Investor · Suwanee, GA · Member since 2013 · 251 posts · 30 votes
I just wanted to share my frustrations on trying to find houses to flip in Atlanta. It seems like they are all gone, or we just aren't in the know. I'm an investment Realtor. I know of deals, but am always searching for a great high end deal or low end, where the comps actually support healthy and stable ARVs. UGH!!!
Real Estate Agent / Realtor · Atlanta, GA · Member since 2014 · 40 posts · 18 votes
10y
It's not difficult to find good deals in Atlanta, it just takes a lot of consistent work and a huge funnel to put your leads into. This is what I've concluded after a while wholesaling in this area.
One problem I've run into is investors expecting a 65-70% deal here. Yes, they do exist but no, it's not all that likely you'll find one. You're shopping in a market that's being utilized not only by local investors but also those from all over the country and globe. We're touted as one of the hottest places to be, and it's not untrue. I work with buyers from my neighborhood to Israel. With gurus near and far advocating wholesaling as a great way to get into REI with no money, most deals have been stepped on numerous times by people copy and pasting emails then re-sending at various prices to their own 'buyers', many of whom are just other Bird doggers doing the same thing. Shoot, just recently I had 2 of my own deals (hard-copy binding contracts in hand) shopped to me! It's not uncommon.
I wholesale in Atlanta full time. I'm very knowledgeable about the areas I work in and can usually come up with an ARV that my investors have a hard time arguing with. This isn't to toot my own horn, it's just what I've gained from being totally immersed in the business here. It's very common for less knowledgeable people trying to sell a house to claim ARV from neighborhoods within the golden rule distance (1/2 mile, anything more than that in town is ridiculous!) but they don't consider barrier roads, school districts, etc. Simply being within a half-mile of the subject does NOT make a comp a comp. From there the deal relies on the rehab figure. Generally I'll try to get a bid from a 3rd party GC for the bigger jobs that are more technical to estimate - I am no contractor! However my gut feeling isn't too far off at this point for jobs that don't require square footage expansion. I work closely with a few contractors while my investors go through rehabs to stay abreast of project processes and costs. I'm positive that very few other wholesalers in the area do that.
I offer myself up on BP a lot to new individuals wanting to get into wholesaling. I give the same advice to each one: don't get caught up in the e-mail blasts and daisy chains. Generally the same house comes through my e-mail 4-5 times within an hour, always at different prices, generally none of them are priced right. I advise everyone that wholesaling can be inexpensive, but that doesn't mean it will be successful also. For every 100 yellow letters sent out here today, expect a call back on one of them from your next batch next month. This isn't meant to be discouraging, but this is brute force numbers and how they work. The alternative to that is beating the streets and networking with neighbors, niche wholesalers, and a variety of other obscure acquisition methods. I utilize both methods but have found more success from the latter- I'm just a relationships kind of guy.
For anyone looking for deals, I'm available to chat privately. I'm also happy just to provide perspective from someone in the industry here and advice to those looking to invest here.
Saginaw, MI · Member since 2016 · 161 posts · 67 votes
10y
Hud homes and auction.com are good sites. Listen to podcast 136 that podcast is a must listen for anyone looking to wholesale. it is jammed packed with information you cant do without!
Residential Real Estate Agent · Hoschton, GA · Member since 2014 · 43 posts · 8 votes
10y
You likely won't find them in Gwinnett, N. Fulton or Forsyth unless you market for seller's directly. I get a bunch of flip worthy stuff from wholesalers all over Atlanta, but the really good ones are not sent out via email anymore.
Investor · Suwanee, GA · Member since 2013 · 251 posts · 30 votes
10y
Both! I'm a realtor so I do look on the MLS. But I've found in the last when I flipped homes that off market deals had more equity in the deal. But at this point I'm finding a lot of off market deals but they have so many middlemen involved that the profit isn't really there, or the comps don't support the ARV advertised. Or the areas I'm looking in are already flooded (such as EAV,Cabbagetown,Old 4th Ward, Edgewood, etc. ). I'm thinking I need to network more.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
10y
You can do more networking, or you can do your own marketing. Unless you are tied into one of the very few wholesalers in the area who are good, and unless they are bringing you deals before they offer them to other investors, you're not going to find good deals from wholesalers in Atlanta.
Also, finding bigger projects (tear downs, additions, etc) tends to be much easier in Atlanta these days...
Investor · Suwanee, GA · Member since 2013 · 251 posts · 30 votes
10y
@J Scott oh no! Yes that sounds about right. I'd prefer just a couple of really good wholesalers I can rely on. I just have to turn things up a few more notches with the marketing, networking, etc. like you said. And hire another assistant. I'm spread thin! Lol
Investor · Suwanee, GA · Member since 2013 · 251 posts · 30 votes
10y
@Joshua Jarvis yes I'm mostly looking in the metro Atlanta areas where there's growth. But I do find that there's a lot of buyers still buying in the outskirts of Atlanta. 1st time home buyers. The buyers who can't afford to live in certain areas and get the square footage that they want are buying in the outskirts. So I want to test those areas as well for smaller profits. Just need the deals.
