:26:06 Yeah, I know. And it's, it's frustrating. Cause I feel like that the city has so much opportunity. I obviously hear getting permits, like if you gotta do work is brutal. Yeah. Um, you know, from a, from what I've just heard
Speaker 1 00:26:17 From a lot of people Yeah. Dealing with l and i and all the different inspectors and permits and things. Yeah. I mean, I've, I've sold a decent amount of properties in Philly. Yeah. I sold a decent amount of flips in the city. And, you know, just working with those, with those sellers, I, I know it's a pain in the ass.
Speaker 0 00:26:35 I got to sell, I got to sell a flip in beautiful Kensington. And, uh, I think people cut the lockbox off and stole the tools. <laugh> <laugh>. Yeah. <laugh> while they were flipping it. Yep. Uh, you know, and, uh, yeah, eh, Kensington's a little bit got its issues. Yeah.
Speaker 1 00:26:52 Yeah. It's just something to think about if you want Yeah. Not that investing in the city is bad. No. You know, it's
Speaker 0 00:26:57 Not what we just
Speaker 1 00:26:58 Like person. Yeah, exactly. It's not what we do. Right. It's not what we do. But there are a ton of people who do do it and they do really
Speaker 0 00:27:05 Well and they make a lot of money. Yeah. A lot of money. And it's just a different, I think it's a different thing.
Speaker 1 00:27:09 Yeah. You just gotta find the, an area where you feel comfortable investing. Right. Same thing without here in the counties, you know, you have to find areas where you feel comfortable investing. Yeah.
Speaker 0 00:27:18 Because you know what the truth is, you can really make money anywhere. Right. Right. You can make money anywhere. I knew, I, I was talking to a guy who, uh, back in the day he was buying houses at auction in Chester for like $5,000 and Wow. Now that, you know, now that we're like over 60, $70,000. But yeah. Still a great return. Yeah. Yeah. I mean, and you know, there's different areas in Chester like the, around the Widener campus, for example. Right. You know, where there's nice areas. So it's like, you know, knowing that having that local knowledge is so important. Right. You know, and, um, I think that's what's good about this podcast is like, you know, we're gonna have be be be bringing on like local investors, talking about where they're investing and why. Um, so you're gonna see more and more of that content. Right. So make sure to subscribe to this podcast to, to, um, you know, educate yourself on the Philly suburbs. Absolutely. We're really, this podcast is not like a national one. It's really about being local. Yeah. And dealing with our local issues, local townships, um, weird stuff that's going on. Development in this area and making sure people have local knowledge because real estate investing is local,
Speaker 1 00:28:24 Very
Speaker 0 00:28:25 Local, you know. Yeah. It's revitalizing our own communities. Um, creating commercial spaces, creating residential spaces. You know, we could be building apartment buildings before we know it. Sean.
Speaker 1 00:28:37 I wouldn't put it bias. I think we could do it. I think we can do it still. <laugh>. Um, yeah. So just to, to round out this episode then, can you just share a little bit about our kickoff event, because we didn't really get a chance to touch on it? Oh
Speaker 0 00:28:51 Yeah, I'll talk about that. I mean, the kickoff event I think is gonna be awesome actually. Yes.
Speaker 1 00:28:55 It's gonna be very exciting.
Speaker 0 00:28:56 It's gonna be off. Awesome. Even though I'm planning it <laugh>, I'm gonna make it so much fun. I like when I do an event, like I wanna bring the heat, you know what I mean? Like, I don't wanna sit there like dumb vo go sleep, you know what I mean? Like,
Speaker 1 00:29:10 So are we gonna play pin and donkey?
Speaker 0 00:29:12 Yeah. I don't know. Probably not. Water
Speaker 1 00:29:14 Balloon. Fun
Speaker 0 00:29:16 <laugh> paint
Speaker 1 00:29:16 Paintball
Speaker 0 00:29:17 Fun paintball. Yeah.
