Atlanta Market Report

Atlanta Market Report

 

Southern charm, booming economy, and LOTS of people looking for a great home … that’s Atlanta!

Atlanta has one of the fastest growing populations in the United States … and it’s easy to see why.

You can’t beat the city’s Southern charm … or its economy.

In 2019, Atlanta ranked third in U.S. cities that host the most Fortune 500 Companies … like GE, Costco, and Kraft Foods.

It also consistently ranks as one of the best cities for startups … just under New York and San Francisco.

 

In this special report discover:

✓ A breakdown of Atlanta’s demographics

✓ A study of Atlanta’s major industries … including the growing film industry

✓ A look at the metro area’s major travel hub

✓ And more!

Learn what life … and investment … is like in “The Big Peach.”

Get started by filling out the form below to access the Atlanta Market Report!

Southern Impression Homes – Chris Funk

Southern Impression Homes – Chris Funk

 

Great Market. Brand New Property. Strong Cash Flow. Affordable Price. Top Property Management Team.

In today’s changing real estate market, it’s hard to get inventory at a price that gives you a good cash flow yield.

Chris Funk’s team has the answer …

Build-to-Rent your own investment property!

Chris Funk and his team entered the real estate game like many investors … acquiring and renovating foreclosed homes after the ’08 crash.  As the economy recovered it become harder and harder to get bargains on their acquisitions.

So they expanded into development and new construction … and Southern Impression Homes was born.

Now you can ride their coattails into developing your own portfolio of single family homes.

Chris knows the success that comes from a good real estate investment. He wants his investors to get a great property for a great deal in a great market.

While their primary market is Jacksonville, Florida … Chris’ team is also building and managing portfolios for investors throughout Northeast Florida and in Atlanta, Georgia.

The market in Northeast Florida is BOOMING. Chris’ team is your key to success!  Chris and his team have locked up prime land at prices that allow them to pass those savings onto investors …

What exactly does this mean for you?

You can get a NEW property that cash flows just as well (maybe even better) than existing, older properties.

Better cash flow. Better tenants. And less maintenance!

PLUS their sister company, SunCoast Property Management, is renowned for their top class property management.  And with over 2,000 properties under management … You better believe they’ve got their operations dialed.

Jump on better returns without settling for lower quality.

Simply fill out the form below … And a Southern Impression Homes team member will be in touch!

MANY lessons from Amazon’s HQ2 search …

You’ve probably noticed Amazon is taking over the world.  There’s a lot we could say, but we’ll narrow our focus to lessons for real estate investors …

In the May Housing News Report, there’s an article about Amazon’s ongoing search for their second headquarters (HQ2).

Even from just a real estate perspective, Amazon is a fascinating company to watch.  There are SO many lessons to be gleaned from watching what they’re doing … and how the world is reacting.

In case you’re new to the Amazon HQ2 story …

In 2017, Amazon put out a Request for Proposal (RFP) to bait cities across the U.S. into falling all over themselves to win Amazon’s coveted second headquarters …

… and the 50,000 high-paying jobs (average salary = $100,000 per year) that come with it.  We commented on this story at the time.

At first, there were hundreds of cities in the hunt. We said at the time we think there’s an excellent chance Amazon will pick Atlanta.

Early in 2018, the race narrowed to 20 finalists … and Atlanta’s still on the list.

Which brings us to now …

In the Housing News Report article, there’s a link to an analysis by Daren Blomquist of Attom Data Solutions.  Daren ranked the 20 finalists by comparing the cities on certain criteria defined in Amazon’s original RFP.

It’s the same process we did, except Daren used actual data … we just guessed.

Here’s Daren’s actual chart for your viewing pleasure …

Notice Atlanta’s ranked #2.  So our hunch is holding its own … so far.

Meanwhile, there several useful things to glean from this chart and the story behind it, so let’s dig in …

Single family homes are NOT an asset class

We’ve said it a thousand times, but just look at the median prices.  They range from $130,000 in Indianapolis to $1.445 MILLION in New York.

