Category: Investment Property

Atlanta Multi-family Investment Units For Sale

We are finding deals for our investor clients who are looking for multi-family units in the Atlanta area.

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Duplexes, Triplexes, and Quads (Fourplexes)

Our investment company finds deals on duplexes, triplexes, and quad units with cap rates well above 10%. Normally the cap rate is 12% to 15%.

Depending on the location, you can buy multifamily investment property in good locations around the Atlanta area. Since our company doesn’t focus in the city of Atlanta itself, most of our multifamily deals are out in the suburbs (outside the perimeter).

Areas north and west of Atlanta are were we find most of our deals, such as the following locations:

Cherokee County – Acworth, Canton, Woodstock

Cobb County – Acworth, Kennesaw, Mableton, Marietta, Powder Springs

Paulding County – Dallas, Hiram

Bartow County – Acworth, Cartersville

 

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Atlanta Investment Properties

The Atlanta market continues to be a desirable location for out-of-state and foreign investors to buy real estate.

How do investors locate and purchase Atlanta real estate long distance? Here are several ways our company helps real estate investors find Atlanta investment real estate.

The Georgia and Atlanta Multiple Listing Service

Thousands of investment real estate properties are listed for sale on the open market in the MLS. While some internet websites propagate this information online, there is usually a time lag from when listings are updated until they hit the most popular websites.

The best way to access MLS listings of investment property is to have an agent either set up a customized search with automated emails or to give you access to a Brokerage website with a user name and password.

The investor who has access to newly listed investment real estate on the MLS is one step ahead of the crowd of buyers looking for good deals.

One more note about the MLS: there are two different MLS systems used by Realtors in the Atlanta area. Be sure to use an agent who is a member of, familiar with, and willing to set up searches for you on both systems.

Double Closings Transactions

Some real estate investors specialize in getting properties under contract for the sole purpose of selling a property the same day to another investor buyer. They make a small quick profit selling it to the second investor.

The first investor flipping the property in a simultaneous transaction can often provide a steady stream of investment properties for other investors looking for deals.

Assignment of Contract

Some of the best real estate deals come from investors who assign purchase contracts to other investors. These investors are called wholesalers although their deals may not actually be wholesale prices. But assignment of contract properties can often be purchased at a good discount.

Alpha Dog Investments Atlanta Real Estate

Our company can assist you in locating Atlanta investment real estate. Please contact us today to get started buying great deals in the Atlanta market.

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Why Buy Ugly Houses?

Maybe you have seen the advertisements for a company that buys ugly houses.

Do you ever ask why a real estate company would buy ugly houses?

Alpha Dog Investments buys houses in any condition, so we don’t call the houses we buy ugly. Every house has some value to us.

The types of houses we buy that may be considered ugly are categorized in different ways by our company.

Your house is valuable to us! We solve real estate problems and our company is interested in each of these houses.

Damaged ceiling, falling sheetrock.

Damaged ceiling from leaking roof.

The Fixer Upper House

This type of house may actually look nice cosmetically, but when you look closer, it needs some repairs before it is ready to be marketed to the typical buyer for full retail price. The fixer upper may need a lot of small items repaired. Maybe a handyman tried making some improvements here and there, but didn’t do a good job.

The Outdated House

The outdated house may be properly maintained, very clean, and looks great. The house may even have a new roof, new furnace, new hot water heater and new carpet.

But it has outdated features, such as old style kitchen cabinets, undesirable bathroom tile colors, old lighting fixtures, cheap looking contractor grade door knobs, etc. In order for this house to fetch the highest retail price on the open market to the typical buyer, it must be renovated with updated features.

Distressed House in Disrepair

This is a house with neglected maintenance.

It usually has not be maintained for years and may have structural problems, missing pipes, faulty electric lines, holes in walls, broken or boarded up windows, and other issues such as fire, flooding, or foundation damage.

Some may even believe this type of house should be demolished but our company can normally salvage this type of house and bring it back to life with a full renovation.

Why Buy Ugly Houses?

Why Buy Ugly Houses?