Speaker 1 00:29:18 Yeah. What kind of fun are we doing?
Speaker 0 00:29:19 If you don't have a property, we're gonna shoot your
Speaker 1 00:29:21 Snowball
Speaker 0 00:29:22 Fight. Fun. Paintball, gun <laugh>. This is welcome to Philly Bitch <laugh>. Well, one, it's free to attend. Right. The only, the only requirement to attend this is that you have the desire in your heart to build wealth through real estate. Okay. And financial freedom. Right. That's what this event is about. This is what we're doing. Doing is about, that's what the Philadelphia Wealth Project is about, is freeing people
Speaker 1 00:29:45 Freedom.
Speaker 0 00:29:47 Yeah,
Speaker 1 00:29:48 Exactly
Speaker 0 00:29:49 Like that. <laugh>
Speaker 1 00:29:50 <laugh>.
Speaker 0 00:29:51 So we're gonna be, so I, I think we're gonna basically kick it off with we're trying to build a hundred million dollars in net worth for the people that participate in this program. $100 million
Speaker 1 00:30:04 In five years.
Speaker 0 00:30:05 In five years or less.
Speaker 1 00:30:06 And it's so achievable. Or less
Speaker 0 00:30:08 Or less, we might do it in less. Yeah. It's a race to the finish. I mean, hey, if we make more money faster, not
Speaker 1 00:30:13 A problem. The only way we can help people do that is if we have a starting point. Right. And that's what's kickoff event ise. Right. It's the starting point of this.
Speaker 0 00:30:22 So like net worth. All right. A lot of people don't even think about it. But what we're gonna be doing, what we're gonna be doing with this event, is we're gonna start off with where are you at? What's your net worth? Okay. And then we're going to, we're gonna anonymous, anonymous, anonymize it. So like people don't know who's, who's is, what's it's, we'll give you like a number or something. That number's gonna correlate to your name. But like, we'll say, okay, number bababa B is at this point, and he's going here, here, here. And we're gonna have check-ins. Love it. You know, like every quarter or so. So you recalculate your net worth every quarter, see how you've progressed, and we can see how much wealth the project is producing. Mm-hmm. <affirmative>. And then we're gonna have, uh, Steve Seymour talking on strategy, investment strategy. Love talking about that. Cause he's, I mean, guys flip
Speaker 1 00:31:04 Like a hundred. I know that guy houses.
Speaker 0 00:31:06 Yeah. I mean, hun flip like 150 houses. He's got I don't know how many doors over 40 doors. I think, you know, he is got short-term rental, long term rental, um, super experienced. And you know, he's taught me so much and it's just like great to have him there to share with people, like how you build wealth in real estate. Right. Really. And really there's kind of one solid strategy in my opinion. I don't know if I should say it though. Don't. I think we'll leave it for the event.
Speaker 1 00:31:33 Leave it for the event. Keep on suspense. So they come one
Speaker 0 00:31:37 Time I had Steve talk on a, uh, particular investing concept, and he's like, Rob, I hate that concept. And I was like, well just, just talk on it anyway. Like you, you know, like, can you just talk on it? And he talked on it and he's like, and everyone's like, why does he hate the topic he talked on? And then everyone like, yelled at me, <laugh>. And I was like, dude, that's Steve for you. He's keeping it real, man. <laugh>.
Speaker 1 00:31:58 That's interesting.
Speaker 0 00:31:59 Yeah. It was funny. Uh, but, you know, that's Steve. I it's, it's like, but that's cool. I mean, he's gonna talk about strategy, how to really build wealth through real estate. Awesome. Um, we've got Ed Fordice who's gonna talk.
Speaker 1 00:32:10 Eddie.
