Price Reduced – 4 Unit


4 Unit Apartment Building For Sale

Build Your Wealth One Property at a Time

$193,000

179,000

347 W King St – Front view

Lancaster PA is an excellent place to start

347 W King St, Lancaster PA

  • 4 unit apartment building
  • Cashflow
  • Energy Efficient
  • Tenant Paid Heat
  • Good property manager in place
  • Extensive rehab already done
  • Very little maintenance

Surrounding Area

  The surrounding area is mixed with commercial and residential. King St is the main route running east through the city. This makes for exceptional public transportation with a bus stop right outside the front door. Restaurants and shopping are within easy walking distance.

This property borders a residential apartment on one side and a nice pharmacy on the other. The pharmacy has a parking lot that wraps the side and rear yards. This parking lot is gated and closed at night. A chain link fence separates the parking lot and the yard. This pharmacy has undergone an extensive upgrade. I am proud to have it beside my property. With a cleanly run business like this beside you your tenants will appreciate the peace and quiet. Well run, clean businesses tend to be better neighbors than residents, in my opinion.

Across the street sits a beautiful chapel. Its high 4 pronged steeple graces the streets below.

The convention center which has been creating buzz in the last years is just up the street.

Work completed in the past 6 years

By previous owner

  • All new vinyl windows (27)
  • Updated kitchens
  • Tile installed in kitchens

(All floors are tile and some backsplashes)

Work Completed Since 2009

By our contractors

  • Flat rubber roofs; 1 repaired and 1 replaced
  • Complete new plumbing
  • 4 new water heaters
  • Paint front on building
  • Complete Painting of 3 units, doors and trim of fourth unit
  • Cosmetics that are too long to list
  • Brought entire apartment up to City Code

More Photos

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Contact me with any questions. I will email you a cash flow pro forma with all the numbers at your request.

Dave Miller, Realtor

717-569-1300

717-951-0201 cell

dave@realstreetpro.com

Published in: on December 10, 2012 at 11:55 am  Comments (4)  
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An Uptick in Multi Units


by Dave Miller

After a year or two of stagnation the Lancaster PA rental properties are on the move again. Ron Shepherd was telling me few months ago that if I have buyers or sellers in this market I should inform them that the market is moving up. So I kept an eye on that particular market and was amazed. Not amazed at the upward movement but Ron’s ability to once more accurately gauge a trend.

Here is my analysis of the trend for multi-units in Lancaster City:

2011 and 2012 YTD comparisons:

Average Sale Price: 2011; $132,463.00 2012; 141,126. That’s a 6% price increase.

Number of sales: There were 10% more sold in 2012

Average days on market for the sold properties is up extremely: 2011; 73 DOM, 2012; 103 DOM that up 43%. I do not have an explanation for this spike as it seems to contradict the other numbers.

Here a link to a freshly listed city property. I’ll also have two more till next week. Stay tuned.

Recent blog about residential prices increasing: Refreshing! Home Values First Annual Increase In Nearly Five Years

 

Published in: on September 15, 2012 at 11:14 am  Leave a Comment  
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Refreshing! Home Values First Annual Increase In Nearly Five Years


“There was a surge in real estate this spring”, I answer to the question,”How is real estate?” I’ve been asked the question many times lately and that was my response. Really the response was just a gut feeling. Until I read the following article:

The housing market has finally turned a corner. In Q2, we saw continued momentum in the housing recovery, despite of some economic turmoil, like flagging job growth numbers and sovereign debt issues in Europe. Nationally we hit a bottom in the first quarter of the year, and the Zillow Home Value Forecast shows that 67 of the 156 markets it covers will experience an increase in home values over the next 12 months. Nationally, Zillow forecasts home values will rise 1.1 percent……………………………(Click to Continue Reading Article)

My final thought summed up in one word, “Refreshing”.

 

Published in: on July 26, 2012 at 8:05 am  Comments (2)  
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Get Closer to Your Asking Price


By Dave Miller

Is the real estate market getting stronger? Here is a graph that would support that claim. This either supports it or tells us a whole other thing. This could mean that the sellers are being more realistic with their asking price.

This graph is Lancaster County home sales for the last year. It is saying the average home is selling at 93% of the asking price vs 90% in Feb of 2012.

Published in: on July 16, 2012 at 7:35 am  Leave a Comment  
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Negotiating a Get Rich Slow Scheme


by Dave Miller

The easiest way to get rich quick is to accumulate wealth slowly. Well then, how does one accumulate wealth slowly?

First you need a plan. A solid, well thought-out, practically applicable plan.

