INVESTOR ALERT: Now Is the Time to Buy Atlanta Raw Land and Vacant Building Lots in Atlanta
Investors need to act now if they are interested in capturing raw development land and vacant building lots at the bottom of the market. A perfect storm of events has created excess inventory of land and lots in the Metro Atlanta market and investors in the know need to make their moves now.
Atlanta Bank Failures Contributing to the Excess Inventory of Land and Lots. Atlanta has had more than its share of bank failures in the past 12 months and most of these banks were heavily invested in loans to builders and developers. Regulators recognized the balance sheets of these banks were upside down and moved in to secure the remaining assets. Loans made to developers who had no cash flow were a primary reason these banks became insolvent. Many of the lots and land have or will be soon moving through the foreclosure process and the inventory has to be sold. As the used car salesmen say: all offers will be considered.
High Risk Game Not for the Faint of Heart Atlanta Real Estate Investors. Raw land and vacant building lots are not liquid investments. Investors may be holding these assets from 5 to 10 years before the market rebounds and builders need lots for the construction of new homes. There is also the matter of yearly taxes and possibly HOA fees. Lots will need to be mowed and possibly secured from dumping and vandalism. The carrying costs could add up.
Returns Could Justify The Risk for Atlanta Real Estate Investors. Lots going for $10,000 to $15,000 in today’s market could rebound to the $50,000 to $80,000 price ranges they once held. Or not. We don’t know what the future will bring. We do know that lots have sunk about as low as they can go at this point. Lots are selling for less than the cost of the materials and labor the land developer put in to bringing these lots to market. The land under the lots is essentially free. There is no overhead or developer’s profit being added in to the market valuation of most building lots at this point in time.
Atlanta Real Estate Investors Generally Have to Buy Packages of Lots. If you are looking to buy building lots, expect to be forced to buy a package of lots in a subdivision. This may range from 5 to 10 lots in most cases. Much larger packages will also be available. Most packages will be in developments where some construction has taken place and then just ground to a halt when the economy put on the brakes on the builders construction of new homes. Expect to pay cash for lot packages as no traditional financing is now available for lot purchases.
Atlanta RAW LAND is a Bit of a Crap Shoot. If you really want to roll the dice raw development land may be the vehicle of choice. The upside is unlimited. Unlike lots, however, there may be more downside yet to come as the shakeout of developer lenders continues. Raw land going for $100,000 an acre can be bought for pre 2000 prices right now. Each deal is different and you need to have cash on hand to make the purchase as very few lenders are stepping up to the plate right now to make loans on raw land. If your investment horizon is 10 years plus then you are probably low on the risk side. If you need to sell in three years, then you might have a big problem. Liquidity is extremely limited in this category. One consideration is to buy raw land that has already been zoned for re-development. This regulatory process now takes 12 to 24 months and buying pre-zoned land will put you in a position as an investor to lead the market into any recovery.
Call or text Sally English at 404-229-2995 for more information about buying Atlanta building lots and Atlanta raw land as a real estate investment. Raw lots and land would make a great hedge against inflation.
Now is the time to buy raw land and building lots in Atlanta Georgia.