atlanta foreclosure rate
atlanta foreclosure rate
Buying an Investment Property in Atlanta Area.?
Hello!
I am interested in buying an investment property in the Atlanta area -Possibly Gwinett or Cobb County. I currently own my own home now and have been living there for 2yrs Oct 31st.
What I’m interested in doing is buying an investment property for rental. I am looking to get a property about $50,00 -$70,000.Perhaps Hud housing or fixer upper or foreclosure home. I currently have a potential leasee in mind now, who is willing to rent from me. My credit is in good standing. The problem is, I do not know how to go about the process. Do I have to use my own small savings for the investment? Are there grants or small investment low interest rates loans? Would this interfere with my current loan (Wells Fargo) that I have for my house? Is this too risky?
How do I go about this process? Thanks in advance for your help!
Have a great day!
No, no, no. You do NOT use your own money and you do NOT use your own credit. What you need to do is search google for “hard money lenders Atlanta” and find someone to give the deal the money, NOT to give YOU the money, but to give the house the money.
In other words, you find one of the houses on the site below for sale for 50% of the value, lets say the property is worth $100,000 ARV (after repair value). So it is for sale for $50,000 and there are $10,000 worth of repairs (you will also have to find a cheap wholesale contractor that is use to working with investment properties, another google search or ask an investor in the area). You bring the estimated ARV to the hard money lender and show them how they will make their money plus interest on their investment. $50,000 purchase price + $10,000 repairs = $60,000 cost of the house. That is a $40,000 sales profit.
If you want to rent it out, then you show that too instead of the sales profit. If you get $1,000/month in rent – $100 property management fee = $900 left – $300 your fee = $600 payment back to the investor over 10 years and he has just made all of his money back plus $12,000. That is only a 5% return, but these prices are rediculously high. You will likely want to buy a house for WAY less and fix it up. The deals are out there. You might want to rehab (flip) a house a couple of times to get quick cash. The reason the hard money lenders will want to give you the money if because of the return on investment and because if you don’t pay them, they get the house and get their money back that way.
Decatur Brick Pre-foreclosure- Take over Payments for $7k