Atlantalandlords

Eavesdropping Converts To Cash

During my normal course of day I stopped off at one of my favorite eateries where I met a friend.  We talked about work, work and more work at the bar.  After almost finishing our meal a woman leans over and joins the conversation. We start talking about work. She asks me, "What do you do?"   I said I am a real estate investor.  Boom!  She started telling me about rental properties she owns in D.C. She started telling me about rental properties she at one time owned in  Atlanta.  This is networking without trying. The lesson for today is go into bar and have meal.  Take a friend with you and start a conversation...Be loud! Let it ring out in the air. I am a real estate investor.  You never know who might join in a become interested in what you do.  When people become interested they become your next buyers.

The Lil Parking space for 20K THAT CASH FLOWS

Take a 45 unit mid rise loft development in Atlanta with only 18 underground parking paces and you have a parking war. It's like NYC in downtown Atlanta.  This situation fetched an absentee owner about to foreclose on a property 20K in cash.  It's a little easier to walk away from your foreclosed home when you just make 20K by selling your parking space. 

Here is the situation The seller of the parking space had a restraining order placed on him by another unit owner.  What does this mean? This guy had to be a football field away from the other unit owner.  HE HAD TO MOVE.  Since the complex did not allow his unit to be rented and he cant live in it, his unit will foreclose. 

Here is what is next This guy offered the parking space to all 45 unit owners.  At the end of the bidding he ended up selling the space for 20K to an owner that owns 2 units in the building. Both of the buyers units do not have parking.

Is it worth it? With absolutely no maintenance the parking space can be rented out to another unit owner for up to $300 per month.  That is cash flow of $173 per month if it's purchased for 20K on an home equity at 6.5%.  Well the buyer figured adding a parking space would add more value to his units once he put it on the market. He is right! Units with parking typically sell at a 20%-30% higher price point.

Watch the latest videos on YouTube.com

Most Good Deals Never Make it to the MLS

I have rehabber, investment property listings all over Atlanta.  I wholesale houses and I will not waste your time with fantasy ARVs and repair estimates. You will be happy with the numbers. I've sold over 60 wholesale houses.  I don't BS people on the numbers. Frankly, there are too many time wasters out there and I assure you I'm not one of them. If you are interested in viewing these properties I can send you listings.   This is a self-service operation. I will give you the address and combination lockbox code and you can view the properties on your own time.  I have established relationships with other agents and I work directly with the banks so I can get the LISTINGS FIRST. Take a look at the numbers tell me what you think. Tell me what you are looking for! I am sure I can find you a deal!  My goal  is to move properties fast. Volume not price is my priority.   Most of my properties are not on the MLS. Right now I don't have a fancy website but I can send you information about the property, price, pictures and lock box code. 

Questions?

1.What kind of ROI are you looking for or are you looking for long term appreciation

2. What price range and in what area, zip code specific?

3. Will you be using traditional financing, hard money or cash?

4. How many houses do you buy per year?

 

email me at usaproperties@gmail.com

The Renovated Decatur Cottage that broke my heart

I am part of a team that wholesales single family properties to investors in Atlanta area. We are looking in other areas in Atlanta, however, our primary market is Decatur area.  A small 1,100 square foot rehabbed property became available about a month ago for 95K, ARV 150K.  What a cutie?  The owner updated the property with central air/heat, alarm system, tile bathroom, stainless steel appliances and granite fireplace. The home was built in 1951 and already has great refinished hardwood floors.  I tried to make this work as a rental but I couldn't fight the numbers. The biggest problem are the taxes. This property is not in unincorporated Decatur They were a whopping $2,400 last year.  I did a quick market analysis for rentals in that area and I figured I could rent it quickly at $750 per month. Here is the situation! I need to buy the house for 20K less to just break even. I cant live without cash flow. Even though its a 65% LTV. I had to let this house go. If you want more information about this house. It would be perfect for a FTHB or someone who is willing to wait for rental prices to go up in the area.

    

Why I will never buy a condo for a rental

The uncontrollable costs with a condominium are a pain!  When I first bought my rental condos I was banking on at least $500 cash flow between the two of them.  I purchased one at 55K and one at 69K.  I rent them out for $850 each. Do the numbers.  It sounds pretty good right?  Well I thought that was pretty good in the intown market of Atlanta.  Now at best I cash flow about $100 per month on both properties.  Why?  After the first month, the condo association decided that everyone should have a part in paying for the common element utilities on top of the association fees.  Who knew that paying for lights in the interior hallway would cost $100-$150 per unit per month.

Yikes. That has eaten up all my cash flow.  In the next 5 years we are expecting to replace the roof. That will be another cost I will have to incur.  In my own building where I live, the association will have to decide this year to replace all the windows in the building. At 5K per window that could result in an assessment to pay the over 500K  in replacements costs.  I have four windows, that is 20K for my unit.  Why we have to replace the windows in an 8 year old building is another article in itself.  I will start by saying...the incompetence of our trusted city officials. 

The inspectors of Fulton County...well in their haste to put up a condo building.

I love Bandit Signs

Do you Like Bandit Signs

We use bandit signs a lot in our business. We get most  of our buyers from handwritten signs that are put up all over our marketing area.  Most of what we sell is in Decatur so most of our signs are on business streets all around this part of Atlanta.  We have had the greatest success with handwritten signs.   
However to find sellers we use pre printed signs “We Buy Houses” or “Stop Foreclosure”.  The pressure is always on to keep these signs up, visible and in good condition. A day of putting out 20 signs could end up with 6-10 phone calls depending on the areas they are placed. I have found that the busiest streets produce the best results. Of course for obvious reasons, the amount of traffic that goes by but also homeowners aren’t bothered when they are on busy streets. When a sign is on their street they usually snatch them up quickly within 1-2 days.
  I love bandit signs. Code enforcement seems to have so much to do in Atlanta they really don’t bother us.  I’m curious about the success and failures of bandit signs in other parts of the country.

