Johns Creek Homes and Real Estate

homer_simpson said:
I wonder if we can get a group buy going for some JC homes.

I'll start a sign up sheet.

1. Homer - 3 John Creek Homes.

2. Bennyboy??
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To all the folks talking about buying in J.C.: One of the points Baby Irvine has made several times over the years is that he believes people should invest "in their own backyard". Unless you're planning a move down south like he did...
 
I guess those FCB's should invest in their backyards too in China?  What's their backyard... North Korea??  I wonder what the cost of housing is in Pyongyang... Let me call up my homie Kim Jong real quick..
 
Annabanana,

Here are some information that you requested. The city is so new, the data is not so organized like Irvine. I even went to the county court house on Wednesday to get information on Notice of Defaults for pre-foreclosure opportunities in Johns Creek and I was surprised to find out that they do not keep such records. I now have to get very creative to get access to this data. If you want get NOD data for Irvine, EASY, all you have to do is ask Trojan for his login in access for foreclosure radar and check out all the NODs in Irvine, but no such data currently exists in Johns Creek.
http://www.johnscreekga.gov/about/about/demographics- demographics information.

Data from 2010 Census

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As you can see from SoCal's link matches the data of census 2010 that 55.6% of Johns Creek households are in the $100k club.

35cipax.jpg


Asian population of Johns Creek.
2007 the Asian population was 13%
2010 the Asian population is 21%
2013 the Asian population is 30%
 
SoCal said:
bones said:
Anyone else find this thread obnoxious?  Really?!?  I'm going to write a book so you too can achieve my "success"?  I don't know Baby Irvine from Joe Schmoe but 5 bux says he's korean.  Maybe this is all one big joke and I just don't get it?
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Believe me, Baby Irvine is being extremely humble about his background. It is not my info to share but his. Get to know him and maybe you will understand more about his roots and his mentor. I really wish he would post about it here because it explains a lot, imho, and would definitely make an excellent book! It is exciting stuff that a lot of people would brag about. But that's just not him - he's just not a bragger which is cool... rare is the person. Aside from that, I would describe him as: Well-read, uniquely-experienced, intelligent, motivated, and last but not least: quirky. You kind of have to filter out the quirky to get the really good stuff. But the quirky is entertaining, too.  :)
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SoCal said:
bones said:
Anyone else find this thread obnoxious?  Really?!?  I'm going to write a book so you too can achieve my "success"?  I don't know Baby Irvine from Joe Schmoe but 5 bux says he's korean.  Maybe this is all one big joke and I just don't get it?
Click to expand...

Believe me, Baby Irvine is being extremely humble about his background. It is not my info to share but his. Get to know him and maybe you will understand more about his roots and his mentor. I really wish he would post about it here because it explains a lot, imho, and would definitely make an excellent book! It is exciting stuff that a lot of people would brag about. But that's just not him - he's just not a bragger which is cool... rare is the person. Aside from that, I would describe him as: Well-read, uniquely-experienced, intelligent, motivated, and last but not least: quirky. You kind of have to filter out the quirky to get the really good stuff. But the quirky is entertaining, too.  :)
Click to expand...
SoCal said:
bones said:
Anyone else find this thread obnoxious?  Really?!?  I'm going to write a book so you too can achieve my "success"?  I don't know Baby Irvine from Joe Schmoe but 5 bux says he's korean.  Maybe this is all one big joke and I just don't get it?
Click to expand...

Believe me, Baby Irvine is being extremely humble about his background. It is not my info to share but his. Get to know him and maybe you will understand more about his roots and his mentor. I really wish he would post about it here because it explains a lot, imho, and would definitely make an excellent book! It is exciting stuff that a lot of people would brag about. But that's just not him - he's just not a bragger which is cool... rare is the person. Aside from that, I would describe him as: Well-read, uniquely-experienced, intelligent, motivated, and last but not least: quirky. You kind of have to filter out the quirky to get the really good stuff. But the quirky is entertaining, too.  :)
Click to expand...

