- Bluefields “Certified Rent Ready” Program sounds too good to be true. How do you do it?
- Why should I invest in the Atlanta real estate market in Georgia?
- What type of renovation do you perform on your REO properties?
- What’s the advantage to an investor of purchasing a certified rent ready property versus buying a bank foreclosed property?
- Are there property managers in place?
- What are the benefits of using a property manager?
- What if I don’t want a property manager?
- What if I want to sell my rental property?
- What are my financing options for a Rent Ready home investment?
- Do I have to use your lenders when switching to conventional investment financing?
- Why do the conventional lenders now require 20% down?
- What type of credit do I need to purchase "Certified Rent Ready" properties?
- How long has Bluefields Capital, LLC been in business?
- Why should I work with Bluefields Capital to purchase investment property?
- Can I participate in your investment if I already own 4 properties?
- What about taxes and insurance?
- How do you know how much a property will be worth?
- How do I qualify?
1. Bluefields “Certified Rent Ready” Program sounds too good to be true. How do you do it?
Bluefields Capital was not immune to what happened to many lenders in this current real estate market. We had to take back properties. We decided to make the most of this great Atlanta landlords’ market by reducing our inventory as well as helping our clients procure good rental property with very little risk.
First, we hire and supervise our own contractors to renovate these REO properties to a very high standard… to the point where there is no deferred maintenance and curb appeal is evident.
Next, we have a professional market appraiser appraise the property, after which we set a wholesale price that is 80% of the appraised value.
Our “in house” property management team then procures good quality tenants, so investors don’t have to worry about that part of the “land lording” process, and are assured a positive cash flow.
We then qualify you, the investor, working with our conventional loan associates. Investors don’t even sign a purchase contract until we can assure them a smooth purchase experience. Our investor customers receive 20% equity in the property, as well as a tenant and positive cash flow starting from the day of their purchase.
You, and other investors are helping Bluefields Capital liquidate inventory. In return, we provide you a very low risk method of procuring rental properties in an excellent landlord’s market. So…we both benefit in this transaction.
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2. Why should I invest in the Atlanta real estate market in Georgia?
Bluefields Capital has always avoided the highly speculative markets in the past, and the majority of our loan originations for the past 8 years have occurred in Atlanta. Unlike other highly speculative markets, Atlanta has consistently experienced a steady 5% home investment appreciation per year. Atlanta also continues to grow with no end in sight, ranking No. 2 in the nation for total metropolitan area population growth in 2007.
Jobs and the lifestyle in Atlanta are attracting a lot of people. Atlanta and the surrounding areas added over 151,000 people just last year.
In the past seven years the Atlanta region added over 1 million people, more than any other region in the country. The Atlanta area population now stands at 5,278,904.
Atlanta is a place of opportunity for individuals wanting jobs, promotions or a place to start their own business. With stable job growth and excellent housing prices, the Atlanta population will continue to grow at a sustainable rate. Census projections show Atlanta and surrounding areas will gain over 4 million people in the next twenty years.
It makes sense that Atlanta is one of the best real estate investment growth cities in the nation. And because Bluefields is located in Atlanta and has originated loans in Atlanta for the past 8 years, we are highly experienced in this market.
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3. What type of renovation do you perform on your REO properties?
The word “renovated” can have several meanings. But with Bluefields Capital, the meaning of “renovation” is quite unlike any other investment property owner. Due to economies of scale, our properties recceive a total makeover - from top to bottom - by our own dedicated contractors to bring these properties up to their true value. Our contractors are proud of the renovations they complete for us. It is no wonder these properties are snapped up by renters that are screened and processed by our in-house property management company.
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4. What’s the advantage to an investor of purchasing a certified rent ready property versus buying a bank foreclosed property?
With a rent ready property, you’ve eliminated the common worries investors face when purchasing an investment property “as is:” ...managing the renovation, time delays, cost overruns, quality of construction, paying interest costs during the renovation and then securing a quality tenant and finding a conventional lender to refinance your investment. And, with a bank foreclosure, you never know exactly what the property will be worth after the renovation. With a Bluefields property the value is known up front and the risk eliminated.
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5. Are there property managers in place?
Bluefields Capital does something quite unique in this industry. After the renovation is complete, we procure tenants for the newly renovated property. Through our in-house property management company, we advertise and market the property, take applications for renters. We then perform criminal background checks, credit checks, employment checks, and landlord checks on each and every applicant. We select only the best qualified individuals, and execute a 12-month lease that is transferable to investment buyers.
Further, we have surveyed over a dozen property management companies in the Atlanta area to come up with the top two that we feel comfortable in referring to investors. Property management starts after the purchase. Or, you may choose your own property manager from dozens in the Atlanta area to handle your property. We encourage our clients to interview our referrals and make their own decision.
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6. What are the benefits of using a property manager?
