With the passage of time, Atlanta’s real estate market is changing its shape. From the constantly growing market in the folds of the economic boom, it has transformed into a rather slower growing passive market. Previously, real estate investors were able to catch amazing wholesale deals from a plethora of foreclosed houses almost everywhere in Metro Atlanta. But as of now, some parts of Atlanta are flourishing while the other areas just creep behind. Investors now have to carefully select the sub-market and also consider the type of investment they will do.
But nonetheless, Atlanta is one of the biggest cities in the U.S. And its population growth is predicted to have a 43% increase by 2025. The metropolitan area of Atlanta attracts many large industries and corporations, and thus hundreds of employees too, who come to Atlanta with an aim to settling there.
So, whether you are a new investor searching for a way to get a strong hold in this field or you have been around for some time and grabbing the profits within your reach, this quick guide will help you get all the basic knowledge related to real estate investments:
Classifying the Real Estate Business
Investing in real estate can be classified into four categories:
- Short term investments
- Long term Investments
Short Term Investment
Short term investments result in quick profits, so it is ideal for first time real estate investors to invest their capital in places where they will gain profits in a shorter duration in order to build a strong base and get experience in the field.
Fix and Flip strategy
One of the types of short term investments popularly termed as fix and flip, refers to the strategy where an investor buys a property that needs some renovations. After fixing it up and preparing it for sale, the owner sells it at a higher price and gains profit.
Although it consumes time and attention on the part of the investor but the profits are collected sooner. Many suburb areas in Atlanta and its vicinity are good for short term investments as sub-par houses are easily found there.
Long term investments
This real estate investment option is for those investors who have been in the field for longer and now have enough capital to meet other expenses. This passive form of investment also gives the best rewards to expand the capital manifolds.
Buy and hold Strategy
Long term investment can also be termed as buy and hold strategy. An investor buys property and holds it for a long period of time, regardless of fluctuations in the market before selling it for a profit. Such investments should be located in the metropolitan area as it grows rapidly. There are plenty micro-markets around Atlanta that offer very attractive profits at present.
An investor can also work as a service provider for people looking for houses to purchase. This usually is a sideline business for many real estate investors. But for first time real estate investors who are short on the capital, this is a good strategy to get started and create profits and contacts among the industry.
A real estate investor can also work as the intermediary if they do not want to buy a property for themselves. Instead they can locate a seller and establish the sale of their property with a potential buyer. The investor can then charge commission for the services provided.
Another important strategy a real investor can opt for is buying a property and putting it up for rent. One way of doing that would be to buy property on mortgage and rent it out. Using that rent, the investor can cover the cost of the monthly mortgage payments and any other expenditure.
Atlanta has a lot of diversity in the employment opportunities available, with almost 500 company headquarters located in the city. This creates economic stability in Atlanta, and many people relocate here and live in rented apartments and houses to commute easily to work. This produces a golden opportunity for first time real estate investors looking to enter the market.
For more information on real estate investments, contact us at 404-855-3070.