Atlanta Market Saturation

8 Replies

Hey fellow Georgia investors,

Who all is currently active in rehabbing and flipping homes in the Atlanta area? How are you sourcing your deals? How do you scale into doing multiple projects at one time? I would love to hear some feedback and connect!

Well the title of your post hit the key word- saturation. Atlanta boomed, hard, a handful of years ago. Since then, inventory is difficult and people either aren't able to scale like they used to or they are paying premium prices for what they are buying. Inventory isn't at all what it used to be, nor are the returns. Most of my properties are in Atlanta but I wouldn't buy there now at all. 

Are you trying to build your own rehab/flipping business there and that's why you're asking? And how to scale into multiple projects- that's really a separate question irrelevant to the city you are in. That's basic business-building 101. The answer is-- systems. You put systems into place, that you can hire people to follow, and that's how you start being able to do multiples at one time.

I've found the big wholesalers to be worthless and even damaging sometimes.  They hire good people who are well-intentioned and create a boiler room like mentality where projects are pushed hard.  The result is that newbies buy stuff they shouldn't and lose their butts.  (I've never bought from a big wholesaler.  It's just an observation.)

Individual wholesalers seem to be effective sometimes. Direct marketing and MLS are ok too. The best is a combination.

@Ethan Henning How many projects have you done? How long have you been in real estate? Any references from people who have sourced deals from you on Biggerpockets?  Maybe we can watch one play out like "Diary of a Big Wholesaler deal."

Interesting about ATL. I am looking to move to ATL in the next year and a half from Cali and wanted to get into real estate investing there, not sure whether I should reconsider and choose a different location. I am keeping an eye out on the ATL real estate market and seeing what the year brings.

@Ali Boone I've lived in GA for almost my entire life and it seems like every nice area is really difficult to find a good deal in. I think the beltline is a huge opportunity to invest away from the city. Investors are probably jumping over future beltline development areas, while the outside suburbs are still strong economic areas to invest in (assuming the numbers are good). 

My plan is to focus on some of these areas outside of 285 and find a modest 1% property. If I miscalculate or get slightly under 1%, rents should appreciate over time to accommodate. It is pretty conservative approach, but I feel like it's a non-negative way to do rentals in Atlanta in good areas.

@Rick Baggenstoss I appreciate your feedback. I know you have a lot of experience in the Atlanta market so I definitely value your opinion. From my experience, a lot of newer investors have a hard time with their first deal because of their lack of experience with contractors and keeping the rehab quick and keeping costs down.. Working for a large wholesaler, I see a lot of investors that do repeat business with us because we have consistent inventory and we don't milk every single deal we do and instead we focus on consistent more conservative fees so that our investors have plenty of room. That being said, the more experienced an investor becomes they either focus on doing more volume and they appreciate the work that a wholesaler does because they don't have time OR they venture into their own marketing, trying to get directly to the seller so they can optimize each deal they do. I can definitely understand both routes to take and I can't say what I would do until I acquire the experience one day. 

As for my personal experience, I have been "involved" in real estate for around 3 years now. I had a rehab that I was doing in Senoia, GA that I am currently selling. I also have a wholesale deal that I just got verbal agreement on in Griffin, GA. I am currently working at a  wholesale brokerage and I am a licensed real estate agent. I would love to jump on the phone with anyone and discuss anything investing related. I will follow up with you with some success stories when I get a minute to compile the info. 

I'm new this year to investing in Atlanta and honestly there are still some great deals out here. You just have to be ready with cash in hand pretty much before they get scooped up by the veterans. I'm partnered with a buddy of mine who has been in the game for about 5 years. We both just network with people who have their ears to the ground and pick up the pieces when they fall. You also have to be willing to check out areas some ppl wouldn't go for deals with potential rises in value. I picked up one ITP for 80k with an ARV of 169 and renos @ 40k. However, recently two homes in the area just sold for over $200k and we have more sq ft than one of the two. We may have lucked up on the deal. :)

I'll keep you posted as things progress. 

Originally posted by @Richie Choy :

@Ali Boone I've lived in GA for almost my entire life and it seems like every nice area is really difficult to find a good deal in. I think the beltline is a huge opportunity to invest away from the city. Investors are probably jumping over future beltline development areas, while the outside suburbs are still strong economic areas to invest in (assuming the numbers are good). 

My plan is to focus on some of these areas outside of 285 and find a modest 1% property. If I miscalculate or get slightly under 1%, rents should appreciate over time to accommodate. It is pretty conservative approach, but I feel like it's a non-negative way to do rentals in Atlanta in good areas.

You're more likely going to find under 1%, but at least you can find positive cash flow. Maybe more on the distressed properties. But your best bet for positive cash flow at all is, yes outside of 285, but on or south of I-20. Just about everything north of it will be negative cash flow.