Best Commercial Investment Properties in Berks County!

BerksLuxury.com is going to take a look at 5 of the best commercial investment properties in Berks County for 2019! Some of these properties may require some negotiation on price but there are certainly some great opportunities in Berks County!

 

249 Penn St. Reading PA 19601 – $575, 000

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This property is the current Reading Bus Terminal which a new owner could opt to renew the agreement or develop the property. This is prime real estate right on 3rd & Penn St. which features two open lots. The building has an additional upper level which houses buses currently. One idea might be developing the parking lot with Penn St. frontage while creating a new agreement with the bus companies for the additional lot and building. Regardless of what your plans are this is a large property with good traffic in a prime commercial area in downtown Reading. Overall it looks like an opportunity for a developer to cash in while helping the foudnation of downtown Reading. I would even look for incentives and help from the Reading Downtown Improvement District and other organizations focused on redevelopment.

 

10 Stonehedge Rd. Fleetwood, PA 19522 – $4,900,000 

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This Golf Course represents an opportunity for the savvy entrepreneur or experienced operator. Dividing the Golf Course and the restaurant-catering-events business could be a profitable and rewarding experience for the right person. The wedding catering business is always a great way to turn a profit and the restaurant on the property provides an eclectic opportunity for high-end food and entertainment. The ability to subcontract the operations of the golf course out might be an option to reduce operating responsibility and bring in revenue for someone without as much experience in the field.  The price may need to be negotiated but there is certainly some great opportunity here. The demographics are good and the area lacks attractive entertainment options. 

 

801 Lancaster Ave. Reading PA 19607 – $1,500,000

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This property has some real potential. It is a particularly high traffic area right on dealership way on Lancaster Avenue. The property has a large amount of frontage on the avenue, is 3.37 acres, has an additional 1.61 acre attached lot available for purchase, and the building’s structure is unique and well designed for an auto business. Multiple bay doors, a big showroom, and many other features make this building attractive for an incoming auto business. I would double check but I am sure the zoning would be in place and the only issue is Reading’s slightly higher taxes which for an incoming business might be balanced with an abatement for new businesses. The building could surely be renovated for an updated look but there is a lot to like about this property. 

 

401 Main St. Oley PA 19547 – $349,900

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This Bed & Breakfast is the perfect opportunity for someone interested in rental income at an affordable price. This property is situated squarely in the town of Oley and would be a perfect opportunity for many reasons. The property has six lovely boarding rooms which could be rented out and even includes an additional two bedroom “Owner” or master suite with a private bath featuring a jacuzzi tub.  The professional kitchen could be rented out to a catering company or baker for additional revenue.

There is plenty of space on the ground floor for the property to be used for society dinners, meetings or small special events.  

If each of the 6 bedroom rents for an average of $600 a month, the master suite rents for $1,000 and the kitchen rents for $1,000 then the property would gross $5,600 a month plus any additional revenue generated from the ground floor event space rentals. That looks to be a great deal on a $349,900 asking price!

 

500 George St. Reading, PA 19605 – $1,000,000

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This property is known as Fantasy Skating Center and I like this property for a number of reasons. This property could be updated and combined with a local restaurant liquor license to create a skating rink and entertainment complex that catered to children during the day and adults at night. With an updated feel and interior this space would be great for kids events during the day and would provide a unique alternative for adults in Berks County at night. Disco skate nights were all the rage back in the day and with an updated look this space would be a hit with both kids and adults for birthdays and special events. A groovy nightclub feel with a DJ would make this place pop at night.

Keep in mind the neighboring mall is being redeveloped with residential housing and the Reading Phillies stadium is right across the street. This property is in a high traffic area and this structure would be easy to tear down should the new owner decide to develop the property for a different use. 

 

About the Author – 

photo of Joe DiRosa
Joe DiRosa

Joe DiRosa is the Founder, Publisher & Editor of BerksLuxury.com. I am an Entrepreneur, own several brands and web properties, and am a Licensed Real Estate Agent with RealtyTopia in Wyomissing PA.  I have experience as a Mortgage Loan Officer and have been previously licensed as a Real Estate Agent in the State of New York as well.

If you have any questions or are looking for a property you can call me at 610-390-1331 or email me at Joe@BerksLuxury.com

Jumbo Mortgages: All You Need to Know

If you are looking at buying a luxury home valued over a half million dollars then you are likely going to need a Jumbo Mortgage. BerksLuxury.com is taking a look at Jumbo Mortgages to give you all the information you need to know!

 

JUMBO MORTGAGES

To understand Jumbo Mortgages first we need to understand why they exist. Fannie Mae, which buys most bank and mortgage company’s home loans has a limit to the amount of the loan they will acquire. For most areas, that number is $453,100 but in areas with higher home prices that number can go as high as $679,650. Depending on your area, any loan over the loan amount designated for that area is considered a Jumbo Mortgage. 

Since Fannie Mae will not buy loans over that amount the banks are responsible for either holding the jumbo mortgage or finding investors to purchase the loans themselves. This means there is a slightly greater risk for the banks and that they must tie up their own capital over longer periods of time. 

As we all know with greater risk comes higher costs. Jumbo loans often have higher qualification standards such as higher interest rates, larger down payments, increased capital reserve requirements and higher credit score requirements to qualify. Often on jumbo mortgages banks can require two separate appraisals on the property as well.

Historically lenders have required 20% down, anywhere from .5% to 1% higher interest rates and a 700+ credit score to qualify for a jumbo mortgage. More recently banks have been leaning towards attracting high net worth clients and their banking business so recently it has been easier to find rates similar to existing FHA rates and with down payments as low as 5%.

I recently spoke with Scott Li the Owner of RateWinner.com, who handles Jumbo and Super Jumbo Mortgages and he said:

photo of Scott Li - Owner, RateWinner.com
Scott Li – RateWinner.com

“Wholesale lenders (lenders that work with brokers) have definitely noticed how competitive retail banks have gotten with jumbo mortgage rates. For banks, it’s not just about providing their client with just a low-interest rate. Like Joe DiRosa from BerksLuxury.com said, they want all of that high net worth individual’s business, be it banking, retirement account, unsecured loans etc… Wholesale lenders have responded with not only low rates of their own but also have adopted special programs to qualify self-employed individuals or W-2 earners who don’t fit the retail banks’ strict guidelines.”

Another aspect of qualifying for a Jumbo Mortgage is your capital reserves. Most conventional and FHA loans do not require capital reserves to qualify, but with Jumbo Mortgages lenders generally, are looking for 6-24 months of capital reserves to approve the loan. 

Today with all the lender options and the competitive loan programs buying a luxury home is easier today than it has likely ever been.  Be financially responsible and do your homework but the terms offered in today’s market are certainly favorable to consumers. 

 

About the Author – 

Joe DiRosa

Joe DiRosa is the Founder, Publisher & Editor of BerksLuxury.com. I am an Entrepreneur, own several brands and web properties, and am a Licensed Real Estate Agent with RealtyTopia in Wyomissing PA.  I have experience as a Mortgage Loan Officer and have been previously licensed as a Real Estate Agent in the State of New York as well.

If you have any questions or are looking for a property you can call me at 610-390-1331 or email me at Joe@BerksLuxury.com