Humble?  I guess you and I disagree on the definition of that word.  I would not use humble to describe someone that gives us a play by play of his success, wants to write a book about it and informs Internet strangers that he makes 75% of a dr's salary.  Although I guess he was humble enough not to share what kind of dr and where she works. But having said all that, it's obvious he is serious and this isn't a joke and ppl really seem interested in investing in some random location they live 3000 miles away from. So more power to him.
 
bones said:
Humble?  I guess you and I disagree on the definition of that word.  I would not use humble to describe someone that gives us a play by play of his success, wants to write a book about it and informs Internet strangers that he makes 75% of a dr's salary.  Although I guess he was humble enough not to share what kind of dr and where she works. But having said all that, it's obvious he is serious and this isn't a joke and ppl really seem interested in investing in some random location they live 3000 miles away from. So more power to him.
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To answer the question, yes, you read me right. I said humble. He doesn't toot his own horn about everything that he could. I actually can't stand boastful pukes either. So, I do totally understand where you're coming from 100%. It's a #1 Turn Off. (There is actually a person currently on this site who irritates me because of that. :) ) But Baby Irvine has had some tough things to deal with in the last year. (It's all recorded back in the posts.) He's finally got some good things going his way and he's excited about it. Let's dig deep and be happy for him. Your last couple posts sound like you might be a little jealous. No need to be. I'm sure he's way more loaded than my household is currently but I'm still super happy for him -- he deserves it. We're all E-friends and can be happy for each other. When it's your turn to have good news, we'll congratulate you, too!
 
Hey Zovall,

I know you've been wanting to invest in Johns Creek for some time now and I want to help you out if i can. Here are couple of concerns i have.

1. 99% of the property managers are no good. I would never trust any of them to screen my tenants. It would probably be best for you to buy something new, otherwise you will need a team : general contractor / handman to fix up an older home to be rent ready. It will also be difficult for you manage a high maintenance home from 3000 miles away. Finding a quality General Contractor who does good work for a reasonable price are not easy to find. The larger PMs don't do a good job and the smaller ones are strictly required to have a broker's license to property manage for others and many are fly by night. Here in GA, real estate agents are not permitted to property manage. .

There is going to be a new town home development i am aware of that feeds into Johns Creek Elementary school which will start in the high $170s, low $180,000. These townhomes are going to be built in a highly desirable Single family subdivision. Knowing this market really well, I know that these townhomes will easily rent at a 10% cap rate. A $180,000 townhome will rent easily at $1500. You're property taxes will run around $1700 a year. Currently, there is 30 - 45 day inventory of rentals within this school cluster.

Please feel free to ask me any questions you may have.

Panda
 

zovall said:
Baby Irvine said:
The first reason is that Johns Creek is still a very low profile city. 99% of locals do not see the connection between Irvine and Johns Creek like i do.
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Thanks for sharing your numbers and showing how it can be done.  You've been talking about John's Creek since the IHB days.  I've talked to you in the past about this (and I know you said I should invest in an area local to me).. I'd like to buy a JC home and rent it out.  After paying a property manager, what would the returns be like? 
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When calculating a cap rate, you need to use the net operating income....not the gross potential rental income.  Take the rent subtract a market vacancy rate (1-month vacancy if you want to be conservative), property tax, HOA, insurance, property management, repairs & maintenace, and reserve for capital improvements.  Once you take all those items into account, your cap rate is closer to 6%.  Remember that a higher cap rate typically indicates a higher level of risk in the rental market (like a property in Detroit).
 
Thanks Trojan.
You make money 4 ways in investment properties: Appreciation, Amortization, Cash Flow, and Tax benefit / Depreciation, you need to command a higher cash flow in C and D neighborhoods as there are higher turn over rates, higher risks, and higher costs of repairs & maintenance. In the A neighborhoods, the cash flow potential is lower, but higher potential for appreciation. In a new home in a desirable location you will not incur much repair & maintenance costs and turn over will be minimal. You want a tenant who will stay a long time, pay their rent, and take care of your property for a very long time, as turn over is costly to the landlord. When you buy and hold for the long haul, you will realize that the amortization and cash flow is very small compared to appreciation and the tax benefit of owning investment properties. The 4% appreciation estimate I used for Johns Creek is very conservative. Brand new deals on 4 bed SFRs I bought for $170k is now selling for new construction for $250k. The play in Johns Creek is more appreciation than cash flow. I require a minimum cash on cash return of 10% when i buy.