Speaker 0 00:32:11 Yeah. He's the man. I mean, that guy. He's the man. Yeah. He can motivate even me. Um, <laugh>. So, you know, he's gonna be talking and, and, and about just like finding your why, you know, finding, understanding. Why are you doing this? What's your purpose in building wealth, in financial freedom and thinking about what's holding you back personally, I think. Right. You know, where what do we need to work out in the kinks in our system to help us move forward? Love it. And then I think you're gonna talk
Speaker 1 00:32:39 Ah, man, maybe.
Speaker 0 00:32:40 Yeah. And you now I'm in. Yeah, you're in. I'm in. Okay. I'm not paying you anything.
Speaker 1 00:32:45 Really.
Speaker 0 00:32:46 You're not getting paid neither. Mine food. You can have a bag of chips.
Speaker 1 00:32:51 <laugh>, <laugh>, A
Speaker 0 00:32:53 Bag, a bag of chips. Got it.
Speaker 1 00:32:54 All right. On the house. I'm, I'm okay with the bag of chips. So,
Speaker 0 00:32:56 But we, I think when we have you talk on is making a real plan.
Speaker 1 00:33:00 I love planning.
Speaker 0 00:33:02 I know you do.
Speaker 1 00:33:03 I love
Speaker 0 00:33:03 It. Look at him. He's sliding up like a Christmas tree. When I say the word plan, plan, plan,
Speaker 1 00:33:07 <laugh>, plan arms,
Speaker 0 00:33:09 <laugh>. I got a plan. I got a plan.
Speaker 1 00:33:12 <laugh>,
Speaker 0 00:33:13 My name's Shawn <laugh>. So Sean. Yeah, because you know what, that's the other thing, right? You can say, okay, where am I at now? What's the strategy we're gonna use? How am I gonna get motivated to do this? Like, where am I, how am I gonna get over my own bs? Which was about the kind of the last podcast was about Right? And then let's put some steps in place, like Yeah, this is make
Speaker 1 00:33:35 It step reality. Let's make it actionable. Let's make it so we can follow the plan to get to where we want to go. Yeah,
Speaker 0 00:33:41 Exactly. Like, right. It could be like, Hey, this year I'm gonna do a house hack. Then next year I'm gonna do, um, buy another multi-family, and then the following year I'm gonna do two flips in a rental. And like Right. Whatever it is. Like, what's your plan? What's your plan? What's your strategy? How, how are you gonna save money? Are you budgeting? Do you need to get your financial house in order? Mm-hmm.
Speaker 1 00:33:59 <affirmative>. Love it.
Speaker 0 00:34:00 Yeah. I think you're gonna be awesome at that.
Speaker 1 00:34:02 I will.
Speaker 0 00:34:03 And I think when people leave with, here's where I'm at right now, here's the strategy, here's the motivation, and here's an actionable plan. My God, are we gonna build a hundred million dollars in wealth? We are gonna do this.
Speaker 1 00:34:17 We might do it shorter than five years.
Speaker 0 00:34:19 Yeah. And you know, and the thing is like, too, it's like we have the bus, you know, we have the title business, the mortgage business. We have, you know, our, the sales business all around helping people buy these properties Right. And doing all this. So it's like, and you don't have to use us. This is not like you don't have, you can be a realtor at another brokerage.
Speaker 1 00:34:35 Absolutely. You can be anyone who's looking to build wealth in real estate, you don't care where you come from. Yeah.
Speaker 0 00:34:40 You can be rich.
Speaker 1 00:34:41 You can, this is, this is for everyone.
Speaker 0 00:34:42 Exactly. You can already have a ton of investments and you just wanna grow your portfolio. Right. Or you wanna expand into being bigger. And this is us working together as a group. Right. Right. It's not like I'm saving everybody, or you're saving everybody. This, we're
Speaker 1 00:34:57 We're all saving each other. Exactly.