Many of our client investors live out-of-state and away from their investment property and, so, must rely on a property manager to handle the day to day “land lording” duties. The property manager will collect the rents, handle tenant issues and report to you any maintenance issues that might occur. The overall benefit of a property manager is that you don’t have to deal with the day-to-day operation of managing rental property.
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7. What if I don’t want a property manager?
Good for you, and better for cash flow! We give you the option of whether or not to be directly involved with your renters. Many of our clients prefer to manage their own property. Since we have already renovated the property to a high rent-ready standard, and procured a good tenant before your purchase - the hardest part is done! You don’t have to spend money advertising, marketing, meeting prospective tenants at the property, interviewing, running background checks and placing tenants. And you will save the normal fee of the first month’s rent normally paid to the property management company for finding a tenant. The lease signed by the tenant is assignable to an investment buyer. Since property management fees are typically 8 to 10% of the rent, your cash flow will benefit accordingly.
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8. What if I want to sell my rental property?
Bluefields Capital, LLC recommends that investors hold onto rental properties for 3 to 5 years. Market conditions suggest a buy and hold strategy rather than a “quick flip.” A long term hold is the safest investment exit strategy in this real estate market. Additionally, investors avoid a short term capital gains tax which you would incur if the property is sold within 12 months after purchase. You could also loose the tax advantages you gain by owning rental properties.
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9. What are my financing options for a Rent Ready home investment?
All of our Certified Rent Ready single family houses qualify for conventional loans.
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10. Do I have to use your lenders for conventional investment financing?
No. You may use the lender of your choice. Our partner lenders offer competitive conventional financing rates, low fees, and are familiar with the Bluefields program. So you might also expect a speedier process. If you wish to use your own conventional lender, simply have the Broker or Loan Officer forward a “Pre-Approval” letter to Bluefields Capital.
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11. Why do the conventional lenders now require 20% down?
The sub-prime mortgage crisis is a direct result of individuals financing more real estate than they could afford. Because of this, the lending industry has tightened its standards by requiring Buyers to have up-front capital or “skin in the game.” Lenders now require verification of income and assets and proof of credit-worthiness (higher credit scores). The days of 95%- 100% financing are over and many investors are required to put at least 20% down if buying an investment property, and financing the purchase conventionally.
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12. What type of credit do I need to purchase "Certified Rent Ready" properties?
We are experiencing the tightest credit requirements we have seen in over 20 years. Due to the recent changes in the lending industry our clients must now meet certain financial requirements including a FICO score of 720 and above. Other qualifications include 8-12 months of liquid reserves, no bankruptcies in the past three years, a good employment history, and the financial wherewithal to support the investment property going forward.
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13. How long has Bluefields Capital, LLC been in business?
Bluefields Capital has been originating short-term acquisition and rehabilitation loans to real estate investors in the Metro Atlanta, Georgia area for over 8 years.
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14. Why should I work with Bluefields Capital to purchase investment property?
We at Bluefields Capital have created alternative investment products for experienced as well as new investors. Our turn-key residential investment rental houses in Atlanta continue to exceed our clients’ expectations. We turn REO distressed properties into strong rentals and quality assets with built-in equity and positive cash flow. Our program is designed to mitigate the inherent market risks that investors have always traditionally assumed themselves.
Our mission is to provide a unique alternative investment while creating a stable and predictable method for meeting financial and investment goals. We supply you, the client and investor, with a low risk "certified rent ready" investment property, that comes with built in equity and a positive cash flow from day one. By purchasing one of our properties, your time and interest costs are a fraction of what they were when you: purchased a distressed property, secured a hard money loan, risked your time and money while your contractor worked on the renovation. All this and high quality tenant placement before you purchase the investment, makes Bluefields Capital very unique in this industry.
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15. Can I participate in your investment if I already own 4 properties?
Currently, we may be able to work with you if you currently own 4 or more properties.
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16. What about taxes and insurance?
Bluefields Capital pays all taxes up to the time that you close on the property. Once an investor takes ownership of the investment property, you, the buyer, become responsible for transferring taxes into your name and procuring a Landlord’s insurance policy. We can provide names and numbers of several insurance companies and agents who specialize in this type of insurance. However, investors are free to shop and procure the policy that is the most competitive.
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17. How do you know how much a property will be worth?
With Bluefields’ “Certified Rent Ready” properties, there is no guessing. A real market appraisal is commissioned after the renovation is completed. A copy of this appraisal is available to you before you purchase.
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18. How do I qualify?
Whether this is your first investment property or you already own rental properties, you have come to the right place. Forget about all of the hassles a real estate investor typically had to face before Bluefields: finding real estate agents, managing contractors, investing your time, spending interest on renovations – and all of the headaches!
With Bluefields, we completely mitigate the property investment risks by supplying investors with a certified rent-ready property with positive cash flow, tenant in place, with instant equity at a wholesale price. Call 678-502-5000 (866-828-3348 toll free) to discuss which property may be right for you.
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