I just joined BP and new to real estate investing. There's so much information to absorb, a newbie could certainly become overwhelmed. But, I'm going to take it nice and slow, to make sure I'm educated and prepared for when I'm ready to buy my first rental.
Living in the Atlanta, GA area there are a few areas, where I would like to purchase properties: Grant Park, Inman Park, and Virginia Highland. Grant Park and Inman Park are going through gentrification and very close to downtown Atlanta, which is a plus. I've looked at data on several sites, but I'm not sure what it all means. How do I determine if these are good areas to buy properties? I'm hoping to buy small, multifamily properties (duplex, triplex, quadplex). If there's info on the site I should read to help me understand how to analyze a market, please point me in the right direction. Thanks much!
Congratulations on your start! The good news is –you are in a great geographic location to get started and investing in real estate. My advice is to not get bogged down in statistical analysis. Better yet, spend your time driving the neighborhoods in the areas you are interested in. Gentrification is a great thing when it comes to real estate investing. Look for positive signs in those neighborhoods… renovations, newer cars in the driveways, young families, etc. Raleigh, North Carolina is experiencing a similar trend. My brother, @Kelly Edwards , and I started investing right out of graduate school. We have had great success investing in neighborhoods that are experiencing positive change. With that said, we also spend time building relationships with the current residents of the neighborhood volunteering and giving back. This is a win-win because we help the community and learn more about opportunities for investment in those neighborhoods. One other thing to note – see if you can find other experienced investors in those neighborhoods and take them out to lunch.
Bottom line is – do your research and due diligence but don't get analysis paralysis! Best of luck to you! Let us know if we can be of any assistance.
Thanks for the wonderful advice! I can see how easy it would be for a newbie to get bogged down in statistical analysis, and not take the steps toward buying properties. The areas I mentioned IMHO seem to have great potential: close to downtown Atlanta, near major attractions, and an influx of young, professionals.
We're hoping to find a property with tenants, so we could earn income right away. One question though: if our focus is on purchasing in 2016, is it too soon for us to meet with a mortgage broker to see whether we would qualify for a mortgage? We currently own a home, with a conventional mortgage.
Sorry, I had 2 questions: what's the best way to go about finding investors in my target areas?
You should get your financials in order as soon as possible. Once your financials are in order, you can move on a property that meets your criteria. If it is a good property, you will not be the only one to put a contract in, therefore having all of your ducks in a row is essential.
Welcome to BP.
Glad to see you focused on some areas instead of all over the nation. It's a better way to start and once you get experienced, you could expand further.
I hope some BP members near you respond for local info.
Thanks Rush for the helpful info! When I'm ready to start shopping around for financing, will each lender have to pull my credit, to determine if I qualify? Is it a hard or soft pull on my credit?
Thanks James for the welcome and encouragement! We feel more comfortable starting in our own backyard first, and branching out to other areas, once we know what we're doing.
Thank you Patricia.
Glad to see your desire for success in real estate.
Regarding your latest post, each lender will pull your credit. What you could do is to ask them to NOT run your credit during initial proceedings and if they think they could give you a loan, they can pull your credit at that time.
Having said that, some lenders might not agree to it.
Hope it helps.