The Financially Distressed House

This house may be in great condition but the owners are distressed financially. This house may soon suffer from lack of maintenance.

The owners may not be able to keep up with the mortgage payments. It’s possible that the house will go into foreclosure unless the owners can avoid it with a lender approved short sale.

Our company helps financially distressed homeowners, with nice homes or homes in disrepair.

Investment Real Estate

Alpha Dog Investments buys all of the types of houses listed above. We are a real estate investment company and every house has some value to us.

Please contact us today for a free consultation about your real estate problem.

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How does 131% annualized return sound to you?

A Great Deal!

We recently helped one of our clients get a great deal on an investment property in North Metro Atlanta. It’s the kind of deal that we can get for you too. Let me explain the transaction and the numbers.

Buy, Repair, Rent, and Sell

Here are the details of the transaction.

We located a property for our client who secured a private money loan to finance part of the purchase. The deal required the investor to put some money down and pay for repairs to make the house rent ready.

We screened and placed a tenant in the property. The investor would have had monthly cash flow by keeping the property, but instead he decided to resell the property with the tenant in place to another investor for a quick profit.

The Numbers

Here are the numbers for this deal and how the investor secured an annualized ROI of 131% on his money.

The transaction required the investor to be out of pocket $27,900. When the house was resold with the tenant in place and all expenses paid at closing, the investor walked away with $6,226 profit in two months!

Here is the math:

$6,226 profit / $27,900 investment = 22% in only two months.

The investor reveived 11% on his money per month.

This is an annualized Return On Investment of 132%!

Get started investing in real estate.

Call us today if you would like to get started doing real estate transactions like the one described above. Although we cannot guarantee the rate of return you would get on any real estate transaction, we can explain the opportunities and risks involved when investing in today’s market. Call John Marion at 703-371-9548 or Sandra Watkins at 770-324-3680.

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Rehabbing Mistakes Made by New Investors

New real estate investors often make mistakes on their first rehab. Here are a few common errors to avoid.

Poor Due Diligence

Before being committed to making the purchase of a property you have under contract, you will have a due diligence period. The due diligence period is stated in the purchase contract. This is the period of time you have to do your homework. Some of the things you want to determine include the following:

Sales Comps – You should have had a very clear picture of what the resale value of your property before you put it under contract. Now that you have the property under contract, double check the sales comps. A new sales comp may further confirm the accuracy of your previous comps, but it may also reveal that you made a mistake running your numbers. This is your opportunity to renegotiate the purchase price or terminate the transaction if needed.

Rehab Costs – You will need to develop a scope of work (see below) for your renovation project and get written bids from qualified contractors and workers. Your rehab costs should include an extra line item budget for cost over-runs.

Closing Costs – You will have to pay some attorney or title company fees, finance charges if you borrow money, and other costs associated with the purchase. You don’t want to go to closing with a surprise that you need to bring more cash than you calculated. Ask your title company to provide an estimate of the closing costs. In most cases, you will be able to get a preliminary HUD-1 statement soon after you send the ratified contract to the attorney or title company.

Holding Costs – If you are borrowing money, you need to calculate how much your interest charges are and add them to other holding costs such as taxes and insurance. In some cases, you may have housing association costs.

Zoning and Permits – You may be required to pull permits in order to complete your home renovation project. If you are adding square footage to the structure, you should also check with the planning and zoning department to make sure your plans don’t violate the zoning code.

Investors who fail to make use of the due diligence period to do their homework prior to closing on an investment property may be in for a shock. Do your homework!

Lack of Scope of Work

It’s imperative to develop a scope of work for your home renovation project. During the due diligence period, you should develop a detailed scope of work with a line by line list of expenses for each item.

New investors who fail to develop a scope of work will muddle their way through the rehab. Guessing what you might do before you get started and then bouncing around between repairs in a haphazard way is a recipe for failure and significant cost over-runs.

New real estate investor mistakes

Home renovation mistakes and rehabbing errors.

Poor Quality Workmanship

Some new investors try to cut costs by not hiring qualified workman and licensed contractors.

Some unscrupulous investors try to cut corners and hide repairs by covering them up cosmetically. Don’t do this!