When people say, “Housing is in a bubble!” … what housing are they talking about?  Indy?  Seems pretty cheap based on median price and affordability.

And when high-priced markets start hitting the top of their affordability range, people MOVE … to more affordable markets.  People ALWAYS need a place to live.

So while it’s true that migration patterns drive prices … demand rises or falls as people move in or out … it’s often economics that drive migration patterns.

So an alert investor can get in front of growing demand and ride a wave up. That’s exactly what the folks who got into Dallas five years ago have done.

Equity happens … but not evenly

Look at the disparity in five-year appreciation rates among these markets … from just 8% in Montgomery County to 246% in Dallas.  HUGE difference!

Even in markets where median prices are similar … say Dallas and Miami… the five-year appreciation variance is substantial … Dallas coming in at 246% and Miami at “only” 71%.

So price doesn’t seem to be the deciding factor for appreciation.

And neither does property tax … as Dallas is second highest behind New Jersey (hey, New Jersey had to win at something), but Dallas is still king of appreciation.

Meanwhile Denver has the lowest property tax … half of Atlanta … yet their appreciation rates were about the same.

And price-to-income ratios don’t seem to make the difference either … as Los Angeles and New York are both equally unaffordable, yet New York has half the appreciation.

Keep it simple …

Obviously, this is just one chart … and it’s easy to get lost in the weeds.  We don’t want paralysis from analysis.  So charts like these are just the start of a deeper dive.

But it doesn’t have to be complicated.  Here’s what we look for …

What do winners have in common?

Dallas and Austin are both triple-digit appreciators … even though Dallas grew at twice the rate of Austin.  Is it just simply they’re both in Texas or is there more to the story?

Of course, 10 years ago, Dallas was coming off being one of the slowest appreciating markets in the country.  So something changed that dramatically…

What’s driving appreciation?

Prices get bid up when supply is growing more slowly than demand with capacity to pay.

So though you can see affordability based on income on this chart, you can’t see supply and demand drivers.  Neither can you see the economic drivers.

But you need to look at them.

That’s why we say you can’t study 20 markets well.  It’s too much.  Use a chart like this to pick your top three … and get to know them very well.

What markets are poised for growth?

Once you understand what makes a market like Dallas tick … and how it went from no growth to explosive growth … you can watch for similar factors in sleepy markets.

When you spot something interesting, you go in for a closer look.  If things go your way, you get there before the masses … and you get to catch a rising star!

What are the big players doing?

Big players can do research you can’t.  But that’s okay because you can piggy-back on their hard work.  It’s like cheating off the smart kid in school, except you don’t get detention.

Amazon is a juggernaut in American business … and their power is impacting real estate of all kinds … retail, industrial, and even office and housing in markets where they have a footprint.

That’s why SO much attention is being paid to their search for HQ2.

But another reason to watch is they’re leaders in business decision making too.  Other employers are watching what Amazon does and being influenced by it.

So when Amazon ultimately picks a city, we’re guessing other companies will cheat off their homework … and pick the same city.

The reason we bet on Atlanta is because many other Fortune 1000 companies had already chosen Atlanta as a great place to set up shop.

We don’t know what process they went through to get there.  We just know they did.  So as Amazon goes through its process … they may reach similar conclusions.

Of course, Raleigh is also home to a comparable number of big companies.

But based on the world-class airport, huge labor pool, access to higher education, major distribution, and a business-friendly environment … though it’s close, we still think Atlanta has the edge.

Then again, Jeff Bezos isn’t consulting with us, so we’ll just have to wait and see like everyone else.

Meanwhile, as the field narrows, we’ll continue to learn where corporate leaders think the best location is for their businesses, employees, and new job creation.

Until next time … good investing!


More From The Real Estate Guys™…

The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training, and resources to help real estate investors succeed.

The Real Estate Guys are going back to Atlanta, Georgia!

In case you missed the news, Atlanta home prices were up 19.2 percent in the first quarter, compared with the first quarter of 2012.

In other words, equity happens!

But does that mean the opportunity in Atlanta real estate is over?