If I felt that I could have lived in Irvine and invested in Johns Creek, I may of considered that option, but there is information that only locals would know that outsiders would not and having the insider information in an area is key in knowing where to invest. Just in the last 2 years I've lived here, I have witnessed so much changes here: roads widening, new fortune 500 companies relocating from the north, raw land that is now developed with new commerical, shopping centers, hotels, banks, and large inflow of population and demographics shifts etc. Johns Creek is very different from what i saw here just in the last 2 years. Only the locals will be able to see this.

USCTrojanCPA said:
When calculating a cap rate, you need to use the net operating income....not the gross potential rental income.  Take the rent subtract a market vacancy rate (1-month vacancy if you want to be conservative), property tax, HOA, insurance, property management, repairs & maintenace, and reserve for capital improvements.  Once you take all those items into account, your cap rate is closer to 6%.  Remember that a higher cap rate typically indicates a higher level of risk in the rental market (like a property in Detroit).
Click to expand...
 
Uh-oh. Hold on to your Nascar hat.

Atlanta, GA was just rated the #1 Redneck City in the U.S.
http://www.movoto.com/blog/top-ten/10-most-redneck-cities/

The criteria used:

- Percent of population that didn?t complete high school
- Number of gun and ammo stores per capita
- Number of taxidermists per capita
- Number of cowboy boot stores per capita
- Number of country radio stations per capita
- Number of NASCAR race tracks close by
- Number of Walmarts per capita
- Number of riding lawn mower/tractor repair shops per capita

The news has also spread across the pond:http://www.dailymail.co.uk/news/art...ing-cowboy-boot-wearing-country-bumpkins.html
 
Baby Irvine said:
Thanks Trojan.
You make money 4 ways in investment properties: Appreciation, Amortization, Cash Flow, and Tax benefit / Depreciation, you need to command a higher cash flow in C and D neighborhoods as there are higher turn over rates, higher risks, and higher costs of repairs & maintenance. In the A neighborhoods, the cash flow potential is lower, but higher potential for appreciation. In a new home in a desirable location you will not incur much repair & maintenance costs and turn over will be minimal. You want a tenant who will stay a long time, pay their rent, and take care of your property for a very long time, as turn over is costly to the landlord. When you buy and hold for the long haul, you will realize that the amortization and cash flow is very small compared to appreciation and the tax benefit of owning investment properties. The 4% appreciation estimate I used for Johns Creek is very conservative. Brand new deals on 4 bed SFRs I bought for $170k is now selling for new construction for $250k. The play in Johns Creek is more appreciation than cash flow. I require a minimum cash on cash return of 10% when i buy.

If I felt that I could have lived in Irvine and invested in Johns Creek, I may of considered that option, but there is information that only locals would know that outsiders would not and having the insider information in an area is key in knowing where to invest. Just in the last 2 years I've lived here, I have witnessed so much changes here: roads widening, new fortune 500 companies relocating from the north, raw land that is now developed with new commerical, shopping centers, hotels, banks, and large inflow of population and demographics shifts etc. Johns Creek is very different from what i saw here just in the last 2 years. Only the locals will be able to see this.

USCTrojanCPA said:
When calculating a cap rate, you need to use the net operating income....not the gross potential rental income.  Take the rent subtract a market vacancy rate (1-month vacancy if you want to be conservative), property tax, HOA, insurance, property management, repairs & maintenace, and reserve for capital improvements.  Once you take all those items into account, your cap rate is closer to 6%.  Remember that a higher cap rate typically indicates a higher level of risk in the rental market (like a property in Detroit).
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Click to expand...
The cap rate and a cash-on-cash return are two different things.  The cap rate is basically your yield when buying a property for all cash with no debt and a cash-on-cash return is the net cash flow that you generate versus the total cash investment you make into the property.  To obtain positive leverage, the interest rate on your loan needs to be lower than your cap rate.  The 10% return that you were talking about was probably the cash-on-cash return using financing.  Remember when you budget, you want to use the same cap rate going in as you do going out and use a 2-3% rate of inflation for your rent (that's what I've seen used by successful real estate investors in my banking days).  Any upside that you get in appreciation beyond the growth of your rent is icing on the cake.  Sounds like you got a great start and I'm sure you will do very well because you are sticking to what you know best.  ;)