When you developed a scope of work, you determined the repairs and improvements that should be made in order to get the resale price target. Do the work well.

Make all the repairs and improvements with excellence. Then when the buyer’s home inspector visits the property, you can be confident about the report. There usually will be a few very minor things that may need to be addressed, but a rehab done right with quality workmanship will make the buyer happy and motivated to get to the closing table quickly. This helps you to meet your resale target date and avoid extra holding costs (i.e. you make more profit).

Refusing to Provide a Property Disclosure Statement

Many owner occupant buyers will expect you to provide a property disclosure statement (also known as the seller’s disclosure statement).

Since you learned about the property during the due diligence period and did a great quality rehab, you should proud to disclose the property condition and renovation performed.

The rehabber who refuses to fill out and provide a property disclosure statement will cause concerns in the minds of potential buyers. Refusing to fill out the property disclosure statement sounds like you have something to hide.

Buyers will withdraw their offer if they suspect that they are dealing with an shady investor who is deliberately concealing known problems with the property.

Ignorance of the Home Mortgage Process

If you are reselling your rehabbed property to fetch maximum resale price, you are most likely selling to the typical owner occupant retail buyer. Such buyers will rely on a traditional home mortgage.

Home mortgages can be conventional, FHA, VA or variations of these. You will want the buyer to provide a letter from a qualified lender or mortgage broker stating that the buyer is pre-qualified for a home mortgage. This is often the best you can expect with most buyers. If it’s a hot seller’s market and expect multiple offers within a few days of putting your rehab up for sale, you will have the luxury of some buyers who will provided proof of funds or a stronger lender letter.

In the real world, many buyers who are pre-qualified actually begin the loan application process with their lender when they have a fully executed purchase contract. Many lenders will not begin the processing the application until the buyers has a property under contract.

Some new investors expect to find a buyer who is better than average. Good luck.

In most cases you will have to wait through the home mortgage process as the buyer works with their lender jumping through all the hoops to satisfy the underwriters. This process should take about 30 days and should be factored into your estimated holding time for the project.

Assuming There Will Be No Glitches

Every real estate rehab project has glitches. Things may not go smoothly getting to the closing table at purchase. The closing may be delayed for one reason or the other.

You may discover new information during the due diligence period that will require you to change your scope of work or renegotiate the purchase price.

You may run into problems during the renovation project.

The contractor you lined up for the project might get delayed because of a family emergency.

The buyer may suddenly get disqualified for a home mortgage because the underwriters discover that the buyer made a last minute purchase of a high ticket item which puts their debt to income ratio out of balance.

The market may suddenly change and you may have to reduce the price to sell quickly so that you don’t lose money on the project.

Avoiding Rehabbing Mistakes

Real estate investors who plan their rehabs, do a quality renovation, and who manage the project from beginning to end are the ones who consistently make a profit with each property resale. Avoiding mistakes that are easily avoidable will help put you on the path to being a profitable real estate investor.

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What Real Estate Agents Should Expect When Working With Investors

What Real Estate Agents Should Expect When Working With Investors

John Marion and Sandra Watkins are licensed agents representing a number of investor clients who are buying houses in the Atlanta market. In this blog post, they explain some of the expectations real estate agents should have when an investor is involved in a real estate transaction. Some of the expectations presented will be true for the the agent representing a seller with another agent representing an investor buyer. Other expectations are relevant for agents representing investors who are buying.

No Emotions, The Numbers are Important / ROI

Investors buy real estate to make profit. That’s it. They expect their transaction to put money into their pocket, either for monthly cash flow as a rental property or for a quick resale after making some repairs.

They don’t care about the existing paint or carpet colors. They only care if the walls need to be repainted, if the carpet needs to be replaced and, most importantly, how much will it cost.

calculator and pencil

ROI Reigns Supreme for Real Estate Investors

When deciding to move forward with a real estate purchase, investors run their numbers. They have minimum criteria for a Return On Investment (ROI). They calculate the Cap Rate, cash-on-cash return, and monthly cash flow. They are looking at the purchase price, the tax payment, HOA fees, cost of repairs, and insurance costs. If they are relying on an investment loan to make the purchase, the investor will include the cost and terms of the loan in the numbers.

