Know the problems of your Target Market! Especially Turnkey Investors!

Know the problems of your Target Market! Especially Turnkey Investors!

Investor · Peachtree Corners, GA · Member since 2014 · 1k+ posts · 1k+ votes

I can't overemphasize the importance of knowing what is going on politically, socially and crime-wise in your target markets.  Let me give a quick example- Clayton County on the southside of Atlanta, lost its accreditation for its school district in 2008, the first time that has happened anywhere in the United States for 40 years.  They came close to losing it again a couple of years ago.  Also in 2008, Clayton County elected a very controversial sheriff.  In 2010, during the wave election the controversial sheriff was voted out of office.  In 2012, the controversial sheriff was indicted on 37 counts for actions he took during his 2009-2011 term in office.  But lo and behold, with Obama on the ballot and despite the 37-count indictment the controversial sheriff won another term in November 2012.  Although, Georgia has laws preventing current officeholders under indictment from being on the ballot, no one previously imagined an indicted non-office holder would be elected to office.   

As you can easily imagine these factors weigh heavily on the real estate market in Clayton County. Do you think most real estate agents will mention these issues? Obviously some will, but the majority? This is not the type of information that is going to turn up in a zillow or MLS search.

Bottomline-it is up to you to figure out what is going on.  It is your money.  

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  • Jerry W.Pro Member
    Moderator
    Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes
    12y

    Thanks for the post @Cal C. .  Maybe that is one of the advantages of having some boots on the ground before you buy.  That is not always easy to do though.  If your team all stand to make money off of you there is no incentive to point out every bad detail in the county.

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    12y

    @Cal C. 

      Cal. I bought about 40 homes in south Atlanta with my PM partner.. he steered me clear of clayton county.. although I think we bought one.  No one will tell you other wise unless  you uncover it yourself. He also drove me by nice looking houses that had not had a renter in over a year.. All owned by Aussies.  sad really

  • Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
    12y

    Great input, and all of that is very true about Clayton County and why I've encouraged people to stay out of there (I'm from Fayetteville)... but why do you specify in the subject turnkey investors? What you say is true, but it applies to all investors, not just those buying turnkeys.

  • Investor · Peachtree Corners, GA · Member since 2014 · 1k+ posts · 1k+ votes
    12y

    @Jerry W. Thanks!  

    @Jay Hinrichs Thanks!  I'd be very interested in knowing where your properties are on the Southside.  I have a couple in Henry County, but I couldn't find many deals in 2011 and 2012 that were more enticing than the deals I was finding on the Northside.

    @Ali Boone I think it is very important for all investors to know this, but turnkey investors, rightly or wrongly, are perceived to do the least amount of market research.    The very name implies you put up the money we take care of the rest.   This was more a point of emphasis rather than singling them out and there are only a certain number of characters in the title.  Also, as @Jay Hinrichs alludes to out of country investors are especially lacking in knowledge about  certain markets in the U.S., but I figured putting turnkey in the title would be the best way to get out of country eyeballs on my thread.  

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    12y

    @Cal C. 

      bought most of mine in Henry.. my PM was my partner and my rehabber.. And we bought court house steps most of the time.  we did great on these some of the best buys we made In those time periods.  sold to smaller hedge fund and made a pretty nice hit. Got in and out in 2 years which is what I like to do

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