Also, the other thing that those real estate investors would tell me is that they would never buy any residential property that they wouldn't be willing to live in them themselves if things out rough.  So you are definitely following that advice too.  :D
 
Baby Irvine said:
Hey Zovall,

I know you've been wanting to invest in Johns Creek for some time now and I want to help you out if i can. Here are couple of concerns i have.

1. 99% of the property managers are no good. I would never trust any of them to screen my tenants. It would probably be best for you to buy something new, otherwise you will need a team : general contractor / handman to fix up an older home to be rent ready. It will also be difficult for you manage a high maintenance home from 3000 miles away. Finding a quality General Contractor who does good work for a reasonable price are not easy to find. The larger PMs don't do a good job and the smaller ones are strictly required to have a broker's license to property manage for others and many are fly by night. Here in GA, real estate agents are not permitted to property manage. .

There is going to be a new town home development i am aware of that feeds into Johns Creek Elementary school which will start in the high $170s, low $180,000. These townhomes are going to be built in a highly desirable Single family subdivision. Knowing this market really well, I know that these townhomes will easily rent at a 10% cap rate. A $180,000 townhome will rent easily at $1500. You're property taxes will run around $1700 a year. Currently, there is 30 - 45 day inventory of rentals within this school cluster.

Please feel free to ask me any questions you may have.

Panda
 

zovall said:
Baby Irvine said:
The first reason is that Johns Creek is still a very low profile city. 99% of locals do not see the connection between Irvine and Johns Creek like i do.
Click to expand...

Thanks for sharing your numbers and showing how it can be done.  You've been talking about John's Creek since the IHB days.  I've talked to you in the past about this (and I know you said I should invest in an area local to me).. I'd like to buy a JC home and rent it out.  After paying a property manager, what would the returns be like? 
Click to expand...
Click to expand...

If there are no good property managers, how do you manage a home from 3000 miles away?  Knowing that the owners are so far away, would renter's be more inclined to do things they might not otherwise do?

 
Panda/Baby Irvine, don't feel too bad for me that a lot of my clients are buyers.  Most all of my buyers are very strong financially and know exactly what and where they want to buy.  I'm also fortunate that the majority of my business now comes from referrals and repeat business.  I've done a handful of sale and lease listings in the past 6-9 months and those clients seem to be very happy with my variable commission structure.
 
Panda's Mistakes...

1. $20,000 of damage, 6 feet of water in the basement with no flood insurance.
2. A Contractor from hell whom i found on Craigslist.
3. Tenants I was a day away from eviction court

Hopefully you will not make the same mistake I did... coming soon.

July 22nd, 2011. My wife and I were excited to move to our new home in Atlanta and we were out all day looking for decorations and exploring our new surrounding area. I had forgotten to take my phone with me and I got home around 7 pm I received 20 missed calls from my tenant. This was the beginning of a painful 7 month process for the Panda.


33yhxck.jpg
 
Baby Irvine said:
Panda's Mistakes...

1. $20,000 of damage, 6 feet of water in the basement with no flood insurance.
2. A Contractor from hell whom i found on Craigslist.
3. Tenants I was a day away from eviction court
Click to expand...

You can't be right all the time.  Shot for the Pareto rule and quickly address your losers and you'll be way ahead.
 
How was everything resolved with the flood and contractor from hell? Is everything good now?
 
Hey socal, i will definitely share my story. I am driving back now from pensacola beach, so I will write more later.

Hopefully you will get some thing out of it. Long story short... I trusted a pm company to screen my tenant, which he did not carefully do. I chose the cheapest contractor instead of checking references and quality. Endless excuses of why the work wasnt getting done... dog died, sister died and going to hospital, getting a divorce, wife is suing him... but making sure to milk me as much as he can.

The lord definitely saved me on this one.
 
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