This requires a solid plan, to preserve your precious capital, as you do not want to go backward. The retaining of capital is a key element of moving toward your goal. If you lose your initial capital you must not only gain it back but also recoup the lost time.

It must be well thought-out; you do not want to be jumping on some quick get rich band wagon that is ready to go bust.

The plan must be feasible. Over the ages three areas have proven successful; real estate, gold, and businesses. Most wealthy people own one of these three.

Don’t put all your eggs in one basket, just like your Daddy told you. But nevertheless get some baskets and fill them with eggs. Many people use that line to delay saving and investing.

The real estate basket is the topic of discussion today.

Enter John Schaub and his book Building Wealth One House at a Time.

Building Wealth One House at a Time – John Schaub

This book focuses on strategies for creating wealth through real estate by starting small – and making the right moves. Nationally known real estate expert and speaker, John Schaub, learned his craft in the best way possible–on the job, and through every kind of market. He published a great book titled Building your Wealth one House at a Time. In it he shows you how to buy homes with little money down using private or owner financing. By doing this he eliminates the whims of the banking world. The lender he says, is more concerned about getting his money back than earning high interest. In Chapter 6 he tells you to do what it takes to make the lender happy, over secure if you must.

Click this link to read an article I also wrote on keeping the your lender happy.

He recommends only single family dwellings, no fancy shmancy highfalutin projects. Just solid homes the typical family desires and can afford to live in.

The part that hit home for me was that he says buy one home a year. No more. He warns of the dangers of diving headfirst. By waiting a year to purchase your second investment property you will learn innumerable lessons before plunging in.

John uses two people to accumulate wealth; his renters and his lender or investor. His lenders allow him to buy the home and the renters pay for it. In the meantime he is accumulating wealth. Renting to long-term tenants, with financial incentives to pay on time.

By using leverage, i.e. owner financing, investors or the bank, he can purchase a home that otherwise he would have needed to walk away from. This then allows him to have a renter paying down on the mortgage. But remember, leverage is a two-edged sword. It can help you accumulate faster and it can take you down even faster. You must carefully consider the amount of leverage you are comfortable with and what makes sense in your situation.

Building Your Wealth One House at a Time is very concise yet an easy to read book. It lays out a blueprint that is easy to follow using graphs and figures.

Unique is his approach to focusing on buying houses in good-quality neighborhoods while simultaneously creating positive cash flow properties. John uses the Goldilocks theory when choosing a neighborhood: not too expensive and not too cheap. Go with a neighborhood where prices are just right.

Buy his book today. Read it. Implement a plan. Take the first (I know this is the hardest one but do it anyway) step. You will not get rich quickly but you will most definitely be headed in the right direction.

Now for the good news! John Schaub is coming to town. Well, rather to a town in New Jersey. Iselin.

John is presenting a one day class called “negotiating secrets of a Professional Buyer”. Saturday June 23 2012 from 9:00 to 4:00pm. You can register here: http://www.eventbrite.com/event/3199047437 I plan on being there so I hope see a few of you there. If anyone is interested in carpooling from Lancaster County just call me. Cell number 717-656-0749. Currently four of us are heading there. Join us.

A quote from John’s site:

John has survived, prospered, and helped his students to make money in every market since 1975. Come learn how to recognize which opportunities are right for you today and for the next five years at this most interesting time in our history. Get ready for an exciting and profitable future!

You can subscribe to my blog on the right side bar for farther updates. If you do so, you will receive a copy of my blog as soon as I post it thus saving you time by not needing to check back.

Profiting by thinking of long term


John Schaub recently did an interview for the Herald-Tribune in Sarasota FL. I have previously blogged about John Schaub and his book Building Wealth One House at a Time. Here is a link to the blog I posted a year and a half ago. Click here.

John is a residential real estate investor that has my respect and admiration. He’s low-key but effective. I’ve talked to him on the phone and you’d have thought I was talking to my uncle. He freely shared his advice.

Follow his advice and you are bound to succeed.

Here is a link to the interview. Click here

Choose What You Want To Learn in Real Estate


We, at Shepherd Real Estate LLC, are offering a few FREE classes this fall.

Our class-room style lectures are structured around real estate investing. The Shepherd Team consists of professionals in Lancaster, PA with experience in real estate. We are investors ourselves and want to help you succeed in your endeavors. The Shepherd Team has a wealth of knowledge to share. In house we have an attorney, a CPA and Realtors all ready to help you.

 We need your help in deciding which classes to offer. Our goal is to give you what is of most value to you. We are conducting a survey to choose to the topics.

