Thursday, April 18, 2013

Investors Turn Home With Rental Atlanta foreclosed

After millions of Americans to lose their homes to foreclosure, bargain-hunting investors stepped in to buy them. At first, many investors seemed to view the properties quickly with only a slight improvement or repair. Over time, as it would be difficult to find buyers, investors began renting the home en mass increasing number of people in need of housing, including rental lost their home to a new study by Dan Immergluck foreclosure. A, a professor at the Georgia Institute of Technology, was one of the first on-ground reporting on the effects of investor experience in the rental market. Immergluck the trend in Atlanta as part of a four-city study by the Urban Institute What Works Collaborative. (Case study is not yet published). He found more than 8,000 investors making purchases in the city between 2008 and 2011. In the past, investors are buying very active in neighborhoods with high poverty and vacancy rates, lower home values, and a large African American. As the housing problem spread among income, investors followed.How investor to buy a home is important for the community. When homes go into foreclosure, was auctioned off on the Courthouse steps. If the house does not sell there, it belongs to the bank, to sell directly to investors, usually in plural agreement, or in the open market through a public listing. Investors Immergluck said they cost between $ 19,000 and $ 70,000 to buy and renovate the house and that they expect the annual rate of return of about 8 percent to 15 percent of their rent that house sold in bulk out.Although lower cost or auction, buy it in a way It's risky, said some investors were interviewed in the study, because they do not get a chance to go to the properties before you buy it. Some say they're trying to visit the house and his colleagues in another window even Immergluck said he went home to tell people that he worked for a bank. But investors can easily lead to properties in poor condition, raising the possibility that they can dispose of property and cut their losses. They may let the house sit empty and deteriorate than to pay for maintenance, or they may sell to investors predators more landlords.Some retain the properties of their own, while others hire outside managers to make repairs, collecting rent checks, and manage the day-to-day activities. Manager is a weak link, reducing profits for investors and become unresponsive to tenants. Immergluck One investor said: "C-The best work is not a property manager" investors often find managers are not aligned incentives to owners. For example, some property managers are paid for signing up new tenants, creating more motivation to keep existing tenants happy by providing prompt service and repairs.Since time covered in the study Immergluck, a new trend has hit Atlanta. Leading national private equity firms such as Colony Capital and Blackstone Group (BX) has dipped of distressed homes, especially in middle-income neighborhoods. New buyers more likely to buy property at auction in Courthouse, and investors working in the area said the new investors are paying too much, something that big investors decline. "A big question is what they do when they get unfavorable nature," Immergluck said. He supervise them, as well as the relevant case studies in other cities, as investors become landlords of single family homes at an unprecedented rate.

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