All Forum Posts by: Jonathan Small

I currently have about 21 units.  I have plenty of experience, tears, laughs, and pain points managing contractors.  It is very time consuming and can be frustrating.  I have found to expect a contractor to go bad sooner or later. Even the best contractors seem to flake out over time.  

With that being said,  I manage the project with money. I will consider paying a draw for 25-50%. Then I'm not interested in no more draws until the job is 100% done. Many contractors are willing to leave 20% job undone if they already received 80% payment. I also would put in time bonuses. If they finish on time or early I pay more. If it goes over time I pay a different fee.  I understand weather and lead time are out of their control so I'm will to make concessions in those areas.

I am expecting a GC to have similar problems with subs. When you are hiring a GC you are hiring people manager,  problem solver,  and people motivator. If they can manage people well then you have a winner. If they can't they you get a bunch of excuses. 

I have bought about 20 sfh this year. I have found success using a property manager to manage the contractors. Contractors that work for property management companies seem to do a better job since they dont have to look for much work. If they do a god job then property manager continues to use them. If they dont, they are cut off from a lot of business. 

I also like the there is an incentive on the property manager to get the work done quickly and well. This will allow them to collect rent sooner than later. this will also allow them less headaches with tenants when work is done well.

PM me or reach out and I can share some tips on getting renovations done quickly, under budget, and quality work.

I am sorry I missed this meetings. I am investing in Valdosta.  I just purchased a sfh from @Tommy Cangelosi on Abingdon Ct.  This my 15th property in the area.  I had a good conversation with him. I appreciate that he is an investor and can analyze deal for profit.  This is very different than a realtor that is just looking at their commission.

I am investing in Valdosta.  I am looking for B level sfh 70-110k that can rent for 700-1200 per month.  I will also consider multifamily with similar numbers.  I look forward to seeing how I can help others meet their investing goals.  Thank you @J. Mitchell Bernier for hosting the group.

@Jingru Sui I found new construction from Century Complete home builders.  This is a low cost builder.  You don't get to choose any options in the house.  You buy online.  I bought in Jefferson, GA.  Approx numbers: 240k, 2k rent, 5% down (2nd home mortgage).  The area has good schools and few apartments so it only took me 8 days to rent out 2 houses to well qualified tenants.

I have bought multiple houses this year for less than 20k

Some I have bought with conventional 2nd home financing.  5-10% down. 230k new construction that I rent for 2k month.  These are about 1 hr outside of Atlanta.

In the last 9 months, I have bought multiple  70-110k houses is South Georgia.  Rents are 700 to 1100. 20% down. 9-12% cash on cash return. $100-200 cashflow.

Most my deals I find on MLS from other investors. I also call and text 20-30 agents a month to let then know I am looking for a particular type of deal. I have found 20% of my deals off market. This just cost me time, no money.

I have to go 1.5hrs outside of Atlanta to find long term cashflowing deals.  There are opportunities to cashflow on short terms properties inside Atlanta if it is in a good location.  Fix and flip has been profitable if you can find good contractors. I personally dont have good experience with contractors so have stayed away from flipping. I was able to buy some new construction for around 230k and rent it for 2000 month.  These cashflow well and have minimal repairs. I am starting to see more vacant office and commercial space and will not consider those opportunities. I have an excellent property management team.  I am finding deals from people that are not good managers.  I have been able to buy, lower my management cost, improve the property,  and increase rents.

I live in Atlanta,  Georgia.  I have bought and sold more in the last 9 months than in my last 10 years of my investing.  I am looking to get feedback from those of us that have bought and sold in Atlanta in the last 9 months.

Below are some highlights from a recent CBRE Atlanta real estate report. Hopefully we can use the data and our experiences to find opportunities.

