Specialist · Las Vegas, NV · Member since 2013 · 639 posts · 176 votes
We're moving some of our operations to Atlanta/Georgia first week of September and will be starting flips immediately, so we need to put together a team of people to work with. Having been there two weeks ago for a few days, we already have a few deals lined up!
We thought we'd start building our team out of the BP network, so here's what we need to get ourselves rolling;
A (Really Good) Title Company Contact.
CPA
Wholesalers (for Flips)
Experienced Flip Contractor.
Property Inspector.
Landscaper.
Any competent Rehab Services Providers.
.... and all the other business services that go with a start up. We're really looking forward to this move (just can't beat that southern hospitality - and charm!) and would welcome all the support we can get.
BTW, we'll blog our Atlanta experiences as we go, gonna be fun!
Thanks in advance and may all your deals be home runs!
Rental Property Investor · Clarkston, GA · Member since 2012 · 2k+ posts · 1k+ votes
13y
Hi David. First let me wish you welcome to Atlanta and good luck. Atlanta is not nearly as hot as where you are leaving at the least. :) But let me share my views on the Atlanta market so you know what you're in for (in my view working here).
Atlanta is a VERY crowded market with investors from all over the country and world thinking they can make a living working Atlanta real estate. The locals have moved out to more profitable areas leaving Atlanta counties to the new folks to struggle and of course the over paying foreigners.
There are much more profitable areas in my view: emerging markets where a new auto plant or some jobs reasons why their will be positive emigration to the area:
- Eastern coast board port cities that will get shipping increases from the panama canal widening and increased shipping traffic. I think a dark horse in this angle is Appalachacola FL. No one is touting this location yet. Port St Joe is along shot. Everyone is talking about Charleston SC (so already too hot).
- Google new auto plant openings.
- Tap into growth state chamber of commerce news for new jobs. Usually they will be in Southern smaller cities, not places like Atlanta.
- Columbus and Warner Robins GA, has a combo of cheap houses, a military base, a river. Smaller cities often haven't had the investor swarming where there are still sub $30k houses that rent for $750 and up. I wouldn't touch the areas in Atlanta where you can still buy sub $50k houses. You'll not get 9 months out of 12 rent collected in my view.
- Birmingham AL, has a new auto plant coming.
- A bit of our secret sauce is: smaller cities have alot of folks who WANT to live there and are long term renters. We've found they will only move within a 1/2 mile of where they want to live. So if you put up a house for rent, keep it nice, they tend to not leave. The poorer areas of bigger cities are the opposite, folks chase the cheapest rent and have no affinity to any 6 block area so it's hard to control turn over.
- In bigger cities (like Atlanta) our secret sauce is to buy ONLY in great schools high school districts 5 or better. Preferably 7 or better. Then you select tenants with middle school kids who want to stay in that high school. Now you have a tenant for at least 4 years. In Atlanta now you're paying more than $70k + rehab at the low end. In my view, the cap rate is not high enough to interest me in investing in Atlanta good school districts any more. We've left for emerging markets and smaller cities! Plus Atlanta is down to 2 months inventory, as crazy as this sounds. All investor type properties have 20+ bids. I've heard of crazy percent over ask winning bids. You honestly can't guess what to bid anymore if you want the property. It used to be 60% of ARV - repairs. I hear it's now between 80% - 90% of ARV minus repairs, and the V in ARV is jumping so you might have to bid over the value. Which means you can be left holding the bag. Remember 2008? There's no profit and too much risk in that model for me. So we left and just closed on a $26k 3/1.5 that rent and will return cash on cash around 25%. You'll never do that in the hot markets! We've moved to working the unknown smaller cities.
Lender · Burke, VA · Member since 2013 · 177 posts · 28 votes
13y
Hi David,
I am an investor who provides capital to businesses in the VA/MD/DC/GA/NC/SC markets. Are you interested in a private lender to fund your flips or looking for a Joint Venture partner? We are also actively involved in the Atlanta market. Please let me know.
Rental Property Investor · Clarkston, GA · Member since 2012 · 2k+ posts · 1k+ votes
13y
Hi David. First let me wish you welcome to Atlanta and good luck. Atlanta is not nearly as hot as where you are leaving at the least. :) But let me share my views on the Atlanta market so you know what you're in for (in my view working here).
Atlanta is a VERY crowded market with investors from all over the country and world thinking they can make a living working Atlanta real estate. The locals have moved out to more profitable areas leaving Atlanta counties to the new folks to struggle and of course the over paying foreigners.
There are much more profitable areas in my view: emerging markets where a new auto plant or some jobs reasons why their will be positive emigration to the area:
- Eastern coast board port cities that will get shipping increases from the panama canal widening and increased shipping traffic. I think a dark horse in this angle is Appalachacola FL. No one is touting this location yet. Port St Joe is along shot. Everyone is talking about Charleston SC (so already too hot).
- Google new auto plant openings.
- Tap into growth state chamber of commerce news for new jobs. Usually they will be in Southern smaller cities, not places like Atlanta.
- Columbus and Warner Robins GA, has a combo of cheap houses, a military base, a river. Smaller cities often haven't had the investor swarming where there are still sub $30k houses that rent for $750 and up. I wouldn't touch the areas in Atlanta where you can still buy sub $50k houses. You'll not get 9 months out of 12 rent collected in my view.
