The 3 main reasons why we’re “flipping” in Atlanta

The 3 main reasons why we're "flipping" in Atlanta

The 3 main reasons why we’re “flipping” in Atlanta

Do you want to earn between 15% and 30% pa on your capital with a trusted partner that takes care of everything? YDL has entered the “flipping” (buy – fix up – sell) market in Atlanta, Georgia, and is inviting investors to come along for the journey. The article below deals with the main reasons why we’ve entered the Atlanta “flipping” market.

Slowdown in the SA market:

The property market works in cycles. South Africa experienced an unprecedented property boom, followed by high levels of financial distress in society. Both presented investors with great opportunities, but these have slowed down to a trickle. The volumes of distressed property sales have nose-dived, and prices have become too high to turn a decent profit.

The Atlanta market is hot; meaning the right flips sell fast:

The Atlanta property market has taken off. Two years ago – when Atlanta property values were still in decline and when foreclosures abounded – we identified Atlanta as a future growth market. This has now happened, with Atlanta growing 18.5% year on year, one of the “top 20 markets leading the recovery” (Atlanta is number 7 on the list). But, month-on-month growth is slowing, suggesting that the rate of increase may have peaked.

The main implication of this is that in the areas and at the prices that we’re selling at, properties are selling fast, as demand is outstripping supply (a result of developers fleeing the market when it crashed). And, as we know, time is money. The shorter the time that a property is on the market, the better the profit, and the lower the risk.

To put Atlanta’s growth in context: Countrywide, prices have risen 12.4% year-on-year (Case-Schiller 20 City Index). Prices are now back to their spring 2004 levels. Measured from their mid-2006 peaks, the decline in prices is around 22%. And, the recovery from the March 2012 lows is 21.2%.

Although declining, sufficient foreclosed opportunities still available:

10.7 million residential homeowners nationwide owe at least 25 percent or more on their mortgages than their properties are worth. This is 23% of all homes with a mortgage.

Another 8.3 million homeowners (18% of all mortgages) are about to resurface. They are either slightly underwater or slightly above water, putting them on track to have enough equity to sell sometime in the next 15 months (realtytrac). If 5% of these list their homes for sale in the next few months, 415,000 more properties will come onto the market.

Turning to Atlanta, 36% of its homeowners are underwater, meaning that some foreclosures are still expected. But, you must not sit on the sidelines as opportunities will run out. Prices are already 57% up from the trough, and the number of foreclosures are already down 77% from their peak. Having said that, distressed sales still make up 26% of all sales.

Institutional investors make up 27% of all investment purchases, reflecting the fact that hedge funds have piled into Atlanta, mostly for buy to let purchases.

This is borne out by the fact that, interestingly, flipping in Atlanta is down 20% year-on-year (whilst flipping countrywide is up 19% in the first 6 months of 2013, and 74% from the first half of 2011).

The net effect of this is that we believe that more flippers will come into the Atlanta market over the next 6 to 12 months. This will make the right properties even more difficult to find. But, great returns are possible. We are putting everything into building our capacity on the ground, and would love you joining us on this wealth creation journey.

Learn more about our “flipping” and buy to let models – Book your face-to-face consultation now!

Slots available from 22 October to 8 November

Deon van Druten has spent the last 11 weeks in Atlanta, but will be back in South Africa from 22 October to 8 November, before flying to Atlanta again.  Take advantage of Deon’s presence to arrange a face-to-face meeting with him and Anton to learn more about our “flipping” and buy to lets models.

Topics that will be covered during consultations on “flipping” are:

  • Why Atlanta?
  • How does the programme work?
  • What returns are possible?
  • How much money do I need to participate?
  • How does YDL make their money?
  • What are my risks, and what does YDL do to mitigate those?
  • What structure is used?
  • How do I join the programme?

If you’re interested in our buy to let model, the topics that will be covered are:

  • Where do we buy?
  • What yields are possible?
  • What are the risks?
  • What structure should you use?
  • How we take care of management for you

Should you wish to set up a one-on-one meeting with Deon and Anton while Deon is here please contact us here.