Making a profit flipping houses is hard work regardless of what market you invest in. Still, location does play a huge role as to whether or not you will be able to net consist return on investments time-after-time. And that’s why Atlanta is the perfect spot for aspiring property flippers. The local market for purchasing and renovating distressed properties is booming, assuming you know how to locate solid investment properties to flip and how to come up with a functional budget with adequate leeway for unanticipated expenses along the way. A little less than a year ago, the Atlanta Journal-Constitution published an expose detailing the resurgent Atlanta fix and flip market. In the following months, the market has continued to ramp up.
Unlike before the economic recession in 2008 where the main focus was developing new houses, buying, improving and reselling properties is now the primary focus of real estate investors. In fact, market research shows that Atlanta is one of the leading major metropolitan areas in the nation where home seller profits hit a 12-year high in 2019. Here’s a closer look at why Atlanta is an ideal spot for investors looking to flip houses.
Several major cities across the United States are experiencing an increase in the average home sales price as well as new developments—prompting some market analysts to voice concern of a looming nationwide housing bubble. Fortunately, Atlanta fix and flip doesn’t seem to have this problem, as there has been a relatively low rate of development. This has kept inventory in check and means that potential buyers are not faced with a seemingly overwhelming number of options when it comes to choosing a home and that sellers are not being forced out of desperation to make concessions so their properties won’t linger on what would be a stagnant market.
Unemployment statistics in Atlanta are promising, coming in at just 3.8%–significantly lower than the national average per the latest report by the Bureau of Labor Statistics. When potential buyers have the requisite income streams to fund major purchases like a new property and feel financially stable enough to do so, the chances are they will be willing to do so at a higher price point. Accordingly, it is possible that the housing demand—especially from first-time homebuyers entering the market and relocating young professionals—could increase significantly in the coming years. This would likely result in a significant rise in the median home sales price as well. These projected market dynamics are perfect for house flippers who have the resources to snap up promising homes now while they are ideally priced.
The slower-than-average pace of new development in Atlanta compared to the rest of the country, along with healthy employment numbers, have collectively acted to boost Atlanta’s fix and flip housing market. It has effectively increased the demand for existing homes, particularly those that are turn-key. Revamping some of Atlanta’s outdated properties with modern amenities could be a profitable undertaking for savvy investors. The rise in demand has also boosted the average home sales price, with median home sales prices hovering around a quarter-million dollars. This is a trend that is expected to continue, which is welcome news for home flippers. The more you can sell your renovated property for, the higher rate of return you will get on your investment.
When you find your next perfect Atlanta fix-and-flip property, the experts at Gauntlet Funding are here to ensure that you have the financing you need to quickly and easily close on the transaction in the form of a hard money loan. A hard money loan is asset-based loan financing through which you can obtain funds held by the value of a parcel of real estate. Hard cash loans are preferable over customary bank financing since they offer real estate investors greater leverage and can close quicker than a conventional advance from a bank—giving you a distinct advantage in what is becoming an increasingly competitive marketplace. Contact us today to learn more about how we can assist you in making your investment dreams a reality.
Hard Money Lending in Atlanta, Georgia and Why It’s a Good Idea for a Fix and Flip | Gauntlet Funding – Melville, NY