1031 exchange

Discount Brokers: The Real Deal

/ Jim Onesti, Realtor, Development Expert / Leave a comment

We have all heard the old saying, “If it sound like it is too good to be true, it probably is.” Unfortunately, this is typically the case with discount brokers. Whenever the real estate market reaches a high point, tons of new, discount brokers and startup companies seem to appear out of nowhere. They come promising dramatically decreased commission percentages in exchange for their discounted services. Now, we understand how appealing this may look but I want you to be informed and aware of the risk involved when you come in contact with these operations.

As an experience realtor, I have seen the poor service that these organizations provide on numerous occasions. Many of these companies require upfront payment in order to list the property in the MLS and then disappear, leaving clients baffled, confused and alone.  Eventually, the companies disappear completely, leaving a great deal of wreckage behind.

Be Forewarned! These individuals do not do the same job as legitimate, real estate professionals. They will not take the time to market your home, manage paperwork, host open houses or guide you through the negotiation process like genuine professionals. They will simply cash your check, list the property and disappear.

Bottom line, if your home is not a discount property, then do not list with a discount broker. Those flashy and appealing discounted rates could end up costing you more than you ever imagined. Be safe, be smart, and beware of the discount broker.

For a name you know and a Realtor you can trust, contact me today!
Jim Onesti – BHHS Fox & Roach – McCann Team – 215-627-6005 Main
215.440.2052 Direct or jonesti@mccannteam.com 

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Another Incredibly Successful Development Story!

/ Jim Onesti, Realtor, Development Expert / Leave a comment
2
1323-41 N Howard Street is just another in our
many developer success stories!
We sold this to one of our builders, it was an off market lot
Never hit the MLS!!
The 21 homes are now being built && we have already pre-sold
13 of the 21 homes!!
howard
Be sure to keep in touch for off market lots, shells, multi’s and fixer uppers.
Jim Onesti & Mike McCann – BHHS Fox & Roach.
215.627.6005 Main or 215.440.2052 Direct
Best way to get in touch: jonesti@mccannteam.com

MASSIVE Broad Street Property for Sale!

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2221 (2)Gorgeous 5500 + square foot Broad street property that runs street to street with parking. Detached, free standing building!

Limestone and Granite facade! One block from the hospital, next to Starbucks and commercial Broad street strip center at Broad and Jackson. HOT Location with Huge rent potential!!

Roof Deck views of Center City and South Philly, and Stadiums.

Tax abatement submitted/pending!

It’s fully approved and permitted for 6 residential rental units and 2 parking spots (but you can probably fit 4 prkg total).
4–1 bed/1 bath, 1–2 bed/2 bath, 1–2 bed/1 bath.

The property is framed and new plumbing is almost completed, fully permitted….. easy to rent due to hospital located down block and booming navy yard 2221 2 (2)expansion.

Broad Street Subway entrance ½ block away!

Appraised in Feb 2013 for right around $1.1mm, with market rents of $8,400/month ($100,800/year).  If one went with high end finishes, you may be able to push these numbers higher. (appraisal attached)

The owner has other projects he wants to move to and wants to sell. He is asking 725k. It needs another $200k or so to finish but should cash flow very nicely.

Truly an amazing building and rare opportunity!

Plans and multi-tab pro-forma attached..

Below are the potential rental income figures

o    1F: $1250/month (1bdrm/1ba, multi-level with basement living area)

o    1R: $1800/month (2bdrm/1ba)

o    2F: $1250 (large 1bdrm/1ba)

o    2R: $1050 (1bdrm/1ba)

o    3F: $2000 (2brm/2ba, roof deck, multi-level)

o    3R: $950 (smaller 1bdrm/1ba)

o    Parking: 2 spaces x $100/month = $200

o    Totals: $8500/month, $102,000/year

CLICK HERE FOR BUILDING PERMITS!

CLICK HERE FOR PROFORMA!

CLICK HERE FOR 1st & 2nd FL PLANS!

CLICK HERE FOR 3rd & 4th FL PLANS!

For more information contact Jim Onesti 215.440.2052 or jonesti@mccannteam.com – BHHS Realtors 215.627.6005

When We Tell You A Deal is a Home Run You Should Listen!!

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CoverLast year we had a 31 property package of Graduate Hospital homes listed at $8 million.

We estimated the package to be worth $10 million IN AS-IS CONDITION and with value added it would be worth closer to $13 million.

These properties have all recently sold and settled, with most of them in as is condition and most for an average sale price of $400,000++ per property!!

