3 Ways To Value Real Estate Investments

Investing in income-generating real estate involves market data and a degree of subjectivity. One of the most important assumptions that a real estate investor must make when valuing properties is choosing an appropriate capitalization rate, which is the required rate of return on real estate, net of value appreciation or depreciation. Put simply, it is the rate that is applied to net operating income, to determine the present value of a property.

TUTORIAL: Exploring Real Estate Investments

Calculating with Capitalization Rate
For example, if a property that is expected to generate net operating income (NOI) of $1 million over the next 10 years is discounted at a capitalization rate of 14%, the market value of the property would be determined to be $7,142,857 (market value = net operating income / capitalization rate = $1,000,000 / .14). The $7,142,857 market value represents a good deal if the property is selling at $6.5 million and it would be a bad deal if the sale price is $8 million.

Determining the capitalization rate is one of the key metrics in valuing an income-generating property. There are several methods that investors can use to find an appropriate capitalization rate.

Market-Extraction Method
This method assumes that there is current, readily available net operating income and sale price information on comparable income-generating properties. The advantage with the market-extraction method is that the capitalization rate makes the direct income capitalization more meaningful.

Determining the capitalization rate is relatively simple here. Assume an investor is considering buying into a parking lot that is expected to generate $500,000 in net operating income. In the area, there are three existing comparable income generating parking lot properties.

1. Parking lot 1 has a net operating income of $250,000 and a sale price of $3 million. In this case, the capitalization rate is 8.33% ($250,000/$3,000,000).

2. Parking lot 2 has a net operating income of $400,000 and a sale price of $3.95 million. The capitalization rate is 10.13% ($400,000/$3,950,000).

3. Parking lot 3 has a net operating income of $185,000 and a sale price of $2 million. The capitalization rate is 9.25% ($185,000/$2,000,000).

Based on the calculated rates for these three comparable properties (8.33, 10.13 and 9.25%), an overall capitalization rate of 9.4% would be a reasonable representation of the market. Using this capitalization rate, an investor could determine the market value of the property. The parking lot investment opportunity would be valued at $5,319,149 (Market value = Net operating income/overall capitalization rate = $500,000/.094).

Build-up Method
The build-up method is slightly more complex, compared with the market-extraction method. The capitalization rate is achieved by combining interest rate, non-liquidity rate (by which it is illiquid due to the nature of real estate), recapture premium and rate of risk.

Given an interest rate of 4%, a non-liquidity rate of 1.5%, a recapture premium of 1.5% and a rate of risk of 2.5%, the capitalization rate of an equity property would be summed as 11.5% (6+1.5+1.5+2.5). If net operating income was $200,000, the market value of the property would be $1,739,130 ($200,000/.115).

Obviously, performing this calculation is very straightforward. The complexity lies in assessing accurate estimates for the individual components of the capitalization rate, which can be challenging. The advantage of the build-up method is that it attempts to define and accurately measure individual components of a discount rate.

Band-of-Investment Method
The band-of-investment method requires the most advanced calculations of the three methods. The capitalization rate is computed using individual rates of interest for properties that use both debt and equity financing. The advantage of the band-of-investment method is that it is the most appropriate capitalization rate for financed real estate investments.

The first step is to calculate a sinking fund factor. This is the percentage that must be set aside each period to have a certain amount at a future point in time. Assume that a property with net operating income of $950,000 is 50% financed, using debt at 7% interest to be amortized over 15 years. The rest is paid for with equity at a required rate of return of 10%. The sinking fund factor would be calculated as:

Interest rate / 12 months
{[1 + (interest rate / 12 months)]^{# of years x 12 months}}-1

Plugging in the numbers, we get:

.07/12
{[1 + (.07/12)]^15×12} – 1

This computes to .003154 per month. Per annum, this percentage equals 0.0378 (.003154 x 12 months). The rate at which a lender must be paid equals this sinking fund factor plus the interest rate. In this example, this rate is 10.78%, or .1078 (.07 + .0378).

Thus, the weighted average rate, or the overall capitalization rate, using the 50% weight for debt and 50% weight for equity is 10.39% ([.5 x .1078] + [.5 x .10]). As a result, the market value of the property would be $9,143,407 ($950,000/.1039).