Some people don't like me!

There is an organization whose sole purpose is to stop investors from putting out bandit signs. Take a look at what they have to say. Hey I agree with them but, I also need to make a living. Bandit signs are the cheapest most effective way of marketing. Is there a compromise

 

I will put up your signs tastefully around Atlanta. I wont put them in a neighbors yard. I will try to avoid neighborhood streets opting instead for main streets.

If you need 50-100 bandit signs put up around Atlanta I can do it. I love to do it.  The cost per sign starts at $5 that includes, materials and placement around any area of Atlanta usaproperties@gmail.com.

When did 570 become an ok credit Score

I told him hey just tell the apartment owners when you are viewing properties that you have poor credit.

Be honest it will get you much farther in the process. Well My mom. ran my credit up .well I was a student and I wasn't able to pay my bills.

Hmm sounds like this guy is irresponsible. He should have just accepted responsibility and closed his mouth.  Who blames going to college for bad credit. College makes people broke. Medical issues, unemployment, divorce but college. That is a new one.

Well I will be in touch he said. He wanted me to send him more listings.

I have learned the cheapest bums want the world on a silver platter.

No thanks.

Hey Your Credit Scares Me!

Scary Credit

Do you rent to the prospect with bad credit? Does someone deserve a second chance on your dime? Do you automatically throw the application away if the credit score is uh below 600?

My Experience

 

I once had a guy come to view my units from out of town. He was moving to Atlantaand wanted to pay me the deposit and first month rent site unseen. I said is this pressure sales dude? Listen when you get to Atlanta I will go through the proper application process with you.

He Had Issues

Well um I just want to warn you I have had some credit issues in the past. Oh sure ok. No problem. I told him I work with all credit types. I just wanted to keep the spice going. Little did I know this guy was a big waste of time?

The Nerve of this Guy

After viewing the property, he suggested some cosmetic fixes, mentioned the floor transition piece needed to be replaced, asked if someone would help him with his groceries and he wanted to know who was going to change his light bulbs.  Oh yes and I work in property management so I know all about what you do. This is what he told me.

Someone Call the Police

24 hours later I wanted to call the police. Boy did this guy have SCARY credit. 5 foreclosed houses in South Dakota…but hey you moved from Tennessee, student loans, defaulted credit cards, unpaid merchant accounts and the worst unpaid tax collections. Guess what he left in a brand new car that I saw he financed on a lease. I never called him back. He later left me a message after I refused to return his calls. I found somewhere in Buckhead to rent already thanks!

This guy’s credit was criminal. You wont be starting a new life on my dime.

Watch the latest videos on YouTube.com

Want to be a landlord? Pt 4

Next 5 Suggestions!

Know your customer! Treat your renters like investors. They are paying for your property. They are your customers. I have seen many investors treat there tenants with a raised eyebrow. They are doing you a favor by paying your mortgage.

Your customer doesnt need your rental! They don’t have to rent your property. Atlanta has thousands of properties for rent they can easily move into another unit sometimes for free without any deposit or first months rent. The competition is stiff. I know my customer do you know yours? 20-30 something, single student from outside of Atlanta. How specific can you get?

The property needs to sell itself ! If you live in an area of town that has families, you will probably not do well if you own a 2/1. You can’t force people to rent. It is an emotional decision much like buying a house. Ask the prospect can you see yourself living here? If not why not?

Improvements for resell value! All of the upgrades need to fit the location. If you install corian countertops because it is a rental and most of the homes for sale have granite countertops you will have to replace them when it's time to sell. Don’t spend money refinishing hardwood floors in an area where he clientele wants carpet. Yes some people prefer carpet.

Pick up the phone! If you have posted your rental you need to be on phone watch 24 hours a day. I repeat please do not let that prospect roll to voicemail. Remember you are one of many they may be calling in day. Pick up the phone, setup an appointment and show the property

Want to be a landlord? Pt 3

Top 5 Suggestions

Where do I buy!Find an area close to home that you know and understand. If you live in Midtown don’t buy a rental in Peachtree City or Buford. Preferably find a rental within 10 miles of where you live.

You win or lose when you buy! Go onto Craig list under rentals and find out what the rental prices are for that area. Don’t expect to make money on a house that is selling for 120K even if it’s a good deal if you can only rent it for $800. Rentals in Atlanta are CHEAP and most rental payments will only at best cover your mortgage.

Shop your competition! You don’t have to use a realtor to rent your property. Do it yourself. You need to be an expert in that market. Find your competition. Visit the competition's property. Someone may be offering the same house with updated features, such as granite and stainless steel appliances at the same price.

Get up and do something! I have found that many new rental property owners fail to know what the rental owner down the street is offering. If you are renting to students and you aren’t offering internet and bundled utilities and the next guy is don’t get angry when no one is coming to view your property. You can not make comprises with your market. You can not outsmart your renter. They know their price range and what is available you need to know this too.

Numbers! Make sure you have at least 3 months of mortgage, insurance, taxes and expenses saved up to fund your rental properties. There will be periods of time will you will not be able to rent. If someone moves out on the 15th more than likely your next renter will move in on the 1st. This is two weeks of expenses you will have to have.

Be realistic! You will not get rich overnight on rentals. Most rental owners hope for a tax break at the end of the year at best. In this market it is extremely hard to cash flow on properties that are more than 100K.