Anyone looking to talk about finding off market deals in Atlanta?

[Anton Watt]

Hey Guys,

People are telling me deals are getting scarce in the city. Ive found that there are plenty of deals to be had but buyers are sitting on the sidelines. What do you guys see when it comes to finding new deals in the city?

[Michael Dumler]

@Anton Watt, "plenty of deals to be had", I'm not so sure about that. 95% of properties listed on the MLS are not deals whatsoever, at least according to the standards of an experienced investor. Over the past two to three years I've seen many "investors" buying deals at break even simply to park their money into real estate. Some of those buyers lucked out because they acquired the deal at low-interest rates while rental rates continued to increase. Others, however, are somewhat in the hole due to enduring a big capital expenditure that they weren't expecting, ruining any hope of future cash flow gains. Furthermore, if an adequate deal does hit the market, the property will still receive multiple offers over asking (I just experienced this scenario this past weekend). The reality is, the investor/buyer will need to get creative on both acquisition and implementing an investment strategy. This is why many of my clients acquire and hold rent-by-the-room properties. Needless to say, this investment strategy is by no means for everybody. That being said, with resourceful management and systems in place, rent-by-the-room properties can perform very well. At the end of the day, it depends on the risk tolerance of the investor. As far as finding and acquiring deals off-market.... good luck with that.