There is a lot more than meets the eye when it comes to making a good business out of flipping houses, no matter where you invest. But, location does play a big part in whether or not you’re able to realize repeated returns. That’s why I’m glad my professional real estate investing business is in Atlanta. The market here for buying and renovating distressed houses is a strong one, provided you know how to find investment properties to flip as well as how to correctly run your numbers. Of course, those things can be learned. And, with the right training program, you might even learn them pretty fast.
Getting a handle on the local real estate market might take a little time, though—especially if you haven’t made it your business to keep a finger on the pulse of all things real estate, like I have. But, you can get a handle on it, and you should, if you want to start flipping houses in Atlanta. And, as a seasoned southern investor, I can help.
The Market for Flipping Houses in Atlanta
It’s been less than a year since reports about Atlanta’s resurgence as a hotspot for flipping houses started appearing in the Atlanta Journal-Constitution. Since that time, it looks like things have only gotten hotter. Unlike the focus on building new homes that took precedence prior to the housing crash, buying, renovating, and reselling property is now all the rage. That’s a good thing—for the local housing market and the investors who flip homes here. It’s so good, in fact, that Atlanta is among the top major metropolitan areas where home seller profits reached a 12-year high by the end of last year.
Of course, the fact that sellers, whether they’re homeowners or investors, can potentially get big bucks for their properties is only part of the story. There are other market elements worth considering if you want to start flipping houses in Atlanta. Here are a few of the big ones:
Stable Housing Market
A lot of cities around the U.S. are seeing median home sales prices spike right alongside new development, sparking debate about a coming nationwide bubble. Where Atlanta differs, however, is that it is not experiencing the same rapid rate of development that threatens to create a glut of inventory in the short term and a course correction in the market in the long term. That means home buyers aren’t faced with an overwhelming number of choices—and that sellers aren’t being forced to make concessions in order to compete for sales. But, most importantly, it also means that the rumors plaguing other cities about an impending housing-related recession are far from the ATL. And, that helps to keep home shopping confidence close at hand.
Growing Home Buyer Base
It helps that, at 3.8%, unemployment in Atlanta is low—lower even than the national average, according to the Bureau of Labor Statistics. When people can afford to make big purchases like a house and feel financially secure enough to do so, they usually do. So, it’s possible that the demand for housing, especially from new homeowners entering the market and upstart Millennials moving here for good jobs, could soar even higher. And, that could push median home sales prices higher, too.
If that happens, there is the possibility that a handful of buyers will be priced out of the Atlanta market. But, as long as you focus on your target market when buying, renovating, and selling houses, you can weather any bumps, seasonal or otherwise, and still make a good bit of green.
Demand and Prices Rising
The slow pace of new development in the city when compared to others, in conjunction with high employment, has also benefited Atlanta’s housing market in a couple of other ways. First, it’s helped to push the demand for existing houses higher than ever, especially if they’re more than move-in ready. Updating some of Atlanta’s older homes with modern amenities, for example, has helped me sell my flips fast and for better-than-average returns. And, I’m not the only one.
Increased demand has helped median home sales prices climb as well. We even hit record highs last summer. Though Atlanta’s seasonal market has leveled those numbers off a bit since, median home sales prices are still hovering at $250,000, according to Realtor.com. And, because demand keeps going up, sales prices are expected to continue right along with it. If you choose your opportunities wisely, that could position your real estate investing business very nicely, indeed.
Potential Squeeze on Inventory
Where you might run into a snag is in locating houses to flip in the first place. Increased demand often leads to a squeeze on existing inventory. Of course, that’s great for boosting your investment’s final selling price. But, it’s not so good if you rely on the open market for buying residential investment property to flip in the first place. That’s why it’s imperative to implement a lead-generating strategy that helps you find off-market properties that are owned by motivated sellers. And, the most motivated of sellers are usually those homeowners in the worst financial distress. In Atlanta, we have a lot of them, too.
You see, not everything is markedly on the rise here. Though unemployment is low, earnings aren’t always high. In fact, Atlanta’s wages are lower than the national average. They’re also less than what many existing homeowners need in order to continue paying for the rising costs of their home’s upkeep. And, for some, all it will take to push their financial security out of reach is one big medical bill, an unexpected death in the family, a long drawn-out divorce, or a surprise layoff. These distressed homeowners need “solutions for ugly situations®” that none of us ever hope to find ourselves in. And, you can provide a solution by buying, rehabbing, and reselling the homes that have become their burdens.
Of course, though giving consideration to local market elements is important when deciding if you should start investing, that isn’t all it takes to succeed as an Atlanta investor. The amount of money you can make flipping houses depends more heavily on your individual skill set, the ability to find good deals over and over, and whether or not you’ve got a good team to support you and your efforts—in any market. If you can get these ducks in a row, then flipping houses in Atlanta can be smooth sailing.
How to Make Flipping Houses in Atlanta a Hot Career
When I first moved to the south years ago, I had no idea I’d end up flipping houses in Atlanta. My old corporate job transferred me here. If it isn’t already obvious, I’m certainly glad they did. I was already growing passionate about real estate and, before long, found I was crazy about this city, too. So, when the time came for me to take the idea of investing seriously, I looked for a way to get started in my new hometown.
And, as an independently owned and operated HomeVestors® franchisee, I not only found a way, I found the best way. As a franchisee, you are taught to understand the ins and outs of buying houses during your initial week-long training so that you can make smart choices every time you invest. That includes learning how to analyze deals on fixer-uppers to make sure you buy at the right price for potentially realizing a solid ROI. Plus, you get access to ongoing support throughout the life of your franchise to ensure your business keeps growing. After all, you don’t just want your local housing market to be hot. You want your Atlanta professional real estate investing career to be hot, too.
The best way to make a good house-flipping career in Atlanta is to start with the right tools and team. And, contacting HomeVestors about opening an independently owned and operated real estate investing franchise with a national reputation for success is the right step towards heating your career up.
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