Resources, Tips & More

This month we're focusing on resources to assist you on your real estate journey!

Jumpstart Loan Draw Inspection Process

Jumpstart Philly Inspector, Khalid Greene, meeting with Jumpstart Philly Borrower, Justice Understanding.

Whether you're a current Jumpstart borrower or plan to use Jumpstart Philly in the future this information will prepare you for our draw process.  Draws are how a borrower receives funding for renovation work that has been completed. Instead of receiving a lump sum, the construction loan funds are paid out as the project progresses. When a borrower is ready for a draw, they email Jumpstart who will assign an inspector to meet the borrower at the property. The draw inspection can be an extremely valuable resource for you as a growing developer. Our Jumpstart Philly inspectors are experts in construction - so ask lots of questions and pay close attention to the feedback they provide.

Reminders & Tips: 

1. Prior to the scheduled inspection time, confirm that you have access to the property and that the lockbox/keys are available. Make sure that the entirety of areas being inspected (such as basements and backyards, individual units) are accessible. 
2. If you need to cancel or reschedule your inspection, provide notice at least two hours in advance so the inspector can adjust their schedule. If the inspection is not rescheduled within this time frame you will be charged accordingly. 
3. Please ensure the property is free of any pests prior to each inspection, and that the property is relatively clean and clutter-free. This will allow inspectors to clearly identify the completion of work and keep everyone safe. 
4. We can only fund work that is completed at the time of inspection. We do not advance funds for construction. Don’t just take your contractor’s word - be sure to check that all the work you’re requesting funding for has been completed prior to our inspector’s visit. 
5. For construction work that cannot be visibly inspected ( i.e. insulation or rough mechanical systems if drywall is already up, roof work, architectural plans, permits, etc..) be sure to provide documentation. This may include detailed photos, invoices, copies of plans/permits, etc...
6. We ask that you attend in-person without your contractor. This allows you, the developer, and our inspector to speak candidly about the quality of the work.  

Learn more about our Jumpstart Philly Loan Program at JumpstartPhilly.com

“Jumpstart has empowered us by connecting us with a great inspector. Our inspector has actually given us tips on how to frame. He's informed us about joist hangers and knob & tube. He was able to point things out to us. Every part of the process Jumpstart has been there with us, they're really on our side, they're on our team."

-- Zakia Goins

JUMPinar: Landlords Connect

Date: 8/07/24

Location: Virtual (Zoom Webinar)

Jumpstart Think Tank

Date: 8/21/24

Location: In Person (4701 Germantown Ave)

JUMPinar: PGW EnergySense

Date: 9/04/24

Location: In Person (4701 Germantown Ave)

New Legislation!

Act 52 & Wholesale Transactions

Beginning in January 2025, Pennsylvania law will require those engaging in residential real estate wholesaling to comply with new licensing requirements and grant additional protections to consumers.

Act 52 of 2024 defines a wholesale transaction as "Undertaking to promote the sale, exchange or purchase of an equitable interest or other interest in residential property with the intent to assign, sell or otherwise transfer the interest for a fee, commission or other valuable monetary consideration without having taken title as the owner of record of the interest."

It also requires additional disclosures to wholesale

agreements, including:

• A clear statement identifying the transaction as wholesale.
• Consumer rights to obtain an appraisal, consult with a real estate agent, or seek legal counsel before agreeing to the transaction.
• Consumer's right to cancel the agreement within 30 days of execution or until conveyance, whichever comes first.
• Refund all payments made within 10 days of receipt of cancellation.

Clear hear to read the newly approved legislation!

Tips on Renewing Insurance

Protect Your Assets!

Ensuring your investment property is protected is of utmost importance. And if you have a mortgage, insurance is required by your lender!

Property Insurance renewal checklist

1. Price

Your premium can change due to your home's age, your claims history, and/or territorial hazards. If you see your premium go up by more than 20%, it's typically worth re-shopping to explore other options.

2. Coverage

During periods of extreme inflation, it’s hugely important to check that your coverage amount is keeping pace with rising replacement costs.

Changes to any of the home's fundamentals also require a policy update. Added a deck? Updated your roof? Has your use of the home changed from vacant to rental? Tell your current insurer ASAP, and adjust your coverage accordingly.

3. Lender Coverage

Be sure you know what your lender's requirements are. Since this is an investment property, the lender's requirements will differ from a typical homeowner policy

4. Your Credit Affects Your Premium

A low credit score and negative credit report can cost you when it comes to your annual premium. Stay on top of your credit in order to get the best rates on your policy.

5. Get the Right Type of Policy

Builder's Risk, Landlord, Commercial Property, Dwelling, Vacant, General Liability, Premises Liability and more! There are many different types of insurance policies - do your research to make sure you're getting the policy you need and your lender requires.

. Contact Us!.

jumpstart@phillyofficeretail.com

(215) 247-5555 ext. 219

www.jumpstartphilly.com