The Bottom Line
These methods are specifically designed for income-generating properties like apartment houses, commercial and industrial properties. It should be noted that these methods are not appropriate for properties that are occupied by owners. Guessing at the value of an income-generating property can lead to inaccurate assessments and failed investments. Selecting an appropriate capitalization rate increases the precision of an appraisal, and thus, the ability to choose good income-generating property investments.

 

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How long can a Realtor hold a deposit?

Board-certified real estate attorney Gary M. Singer answers housing questions in this space each Friday. To ask him a question about short sales, mortgages, refinancing, homeowner’s associations or any other residential real estate topic, click here.

Q: We put a deposit on a home more than two years ago, but the Realtor won’t release the money. The contract was contingent, and we properly canceled. We’ve requested the deposit be returned several times, but we were told we won’t get the money until the seller signs a release. What are our rights? – Barb

A: Most contracts will allow 30 days for the buyer and seller to come to an agreement over the return of deposit money. If the parties can’t work it out by then, it may be time to go dispute resolution. That could be arbitration or a lawsuit. Since contract deposits are usually fairly small, and lawyers must be paid, it’s better to work things out on your own. Remember, each contract is governed by its terms, so be sure to read yours carefully to see what your rights are.

Q: We own a timeshare in Daytona Beach. What happens if we stop paying maintenance dues and taxes? – Evelyn

A: In timeshare ownership, you enjoy restrictions in both the power over the property (typically a restrictive homeowner’s association) and in time (you only own it for a week at a time every year). But a timeshare is just like any other type of ownership in that if you do not pay your association dues, the association will collect from you and may even foreclose on the property. If you do not pay your taxes, the county revenue collector may sell your interest at a tax sale.

The information and materials on this blog are provided for general informational purposes only and are not intended to be legal advice. No attorney-client relationship is formed, nor should any such relationship be implied. Nothing on this blog is intended to substitute for the advice of an attorney, especially an attorney licensed in your jurisdiction.

 

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Short Sale Strategies

As investors, we are currently in a season where the short sale strategy is one of THE most valuable strategies you can employ

by Sharon Restrepo

As investors, we are currently in a season where the short sale strategy is one of THE most valuable strategies you can employ for creating equity where none seems to exist.

Q: What season are we talking about?
A: The season where lenders are beginning to feel the pains of all of their defaulting loans. This is beginning to occur in many areas around the country and will begin to become more evident over the next couple of years.

Imagine being a buffalo hunter looking for a big fat buffalo – a buffalo big enough to get meat from for a couple of years. Imagine that while you’re looking for buffalo, you find thousands of them. “Wow, what amazing opportunity,” you think, until you realize that they are all skinny. There’s no meat on their bones. In fact, no hunter wants them.
Don’t you wish you had a solution – something that would allow you to take the skinny buffalo you’ve captured and make them fat? That’s the current real estate market in a nut shell. Investors are sorting through the mass of foreclosures looking for equity. There’s a few here and there, but every investor is chasing those.

How can you, the avid real estate investor, contract to purchase the no-equity deals and then create equity before you close? The answer is the short sale.

 

Q: What is a short sale?

A: A short sale is done when the seller of a property whose mortgage is in default cannot sell it for enough to satisfy all of the debt. Based on criteria the seller’s lender reviews, the lender may agree to reduce the loan balance to allow the seller to sell the property. When the seller and buyer can meet the lender’s short sale criteria, a short sale will be accepted. Lenders would rather take a short sale than take the property through foreclosure and own it. The lender does not allow the seller to earn sale proceeds in a short sale transaction. Although lenders agree to pay real estate commissions and seller’s closing costs, understandably, they will not tolerate allowing a delinquent seller to profit from the lender’s loss.
In real estate market cycles called buyers markets, short sales are common. Prices have dropped for a variety of reasons, making it difficult for sellers to unload over-leveraged properties. With the right ingredients, lenders will entertain your short sale offer.

Q: What are the ingredients to a short sale offer?
A: Lenders will require the seller to fax or mail them an executed sales agreement stating the price the buyer is willing to pay; an estimated HUD-1 form, also known as a closing statement; listing agreement; the borrower’s (seller’s) two most recent tax returns, bank statements and paycheck stubs; the seller’s letter explaining their current situation (also known as a hardship letter); along with the buyer’s loan pre-qualification letter or proof of funds. In order for the buyer to speak with the lender about the short sale offer, the seller must fax an authorization form to the lender allowing the buyer to discuss this private information.

