Knowledge = Success

Posted on October 1, 2014 by

The third-quarter results of the Atlanta real estate market are exciting and positive!

It IS possible to make money in this market, and I’ve been in this business for long enough to guide you through it.

On the market right now there is a

  • 3.5 month to 5.3 supply of single family houses above $250,000
  • 2.9 month to 5.1 supply of single family       houses below $250,000
  • There is high demand from cash buyers
  • There is an increase in demand and value in the rental market

What do YOU need to know?

Marketing through your own resources for “off market” leads is the best tactic. Hedge funds have slowed their buying. They are recovering their assets right now because they moved too fast and have a lot of vacant inventory that is nonperforming.

Consider your time value. Working FMLS and hoping to get a 30% off price tag is not a good strategy because you will spend all of your time making offers just to get one deal. Realtors are doing a great job of pricing properties correctly to sell in 90 days; take advantage of this. Even the beat up properties are being priced right.

Phantom inventory is decreasing, and banks are keeping inventory dripping out through foreclosures at an all-time low. This is going to keep the prices in Atlanta moving up.

There is a demand for newer houses.

The majority of Georgia MLS and FMLS houses are REO. They may be in poor condition, but there are people willing to buy them. Here is where economy of scale will help you to keep your business slim and trim.

How will this information help YOU?

The following information demonstrates whether or not you’re going to be able to sell a wholesale deal or a buy fix and sell in a short period of time. By having this information, your life will change so that you know where you can take a higher risk by paying more for the property, or by having a smaller margin while knowing that you will turn a solid profit.

When we look at the marketplace and days on the market and the expired listings, we determine that the market is moving forward and properties are being priced correctly.

To Be Successful

You must use the information provided here to target market specific areas, zip codes, and names and addresses. I am providing you with this information so that you will be confident in what you are doing.

I know that these things are important because I have been using them for years.

I know that knowing this information will allow YOU to take a risk and win.

The Atlanta Market’s 30,000 Foot View*

The counties that sold more properties over the past quarter are Cobb, DeKalb, Fulton, and Gwinnett. (DeKalb County was not on this list a year ago.)

  • Most of the property being sold is outside the perimeter.
  • Most of the property being sold in Fulton County is inside the perimeter.
  • The market is wide open for the following exit strategies wholesale, lease options, and buy fix and sell from distressed property.

The white-hot areas of the city are the cities of Decatur, Marietta, and Kennesaw. (Please note that this is in the city limits of these areas.)

Gwinnett County is number one with the highest number of sold property in the largest price range. The sweet spot for Gwinnett County is $100-$200,000. Gwinnett County has been in the top four for over two years. I do not see that changing in the near future. There is plenty of inventory at a low price and great value. Now is the time to be buying rentals in Gwinnett County. In the next year, I expect purchase prices to be higher and best for a buy fix and sell exit strategy price point. The best exit strategies for Gwinnett County are buy-and-hold, buy fix and sell, and lease option. One of the reasons that Gwinnett is so popular is that there are many foreign nationals making it diverse in race and religion.

Cobb County is number two with the highest sales volume in the past quarter. Cobb County’s price point has moved up dramatically. Cobb is prime for the exit strategy or the buy fix and sell. The price point with the largest volume of properties sold is 150-$250,000. Due to the higher price point, a lease option is an excellent low risk, high profit exit strategy.

Fulton County has a very high volume and comes in third place in total number of sold properties in the past quarter. Fulton County has a consistent demand in many price points. The price point for Fulton County has increased to $50,000-$100,000. 13% of the houses sold in Fulton County are under $50,000. The best exit strategy for Fulton County is the buy-and-hold in the price point below $100,000. The buy fix and sell in specific hot neighborhoods in town and north of the perimeter will be the key to this strategy.

Cherokee County has fallen from fourth to sixth for number of homes sold. Cherokee County’s price point for properties being sold is in the $150 -$200,000. The best exit strategy is buy fix and sell or lease option.

Forsyth County is very similar to Cherokee County. The exit strategies are lease option, buy fix and sell, and “honey we’re moving in.” The price point that is the hottest for Forsyth County is $200,000-$250,000. Yes, you can find houses that will sell below $200,000 on a regular basis, but most of the buyers in this price point are retail buyers.

DeKalb County has a high sales volume below $100,000. Overall sales indicate that most of these properties are located outside of the perimeter. The county has a very high volume of sales at $150,000-$200,000. The exit strategy best for DeKalb County is rentals, lease option, and buy fix and sell. DeKalb is a two tier price point meaning that you can buy low, fix, and sell high.             

Hall County is a wonderful area that has a high sales volume. The sweet spot for Hall County is $50,000-$150,000. Hall County is a great place for rentals, lease option, and subject to. Hall County has had consistent sales over the past two years. The price point has drifted up slightly over the past year.

Henry County and Rockdale County had the lowest volume of sales in the 11 County Metro Atlanta area. The price point for Henry County is $50-$150,000. The best exit strategies are buy and hold, lease option, and subject to use. There is no large sales volume in Henry and Rockdale counties. You’re not going to get rich in those two counties, and your expenses for travel and time will be higher.

Rockdale County has the sweet spot of less than $100,000. Rockdale County is a great area for the exit strategy of rentals, lease option, and subject to. I am spending time in Rockdale County marketing and have found that the sales volume is very low.

Important Zip Codes

The highest volume of sales has been in the following zip codes:

Cherokee County: 30188, 30102, and 30189.

Clayton County: 30294, 30274, 30328, and 30349.

DeKalb County : 30021, 30083, 30088, 30084, 30058, 30035, 30294, 30034

Douglas County: 30134, 30135

Forsyth County: 30041, 30040

Fulton County: 30310, 30314, 30331, 30344, 30349

Gwinnett County:30039, 30052, 30044, 30047

Hall County:30506, 30507, and 30542

Henry and Rockdale Counties don’t have high enough sale volumes to be specific.

*Based on information gathered in August 2014.

This Information is Essential to YOUR Success

How you decide to implement the tools I’ve given you here is your choice, but I know that if you use it wisely, you will be successful.

My personal plan is to have a saleable business. That way I will be able to retire for the fourth time with even bigger numbers. This information will allow me to retire again!

What about you? Are you ready to create your early retirement? If so, then let me coach you to success.

I can’t wait to meet you at the:

Hudson Grille Sandy Springs
6317 Roswell Road, Sandy Springs, GA 30328
Time: 7:00 PM on the first Wednesday of each month.

I am looking forward to meeting you and helping you on your way to a successful 2014!

Russ HinerRuss Hiner is an active real estate investor, coach and mentor. Russ is currently the leader of the Atlanta REIA Creative Deal Structuring Group and co-leader of the Atlanta REIA Mastermind Group. Russ also teaches several Atlanta REIA Workshops throughout the year on a variety of real estate investing topics such as Negotiations, Wholesaling 101, Wholesaling 401, Real Estate 101, Property Management and more.

Contact Russ Hiner

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