With demand in the Graduate area extremely high and inventory extremely low, this was definitely a once in a lifetime opportunity!!!!

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Property Tax Assessment Appeal Deadline Is Just Around The Corner!

/ Jim Onesti, Realtor, Development Expert / Leave a comment

An over assessed property can cost property owners and tenants several thousand dollars in additional taxes annually.

Negative impacts of an over assessed property: Lower net operating income if the real estate taxes are not reimbursed by the tenants. Tenants have numerous choices in today’s real estate market and consider not only the initial face rent but the pass through expenses when choosing a location for their business.

The additional real estate taxes from over assessment can result in a lower face rent for the property. Landlords may have trouble obtaining or retaining tenants due to the high real estate tax burden due to over assessment when the real estate taxes are passed through to the tenant. Lower value when selling the property or obtaining an appraisal for refinancing.

Bottom Line…an over assessed property costs you money!

The initial cost of properly preparing an appraisal report as well as the cost of obtaining legal counsel for the tax appeal hearing may seem costly at first and expenses sometimes exceed the first year’s tax saving. However, these tax savings will continue in the following years and the future benefit will far outweigh the initial cost.

Last year 579,000 properties were reassessed in the City of Philadelphia to establish “fair and accurate” market values. Unfortunately, not all properties received a “fair and accurate” value causing the derailment of commercial real estate deals as well as shocking commercial property owners with overwhelming tax increases based on an incorrect assessed market value of the property. Even though, not as dramatic the four suburban counties of Bucks, Chester, Delaware and Montgomery have widely divergent assessed market values.

Philadelphia Suburban Realty Appraisal Group welcomes the opportunity to provide you and your clients with a proposal for commercial real estate appraisal services to support your property assessment appeal. The Philadelphia Suburban Realty Appraisal Group is a team of professional commercial real estate appraisers that can determine the realistic market value of your commercial real estate. If you are one of many commercial real estate property owners paying taxes based on an overvalued property you need to act soon. Call TODAY to find out how they can help! Their appraisers work with attorneys, tax consultants and private property owners to produce accurate and reliable appraisals to bring about fair tax assessments.

For more information contact:

Joseph Vizza, MAI
Matthew Peters
James Onesti
Stephen Onesti
Telephone: 215-238-1911
Fax: 215-238-0414
http://www.psrag.com

Great Info On The 10 Year Tax Abatement Discussion!

/ Jim Onesti, Realtor, Development Expert / Leave a comment
John Westrum CEO of Westrum Development, and Kevin Gillen, an economist affiliated with the University of Pennsylvania’s Fels Institute of Government, were wondering about something pertaining to Philadelphia’s 10-year tax abatement.

 What would the net fiscal impact be of a newly constructed residential development that was built under the abatement?

The abatement gives buyers of a new residential property a 10-year break on real estate taxes.

The policy has been considered a success. But critics say it siphons revenue away from the city and school district, benefits developers and caters to the rich.

To get an answer, Westrum and Gillen analyzed Westrum’s Brewerytown Square, a development of 144 market-rate townhouses at 31st and West Thompson streets.

Westrum wouldn’t have gone forward with the project without the abatement. It was a fringe area when he started the project and one of the biggest selling points was the tax break.

When Gillen and Westrum drilled down on Brewerytown Square, they concluded that for every $1 abated, the city took in $2 in tax revenue from other sources directly related to the project. It also found that 47 percent of its new owners came from out of the city.

“So, not only did the city get back the $1 that it forewent from the abatement, but it also received an additional $1 in revenue from other sources, due to the economic activity and new residents associated with Brewerytown Square’s development,” said a report on their analysis.

The debate over the abatement is expected to continue during the upcoming budget session and this report will likely play a role.

For full study found in the link below…
For more info on the citys tax abatement program contact me today!
Jim Onesti. 215.440.2052 or jonesti@mccannteam.com
Information courtesy of
Natalie Kostelni, Reporter- Philadelphia Business Journal

New This Week…

/ Jim Onesti, Realtor, Development Expert / Leave a comment

The median list price in Philadelphia this week is $225,000

The market action index has been trending down lately indicating demand falling along with supply. Conditions point to mildly negative trends for the market.

Phila

For a summary of this weeks activity: CLICK HERE!

For a market update report: CLICK HERE!

For more information, to sign up for weekly updates OR to find out what your home is worth, contact me today!! Jim Onesti. 215.440.2052 or jonesti@mccannteam.com