Obviously, we don’t think so or we wouldn’t be going back.  We think it only proves that the Atlanta real estate market is attracting buyers.

And for good reason.

Atlanta is one of the biggest metros in the USA.  It’s home to tons of people and several major corporations, including UPS and Home Depot.  Plus it has GREAT infrastructure, which is important to attracting and retaining more people and businesses.

Atlanta is one of the more friendly business states.  And it’s strategically located as a distribution hub for the Southeast.

Atlanta is the state capitol of GeorgiaAtlanta is home to the busiest airport in the U.S. and is the capitol of the state of Georgia.  State government is probably not an industry soon to be outsourced to China.

Atlanta has great medical, transportation and educational infrastructure.  There’s great shopping, entertainment and several major sports franchises.  It’s just a FUN place to live and work – and to visit!

It’s also HUGE.  This means it attracts both state and federal attention when things go sideways.  And whether you or not you like politicians pandering, the fact is that they do it.  So that means big metros get the love in bad times and good.Atlanta is a huge metro and home to several Fortune 100 corporations

Inside of all that hugeness, there are pockets of opportunity.  That is, not EVERY property and neighborhood in Atlanta went up or is a good investment. Some are better than others.

When you understand that, then you know you can go into a big metro and by leveraging local knowledge, you can find those pockets of opportunity that haven’t been discovered by the less diligent.  When you join us on the trip, we’ll teach you how to do that.

Here’s the IMPORTANT thing:  Right now, in spite of the great APPRECIATION Atlanta has experienced, many properties are still selling BELOW replacement cost – and well below their 2007 highs.

What’s even more exciting is that even at today’s prices and interest rates, rental homes in Atlanta still CASH FLOW.  And cash flow is the key to controlling the property while equity happens over time.

Is there more equity in Atlanta’s future?  Maybe.  But the bigger question is whether there’s going to be any in yours.

We can’t say that Atlanta (or Memphis or Belize or Detroit or wherever) is the right market for you.  Only YOU can decide that.  But we’re inviting you to come take a look!  We’ll talk about Personal Investment Philosophy during our Sunday morning strategy session.  Some say that’s one of the most important part so of the trip.

Our experience is that GOOD things happen when we go out and check out new places, meet new people and collect new ideas.  One thing is certain.  No one is coming over to our house to pull us off the couch and hand us an opportunity.

And while the internet is great (after all, that’s how you’re reading this), but it’s the start of an adventure, not the culmination of one.  Real estate happens in the real world.

So we invite YOU to join us in Atlanta on October 25-27.  Worst case, you’ll meet some new friends, learn some new ideas, see some new sights and have some fun.  And who knows?  You just might end up looking back on the trip smiling someday because equity happened to you.

Life is better when equity happens. 🙂

To learn more about The Real Estate Guys™ educational market field trip to Atlanta, Georgia, click here now.

9/1/13: Something to Appreciate – Equity is Happening (Again) in Major Metros

It’s baaack!

Yes, it’s true.  Equity is back and it’s happening in major metropolitan real estate markets.

Surprised?  You shouldn’t be.  These cycles and their causes are highly predictable.  It’s seldom an issue of IF, but more of WHEN.

And while it’s fun to talk macro-economics while in the 30,000 foot clouds of conversation, it’s also important to descend to the street level and find out what’s happening on the ground.

So for this episode, we sit down with returning guest Ken Corsini and pick his brain about what’s happening in one of the USA’s best appreciating markets over the last year:  Atlanta, Georgia.

Sunbathing in the studio in scorching hot Scottsdale, Arizona for this sizzling episode of The Real Estate Guys™ Radio Show:

  • Your smokin’ hot host, Robert Helms
  • His smouldering co-host, Russell Gray
  • Special guest from Hotlanta, Ken Corsini

For those who may have forgotten, “appreciation” is occurs when the price of something you own actually goes UP over time.  And the increase in value over debt and down payment (your cost basis) is called “equity”.  Dust off those memories.  Is it coming back to you now?

