Philadelphia is a hot housing market right now, and according to Zillow.com prices have risen 11.3% in the last year and 31% in the last 2 years. This is a lot higher than some other big cities in the U.S. like San Francisco, Los Angeles, Miami, Seattle, and Boston. With Philadelphia being a hot market, 2018 saw a lot of new construction and demand seems to be growing at a steady pace. This is in part due to a growing job market. In 2018 the rate of job growth grew faster than that national average says Mashvisor.com. According to some experts the Philadelphia real estate market is a smart and safe choice for investing now also because of its stability, which is one of the most important things to look for when investing in real estate. Being stable makes for low risk investment for a buy and hold investor. A report from Philly.com in early 2018 says Philadelphia’s real estate prices reported a jump of 10.5% in the median property price.
With all this growth in the Philadelphia real estate market, Sharestates has been active funding new deals with real estate developers in the region.
Here are some statistics from Sharestates:
- Sharestates has funded 51 Philadelphia loans to date for a total funded volume of $29,964,000
- 30 of the loans funded were for residential properties
- 5 of the loans funded were for mixed-use properties
- 1 of the loans funded were for multi-family properties
- 4 of the loans funded were for commercial properties
- 11 of the loans funded were for land deals
- Average loan size: $589,529
- Average loan to value (LTV): 73%
- Average renovation budget: $320,892
- Average after repair value (ARV): 42% or $1,637,670
Here are a few projects that Sharestates has recently funded:
This first property is a mixed-use property with 6 residential units and 1 commercial unit. This property is located in Queen Village which is immediately south of Center City and remains the oldest residential neighborhood in Philly. The borrower acquired this property as a “fix & flip” and once rehab is complete, the developer will list this property for sale.
- Appraised value: $1,600,000
- Loan amount: $1,092,000
- Purchase Price: $1,560,000
- LTV: 68%
- LTC: 70%
The next property is located in the Kensington neighborhood of Philadelphia. This area has recently seen a growth of young urban professionals moving in, which is partly due to low rents and a growth of hip bars as well as a large micro-brewery scene. The property is mixed-use and the borrower is acquiring the property with intentions of adding value through rehabilitation. When rehab is completed the property and/or the units will be leased out to tenants.
- Appraised value: $660,000
- Loan amount: $473,000
- Purchase Price: $630,000
- LTV: 72%
- LTC: 75%
For more information about other properties Sharestates has funded or to submit your upcoming projects to get funding click below.