Next, the lender reviews the sales agreement to find any red-flags, such as seller concessions to the buyer for closing costs or repair costs. Lenders will typically deny an offer with concessions. The estimated HUD-1 is reviewed because it reflects all of the closing costs the lender is expected to pay and also shows their net proceeds. This net proceeds amount is what the lender is being asked to accept in the short sale. A listing agreement is reviewed to verify that the public is aware that this property is available for sale. This shows the lender that although it is listed, there is no interest at the listed price. The hardship letter is reviewed to show why the sellers are in need of the short sale; lenders will not accept short sales from sellers who can afford to pay but choose not to. The proof of funds letter shows the lender that when they accept this offer, the buyer will perform. Lastly, the tax returns, bank statements and paycheck stubs are used to verify the seller’s inability to qualify to keep the property. The tax returns may still reflect a time when things were better for the sellers, but the more recent bank statements and paycheck stubs will show a different situation as they are current. In this submission, these documents are used to show the exact opposite of when the sellers were originally qualifying for the loan to buy or refinance the property.

In my opinion, a few extra ingredients may increase the chance of a short sale offer’s acceptance. Those extra ingredients are: photographs of the property’s disrepair; contractor’s estimate of repairs; local news reports reflecting market conditions affecting the sale of the subject home; police reports reflecting the area’s crime, if applicable; and comparable sales for the area reflecting sold data near the buyer’s offer price. Finally, wrap it all up with a great cover letter – not just a fax cover sheet. The cover letter will state your case in a nut shell and make your offer worth reviewing.

Q: How is the seller’s credit affected?
A: In most cases, when the short sale closes, the mortgage credit line will reflect a paid or settled status, which is less damaging than a foreclosure. Credit is still damaged as late mortgage payments continue to drop the credit score. In the public record section of the credit report, the lawsuit will appear. This will further reduce the score.

Q: What about the amount that the lender discounted – what happens to that?
A: In most states, when a homeowner loses their home in foreclosure OR avoids foreclosure by selling in a short sale transaction, the loss taken by their lender will result in either the issuance to them from the lender of an IRS form 1099 reflecting the income earned by the borrower (borrowing on the loan and paying back less for full satisfaction, thereby creating income), OR a deficiency judgment, which the lender can pursue at their will. Only a full satisfaction of debt can prevent these consequences. The seller may consult his tax advisor to see if either consequence will affect their tax situation.

Q: How does a redemption period affect the short sale?
A: A redemption period is a period following the foreclosure sale where the homeowner still has the right to redeem ownership by paying all that is owed the foreclosing lender. When a property has already been vacated by its’ owners, the lender may plead with the court to receive ownership sooner. A short sale may be negotiated during the redemption period. As long as the homeowner is still in ownership, a short sale is possible.

Q: How do short sales affect the real estate market?
A: When a market is saturated with foreclosures, the market is already affected. The extra supply of distressed sellers causes more homes to go on the market for sale. When this happens, prices must drop for sales to occur. When folks in trouble owe more than their neighbor is selling for, they find themselves with no solution. A short sale is one of their only options. Their lender(s) will have to agree to accept less than what is owed as payment in full in order for their home to be sold. As this situation increases, lower sales are recorded in public records. The new sale amounts will reflect lower prices for home sales. This new data causes markets to drop because appraisers have new lowered values to use when appraising the next home. When this happens, buyers who don’t need to purchase a home immediately will wait because they become convinced that prices will continue to fall, so they should wait for a better deal. The domino effect takes place and home sales slow way down. This is called a “buyer’s market,” which much of America is feeling.

Q: How do short sales affect lenders?
A: Although lenders convey to their borrowers that short sales are an option in avoiding foreclosure, they tend to resist accepting them when markets first begin to shift downward, especially low investor offers. Slow markets typically follow hot markets, so the lender was just recently experiencing booming business in the market and their foreclosures were bought at full price at Sheriff’s sale. The problem is sudden and new to the lenders. Until they begin to experience receipt of many short sale offers from the same market, they are slow to accept the situation. Once they do, obtaining short sale acceptance letters becomes a bit easier.

