All Forum Posts by: Manesh Hardeo

I tend to agree that the market is likely on the higher end, but we have already seen our first nice correction starting from July of last year to Jan '19.  

I personally listed 2 deals at that time...one in Kirkwood that listed for $550k and eventually sold for $505k and one in the Walton district started at $425k and now at $374.9k and still out there.

Since then, we've plateaued a bit, but I think we would be naive to think we're not in for more correcting.  But, Atlanta is also much different to me, than say it was in Texas where I was from 2004-2011.  

There are still many parts of Atlanta that still have nice upward potential due to the developments and the beltline.  Those areas that we see as "rough" you'd be surprised just a few years ago how much more "rough" they were.

That's the difference between the investor that sees an excellent return vs one that's just marginal.  Risk thresholds are very different for everyone.

We had one listed for a client at the end of last year, but we saw it get pretty saturated, so we had them remove it, do a few additional repairs, then we relisted.  We went under contract within 2 weeks and I see parts of Decatur on the upswing again.

Either way, there are still many ways to make money in this market and I still believe there are buy and holds out there.  For example, I can get 2 rooming houses near the beltline that bring in about $13k per month for about $550k.  I want them myself, but have 2 more projects I have to get rid of!

Atlanta has relatively low or middle of the road property taxes, many different areas in  the Metro area to fit your risk/goals, and is also considered to be landlord friendily.  In addition, we have what many consider to be the world's largest urbanization project called the Atlanta Beltline where the appreciation potential can still be pretty good eventhough we've all missed the luxury train at this point.  (If you haven't checked it out I definitely recommend you do).  If our population gets to what they think it will by 2040 we will need it or we'll be the Jetsons. 

I'm from Texas and I always feel like it's old faithful, but property taxes are higher there.  I've never personally looked into it, but been hearing a lot about Indianapolis and Cleveland as well.

Best of luck.

@Jay Hinrichs I agree.  I'd rather hit singles ALL day long! 

@James Galla Man, I feel like that is pretty harsh.  Are there folks that do that?  Probably.  But, what if the heir wants out of dealing with a situation that has been traumatic, time consuming, and costed them money they're not comfortable spending?  If they want to sell it for a specific price that happens to be beneficial for both parties -- is that low balling?  I don't know if I even have a problem with a wholesaler making an offer and the seller accepting it (that the experienced person knows is low) -- if they were able to get the deal done fast and take a situation that caused them a lot of duress, bring relief and even some money in their pocket ...is that wrong? (start low, end low.  Last I checked this is America) Should an entrepreneur that gets rejected daily, works their butt off, and spends days, weeks, and months not be rewarded when they can find a deal they get super cheap, but at the same time provides a service to someone that needed it?  I don't care if it doesn't require the credentials or liquidity to do the business, but it is not easy and does deserve respect for those doing it the correct way.  

Maybe some of you guys more experienced than I am can comment on this thought.  After the market crashed there really seemed to be a HUGE influx of "gurus" teaching how to wholesale with NO MONEY on the interwebs.  Can you do that?  Absolutely, but I can tell you if you're new to the business it's highly unlikely, or at the least, very tough -- there is always some type of cost.  I've never seen so many wholesalers in 15 years, but I don't necessarily see that as bad like some others do.  You are either good with it or you're not.

The sign "We buy houses cash".  Hm -- it's pretty simple right?  Is it deceitful?  I think it has a level of deceit. How many of those folks putting that sign up are actually buying cash?  I can't put a percentage, but can say it's probably pretty low.  

In general, wholesaling does have a negative outlook as there are just SO many that want to get into the business because it's promised to be easy and you don't need money to do it successfully.  Unfortunately, with ZERO barrier of entry, literally ANYONE can do it, so you know how that will go.  I can't even tell you how many people have come through my doors saying they want to start off by wholesaling and then I ask why -- almost every time it's because they want to build capital, is told it's easier, and doesn't require any money.

2 additional thoughts:

- Wholesaling is not as easy as people think and it does require capital to market, build systems, have access to resources for data (values, rehabs, etc) have earnest money (if you're doing it right), etc.

- Wholesaling is also a LOT more recognized then it was 15 years ago.  Closing attorneys (or title companies dependent upon where you're located) understand double closings, assignments, and even communicating between each other now.  More and more investors are willing to deal with wholesalers TODAY, then years ago because it is more prevalent and buyers aren't loyal to the supplier, but rather the deal. 

There are so many strategies to take on in the real estate business -- just depends on what fits you best.  Do you like working alone?  In a team?  Is being licensed better or worse?  Do you want to rehab, wholesale, wholetail, buy notes, subject-tos etc?  What fits your personality best and, most importantly, your financial situation best along with your short and long term goals?  

Just a thought, but instead of just reading books -- how about identifying some strategies you think might fit and I'm sure there will be some solid, experienced people on here (or at your local REIA) that will be willing to introduce you to the reality. You'll have a lot more questions and direction after that. Just offer to work to learn and there are many that are willing to do that temporarily with the hope you can go out on your own, help build their business and yours.

In this business, sometimes you just have to learn by doing...maybe a lot of the time.

Best of luck! 

