We’ve been property investors for many years. And we’ve learned a lot. Some of the lessons are of the common sense variety. Others we simply couldn’t have anticipated if it hadn’t been for our focused, on-the-ground, hands-on approach.
The Number One Lesson We’ve Learned
This is the question we’re most often asked, and it’s the easiest to answer. Wherever possible, buy below market value.
However, this has become increasingly difficult. The fact is, in Atlanta it’s a seller’s market now. Low stock levels, a tailing off of distressed sales, and steady population growth, have pushed property prices up. Supply is now only 4.3 months, compared to the industry benchmark of 6 months in a “balanced” market. This means sellers are getting the prices they want. And buyers need to be creative.
We’re competing with everyone else. This has made it even more difficult to find stock. There’s less distress in the market, too. So it can be challenging to buy below market value. However, it is still possible to find below market value deals – if you are prepared to search relentlessly.
Substantial value add
Our “flipping” model is based on more than just buying below market value, though. The main driver of its success has become adding substantial value to the home. And there are many ways to achieve this. Sometimes adding value means “popping the roof” (adding a second storey). More often, it means doing smart additions. Occasionally, the best way to add value is to tear the house down, and building a brand new home in its place.
Actually, a strong economy can be a very good thing for property investors. The fact is that we’re not JUST buyers looking for a great deal. We’re also sellers. And we’re looking to move our upgraded property for the best price possible.
Call me on 011 465 7356, or email firstname.lastname@example.org. Find out how you can put your hard earned money to good use, and grow a nest egg you can look forward to.