Housing prices are on the rise in many major marketsEquity happens in different markets for different reasons.  We’ve spent a lot of time since the mortgage meltdown getting our minds around the macro factors that float all boats.  That is, when central banks like the Fed (and the European Central Bank, the Bank of Japan, etc.) initiate a barrage of “stimulus” (a.k.a., Quantitative Easing, printing money, debasing currency, etc.), it floods the market with liquidity. This liquidity eventually flows through the global economy and puddles up in various asset classes.

But  WHAT those asset classes are, and HOW the money gets there, is an inexact science at best.  It’s like squeezing a balloon.  Pressure in one area is going to create a bulge somewhere else, but you don’t always know where.  And too much pressure, and the bubble springs a leak.

For quite awhile, the excess liquidity has been sucked into the sponges of bank’s balance sheets.  That is, even though there’s tons of money out there, banks haven’t been lending.  But the market abhors a vacuum, so private money  started to mobilize in the form of hedge funds, and money was deployed to heal ailing asset classes (it’s called “scooping up bargains”).

Obviously, single family homes were a decimated asset class.  So it’s no surprise that hedge funds started gobbling up inventory.  And with builders not building, and a growing renter population needing homes to rent, a perfect supply and demand imbalance was forming.

Meanwhile, much of the really distressed inventory was being rehabbed and re-purposed.  The result?  Neighborhoods started looking nicer and therefore increasing in value.

Another contributing factor to pushing prices to the upside are commodity costs.  When prices rise for things like lumber, steel, copper, concrete and the gas that moves them from point A to point B, then when a demand in a market for new inventory screams loud enough for builder’s to build, the new stuff simply costs more.  This pulls the old stuff up right along with it.

Sure, there are some headwinds, especially in the form of a weak jobs recovery and rising interest rates.  No one is saying we’re out of the woods.  But if we were, then there’d be a lot less opportunity, so this is an exciting time.

So coming out of the macro-economic clouds down to the street level, our market case study for this episode is Atlanta, Georgia.  We ask our pal, Ken Corsini from Georgia Residential Partners, a turn-key property provider in Atlanta, to tell us what he’s seeing as he’s out every day buying, selling and renting houses in the suburban neighborhoods of Metro Atlanta.

We find out that Atlanta home prices are up over 20% in the last year.  Wow!  Equity happens!  At least for those who got into the market more than a year ago. (Hmmm….we recall doing a market field trip to Atlanta in June 2012…were you there?  Just sayin’….)

So, Atlanta’s interesting for a lot of reasons.

First, it’s a huge metro.  So it’s not really ONE market, but many.  We like that because inside of that 20% appreciation are over and under achieving neighborhoods.  This is where the knowledge of a great local team can really help an out of area investor.  In other words, proper sub-market selection can stack the odds in your favor.

Also, Atlanta was one of the more beaten up markets coming out of the recession.  As such, it attracted lots of big investors like hedge funds.  It offered an economy of scale that a big fund can’t find in Smallville.  Most of don’t think of buying houses by the dozens, but that’s what funds do.

Now some might think that competing with hedge funds for inventory is hard work.  And it can be.  But there are also some advantages of investing alongside those funds.  Namely, they grab entire neighborhoods and pretty them up.  It’s easier to do when you have a gazillion dollars to invest.

But big funds also leave scraps that Mom ‘n Pop investors can grab.  Then, when the big money pushes up the market, Mom ‘n Pop get to ride the appreciation wave too.  It’s like when you were a kid and your Dad would jump in the pool and create a big wave.  Maybe you can’t do it yourself, but you can still have fun by being in the pool when Dad makes the big splash.

So take a listen to our conversation with Ken Corsini.  Then think about where you were a year ago and what you wished you would have known and done.  Then think about your life a year from now, and consider what you might want to do today.  Oh, by the way, we have another field trip coming to Atlanta (shameless self-promotion), so if you want to meet Ken and see Atlanta with your own eyes (plus hang out with yours truly), we hope you’ll join us.  Click here for more info.

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