COVER STORY
Master Investor
depending on what’s most profit- able in market conditions. The flip program in Atlanta uses the investor’s capital to buy a residential property. Investors get 5 percent annual return for the duration of the note, with 50 percent of the profits when the property sells. A second strategy in Atlanta is buy and hold for multifami- ly and commercial property. It’s a new approach that’s booming. “We’re buying in a lot of historic communities and taking these commer- cial, dilapidated properties and renovat- ing them, bringing them up to code and leasing them out or tending to them for great ROI,” says co-founder Will Hardy. In Memphis, the company specializ- es in a buy-and-hold strategy thanks to the low cost of homes. “Nowhere else in the United States can you get single-family homes fully reno- vated for less than $50,000,” says Hardy. Their goal is several hundred units in Memphis in the next few years. They plan to sell those units whole- sale to hedge funds to buy out their investors. So investors will earn 9 percent return on that program. The fourth program is wholesale—a strategy that has earned them a name beyond their home turf. “We have real estate ready to sell to investors in bulk packages,” says Hardy. “These properties are either ful- ly renovated that have just been flipped and ready to be sold at wholesale cost, or they’re also tenanted and cash-flow- ing. So investors from all over the world can come to us and buy bulk real estate from either our Memphis or Atlanta inventory.” Whatever strategy, Investor Network has refined the most effective systems, logistics and teams to make properties perform well. One guideline is that Investor Network only makes money upon the successful running and resale of the properties, which the partners say makes investors feel safe and secure knowing “we don’t make money until
THERE’S NO GRASS GROWING under the foundation of one Atlan- ta-based investment company. Investor Network is on the move. Not ones to be idle, founders
PERSONNEL FILE NAMES: Brandon Thompson and Will Hardy COMPANY: Investor Network LLC, Atlanta, GA
Brandon Thompson and Will Hardy have expanded in both tradi- tional and unexpected ways. These partners regrew a successful business after the eco- nomic downturn and have continued to analyze
WEB: investornetworkstore.com
PHONE: 404-937-4011
HOMETOWN: Brandon - Atlanta, GA; Will - Louisville, KY
the real estate investment market to find opportunities to adapt and grow. Their goal is 500 to 1,000 properties in the next five to seven years. The partners have rebranded Inves- tor Network to reflect the fact that they now offer—under one roof—all the in- vestment services clients need. They’ve expanded outside their home turf of Atlanta, Ga., to Memphis, Tenn., and have their eyes set on other markets, too. They’ve started providing real estate education for free. They’ve even launched a technology product. And this targeted growth is benefiting both the company and investors. “Since 2014, we’ve actually had a 40 percent increase in business, year in and year out,” says co-founder Brandon Thompson. “Our main focus for our second market is Memphis, but here in Atlanta, we’ve been strong in the big flip market.” In addition to Investor Network’s growth, their clients appreciate how the various investment options grow their portfolios. “The lowest return is 20 percent on our flip program and upwards of 66 percent—but right now the average re- turn is 36 percent,” says Thompson. “So our investors are extravagantly happy at this point with those strong returns.” STRATEGIES FOR SUCCESS The partners offer four strategies
COMPANY FOUNDED: 2007
NUMBER OF TRANSACTIONS SINCE INCEPTION: More than 1,300
NUMBER OF CURRENT INVESTORS: 47 key international investors, and more than 500 on a wholesale insider list TOP QUESTION NEW INVESTORS ASK: How am I protected? MOST MISUNDERSTOOD REAL ESTATE TERM—AND WHAT IT ACTUALLY MEANS: Cap rate. “Believe it or not, there are a ton of investors that call us that don’t un- derstand this term,” Thompson and Hardy say. “Cap rate is essentially a way to esti- mate a rate of return on your investment. You take the net operating income and divide it by your purchase price and then you get your cap rate or rate of return.” TOPIC OF INVESTOR NETWORK’S MOST POPULAR YOUTUBE VIDEO: “What Is a Blind Offer?”
FULL-TIME EMPLOYEES: 16
COMPANY CULTURE: “When it deals with your money, you want to be in the know. Our personal lines are open for the investor anytime they want to talk to us,” the two say.
22 | think realty magazine | may :: june 2016
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