In the long-run, lenders are much better off to accept viable short sale offers and remove bad loans from their portfolio before suffering the effects of taking the properties through foreclosure and owning them. Once owned by the lender, they are referred to as REOs, which stands for real estate owned. They are listed with real estate brokers and offered for sale to the public. There is really no way to buy just one property directly from the lender. Because of various liabilities, the properties are handled by third party real estate brokers in order to bring the highest and best price.

In over-leveraged situations, inferior mortgage holders (like second mortgages) typically receive close to nothing when a superior lien forecloses the homeowner. Most of the equity is taken up by the first mortgage lien, leaving nothing for the second to receive. This fact makes negotiating with inferior mortgage holders a bit easier; however, they become most responsive to a short sale offer after the foreclosure suit has begun – when they realize that their loan is in jeopardy.

Q: What is the most important part of the short sale?
A: In my opinion, the most important short sale piece beside the package offer is the lender’s appraisal or BPO of the subject property. BPO stands for Broker’s Price Opinion. Depending on the lender or the loan type, one or the other will be ordered. It is important to meet the person hired to verify that this property is in fact what was presented to the lender. Arrange the time to meet this person at the property to provide the tour. It is this opinion of value or appraisal that gives the lender their grounds for counter-offer, acceptance or denial.

Q: How does the short sale market affect investors?
A: As investors trying to invest in a down or buyer’s market, we must know how to negotiate a short sale. Most of the motivated sellers seeking help in a down market are over-leveraged. What investors want more than anything else is to work with a truly motivated seller. If that means learning short sales, then this tool must be added to your toolbox.

Q: How do so many homeowners get in this type of trouble in the first place?
A: Unfortunately, most are a victim of desire. Many buyers want more house than they can afford and low entry interest adjustable rate loans made it easy to qualify to buy more than is really affordable. As the mortgage interest rate adjusts upward, the payment increases. Sometimes these adjustments are higher than any normal payroll increase could cover. If anything ill happens to affect the family financially, a snowball effect rolls down into “getting behind in all the bills” and then finally affecting the ability to make mortgage payments. This is a typical scenario.

Q: Will there be any new options for these homeowners or anyway to avoid future problems?
A: Here are a few… Some lenders will now require borrowers to qualify based on the increased and/or fully adjusted interest rate when borrowing on an adjustable rate mortgage. Forty year loans are being offered to borrowers looking to refinance in lieu of foreclosure – so they may stay in debt even longer. More loans are being scrutinized for false statements of income to avoid the high amount of fraudulent loans taking part in the increased amount of foreclosures. New funds are being put together to offer alternative loan programs for folks facing foreclosure. Many lenders are offering abatements, rate reductions, loan modifications and of course, short sales.

The overall problem opens a door of opportunity for real estate investors to help more over-leveraged homeowners in trouble. Remember to keep the needs of the homeowner first in any transaction and learn from the mistakes of others so that you don’t fall into this situation.

3 Questions to spot good Real Estate Deals

If you experience analysis paralysis, you’ll lose a lot of deals. That’s why it’s important to gather your information well and act boldly.

by Robert Shemin

 

Analysis paralysis: one of the biggest blocks of successful investing. That’s when you stumble into a good deal, then stop dead in your tracks. You worry about the decision but never do anything.

In my first six months of investing, I looked at hundreds of great deals and froze. How did I know it was a good deal? How did I know I could make money? If I made an offer, I was scared I might have gotten the deal…and then what?

To overcome analysis paralysis, (1) get lots of information and (2) make sure you have a really good deal (because even if it’s not as good as you think, you still have a margin of error to work with). If I told you the exact cards that will come out on the blackjack table, without a doubt, you would play them because you have information about what will happen. When you gather lots of meaningful information, this also can be true in real estate investing.
Information Gathering
Ask the following questions first. They will help you decide if you should make an offer:
What is the property worth today?
What repairs are needed and how much will they cost?
What can you get it for?
1. What is the property worth today?
To develop a successful real estate investing career, your job is to find deals and put them together. Your job is not to become an appraiser or a closing attorney or a management expert or a repairperson. Use professionals! How do realtors, appraisers, and banks determine what a property is worth? They look at comparable sales, usually three to five sales of similar property close by. Realize that the properties have to be similar for a true comparison.

Next, get a list of comparable sales and see the sales price of every property bought or sold (and when it sold) for the street you want information about. Also ask active professionals what the market is like. Whenever possible, get information in writing via fax, email, or letter. Put comparable sales lists and information in a folder for future reference.

