Advice for Pittsburgh Real Estate Investors

Pittsburgh Real Estate Podcast with Gina Giampietro

03/07/17 • -1 min

Pittsburgh is an attractive place for real estate investors because of the low prices. However, those low prices don’t always translate to high profits.

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Pittsburgh can be a great market for real estate investors to get into. I probably get three to five calls a week from investors looking at properties to buy and flip here in town. Most of them think it will be a simple process, but it can become pretty complicated if you don’t have your ducks in a row.

More and more investors are coming into the market thinking they can get an automatic 60% ARV. However, if you’re using someone else’s money, you are only going to make a 20% to 30% return after paying the lender and vendors off. It’s like looking for a needle in a haystack. When there is a property out there with a possibility of a 60% ARV, every investor comes to bid on it. That drives the price up and the ARV down.

One of the biggest problems that investors have when flipping homes here is that they don’t have a lot of local connections. They think they can just hire any old person off the Internet to get everything done right. That’s a bad way to do business. You need to visit the area, see it, understand the market, and understand the properties you’re looking at.

03/07/17 • -1 min

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