Blind Offers on Properties

Investors will make blind offers on properties.

This means they will make offers without seeing the property.

The investor who makes a blind offer is relying on the listing for accurate information. The more accurate and detailed the listing, the better informed the investor will be when making an offer.

The pictures of the property in the listing are important also. Agents should put the maximum number of pictures allowed in the listing.

If the house is a fixer-upper, state it in the listing. If the listing implies the house is in good condition when in fact it needs a lot of updating and repairs, you will set up a situation where the investor will offer too much only to discover the truth during the due diligence period and either attempt to negotiate the price down significantly or suddenly terminate the transaction.

Don’t be too concerned about blind offers from investors. If the information in the listing is accurate and the investor is a strong buyer, chances are the investor will move forward with the purchase when the due diligence has been completed.

An Active Due Diligence Period

The investor views the due diligence period as a time to conduct due diligence! For the investor, the due diligence period is not simply a time to schedule a home inspection. It’s a time to do a lot of work.

Once a property is under contract the investor is verifying all the data in calculations used to make the original offer. If the tax rate or HOA fee is incorrect in the listing, the investor will discover this during the due diligence period. If the housing association limits the number of rental units in the subdivision, the investor will verify if the unit being purchased is eligible to qualify for a rental unit. The investor is verifying the rent rate, insurance costs, and repair estimate.

The investor may send out a home inspector, a contractor, and a property manager to the property during the due diligence period. In short, the investor is doing homework and verifying the numbers.

The investor will often use the full due diligence period. An 11th hour termination is possible (as is possible with any buyer, but investors seem to do this more often than owner occupant buyers). Please be aware that the investor may actually terminate at 11:59 PM on the last day of the due diligence period.

As an agent involved in the transaction you can help maximize the effectiveness of the due diligence period by responding to the requests promptly. For example, if the property is currently rented, provide a copy of the lease (and by the way, you should expect the security deposit to be credited to the investor at closing).

Getting the information and data the investor needs as quickly as possible will help the investor determine whether or not to move forward with the transaction. If a termination is coming, it is better to get the transaction terminated sooner rather than later so you can move on to the next transaction.

Some investors will have multiple properties under contract simultaneously. If the investor decides to move forward with one transaction, you will have it the pipeline sooner rather than later by responding the the investor requests promptly during the due diligence period.

Earnest Money Deposit Glitches

Many agents are accustomed to one of the Brokers holding the earnest money deposit. Many investors, however, prefer that their closing attorney hold the earnest money deposit. And the deposit is often wired, especially with out of state investors. This sometimes can cause a glitch in the earnest money deposit process.

For example, the standard GAR (Georgia Association of Realtors) contract used in the Atlanta market states that the holder of the earnest money is responsible for confirming that the earnest money has been received. Brokers seem to be more aware of this than closing attorneys. Sometimes the process of confirming that the earnest money has been deposited with a closing attorney can be a convoluted process, especially if the deposit was wired and there is no copy of a check.

Another oddity regarding earnest money deposit wires is that some sellers (usually banks), require that a copy of a check be provided to them as evidence of the earnest money deposit. With an investor who only wires money, sometimes getting a copy of a check can be a challenge. In most cases, we have found that what the bank is looking for is simply a copy of a check for the purpose of marking it off their task list (they are not actually confirming that the earnest money has been deposited). The seller’s agent can verify the deposit directly with the closing attorney, but for whatever reason, the seller bank on an REO transaction will insist on seeing a copy of a check.

Investment Company Corporate Documents

If you’re an agent who represents an investor who is closing in an LLC or a large investment company, get a copy of the corporate documents. You will need them. At least the basic documents such as the Articles of Organization or Articles of Incorporation.

Some investors may own an LLC in the name of another LLC or a larger corporation. This can be a roadblock on some transactions.

Some investor buyers have significant experience closing properties all across the United States and they know what documentation they need to provide and what documentation is not needed. However, we have run into some situations where the seller’s side or a closing attorney asks for additional corporate documents.

