It's not difficult to find good deals in Atlanta, it just takes a lot of consistent work and a huge funnel to put your leads into. This is what I've concluded after a while wholesaling in this area.
One problem I've run into is investors expecting a 65-70% deal here. Yes, they do exist but no, it's not all that likely you'll find one. You're shopping in a market that's being utilized not only by local investors but also those from all over the country and globe. We're touted as one of the hottest places to be, and it's not untrue. I work with buyers from my neighborhood to Israel. With gurus near and far advocating wholesaling as a great way to get into REI with no money, most deals have been stepped on numerous times by people copy and pasting emails then re-sending at various prices to their own 'buyers', many of whom are just other Bird doggers doing the same thing. Shoot, just recently I had 2 of my own deals (hard-copy binding contracts in hand) shopped to me! It's not uncommon.
I wholesale in Atlanta full time. I'm very knowledgeable about the areas I work in and can usually come up with an ARV that my investors have a hard time arguing with. This isn't to toot my own horn, it's just what I've gained from being totally immersed in the business here. It's very common for less knowledgeable people trying to sell a house to claim ARV from neighborhoods within the golden rule distance (1/2 mile, anything more than that in town is ridiculous!) but they don't consider barrier roads, school districts, etc. Simply being within a half-mile of the subject does NOT make a comp a comp. From there the deal relies on the rehab figure. Generally I'll try to get a bid from a 3rd party GC for the bigger jobs that are more technical to estimate - I am no contractor! However my gut feeling isn't too far off at this point for jobs that don't require square footage expansion. I work closely with a few contractors while my investors go through rehabs to stay abreast of project processes and costs. I'm positive that very few other wholesalers in the area do that.
I offer myself up on BP a lot to new individuals wanting to get into wholesaling. I give the same advice to each one: don't get caught up in the e-mail blasts and daisy chains. Generally the same house comes through my e-mail 4-5 times within an hour, always at different prices, generally none of them are priced right. I advise everyone that wholesaling can be inexpensive, but that doesn't mean it will be successful also. For every 100 yellow letters sent out here today, expect a call back on one of them from your next batch next month. This isn't meant to be discouraging, but this is brute force numbers and how they work. The alternative to that is beating the streets and networking with neighbors, niche wholesalers, and a variety of other obscure acquisition methods. I utilize both methods but have found more success from the latter- I'm just a relationships kind of guy.
For anyone looking for deals, I'm available to chat privately. I'm also happy just to provide perspective from someone in the industry here and advice to those looking to invest here.