I'm noticing a lot more investors using the wholetailing model here in Atlanta.   Questions are: 

1.  Are you seeing a noticeable uptick in the use of this strategy in your market?

2.  If so, why do you think this is happening more now?

3.  How do you think this will effect the market?  

Curious to hear your thoughts!

Hey there Evan.  So, I'll throw out my $.02 for what I can give any assistance on.

1. The time has definitely come and gone to get 2011/2012 prices, but I do believe there is a solid belief that the SW Atlanta beltline project (supposed to be the first quandrant to get transit) will help.  I wrote a post that is a little more involved that you can reference some of, at least my thoughts on the area since we work there so heavily.   CLICK HERE TO GO TO THAT POST

2. There are so many making moves over there; hence, why the prices have gone up so steadily.  It almost seems like everyone is trying to get a piece of that pie and now it's the folks either just catching up to this or wanting to make safer bet than 6-7 years ago when it was almost like an enigma! 

3. I wasn't born here nor will act like I was.  I've only been here since Feb of 2011 so I can't give you proper answer on it's history, but I have read various articles via Wikipedia, etc.

4. Someone else can better speak on this, but there are parts of the Westside that used to be the happening spots back in the 50s or sooner where some of the most affluent, influential leaders of the African American community used to live, but over the years for whatever reason has changed.  There are a lot of the Westside that were primarily Industrial and a lot of those neighborhoods went away or changed demographics as those companies closed.  Due to the location and the costs -- many people are seeing the value now and are jumping in.

They are saying we should have a population of over 10M by 2030 or 2040, I forget which one.  I'm from Houston which is a much larger city that has 3 perimeters now.  So, looking at how our city is built (obviously horrible infrastructure for traffic; hopefully, the beltline will help) relatively the location is just too hard to pass up!  

I hope some of this helps!

Denise and Carolyn.  I've shot both of you messages.  Please let me know what we can do to help any potential issues or concerns.

We operate with the utmost integrity and customer service is a big thing for us, so please let me know if I can assist.

Wholesale real estate is a different animal and yes, sometimes there are a little different issues with retail versus buying discounted properties that are distressed.

Again, would love to help assist yourself or anyone else having any questions, concerns, or complaints. 

Happy investing!

I agree with Rick.  I think that area will be a bit behind some others around it, but with Pittsburgh Yards and possibly heard rumblings for a GM plant possibly coming in around there....who knows.  The risk takers tend to get greater pay days as well!  Anyone else hear about this potential GM plant? 

Have any of you guys taken the Atlanta Beltline Tour?  If you haven't, I highly recommend it.

I remember moving here in early 2011 to start up our firm, and constantly hearing about this enigma called the Beltline.  I never really think anything of it at the time. Let's say I never thought I'd be in 30310, 30314 30318, etc nearly every day when we fast forward to the present, muchless ever!

It really is eye-opening, and the concept, if properly executed, with funding, logistics etc -- all these things I'm no expert on, will make this truly a huge change for the city of Atlanta.  All speculation at this point, but near Lee St/29 and a little north of the Sylvan Hills neighborhood, imagine this:  taking MARTA from the airport heading back north in town, you get off of at a hub, where now you can walk over to the Atlanta Beltline terminal and take transport to your stop.  Then, get off and walk home or take your car a shorter distance.  How much would that help the City of Atlanta's traffic?  Well, I dont know, but can't hurt it, right?

West End...boy, one of the most wretched of neighborhoods,  IN THE COUNTRY during it's hay day for mortgage fraud.  Rewind....back to Aug 2015.  I bought a flip because none of my clients wanted it on 832 White Street...I know some of you know that street and it's right near Lee St -- huge flat lot, 2500 sq ft, 3/2.5, I had never seen true 14' ceilings in a 1920 built home....I mean wow, but it was still, eh.  $90k....my wife said let's move into it. But, I said no -- well, we obviously know the wives are always smarter and should always listen to them.  We flipped it for $210k in less than 10 days once put on the market.  You guys know what that's worth now?  So yeah, I do think parts are probably overvalued in the micro and there's plenty of truth to that.

One point I wanted to make about selling White street other than value though, was...who bought it.  Talking about demographics is touchy, but let's say they wrote us a letter and it was amazing, but they were the polar opposite at the time.  Good for them -- their house has about doubled.  Another younger friend of mine and her boyfriend bought a fixer upper to live in 30310 as well...younger professionals.  You have places like Monday Night Garage brewery that is awesome and ON the beltline. (Go check it out).

There are a decent amount of options for the West and South areas, and even parts of the Upper Westside where there would be some options depending on the home or even TH.  Marietta BLVD will be completely different driving from downtown to Smyrna in the next few years.  Close to where the new Westside Park will be.

So, in conclusion, there are options? I think so. Do I think it will go backwards?  Yes, maybe to some degree, but this isn't fake mortgage fraud value either.  There's legitimate growth to be happy for.  There are options (and the rehabs, if you get a good one, are typically pretty nice).  If you guys want to live there and the timing is right for you guys, then, I would say pull the trigger.  I don't think you would regret it!  And like here in the Upper Westside 2-3 years ago neighbors would tell us how much the schools have gotten better.  So, to whomever it was that made that point....I agree.

Best of luck!