In a few cases, selling banks have been somewhat invasive in their requests regarding the ownership of the corporation, such as the birth dates off the corporate officers. The investor usually will not provide such information and the seller can either decide to terminate or move forward anyway.

We have found in most cases, a bank or attorney who asks for additional documentation regarding the ownership of the larger corporation that the investor is not willing to provide, the  bank or attorney is satisfied anyway and the transaction moves forward. It seems that the request originates from someone going through a task list but that the documentation requested is not actually needed. Simply refusing to comply with an invasive request satisfies the the bank or attorney rather quickly most of the time.

On rare occasions a transaction is terminated by the seller bank because the investor refuses to provide what they consider to be information that is none of the seller’s business.

Verifiable Proof of Funds

The agent representing an investor buyer should inform the investor that they will need to periodically update their proof of funds.

Agents who are representing the seller with an investor buying the property should carefully examine the proof of funds. Investors who are not cash buyers may be relying on an investment loan from a private lender. A letter from the private lender should contain their contact information, including a phone number.

Of course a bank statement showing cash on hand for the transaction is an awesome proof of funds.

Investors Will Close on Multiple Transactions

The great thing about investors is that they are in the business of buying more than one house over whatever time period they are in the market. You can usually expect multiple transactions with your investor clients. It may be 50 in one month or 1 every year.

If you represented a seller of a property purchased by an investor, you can go back to the agent representing the investor when you have another listing that is similar to the previous transaction. You may get a very quick sale!

Actual Investor Buyer or Investor Looker?

Over time, you will see that the best investor clients will be making good offers. As market conditions fluctuate, they will change their strategy of what they buy or how they structure the offer.  And they will close on most of the properties they get under contract.

But some potential investors turn out to merely be lookers. They will look at comps, want more comps, ask tons of questions, make few offers then not close when they get one under contract, and otherwise being time wasters.

How can you tell the difference between the investor looker and the real investor buyer? Sometimes it will just take some time to find out by experience. But the agent who is considering devoting time to a potential investor buyer should ask for the name of the entity they are buying in (personal name or LLC usually). Ask if they have closed on any transactions and verify by looking it up in the tax records.

If the investor is new, they may not have any completed transactions. In this case, the agent should find out more about the investors strategy and get a copy of the proof of funds.

New Investors / Wholesalers

Sometimes the new investor is not a qualified buyer but an intermediary or investment partner who is “wholesaling” deals to other investor buyers. This is a specialized strategy used by investors.

In our experience most agents are not willing to work with wholesalers.

While we prefer to be involved in wholesale deals directly as investors who are principles in the transaction, it’s possible for an agent to do multiple transactions with a new investor using the wholesaling technique.

The agent who understands wholesaling may be able to close multiple transactions with a brand new wholesaler investor who has built up a network of cash buyers.

Make Money With Atlanta Real Estate Investors by Being an Investor Friendly Agent

Agents who are willing to work with investors in the Atlanta area are making money closing multiple transactions with their investors. Working with investors can be very profitable for agents, but requires an understanding of how investors think and how they view real estate compared to the typical owner occupant buyer.

 

 

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Atlanta Area Cash Flowing Rental Property 509 Pat Mell Rd Smyrna

Atlanta Area Cash Flowing Rental Property

The following property is being offered to investors as a turn-key, cash flowing rental. The current tenants pay $850 per month with a lease through August 2014.

509 Pat Mell Rd. Smyrna, GA 30080

This is a 3 bedroom, 2 bath single family house. It has been recently renovated with new kitchen appliances, new granite counter top, new tile flooring in kitchen and bathrooms, new HVAC, upgraded lighting, hardwood floors, fenced yard.

10.5% Cap Rate

With low taxes and insurance, this has a cap rate of at lease 10.5% at a sale price of $75,000.

For Sale By Investor / Buy Atlanta Real Estate Investment Property

The property is owned by Alpha Dog Investments and is available to investors looking for a 10% cap rate or better on Atlanta area real estate investment property.

