All Forum Posts by: Isaiah Sullivan

Hello – I have a few questions focused on financing an investment property. Any detailed/thoughtful help is greatly appreciated.

Situation:

I have 2 partners and together we have $30,000 - $40,000 in cash we’d like to put to work in the city of Atlanta. We live in New York, but have very strong ties to Atlanta. At a very simplified level, assuming we have to put 20% down for bank financing, that gives us firepower to buy properties between 150k-200k. I’m aware that I’m excluding fees, expenses, rehab estimates, etc. but let’s keep it very simple for now. My focus is on the 20% down payment for an investment mortgage. Is there a workaround to put down less? For example, if we added a 4th partner who is based in Atlanta to live in the property for a certain period of time, could the loan be viewed as a regular way mortgage versus an investment mortgage, resulting is us having to put down much less than 20%? If this is a possible solution, how would this impact the Atlanta individuals credit or ability to buy additional properties under similar financing terms? How would the bank be able to verify if our Atlanta partner is actually living in the house? I’m assuming they won’t do physical checks.

In a perfect world, we would like to purchase a property by putting much less than 20% down, rehab it and then finally sell or rent it. I’m hoping that we can exploit some lending loophole by having an Atlanta partner actually live in it for a short period (e.g during the rehab process).  

I appreciate all the thoughtful responses. It’s a lot to think about so I need to develop some actionable framework and timeline. Below is my plan of approach. This is a rough draft of me thinking on the spot. I would appreciate any additions or subtractions. The goal is to have my first investment property by 12/31/2015.

• 1.Decide on the areas in Atlanta I want to focus on. Ideally 3-4 neighborhoods. (April 1 – April 11)

• a.Narrow down neighborhoods

• b.Decide price points

• c.Decide types of properties

• d.Develop framework for narrowing town investment targets

• 2.Interview/identify realtors to partner with. (April 8 – April 17)

• a.How many would be ideal? 2-3? What’s the best way to source them? I think this step is mega crucial and could make or break the entire process.

• 3.Visit Atlanta (April 22 – May 1; will be on vacation)

• a.Drive through selected neighborhoods

• b.Participate in open houses

• c.Network with seasoned investors over coffee/lunch

• 4.Reflect on findings and decide next actionable items.

I’d appreciate any thoughts or experiences people have on investing in another state. I live and work full-time in New York. However, I’d prefer to invest in property in my hometown of Georgia. Distance is my main concern. While I visit Georgia frequently, I don’t have benefit of being able to constantly check properties in Georgia neighborhoods because I live in New York. What advice do you have for investors looking to invest in markets they don’t live in? How much harder is it?

Thank you!

Thanks. Very helpful info. 

Hello everyone,

My understanding is that foreclosure records for every U.S. city/county should be publically available. I am trying to find online the properties in Georgia (specifically Atlanta) that are soon to be foreclosed on. I remember seeing some sort of database like this for the city of Daytona Beach, Florida. The Daytona Beach database had the address and owner of each property. I have done some searching but can’t find anything for the Georgia. In short, the goal would be to identify these properties and diligence them for potential investment. I would appreciate your help/guidance.

Thanks!