All Forum Posts by: Alec Granger

Hey Robert,

Hard money can definitely work for buy and holds. An example, we had a property that was a duplex in Union City in which it currently had tenants paying below market rent ($500 & $550) on month-to-month leases and market rent was $725 each side. Our price was $115k and to fix it up and bring it to market rent it would need 5k at most. I got an estimate from our loan officer over at Sherman Bridge for one of the investors I work with for their Rent36 loan which is a 36-month term. He would have to put about $40k down with a $79k loan and would cash flow around $700 per month at market rent. This particular program has a 6 month pre-payment penalty, but after that six months you can refinance out if you wanted. At market rent, the property would appraise for around 130-135k, so with good credit, you should be able to get an 80% LTV loan from a conventional lender which would would be about at 100k loan. This means you would be pocketing 20k from the property and your monthly payment would be reduced by about $100/month on a 30yr term. So when it is all said and done, you would be all in at 20k on the property cash flowing about $800/month.

Sorry for the lengthy response but I hoped this helped!

Hey Michael,

Welcome to the BP community! Real estate can be a great way to add extra cash flow and give yourself financial freedom. The Atlanta market especially is starting to turn and become a great market for the BRRRR strategy. How far into your process are you so far?

Kevin,

If you are looking to stay under 150k all in, I would suggest looking on the south side of Atlanta. Areas like, Union City, Riverdale, Forest Park, and others are up and coming areas that you can get properties at a pretty big discount with a lot better %. For example we have had several duplexes in Union City that have been around 110-120k all in and rented out 725 on each side. Another good area is Douglasville, it's a little further out of the city but you can typically get houses out there in the 120-130 range and can cash flow higher than the 1% rule. I hoped this helped!

Hi David,

Welcome to the BP community. I am an agent with an investment wholesale brokerage called New Western Acquisitions. We work with thousands of investors across the country and sell between 50-60 properties every month in the Atlanta area alone. Feel free to reach out with any questions you may have!

Hey Courtney,

We always refer investors we work with to Sherman Bridge lending if you are looking for hard money lending. Typically people don't use conventional loans on investment properties because of the restrictions they have and the long closing periods. Feel free to reach out with any questions you may have!

Raul,

I would say that is too pricey for you to pick up. Many investors use the 1% rule to evaluate their rental properties. In this case, you are getting $1,050 a month in rent minus the $230 HOA fee and even if you sold it to an investor for 100k (no profit for you), with the cosmetic repairs they will probably be all in around $110,000, which is way under a 1% deal. If they were to use cap rates, it would be an 8.9% cap rate. There may be someone willing to buy at that price, in order for you to make anything on it you need to get a price break.

I hope this helped! Feel free to reach out with any other questions you may have.

Emmanuel,

The 70% rule is a standard that a lot of people use but it doesn't apply to all markets/situations. On the deals that you are getting beat out on, try to find out what offer is being accepted. If there is someone buying at a higher price than you, they most likely are still making a profit. If it is just the seller that is refusing your offer but no one else is offering higher, then you have to explain to the seller that your price is what will work, they can sit around and wait for a higher offer for months, or take yours now.

I hope this helped! Feel free to reach out with any questions you have!

Hey Marquis,

It's awesome you guys stuck with it and never lost confidence. Real estate can be a true test of character for sure!

Hey Terry,

Welcome to the BP community! Are you only interested in getting properties in those areas? Have you considered any properties on the south side of Atlanta?

Feel free to reach out with any questions!

Hey Aisha,

I'm not as familiar with the Savannah market, but as far as finding tenants goes, finding a tenant in October shouldn't be too much more difficult than other times in the year., especially in downtown. What are some of the specs of your rental?