How I Help Cherokee County Landlords Buy Investment Homes for Rental Income
Sandra Watkins is The Rental Nerd. Sandra is the Broker and owner of Georgia Rental Group. In this blog post, Sandra explains how she helps landlords to acquire investment properties for monthly cash flow.
Your Return on Investment is Important
I understand that landlords buy real estate to make profit. Landlords expect their rental property to put money into their pocket for monthly cash flow.
A landlord may not care about the existing paint or carpet colors in a potential investment property. If the walls need to be repainted and if the carpet needs to be replaced I know the landlord buyer wants to know how much will it cost.
When deciding to move forward with a real estate purchase, a landlord will run the numbers. Landlords are investors and they have minimum criteria for a Return On Investment (ROI). They calculate the Cap Rate, cash-on-cash return, and monthly cash flow. I provide the information a landlord needs to make a good decision about buying a rental unit, such as the tax payment and HOA fees. I have vendors who can bid on the cost of repairs and I will provide any other information about a property for a landlords insurance company.
I Will Make Blind Offers on Rental Properties
As a real estate agent for landlord investors, I will make blind offers on rental properties. Some landlords like to make offers on houses they believe would make good rental property to add to their portfolio. I will research information you need so a landlord can make an informed decision about how much to offer purchase a property.
If the listing doesn’t have any pictures, or few pictures, I will visit the property to take pictures for my landlord client.
I’m Active During the Due Diligence Period With Landlords
I know that as investors, landlords want to make full use of the due diligence period. The due diligence period is not simply a time to schedule a home inspection. It’s a time to do a lot of work.
Once a property is under contract I will help verify that the data in calculations used to make the original offer are correct. I can help find out if the tax rate and HOA fee is correct in the listing. And if the housing association limits the number of rental units in the subdivision, I will verify if the unit being purchased is eligible to qualify for a rental unit.
In addition to my property management inspection, the landlord may send out a home inspector and a contractor to the property during the due diligence period. I will make sure they have access to the property for their inspections.
As an agent involved in the transaction I help maximize the effectiveness of the due diligence period by responding to the requests promptly. For example, if the property is currently rented, I’ll get a copy of the lease.
Getting the information and data the landlord needs as quickly as possible will help the landlord determine whether or not to move forward with the transaction.
Landlord home buyers will often use the full due diligence period. If an 11th hour termination is necessary, I’m available to get the paperwork to the seller’s agent so that you have your earnest money returned to you.
I can also help the landlord to get multiple properties under contract simultaneously and will manage the due diligence period for each transaction.
The Earnest Money Deposit
Many investors prefer that the closing attorney hold the earnest money deposit rather than the Broker. Whenever necessary, I will get the wiring instructions from the closing attorney so the landlord can wire the money directly to the closing attorney’s escrow account and I will make sure the seller’s real estate agent is informed that the earnest money has been deposited. This is an important step in the buying process that keeps the landlord in compliance with the terms of the purchase contract.
Investment Company Corporate Documents
Many landlords buy investment property in the name of their investment company, such as an LLC. I will need copies of the basic corporate documents for some of the offers, especially if a bank is involved in the transaction as either the owner or for third party approval with a short sale. At least the basic documents such as the Articles of Organization or Articles of Incorporation will be needed.
Sometimes selling banks can be invasive with their requests regarding the ownership of a landlord’s corporation, such as asking for the birth dates off the corporate officers. As the agent for the landlord buyer, I know how to navigate through the process so that the transaction can move forward without the landlord having to turn over documents and information that are not actually needed.
I know how to tell banks to mind their own business without jeopardizing a transaction.
Verifiable Proof of Funds
As the agent representing a landlord buyer I will need updated proof of funds periodically if multiple offers are being made over a period of time. Update proof of funds may also be needed on transactions that take time to get to the closing table, such as a foreclosure or short sale.
Proof of funds can be in the form of a bank statement or a pre-qualification letter from a lender.
Landlords Can Close on Multiple Transactions
As an agent for landlords, I can help in the purchase of multiple properties over whatever time period they are in the market to acquire additional investment rental units.
And sometimes I have sellers with properties that match a landlords criteria perfectly. In some cases, these sellers are other landlords who are happy to sell their property to another landlord for a fast transaction. Sometimes landlords will sell their entire portfolio of homes and ask me to find another landlord buyer.
Increase Your Cash Flow with Cherokee County Area Rentals
I represent property owners throughout North Metro Atlanta. Many investors have found that Cherokee County and the surrounding counties, Cobb, Pickins, Bartow, and North Fulton, are great places to buy and hold cash flowing investment property. I’m always available to help a landlord acquire rental property, so if you want to increase your rental income, please call or text me on my cell phone at 770-324-3680.