Please click through to the survey to make your choice.

Click here to take the survey.

Your response will help us pick the best topics.

Here is a breakdown of the options:

  • Investment Analysis

Crunching the numbers

  • Building your Power Team

Realtor, attorney, insurance agent, consultant, property manager

  • Assets Protection

Entities, insurance

  • Improving Cashflow

Proper management for better cashflow

  • Taxation of Real Property

Structuring your investments to avoid excess taxes

Click here to take the survey.

Thank you for taking the time to complete the survey.

Email me if you want to be notified when we schedule these FREE classes. They will be held at a location to be announced in the Lancaster PA area.

realstreet@frontiernet.net

Legal Profiling


by Dave Miller

Lately we read about profiling in a negative sense.  Police officers are getting a bad rap for doing their job.

Cops concentrate on the most likely suspects, narrowing their focus. The world calls this profiling. If a group of people have a history of crime they watch them closer. The reason they profile is obvious. It works. They do what gets results. Why wouldn’t they? Well, some agency decided it’s discrimination.

As an investor you are not regulated on profiling. Not yet, thankfully. So be discriminatory.

Create a profile of the type of property you a searching for. Base your criteria for the most likely profit making enterprises. Focus on this profile. Don’t waste time and energy on avenues that do not meet your criteria.

In real estate you hear of many ways to make money. National speakers make a lot of money telling you of a hundred different ways to capitalize on real estate deals. They open your mind to new ideas by getting you to think outside the box. This is good. You need to be open-minded. But select a strategy that fits you.

Your goal should be to narrow down your search and methods to a few options that fit your personality. Don’t try to be someone or something you aren’t. If you base your strategy on the results of others only, you are likely to burn out. And probably be unsuccessful.

Nevertheless, I do believe in following the lead of successful people. But do so only after you analyze yourself. Figure out what motivates you. What makes you tick? After you have found your niche, and only then, get the best mentor, with experience in that field, you can find.

Now start profiling. Narrow your search and let it rip.

This applies to not only to real estate. Business and charity are among many other areas of life in which this should be applied.

You will be much more successful once you have found your sweet spot in life.

Find it.

 Related Posts:

Real Mistakes by Real Investors, and How You Can Avoid Them (Part One)


by Dave Miller

In the real estate world investors tend to make the same mistakes over and over again. Then after a time they learn and either stop investing or stop making the mistakes. When they stop making the mistakes yet continue to invest, then the dividends start coming in.

Yet new investors emerge into the market place making the same mistakes their predecessors did.

You have a choice; to make the mistakes yourself or to learn from other people. I say, learn from other people’s experiences. It’s cheaper than way.

#1. Ignoring Risk Management

   Investments consist of two sides; risk vs. reward. Yet many tend to skip the risk element. Buying and hoping for the best. “Hoping for the best” is not risk management. You must carefully weigh the risk-to-reward ratio. All investments have risk, there is no such thing as a risk-free investment. Even if the risk is only your time or your money being tied up. You therefore risk your time or money on this project while it could be used on another possibly better deal, losing chance of a greater return.

  Loss of capital can come in various forms; capital loss (devaluation), loss of greater gains, loss of additional capital (lawsuits),i.e.

Here are few ways to reduce risks:

  • Purchase your property in a LLC
  • Discuss the purchase with a trusted attorney
  • Know the market
  • Get liability insurance

This list could be ten pages long, yet I will stop with this. Encircle yourself with trusted and experienced advisors. Ask questions. Weigh your options. Call or email with questions, call 717-951-0201 or realstreet@frontiernet.net , I will gladly give you a free 15 minute consultation. (Consider the risk first, losing 15 minutes vs. gaining 15 minutes of knowledge)

#2. Over Leveraging

Investors love the way leverage increases the return on the investment. Yet they forget it is a two-edged sword. Leverage magnifies both profits and losses. Investors tend to use too much leverage and use it too long in their careers.

Am I advocating no leverage? No.

Investors should use leverage early in their careers, making sure they can cover the payments with alternative means, and move towards more secure loan-to-value ratios later in their career, making the net worth they achieved more secure.

#3. Picking the Wrong Strategy

Pick a strategy that matches your strengths. Not everyone is cut out to raise the rent on eighty-five year old ladies or evict 6’ 5’’ drug thugs. If you don’t know how to fix a roof and are scared of heights then stay off the roof.

Aligning your strengths with your strategy requires honesty. Rather than focusing on how someone else did it, look at yourself and your potential. If you are not a sales person but rather Mr. Fixer-upper then outsource the sales aspect and focus on fixing.

