More and more people are looking at the great returns that can be made by investing in Real Estate. There are all kinds of TV shows that show all kinds of people that are making money by flipping houses and making large sums of money. But is it really possible to make money, and large amounts of money without loosing your hard earned cash? In this article we will go over just a few things that you should consider before investing in the Atlanta real estate market, or any market for that matter.
Yes, real estate investing can still be extremely profitable. You just need to watch what you do and how you invest. There are not as many Atlanta Wholesale Deals out there as there once were, but they can still be found. If you are starting out, you need to pay attention to what is going on in your local area and what properties are selling for, and what kind of properties are selling. Traditionally, 3 bedroom and 2 bathroom houses always sell well, as there are many 1st time home buyers that would like to have them.
Also, if you are buying your first investment property, it is best to learn from someone that has been investing for awhile and try and see if you can get them to take you under their wing. Yes there are plenty of real estate courses out there, but nothing beats having someone “hold you hand” while you do your first few deals. They can help you understand all of the ins and outs.
There are certain things that you must take into consideration before buying an Atlanta investment properties. Many people forget, or just don’t know. Some of these things can make you loose money if you don’t pay attention. Things like closing costs. You have to pay closing costs on the front side when you purchase the house and also on the back side when you sell. Now usually the seller picks up the closing costs on the front side, but on the backside that seller is you and you need to know how much this is. In Atlanta, typically, the closing costs will be 9%, 3% to both sides of the realtors, buyer and seller and the buyers are getting another 3% for closing cost incurred by the closing attorney and mortgage company. That is almost 10%!! On a $200,000 home that is almost $20,000, gone right off the bat! Then you have things like holding costs. The cost of the power bill, gas bill and any HOA fees that you will have to pay while you own the property. All of these things add up.
Back to having a real estate investor helping you, and where you can find one. The REIA’s are a great place to connect with other investors. If nothing else you can have them JV with you on a property. While you will not make as much money, your chances of loosing money are not as great. You can also go online and look for people that say “We Buy Houses”, these are always investors, and by picking up the phone and talking to them you may be able to make some great alliances.
So all in all, yes, you can make money flipping houses. As much as they say they make on TV? Probably not, remember, it is a TV show and they have to get good ratings! But if you follow our advice, you too can make some great money with real estate investing in Atlanta.
More tips from some great investors in this video –
And here is a great company to check out to buy wholesale properties from in Atlanta –