Investing in Atlanta wholesale properties

Like everyone else, even you must have read numerous newspaper articles with the news of the "housing crisis" that hit most American neighborhoods since the recession of 2008. As dim as that may appearm there is a positive side to it as well, the crisis has also opened doors to new opportunities in the form of foreclosed property investment. Investors are now investing in Atlanta wholesale properties, which are now available at deep discounts, ranging from 10-50%. Transforming these "neglected" properties into a place called "home" is indeed a money-making venture.

Do you intend to enter Atlanta real estate investing too? To avoid pitfalls, here’s what you need to know before stepping in.

Points to be taken care of :

Steer away from auctions: Atlanta wholesale properties sold at auctions cannot be inspected by the buyer. You might find structural damages and a poorly maintained property after having made the deal. In such a case, the repairs cost might eat into your expected profits.

Owner issues: The primary problem in buying a property at an auction is to get the owner to vacate the property. Furthermore, the property may be burdened with title issues, unpaid taxes, liens and so forth.

Purchase from the bank: Properties that are not sold at the auction are then owned by the banks. These are called REO properties. It is safe for investors to buy from the banks. Here, they can inspect the property or have it inspected by a professional. You will then have a clear idea of the expected repair costs and expected profits.

Additionally, in this scenario,the banks take care of any unpaid taxes, liens etc. Therefore, the risks involved in REO properties are lower.

Get ahead of the crowds: The foreclosure market is fast-moving and highly competitive. If you want to get your hands on a promising property, you need to be ready with your finance. Mostly, foreclosed properties come with a "cash on sale" clause.

If you are not a cash-rich investor, then keep your lender’s qualification letter ready. The sellers are banks and lenders who do not want to be further burdened with unpaid loans and more foreclosures. Thus, they prefer to sell only to buyers with secured finances.

Keep your expectations low: Although the American neighborhood boasts of millions of foreclosed properties, you may not always find one of your choice. Also, you may not be able to sell the rehabilitated property at the same prices as new properties in the vicinity. Do your due diligence research before estimating the profit before you move ahead. A smart idea would be to hire the services of an experienced real estate wholesaler, who can help you with your investment from the beginning till the end.

Be ready to incur the repairs and rehab costs: As foreclosed properties are sold "as-is", they may be in a distressed state. You must be prepared to shell out extra money to beautify the property. As owners lose interest in the mortgaged property, possibilities are high that they fail to maintain the property efficiently. Also, the extra investment into repairs and upgrades will get you a better sale value.

Knowledge, research and patience are the keys to success in Atlanta real estate investing.

The author, Robert Wills is attached with New Western Acquisitions, a real estate firm who specialized in real estate investment properties,houses and real estate wholesaler.