HOT MARKETS: ATLANTA
Changing Market In Atlanta, it’s the perfect time to buy rentals for a strong ROI.
by BRANDON THOMPSON AND WILL HARDY
I nside Metro Atlanta and its surround- ing suburbs, flipping has dominated over the last several years. However, for the last several months, Atlanta has been experiencing a shortage of inventory because of escalated market apprecia- tion. There have been shrinking numbers in foreclosures with an abundance of homebuyers willing to pay a premium yet once again. This makes it difficult to accumulate properties to remodel and resell while still making a profit. But circumstances in 2016 have allowed us at Investor Network to get creative! For the first time since the Recession of 2008, we have seen a slight housing bubble in our city. With interest rates remaining at an all-time low, a lot of false equity is being created within our local market. Therefore, we are experi- encing a lack of good inventory to flip. However, we are starting to see some pre-foreclosures, short sales and cheap distressed properties again. As times change, so do local mar- kets. Here in Atlanta, it’s the perfect time to buy rentals for a strong ROI. Our forecasts are telling us that a slight downturn is coming and some smart purchases can be made right now. Because of this, we can purchase properties between $40,000 and $75,000 for the first time in seven years. After acquisition, we at Investor Network will rehab the properties with rental grade rehab, tenant the property for a strong cap rate of 15 percent to 20 percent and, in turn, offer a 9 percent APR paid into 12 monthly installments to our investor. We will cash flow the property for up to five years while waiting on the next “up- swing” in the Atlanta market, and then will sell it for the maximum appreciated value along with splitting the profits with the investor 50/50.
With interest rates so low and with the local banks paying next to nothing, 9 percent is an incredible rate of return that is safe and secure for the investor. While securing the investor’s position with a promissory note and a 50 percent profit participation clause as well as his or her foreclosure rights in a security deed, our investors feel safe. Atlanta is changing. There will always be a local flip market here, but true wealth will be made in buy-and-hold in this next season. We’re not saying we’re experts in every market; just ours. As times get better, low interest rates for a duration of time can create certain housing concerns. While we do believe the national market as well as our local market have healed themselves, there has been too much appreciation way too fast. In the Atlanta market, it couldn’t be a better time to build your own rental inventory while making a strong return and being completely hands-off. You know that you’ll be safe investing in a diversified market in Atlanta while trust- ing local experts who not only care about you as an investor, but better yet, cares more about your money. Investor Network has held two things of great importance: We want to make real estate easy for our investors, and we don’t make money until you make money. •
Brandon Thompson and Will Hardy are co-founders of Investor Network, which has bought, sold and transact-
ed more 1,000 real estate deals since the company was begun in 2007. They can be reached at will@investornetworkstore.com, brandon@investornetworkstore.com or 404-937-4011. www.investornetworkstore.com
26 | INVESTOR REVIEW
SEPTEMBER/OCTOBER 2016 | 27
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