Speaker 0 00:34:58 We're all working to hel I would say it's, it's kind of like an art collaborative, except not everybody's broke <laugh>. You know what I
Speaker 1 00:35:06 Mean? I like, I like it. We're a collaborative. We're
Speaker 0 00:35:08 A collaborative. Yeah, exactly. So we're all gonna come together at this event, and I mean, invite people you love and care about that, you know, have this desire. Now that's the other thing. Okay. If you don't want to be wealthy and you want to complain and you don't <laugh> you don't want to like, you know, build wealth and you don't care about your wealth or whatever,
Speaker 1 00:35:25 This is not the event for
Speaker 0 00:35:26 You. This is not gonna be the event for you. You're gonna be like, this guy Rob's super freaking annoying. And like, I, I don't like him
Speaker 1 00:35:32 <laugh>. So I'm assuming you're MCing it.
Speaker 0 00:35:35 You Yeah. I need to get some DJ tables and like, you know, some one of those mouse.
Speaker 1 00:35:41 Well, and mc is different than a dj, right? For the most part,
Speaker 0 00:35:45 I guess.
Speaker 1 00:35:46 Uh,
Speaker 0 00:35:46 <laugh>, there's gonna be snacks too.
Speaker 1 00:35:48 All right. Snacks. I'm in <laugh>. It's all I need here. Cheese, I'm snacks,
Speaker 0 00:35:52 <laugh>
Speaker 1 00:35:53 Snacks.
Speaker 0 00:35:54 My kids love those. <laugh>. I don't know what's gonna, everybody, there's gonna be pretzels. So <laugh>, whatever, super won't starve. There'll be bottles of water and stuff, you know, and we'll have a great time. Yes. We, you know what? I will, maybe I, you know, I don't know. We'll, we'll have a lot of fun. And I think like, it's gonna start like this just group of people that are all supporting each other and building wealth together. And my God, is it gonna catapult everyone forward? Because I know what it's done for us already. Right. Just being a part of this brokerage mm-hmm. <affirmative>. Right. And just being in this environment and we're taking this environment out to people that aren't just agents. We're taking it out to the people,
Speaker 1 00:36:30 To the people.
Speaker 0 00:36:31 Taking power to the people.
Speaker 1 00:36:32 Power to the people. That's what we want to do. Empower people. Yeah,
Speaker 0 00:36:35 Exactly. We're empowering people. Instead of saying, oh, this person needs this handout or that handout. It's like, there's no handouts. Nope. But there's no cost either.
Speaker 1 00:36:42 No cost.
Speaker 0 00:36:43 It's just like getting together.
Speaker 1 00:36:45 Bring yourself, bring your desire and let's make some money
Speaker 0 00:36:49 Bringing out, fight
Speaker 1 00:36:50 Some
Speaker 0 00:36:50 Wealth. Yeah. All
Speaker 1 00:36:51 Right, buddy. Well, this was a great episode. Look forward to seeing you guys soon.
Speaker 0 00:36:57 Yeah.
Speaker 1 00:36:58 And
Speaker 0 00:36:59 Hey, if you got a que, if you got a, if you got something you wanna see in the next episode, put it down in the comments below. Yes. We'd love, we'd love ideas, you know, um, we're gonna again, start interviewing more people in the community, people investing.
Speaker 1 00:37:10 Yeah. Once we get set up in our new podcast studio, we need to have three, four mics.
Speaker 0 00:37:14 We need another microphone is the problem. And Sean and I will not give up ours.
Speaker 1 00:37:18 <laugh> <laugh>. But it's gonna be great. And if you wanna contact us, our stuff, contact information will be
Speaker 0 00:37:24 Yeah. If you want to description, if you wanna invest in real estate in the Philadelphia suburbs, we are doing it every day helping people. Um, do that all the time. We just had a 19 year old buy a place in Darby. 19. Amazing. 19. Hmm.
Speaker 1 00:37:37 Don't even wanna tell you what I was doing at 19.
Speaker 0 00:37:39 I don't wanna
Speaker 1 00:37:40 Know. You don't <laugh>. All right guys. We'll
Speaker 0 00:37:43 See you soon later.