2. What repairs does the property need?
You can find the cost of the repairs from two different sources: from the owner or the seller (most are truthful; a few are not) and from a good contractor who is licensed, bonded, and referred to you. Make sure that person is “referred” and that you get bids from more than one contractor, all recommended by respected realtors or other investors.

3. What can you get it for?
When sellers are motivated to move a property worth $100,000 and it does not need any repairs, they may say, “We’ll let you have it for $70,000.” (This is about 30 percent below market value. Rule of thumb: A good deal should be at least 20 percent below market.) Would that be a good deal? Yes. Now you can negotiate an even better deal and get a signed contract. That’s where you make money in real estate. By not negotiating, you may have potentially left a lot of money on the table.
Every property’s value is in the eyes of its beholder. If you own a lot of real estate and you are being sued, you might make a case that your property is not worth much and needs repairs. On the other hand, if you go to the bank to borrow money against the property, you’ll want it appraised as high as possible using the highest comparable sales. And when the tax assessor calls to figure out your new taxes for next year, you’ll say the rents are low, the buildings need work, and so on. Since property has different value depending on who is looking at it, make sure you talk to professionals active in the market who tell you honestly what people are paying for properties today. You can also determine market value by attracting an offer through a newspaper ad that includes details of the property. If the phone rings, people want what you offer. Likewise, if you want to see how much rent should be, run a For Rent ad and see if anybody calls. If no one calls, you don’t have much of a market.

Now Do Your Analysis
You have negotiated a good price and put it under contract with a contingency clause. Now do your analysis. (Beginners tend to analyze for six weeks but by the time they find out the age of the water heater, the condition of the roof shingles, and the opinions of neighbors, their opportunity may have disappeared.) Instead, do a quick survey to see if it is a good deal, document everything, put your offer in with a contingency, then do your compete analysis.

If you experience analysis paralysis, you’ll lose a lot of deals. That’s why it’s important to gather your information well and act boldly.

December’s Dangerous Decisions

Three Decisions and Actions Determine Your Strong Start to next year

by Rich Levin

 

The year is ending. You can decide to coast through December or take a few simple actions that ensure a strong start and continued success throughout 2012.

The Actions:

A. Complete a simple business plan. It is very important that it is both simple and completed quickly. You will see how below.
B. Take immediate action on the first workday of 2012 to ensure that you begin your plan within the first week of the New Year.
C. Begin to embed the actions of your 2012 plan as habits that ensure you stick with your plan for the entire year.

Your Simple Business Plan: Time Required -Approximately 1 Hour.
As you begin this plan it may seem familiar. As you get to the last steps and beyond you will see why it is likely to be the plan that actually makes your goals happen.

Important: Complete these steps quickly. Do not dwell on or labor over them.

1. Your Motivation and Attitude: Write down why you want to sell Real Estate in 2012; and what you want your Real Estate results to do for your life and your loved ones in 2012.

1. Write down the minimum amount of income or sales production that would make you feel that you are achieving those things for you and your loved ones. Review your past three year’s income or production so that your goal is based on facts.

1. Write down (or type on a document) the 12 months of the year one under the other. Write down a production by contract date for each month. Example: Jan: $300,000 under contract. This is the total sale price of the homes you will put under contract in January. (Note: contract not closing month)

1. Determine how many sales for the year that will require. Simply divide the annual goal by a conservative estimate of your average price. Example: Annual Goal is $3,000,000. Divided by Average Price of $150,000. Total sales are 20.

1. Determine how many new Clients you will need for the year to achieve this. Double the number of sales. Example: 20 sales require 40 new Clients. (We have proven this statistic with thousands of Agents coast to coast.)

1. Determine how many new Clients you need each week. Divide by 40. We use 40 instead of 52 weeks for the year to be conservative and realistic. Example: 40 new Clients needed divided by 40 weeks is 1 new Client per week.

1. Decide what 2 or 3 activities are most likely to get you that small number of appointments per week. Base this on where your past business has come from. Actually list where your sales have come from for the past one or two years so you are completely accurate about sources. The most common activities are: Follow up on current and past leads, Internet leads, ad and sign calls, open houses, calling or networking with your Past Clients and Spheres of Influence, personal marketing, hyperlocal marketing (farming), and if necessary expireds.