I am looking to get feedback from people that are making recent transactions.  If you are an active investor (actually bought or sold in last year 9 months) in the Atlanta area please share your experiences to the statics below:

Economy
• Atlanta’s diverse economy is expected to help Georgia realize a 4.0% GDP
growth rate, outperforming the U.S. national growth forecast of 3.5%.
• Despite the slowing economy due to the pandemic, the Georgia Department
of Economic Development generated $632 million in company relocations and
expansions in 2020, which bodes well for future activity.
• Atlanta’s higher-wage jobs — $60,000 per year or more — increased since the
by 3.0% in 2020, a positive trend as 2021 begins.

Multifamily
• Despite uncertainty in 2020, Atlanta’s multifamily sector has remained strong,
with overall vacancy just north of 5.0%. Vacancy is predicted to remain 6.0% or
below through 2025.
• Atlanta is expected to have one of the strongest rent growth recoveries in the
nation in 2021 (7.0%), which can be attributed to the region’s employment
opportunities, diverse economy and affordability.
• A dwindling supply of affordable single-family housing units, combined with
a resurgence in suburban demand bodes well for assets located throughout Atlanta

Industrial
• Annual industrial absorption is expected to remain strong through 2022. The
market has exceeded 16 million sq. ft. in annual net occupancy gains since
2014.
• Sustained occupier demand has led to landlord leverage for new leasing
transactions; new deliveries have not supplied much rental relief due to elevated
construction costs.
• More than 22 million sq. ft. is currently under construction, which will provide
needed space options to a tight market; any future impact to overall vacancy is
expected to be negligible to none.

Office
• Sublease availability has roughly doubled since the beginning of the COVID
pandemic, from 3 million sq. ft. to nearly 6 million sq. ft. Given that commercial
real estate fundamentals tend to lag general economic conditions, the sublease
level is expected to rise into 2021 as occupiers re-assess their requirements.
• A significant increase in space availability stands to place downward pressure on
average asking rents in the months ahead, but a strong employment recovery
will counteract this trend later into 2021.
• Post-pandemic, tenants are expected to maintain an emphasis on both work
flexibility and wellness for employees, including modified in-office work
schedules, continued work-from-home arrangements and access to greenspace
and outdoor workspaces.

This was one of the biggest questions I had to answer when I started real estate investing in 2003.  It was frustrating trying to find an area that was worth my time and financial investment.  It was difficult because I didn't have a team.  I didn't know where to invest.

Since then, things have really changed for the better.  I have over 15 units.  I have found that the "best place" to invest changes with time and your resources.  I am currently investing in Valdosta, GA.  I have about 10 units there.  The area has multiple industries (college, military, retail) to support rents.  I am able to cash flow more than the 1% rule.  Cash on Cash return can be up to 12.4%.  My Return on Equity is around 66%.  I have created a great team (lender, property manager, inspectors, real estate agents, wholesalers, attorney, insurance agent) that allows this place to be my "best place" to invest.  I have been getting a lot of inquires from other investors to do partnerships. I am open to the idea now.  

In short: it was my experience, resources, assets, and network that made Valdosta, GA my current "best place" to invest.  Feel free to reach out if I can answer any questions or jump on a quick phone call.  I love to share.

Hello BP community. I bought 10 single family homes last month. All houses have tenants. Total rent is $10,300 per month. The appraisals equal $1,080,000. 

My purchase price was $860,000. I put 20% down which was 170k. My remaining balance on the 80% loan is $690,000.  I have 760+ credit.

Current mortgage is 3.7% for 35 months amortized over 20 years.  

I am looking for names of mortgage companies that people have used to refinance this type of loan. I am looking to refinance into longer lower interest debt.

Thank you for your help and feedback.

Hello BP community. I live in Atlanta, Georgia. I am looking to invest in Spartanberg South Carolina, 29302. I am buying SFH as long term rentals. I do not plan on visiting the area. I need to create a team to help me invest in the area. I would like references for property managers, general repair people, and local small banks.

Thank you, 

Jonathan Small

I pay around 1,000.  I have multiple properties and 2 business.  I highly recommend someone that is skilled in real estate.  Just like doctors, not all accountants are the same.  My accountants specialize in real estate tax.  I also appreciate that they give me advice on how to do future deals and take advantage of tax law.  DM me if you need a reference.  Best wishes.