All Forum Posts by: Yoni Rozenstein

Hello everyone, I would like to receive information on Hapeville market.

Development trends, prices, demand, problems, etc.

Thanks

Attaching a number of things I have written on the basis of various articles. Can help a little in the general direction the market in Atlanta. The data focus on the flip potential market.

1. Atlanta Market Trends

1. Overview: The Atlanta-Sandy Springs-Marietta metropolitan area, which comprises 28 counties in northwest Georgia, is the second largest metropolitan area in the Southeast, after Miami. The metropolitan area is a business and transportation hub for the region because of its central location and readily available transportation options, including three major interstate highways and the Hartsfield-Jackson Atlanta International Airport, the busiest passenger airport in the world, which is estimated to have a $32.5 billion with direct annual economic impact on the metropolitan area.

1. Atlanta Population Growth

• Over the last five years, the top 10 Moving Destinations list consistently finds Atlanta at the top.
• Atlanta is a rapidly growing city, and its metropolitan area exceeded 5.5 million people for the first time in 2013. The U.S Census Bureau projected that metro Atlanta's population will reach about 5.7 million by 2020.
• A third of the population is between the ages of 18 and 34. This compares with less than a fourth in the U.S. Population and household growth will surpass the U.S. over the forecast horizon, supporting demand for retail, construction, and education and healthcare.

1. Job Situation

• Metro Atlanta's unemployment rate (May 2015) is 5.9%, Ranking 44 of 48 for Large Metropolitan Areas.
• There was an over-the-year gain of 83,200 jobs, or 3.4 percent, from 2,483,100 in April 2014. This was the largest over-the-year job growth for April since 1999.

1. Housing:

• The rapid pace of economic expansion is keeping Atlanta’s housing market buoyant. Home prices rose, about 9 percent in 2014 according to the Case-Shiller index. The strong demand from investors is leading to a sizable reduction in the inventory of foreclosed properties. This, in turn, is leading to smaller discounts on foreclosure sales and hence, higher overall prices.

• In September 2014, 4.4 percent of home loans in the metropolitan area were 90 or more days delinquent, were in foreclosure, or transitioned into REO status, a significant improvement from the peak rate of 11.6 percent in January and February 2010 (Black Knight Financial Services, Inc.).

• In late 2014 approximately 23 percent of existing home sales were distressed home sales compared with 44 percent of existing home sales during the 12 months ending July 2010.

• New Homes: New Home starts are rising and will slowly but surely become a major factor for Metro Atlanta real estate. Sales increased 29 percent, to approximately 12,600 homes, and the average price of a new home increased 3 percent, to $295,700. In 3-5 years, new homes could return to 40%-45% of the inventory and 

• Metro month’s supply of inventory (Feb' 15') is around 5.7 months.

• Housing remains affordable with the median priced home now costing 1.4 times the median annual income. Nationally, the median priced home costs about 1.7 times the median income. Housing demand is also being supported by low mortgage rates and easier access to credit.

1. Conclusions

• Local and regional trends have contributed to a significant increase in the real estate market. Strong demand from investors is leading to a sizable reduction in the inventory of foreclosed properties. This, in turn, is leading to smaller discounts on foreclosure sales and hence, higher overall prices.

• At such prices and low inventory of Disserted properties, It’s hard to find Houses more than 50% below fair market value – that will be able to rehab and resell the properties at 10-20% below market value – and still make a considerable profit.

• The longer term outlook is favorable. Strong population and income growth will support robust demand for housing and drive above average home price appreciation.

1. what is the key to success in this market ? 

Hi James, 

Thank you for your great idea's and data.

What is the date update of the data you attached above  (Median sale price by county etc.)?

From the Data on HomeFacts (Jun 15') - Gwinnett County Median Sale Price:$174,000.

Fulton County : 231,000$ , Cobb County: 180,000$ and more.

Josh Caldwell Thank you for your replay.

It's hard for me to understand - What is the motivation of a good and experienced investor (who I just worked with him as a private lender), to partner with me with more then a equity partner?

From the financing option that I now (Conventional, Portfolio, Private, Hard money and Equity) - Equity is one of the most expensive for investor.

Does good and experienced investor looking for this?

---------

Lets think What can I bring to the table - 

I can bring to the table - Private Investors who looking for a lend (in return for a decent rate)

The benefits - being Cush Buyer, no needs to wait for lender , can close fast.

HELLO BP.

I appreciate your time for reading my questions.

I’m relative new to BP, my name is Yoni ,30 years old , married. by profession I’m industrial engineer for 3 year, Turned into a real estate investor.

My goal is to build long lasting financial real estate business Beginning with aquirering the knowledge necessary to make smart investing decisions and networking with the right people.

For the first years I plan to build capital by fixing and flipping houses, then add buy and hold properties as funds become available.

I’m aspiring real estate investor, I’m almost ready to start buying, I have my financing approved and now I’m just looking for the right way to start.

Because I'm out-of-state investor, I need to work with a Partner/JV/Agent/Team how will help me mange the project - find great deals, submit offers, negotiate, help navigate the due diligence, closing process, rehab and selling.

To the best of your understanding – what is the right structure to build the business , when most of the time I’m gone be out-of-state (will come to visit twice/three per project)?

1. 1.Partner with someone – “Equity investors” –lend money in return for some fixed percentage of the investment and profit.
2. what is the percentage that custom to work?Drawbacks – I will shadow the project and will not study how the process)

1. 2.Maybe work as a Private Investors – for 8%-12% percentage from the profit.
2. Drawbacks –on long run, I’m wont to build business base on other Private investors. So it’s not a good option.

1. 3.Build my team – Good Buyer’s agent, GC, Inspector et (cant understand how to do this from far away).

Drawbacks – very hard to build team far away.

I will be grateful for your help to figure what is the right way, and add another solutions.

Thank you very much.

Yoni R.