For more details and pictures, please visit http://www.johnmarion.com/509-pat-mell-rd-smyrna-ga-30080/

 

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Why You Should Buy Rental Investment Property in Atlanta Now

Why Buying Investment Rental Property in the Atlanta Area is a Good Idea

Buy Atlanta Investment Property Now

The Atlanta market continues to be a favorite area for real estate investors to buy rental property. Although home prices have increased throughout 2013, there are plenty of opportunities to purchase at prices that make sense for investors.

Return on Investment and Monthly Cash Flow

While finding rental property with a 10% to 12% cap rate is a challenge, it’s fairly easy to pick up properties with a 6% to 9% cap rate. For many investors, getting a 7% or 8% return on their investment meets their minimal investment criteria.

Monthly cash flow and return on investment is why most investors put their money in Atlanta real estate. But future upside equity is also alluring.

Future Equity

The future upside equity of rental properties in the Atlanta market is attractive to many investors. In the current market it’s not too difficult to get into a cash flowing rental fast with some equity now. And if you buy in the right areas, the future upside equity potential can result in significant capital growth in the next 5 years.

Atlanta Area Home Prices for Rentals

You can buy single family homes in the Atlanta area for $120,000 and less that will rent for $1200. Homes in the $70,000 range will need some work and may fetch rents of $800 to $900 per month. Homes from $80,000 and up are usually in well established subdivisions. We normally recommend that out of state investors buy in these areas.

Some areas have houses for $40,000 or less with rents of $500 to $650. These lower price points may have some risks that we normally only recommend to local investors who are familiar with the areas and neighborhoods.

Buy Atlanta Area Investment Rental Property

Is it time for you to buy investment property in the Atlanta area? Our company is ready to assist you in locating property to match your investment criteria. We provide a wide range of services for real estate investors and can make your entry into the Atlanta market and one stop, turn-key solution for you to get started now.

Call or Text Sandra Watkins at 770-324-3680 or John Marion at 703-371-9548  to learn more about how we can help you successfully invest in the Atlanta real estate market.

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VACANT HOUSES TARGETED BY LOCAL REAL ESTATE INVESTMENT COMPANY

FOR  IMMEDIATE  RELEASE

September 28, 2011

VACANT HOUSES TARGETED BY LOCAL REAL ESTATE INVESTMENT COMPANY
Cherokee County Bank Owned Homes Slated For Renovation and Resale

Canton, GA Sept 28 – Two Cherokee County residents have assembled a team of investors eager to use their money
to buy bank owned houses. Repairs are made to the houses and then resold buyers who want move-in ready homes.

Sandra Watkins and John Marion created Alpha Dog Investments last year to take advantage of new investment
opportunities created by the large number of  bank owned houses on the market.

“I’m dealing with frustrated buyers all the time who are tired of visiting houses on the market that need to be fixed up,”
said Watkins who is an Associate Broker with Remax Town & County.

Watkins has been a real estate agent for thirteen years. “First time home buyers want a place they can move into
without having to make extensive repairs and improvements,” Watkins explained.

Marion, who started investing in real estate three years ago, sees a perfect storm brewing for investors who have
access to capital. “The current crisis of foreclosed, vacant properties will be with us for a long time,” said Marion as he
sat in his Canton home office near Hickory Flat.

“Sandra and I have put together an investment program for those who have a decent credit score and $15,000 cash,”
Marion says. “We have lenders giving us loans to buy and renovate vacant houses.”

The Home Renovation Property Management Program created by Watkins and Marion is being promoted by Alpha
Dog Investments as an “easy and safe way for new investors” to get started making money in real estate.

“We do all the hard work for our investors by locating properties to buy, arranging contractor’s bids for repairs, and
marketing the newly renovated house to homebuyers,” Marion says.

“I’m excited,” said Watkins, “one investor sold his house only eight days after being listed on the market! The buyers
are there for homes that they can move into right away.”

The program is attracting local and out-of-state investors as far away as Virginia.

###

For more information contact:
John Marion
703-371-9548 (mobile)
johnmarion.com@gmail.com
http://www.alphadoginvestments.com

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