Take Action Immediately in 2012 to Begin Your Plan
Print the simple seven step business plan above. Right now, put an hour on your calendar to back through it and actually take each step. Then do this step (B.) and put the last step (C.) into your calendar for January. You will increase your chances of success next year by tenfold. In fact, it will guarantee your success in 2012.

Using the 2 or 3 activities you chose in number 7 above make a list of what actions will you take on January 3rd through 7, 2012 (Monday through Friday) to put your simple plan into motion?

These actions may include making calls, reconnecting with all or last year’s leads, web site work, e-mail blasts, preparing and sending your Sphere of Influence mailing, previewing homes in your farm, preparing and sending your farm mailing, communicating with your pending Clients and listed Sellers.

Begin to Embed The Actions as Habits
Embedding a habit turns single or random actions into consistent and dependable systems. A habit is an action that you take at the same time, on the same day, in the same place, and in the same way every day or every week. As you perform the action consistently day after day or week after week you become better at it. You learn how to continually improve it.

Following is the most effective way to turn your plans into results by creating the habits for those activities that ensure consistent results all year.

Choose one type of activity for each day of the week. And first thing in the morning before you open your e-mail (same time), on the same day of week, in the same place, schedule just a half hour to do each of the following. (You can expand the time later. A half hour helps establish the habit.)

Monday – Call Leads and Make Initial Appointments
Tuesday – Advance Your Technology
Wednesday – Traditional Sphere of Influence and Hyperlocal Marketing
Thursday – Communications with Pending Clients and Listed Sellers. Also Thursday: Rehearse and Improve Presentations
Friday – Strategize by looking at results for the past week and plans for the following week.

Important: As you begin each day review and remind yourself of A1 above, your motivation and reasons for succeeding with your Real Estate career in 2012.

There are many other activities in an Agent’s business that are hard or impossible to turn into daily habits; for examples, showings, writing offers, listing presentations, and negotiating. You will always find time for these because they demand your time.

Reaching your goals in 2012 depends on your commitment to make those “Daily Habits” a part of your business. Your success or disappointment in 2012 depend on it.

It’s that simple; not easy but simple. The key to a strong start to 2012 and guaranteeing your success throughout 2012 is dependent on the simple planning and habits you establish as this year ends and the New Year begins.

The Success of Your Business Plan. You control it every day with your decisions. You have the power to make it happen for you each day.

10 Year-End Tax Planning Strategies for Real Estate Investors

Arrange your transactions toward the end of the year in order to maximize your tax savings.

by Albert Aiello

OVERALL STRATEGY: Arrange your transactions toward the end of the year in order to maximize your tax savings. Strategies that you can employ as late as December to reduce your taxes for the current year. There are over 33 of such strategies, here are 10:

1. SETTLE ON A RENTAL PROPERTY BY 12/31 – YOU STILL GET 1.2 YEAR DEPRECIATION DEDUCTIONS FOR PERSONAL PROPERTY AND LAND IMPROVEMETNTS

2. USE 179 FIRST-YEAR EXPENSING FOR IMMEDIATE WRITE-OFFS

3. PREPAY PROPERTY REPAIRS BY DECEMBER 31

4. BEFORE THE END OF THE YEAR, STOCK UP WITH SUPPLIES – DEDUCT THEM THIS YEAR

5. PAY BY 12/31 ANY FAMILY MEMBERS WHO HAVE ASSISTED IN THE MANAGEMENT OF THE PROPERTY (OR YOUR OTHER BUSINESS).

6. SET UP A MEDICAL REIMBURSEMENT PLAN BY DECEMBER 31 AND A 100% OF ALL MEDICAL EXPENSES AS A BUSINESS DEDUCTION.

7. PREPAY YOUR NEXT YEAR’S INVESTOR ASSOCIATION DUES

8. RENEW SUBSCRIPTIONS.

9. BOOK REAL ESTATE CONVENTIONS NOW.

10. DEDUCT PAYMENTS TO YOURSELF THROUGH RETIREMENT PLANS

The above are excerpts from The Real Estate Investor’s Goldmine of Brilliant Tax Strategies, A Tax Reduction System And Special Forms Software Package, by Albert Aiello. Visit Al’s web site at REINFO.COM or call 215-271-1998