@J Scott oh no! Yes that sounds about right. I'd prefer just a couple of really good wholesalers I can rely on. I just have to turn things up a few more notches with the marketing, networking, etc. like you said. And hire another assistant. I'm spread thin! Lol
There aren't more than a couple good wholesalers in all of Atlanta (and I could argue that there aren't even a couple). And the one or two good ones you likely won't even find, as they sell their deals to the same investors over and over. They don't need to advertise their deals...
For some reason, Atlanta is a horrible market for wholesalers. In other markets, I'm buying all my deals from wholesalers, but in the 8 years I've been buying in Atlanta, I can't think of more than one or two good deals I've ever run across from a wholesaler.
Real Estate Agent / Realtor · Atlanta, GA · Member since 2014 · 40 posts · 18 votes
10y
It's not difficult to find good deals in Atlanta, it just takes a lot of consistent work and a huge funnel to put your leads into. This is what I've concluded after a while wholesaling in this area.
One problem I've run into is investors expecting a 65-70% deal here. Yes, they do exist but no, it's not all that likely you'll find one. You're shopping in a market that's being utilized not only by local investors but also those from all over the country and globe. We're touted as one of the hottest places to be, and it's not untrue. I work with buyers from my neighborhood to Israel. With gurus near and far advocating wholesaling as a great way to get into REI with no money, most deals have been stepped on numerous times by people copy and pasting emails then re-sending at various prices to their own 'buyers', many of whom are just other Bird doggers doing the same thing. Shoot, just recently I had 2 of my own deals (hard-copy binding contracts in hand) shopped to me! It's not uncommon.
I wholesale in Atlanta full time. I'm very knowledgeable about the areas I work in and can usually come up with an ARV that my investors have a hard time arguing with. This isn't to toot my own horn, it's just what I've gained from being totally immersed in the business here. It's very common for less knowledgeable people trying to sell a house to claim ARV from neighborhoods within the golden rule distance (1/2 mile, anything more than that in town is ridiculous!) but they don't consider barrier roads, school districts, etc. Simply being within a half-mile of the subject does NOT make a comp a comp. From there the deal relies on the rehab figure. Generally I'll try to get a bid from a 3rd party GC for the bigger jobs that are more technical to estimate - I am no contractor! However my gut feeling isn't too far off at this point for jobs that don't require square footage expansion. I work closely with a few contractors while my investors go through rehabs to stay abreast of project processes and costs. I'm positive that very few other wholesalers in the area do that.
I offer myself up on BP a lot to new individuals wanting to get into wholesaling. I give the same advice to each one: don't get caught up in the e-mail blasts and daisy chains. Generally the same house comes through my e-mail 4-5 times within an hour, always at different prices, generally none of them are priced right. I advise everyone that wholesaling can be inexpensive, but that doesn't mean it will be successful also. For every 100 yellow letters sent out here today, expect a call back on one of them from your next batch next month. This isn't meant to be discouraging, but this is brute force numbers and how they work. The alternative to that is beating the streets and networking with neighbors, niche wholesalers, and a variety of other obscure acquisition methods. I utilize both methods but have found more success from the latter- I'm just a relationships kind of guy.
For anyone looking for deals, I'm available to chat privately. I'm also happy just to provide perspective from someone in the industry here and advice to those looking to invest here.
RE Investor · Newnan, GA · Member since 2015 · 309 posts · 132 votes
10y
@Rashad S. I am a wholesaler in the Atlanta area. You can send me your criteria and I will send you anything that matches. You might want to look in other areas, most of the neighborhoods you mentioned are very competitive.
One problem I've run into is investors expecting a 65-70% deal here. Yes, they do exist but no, it's not all that likely you'll find one.
Please don't tell newer investors that they should be settling for deals less than 70%. Newer investors *SHOULD NOT* settle for deals under 70%. For an investor getting a loan, it's typical for fixed costs to run about 15% of ARV in Atlanta, which means at 70%, there's 15% of ARV left for profit. Unless you're talking about a low risk "paint and carpet" type rehab, or unless you have a lot of experience, I wouldn't recommend any non-fully-seasoned investor taking on a project for less than 15% return on ARV.
This is how newer investors end up in bad situations... Better to sit on the sidelines than to settle for a bad deal.
Real Estate Agent / Realtor · Atlanta, GA · Member since 2014 · 40 posts · 18 votes
10y
Great points J, and I completely agree with them.
Yes, those deals do exist and just like you said, it's largely from doing the marketing yourself (the investor). That's not to say I don't stand by my statements about the competition in this city from my own experience. Even full time, they do take a lot of work to dig up.
The only other thing I'd want to add is that there's value in both working with sources (wholesalers) and maintaining your own marketing campaign. It's definitely worth an investor weighing the costs/time vs benefits of both for their own business to know what avenues are best for them for acquiring deals.
Real Estate Consultant · Chattanoooga, TN · Member since 2008 · 194 posts · 52 votes
10y
@Rashad
@Rashad S. Have you looked into Homesearch.com for some opportunities as well? Also, have you thought about doing some targeting mailings to the areas you want? Like reaching out the 55 and above home owners?