In addition to residential sales, my team is heavily involved in helping investors profit by investing in foreclosure properties. Mainly by purchasing small single family homes in Atlanta foreclosure market at 60% to 70% of future value, rehabbing them, and quickly reselling them for a healthy profit. Most of these properties are in blue collar neighborhoods that we resell to first time buyers using FHA insured financing. Most of the foreclosed properties we purchase were also financed by FHA insured mortgages.
The one wrinkle in this buy, rehab, and resell process was the arcane Housing and Urban Development anti-flipping 90 day rule 24CCFR 203.37a(b)(2). This rule "provide that a rehabbed property would not be eligible for another FHA insured loan if the contract of sale was executed within 90 days of the prior acquisition by the seller and the seller was not exempt from this rule". What this meant in plain non-bureaucrat English was that if an investor purchased the property...
Our environment, the world in which we live and work, is a mirror of our attitudes and expectations.
Here, sipping my morning coffee and digesting the news of more Georgia Bank failiures.
What's striking isn't that more banks have failed.
Truth is, I've come to expect news like this.
And that, to me, is the more compelling story.
It's there, in my approach, that work can be done and change happens.
You may have read my blog post on Forbes ranking Atlanta Real Estate #13 on the list of best cities to buy a home. After reading the article...I did a little poking around other news sites to see what they have to say about the Atlanta housing market. A few google searches later...I found an article over at CNN Money written in 2007 titled "How to Play The Real Estate Bounce Back."
An interesting subject for an article written in 2007, for sure. But it's the "sub heading" that really got me curious. Here's what it said:
The housing market may be melting down, but Business 2.0 worked with Moody's Economy.com to identify 10 cities that have just about hit rock bottom - and offer opportunities for savvy investors to get in while the getting's good.