#4. Overstating Returns

Hunters and fishermen tend to exaggerate, telling tales that captivate their wide-eyed audience. Real estate investors tell even wilder tales. Telling friends they made $5,000 on a wholesale deal yet forgetting to mention they spent $12,000 on some guru telling them how.

Whether working with partners that hold an equity position or private money investors, you need to gain their trust. For this deal and for the next. If you overstate the returns and then fall short of your promises you risk losing a partner. But if you honestly and accurately state your expected returns and then supersede them, you win.

#5.Overimproving Properties

There is no profit in fixing something. The profit is in the added value of the improvement. If it costs you $5,000 to build a garage that increases the property value by $5,000, you have not added value. Make sure the improvement adds value beyond the cost.

The profit is in the purchase price. Not in the improvements. Improvements cost money, paying less does not.

Many investors pay too much for fixer-uppers. Don’t be one of them. Make your money on the buy.

Avoid trying to squeeze every penny out of the deal when you can close the deal with a decent profit. A certain dollar today is better than an unsure dollar tomorrow. Here is an example of a property I could have made more money on but chose not to (Click Here). Get the fast buck not the last buck.

#6. Waiting Till April 15th to Check If You Turned a Profit

April 15th is when you report your profits to the IRS, not when you see if you had a profit. In real estate numbers are everything. If you lost money on a deal you need to know that NOW! Not after three more deals like it. Run the numbers. Have your accountant involved in your planning.

Quotable Quote:

There’s blind luck, dumb luck and then there’s get up every morning at 5:30 and sweat the details luck. Few people actually stumble into wealth. It takes persistence, tenacity and a tireless work ethic. In the end, luck has little to do with success. It takes experience and hard work. Pure and simple. –  Smith Barney

Working or Networking, It’s Your Choice


by Dave Miller

Is networking worth your time? I made $5000 last week with my network. I’ve done it before and I’ll do it again.

I continue to be highly impressed with the power of networking. In many ways networking is more than just looking out for my best interest. It means reaching out to other people.  If they have needs you can help them with, then do so. You will create a relationship.

Networking is more than a list of people. It is people with whom you have a mutually beneficial relationship. Other business people, potential clients and/or customers. The better your relationship with these people, the stronger your network.

Everyone has a network. It is simply the people you know. Everyone one from your nearest and dearest to your neighbors’ plumber’s cousin who surely has a phone number you could track down if you cared to.

Not everyone puts a cognitive effort into building their network. This is a mistake.

Here is a list of ways to build a bigger better network.

Start an email list

Begin building an email list of people you know have interest in your product or service. For me this has been a huge eye-opener and success.

I send out an email when I have an investment opportunity to share. This results in about a dozen or more emails a year. I do not bombard my network, only the stuff that matters get sent out.

To be added to my email list just click here

Add tag lines to your emails and correspondences

Last fall I added the words, “Financial and Real Estate Solutions” to my email. The first email I sent to my email network resulted in a call from a fellow asking if I do hard money loans. I do. I set him up. He made over six thousand and I made over twenty-eight hundred in two weeks’ time. Needless to say we were both happy, all from a mere tag line.

Social networks

Facebook, LinkedIn, et al. Any way to let people know what you are doing. Telling them every juicy nugget of gossip fodder about your personal life is not necessary.  But by filling them in on your business dealings you will be amazed by how many people you know have similar interests.

Help  others

Step out and help people. By helping others you will blessed. Okay, here is the plug: My brother has a house in Bird-In-Hand he is trying to sell. I told him I would get him some exposure by mentioning it here.

Quaint and Quiet

It is a quaint 3 bedroom rancher with a horse barn. It is an ideal starter home or investment property. Here is the link. He is asking $149,000 and the previous renter paid $940 a month. It has the potential to get $1000 rent per month. This is an excellent John Schaub style home. You can call Allen directly at 717-295-0662. If you find Allen a buyer I’ll see that you pocket $500

Start a blog.

Every marketing guru says so, so I will too. Start a blog.

Newsletter

Write a newsletter. Keep your network informed. This could be your blog.

Referrals

People know people. If you are in the market to buy a rental property, then call people. Ask. Call your real estate attorney and tell him what you are looking for and ask him if he knows anybody that could help you. Call your banker. Call your investor friends. If you are selling, ask for referrals. Tell your people you will reward them if they give you a successful referral. Note the $500 reward mentioned above.

Quotable Quote: The secret of my success is a two word answer: Know people.– Harvey S. Firestone

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