Any Opportunity Left in Atlanta?

[Kyle Scholnick]

Looking for a good cash flowing market for a long term buy and hold rental property in the 100-150k range, no war zone, good neighborhood. 

Atlanta was first on my list, but after some research quickly learned that there are massive amounts of rental properties and it is tough finding any tenant, much less a good one. There is heavy institutional investing in the area and it is tough finding deals there in general. 

Is there any opportunity left here? Where are better areas to find long term buy and hold properties around Atlanta? and if not Atlanta, which states/markets are best?

Thanks

[Account Closed]

You make your own opportunities in the crazy real estate business. As an auctioneer in Baltimore, I have seen profits being made that you would not believe. When a seller offers their house for sale using the auction method of marketing, you just never know what they will accept to get that monkey off their back.

I would suggest:

• Attend real estate auctions every day, foreclosures and and owner ordered sales
• Sit in Rent Court 2 hours a week to listen to the cases, talk to owners after their case is heard and the judge finds against them and puts the rent into escrow.....talk about motivation.......yep it's there
• Sit in Housing Court, do the same as above; housing court is where owner are summons to due to failure to abate a violation
• Farm - walk around neighborhoods with a clip board in hand and a camera around your neck, look important. People are curious, they wonder what are you doing. Everyone you see, ask them this; "Excuse me, do you know anyone in this area who has properties for sale". You will be amazed of the results you'll get. Try it.
• Same as above but go into any business that has an open door to the public; supply houses, restaurants, barber shops.......any store in the neighborhood.
• Forget, for now, mailing letters and cards.......this is PASSIVE MARKETING, be PRO-ACTIVE---- get out in neighborhoods, talk to people. Do this and you WILL find a property owner that wants to sell.

Be ready to do business, have everything you need at your finger tips.

• A skinny contract of sale...... this is a one page written in easy to understand language with only one out clause.
• A Hybrid contract of sale... a way to close more transactions by joint venture
• A commercial contract of sale, 3 pages with special buyer requirements related to environmental conditions, existing suppliers, surveys, buried oil tanks and other conditions that must be known to make a profitable and safe transaction
• An option agreement
• An informational pocket pack with 52 options to financing and control a building without conventional financing
• Blank checks, pens, carbon paper,
• A list of references
• Disclosures for lead paint and other state or federal requirements
• Cell phone with camera to take pictures of the nice things and negative aspects of the property and to take a picture of the contract to email confirmation to seller and to your title company or lender
• A gift, something for the seller to remember you by, I give Indian Head Nickels away, pens, note pads.
• Blank addendum forms - these are used to attach to your purchase agreements (you don't want a lot of chicken scratching on your contracts; use them to write some of the following;
  • 1. Seller rebate terms, 2. Financing terms, 3. What you are going to do before settlement, 4. What you expect Seller to do before settlement, 5 Possession terms, 6. Hybrid terms, 7. Profit disclosures, 8. Auto extension agreements
• A list of reminder clauses to be used when seller agrees to finance;
  • Subordinated agreement, Early pay-off discount, Substitution of collateral, First right of refusal, Principal mortgage clause, Interest only clause, Delayed payment terms, Seller option to buy back, lease back, Prime rate clause, Stutter clause

  Being ready to do business is a good place to start when getting into this wonderful profession.

Good luck