- Birmingham AL, has a new auto plant coming.
- A bit of our secret sauce is: smaller cities have alot of folks who WANT to live there and are long term renters. We've found they will only move within a 1/2 mile of where they want to live. So if you put up a house for rent, keep it nice, they tend to not leave. The poorer areas of bigger cities are the opposite, folks chase the cheapest rent and have no affinity to any 6 block area so it's hard to control turn over.
- In bigger cities (like Atlanta) our secret sauce is to buy ONLY in great schools high school districts 5 or better. Preferably 7 or better. Then you select tenants with middle school kids who want to stay in that high school. Now you have a tenant for at least 4 years. In Atlanta now you're paying more than $70k + rehab at the low end. In my view, the cap rate is not high enough to interest me in investing in Atlanta good school districts any more. We've left for emerging markets and smaller cities! Plus Atlanta is down to 2 months inventory, as crazy as this sounds. All investor type properties have 20+ bids. I've heard of crazy percent over ask winning bids. You honestly can't guess what to bid anymore if you want the property. It used to be 60% of ARV - repairs. I hear it's now between 80% - 90% of ARV minus repairs, and the V in ARV is jumping so you might have to bid over the value. Which means you can be left holding the bag. Remember 2008? There's no profit and too much risk in that model for me. So we left and just closed on a $26k 3/1.5 that rent and will return cash on cash around 25%. You'll never do that in the hot markets! We've moved to working the unknown smaller cities.
Investor · Atlanta, GA · Member since 2012 · 64 posts · 3 votes
13y
Hey David, Welcome to Atlanta!
I am a licensed agent and local real estate wholesaler. I have been active in the Atlanta market finding flip deals for investors just like yourself for over a year now. We purchase about 15-20 wholesale properties a month and in turn make them available to our clients. Check out some of my previous post of past deals. We are always coming across great properties all over the metro area. Lets coordinate a time when your in town to sit down and meet and go over what your company is looking for as well as my company and how we come up with our numbers and all the services we offer to our clients.
Real Estate Investor · Phoenix, AZ · Member since 2011 · 36 posts · 2 votes
13y
Welcome to Atlanta @David T. ! Hopefully the rain subsides once you've settled in. Wish you the best of luck in this market; extremely competitive but I'm sure with your experience, you can carve out a niche that works for you and your company.
If you check out some of the deals that I have posted on here we are currently selling our deals between 73-76% of total investment cost (House + Rehab) to ARV. Its no secret the Atlanta market is very competitive right now and we were not having any success getting homes contracted for any less than that. I make 15-20 offers a week on homes and most of those wont pass an inspection or qualify for a traditional mortgage. I know investors are settling for less profit than that because we were constantly getting beat out on offers for homes that would not be being purchased by anyone but investors.
@David Beard undefined
If you check out some of the deals that I have posted on here we are currently selling our deals between 73-76% of total investment cost (House + Rehab) to ARV. Its no secret the Atlanta market is very competitive right now and we were not having any success getting homes contracted for any less than that. I make 15-20 offers a week on homes and most of those wont pass an inspection or qualify for a traditional mortgage. I know investors are settling for less profit than that because we were constantly getting beat out on offers for homes that would not be being purchased by anyone but investors.
Thanks @Wes Love - that's good color and completely consistent with what everyone is saying about ATL. I don't think you could afford to pay for HM on a 75% ARV deal, but the cash buyers should be able to scrape out a profit.
If you don't mind sharing, how does your deal sourcing break down between: direct mail, web site/PPC/adwords, wholesaler coops, HUDs, REOs, short sales, etc.
... There are much more profitable areas in my view: emerging markets where a new auto plant or some jobs reasons why their will be positive emigration to the area:
... panama canal widening..
... new auto plant openings....
.... state chamber of commerce news for new jobs.
- Columbus and Warner Robins GA, has a combo of cheap houses, a military base, a river. Smaller cities often haven't had the investor swarming where there are still sub $30k houses that rent for $750 and up. ...
- A bit of our secret sauce is: smaller cities have alot of folks who WANT to live there and are long term renters. We've found they will only move within a 1/2 mile of where they want to live. So if you put up a house for rent, keep it nice, they tend to not leave.....
- In bigger cities (like Atlanta) our secret sauce is to buy ONLY in great schools high school districts 5 or better. Preferably 7 or better. Then you select tenants with middle school kids who want to stay in that high school. Now you have a tenant for at least 4 years.....
curt
Thanks for a wonderful posting! I've slowly come to realize that we need to study such smaller cities, but have to determine how to do so while living in southern California.
Do any of you remember the mention of savvy investors going to Atlanta in The Millionaire Next Door? If you haven't read it, it is an excellent book.
Specialist · Las Vegas, NV · Member since 2013 · 639 posts · 176 votes
13y
Y'all,
Three days of a drive from LV to ATL and it was just wonderful. Also completed a lifetime ambition to drive across the USA, btw. Absolutely gorgeous country and wonderful people. Can't wait to do that again! Much more slowly next time :)
So arriving in ATL we have two deals locked up (one of 'em straight from BP!) and another five or six that we're looking at. This is a great start and let's hope it stays that way.
Thanks especially to everyone on BP who has been so helpful and supportive, it has been a highlight of the move!