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Frequently Asked Questions
Below are the questions we hear most often from prospective investors. We include them here to help you make the decision to TAKE ACTION and let Atlas GCI turn you on to the exciting world of cash flow investing.
If you have additional questions, there is a link at the end to submit your questions.
1. Do you charge any fees or commissions?
No, we do not charge any fees or commissions.
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2. So how do you get paid?
Depending on how we buy the property, we may charge an assignment fee or sell it for a little more than what we bought it for, which is included in the sales price, to give you instant equity. Because we are able to buy properties at a discount, by paying cash and closing quickly, we can sell our properties to you at a wholesale price which is still 70%-80% of the retail price you would typically pay through a real estate agent. We do our due diligence to make sure that you get immediate equity when you buy. If you prefer, we are well connected and can refer you to the best real estate agents who will be able to help you buy great properties at retail prices without any mark-ups.
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3. How do you find your properties?
Most of our properties are acquired through direct marketing, signs, newspaper advertisements, our websites, and referrals from previous clients. We spend thousand of dollars on marketing each month to find great deals. By working with motivated sellers who sell at a deep discount we can pass the savings on to you. We also acquire properties from banks at rock bottom prices through our industry relationships.
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4. Do you require a deposit?
Because of the discounts we offer to clients, our properties move very, very quickly. To be fair to all our investors, we work on a first-come-first-serve basis. The properties we have control of are great deals that are way below the market, so are in very limited supply for a short period of time. Therefore, we will advertise the property until we get a deposit or it is sold so we can have the funds to find the next deal for our investors. However, if a property has a lot of bids, a deposit or up-front paid assignment fee will allow you to secure the rights quicker. The best thing to do is to sign up on our Atlas A List [link to page] so you will be the first one we will e-mail or call about an available property -- before we market it to the open market.
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5. When do you get paid your assignment fee?
Our transactions are done through a title company or attorney so the assignment fee is paid to our company at close of escrow or when your contingency period is up. There may be a discount for those who pay the assignment fee prior to close of escrow. Customer satisfaction is our number one priority and we are most interested in your business for years to come. We need to get paid for our services so we can have capital to get you more properties. Please be courteous to others and do your due diligence in a timely manner. Everyone will benefit if we can all help streamline the process.
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6. Will there be title issues?
Sometimes. We will do our best to clear them up, but title issues often come up when a title search is done through the title company. When title issues come up, you will have the option to renegotiate the deal or pass on it and we will refund your deposit. However, if you get a deal thats going for 65 cents on the dollar a little title issue shouldnt stop you. Also, any property that we get under contract will more than likely have all title and lien issues cleared. We will advise you of ways to protect yourself by purchasing title insurance.
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7. How do I find a Hard Money Lender?
Your Atlas GCI Consultant can help you with that. We have a variety of reputable Hard Money Lenders on our Dream Team in each market we serve.
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8. I am interested in a particular area, what do I do next?
After you get pre-approved for your mortgage, one of our Investment Consultants will discuss your investment goals and help you to develop an appropriate investment strategy that will help achieve your financial goals, tax goals and recommend areas that will meet your tolerance levels. All Atlas Group Consultants are active, knowledgeable investors. We have many years of experience. Your success is our #1 goal. We are here to assist you in every possible way.
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9. Can I use my own loan officer?
Of course! But please make sure the loan officer is licensed to write loans within the states you are interested in purchasing property. The loan officer should also be well versed in preparing and submitting non-owner-occupied loans.
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10. I am interested in investing. What do I do first?
The first step is to speak to one of our Investment Consultants and get pre-approved by a mortgage lender. Our preferred lenders will help you with a solid strategy for investing. As part of that strategy they will inform you how many homes you will qualify to purchase. Atlas Group Consultants will need this information to assist you in accomplishing your goals. If you do not have a lender, contact Atlas Group Consultants and we will refer you to one of our preferred lenders.
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11. What does "Rent Ready" mean?
"Rent Ready" properties do not need any fix-up or rehab. They are ready for a property manager to move a tenant in so you can start collecting rent checks. When purchasing an investment property, we recommend you spend the least amount of money out of your pocket as possible (without cutting corners). For properties that need some fix-up, we can help you manage the construction and cleanup to get the property ready for a tenant to move in.
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12. What does the acronym MSA mean?
MSA stands for a "Metropolitan Statistical Area." It is a United States Census Bureau definition of a geographic cluster of population. An MSA includes a city of at least 50,000 people or an urbanized area of at least 100,000 people and the counties that include these areas. There are over 350 MSA's throughout the U.S. However, not all areas are considered a Metro Area. MSA's are a group of cities and counties combined into one region, like the San Francisco Bay Area Metropolitan Area; Dallas/Fort Worth, Texas; or Seattle/Tacoma, Washington.
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13. Can I use my IRA to purchase an investment home?
Definitely! Using a "Self-Directed Real Estate IRA" is a very common way of purchasing safe investment real estate. This is a great alternative to the risky stock market or other types of investments. However, there are strict IRS guidelines that you must follow to avoid penalties and we recommend you consult and invest through a Third Party Administrator. Please visit Atlas Private Money, Inc. [link to page] or call one of our Consultants to learn more about how to invest in real estate using your self-directed IRA and investment capital.
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14. What if the property needs repairs?
The property manager will take care of all the repairs. In your management agreement, there are generally terms stating that you will authorize the property manager to take care of needed repairs under $200 or in the event of emergency. Please discuss this with your property manager. If you choose our recommended Lease Option Advantage Program, you have the option to pass it on to your tenants and not have to worry about maintenance issues.
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15. What costs will I have after I close escrow?
There may be an "up front" property management fee and usually there is a cost to have the utilities turned on. The electricity should be turned on when the property manager is showing your home/property. Keeping the AC and/or heat on, along with the ceiling fans moving, assures you will not have pipe damage or mildew. You will be billed directly from the utility companies in most cases. Be sure to ask the property manager what costs you will incur after the close of escrow in your particular situation.
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16. When will the property manager mail my rent check?
Most of our property managers receive rent checks from tenants by the 5th, deposit them, wait for the checks to clear, and disburse checks on the 15th to the 20th of every month. Be sure to ask the property manager when they mail checks to investors. Minor repairs may be paid by the property manager and then deducted from your rent check.
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17. How much will the property manager charge me to manage the property?
Property managers will charge anywhere from 6% to 12% of the monthly rent amount to manage your properties. Some will charge a one time "up front leasing fee" while others do not. An "up front leasing fee" can cost anywhere from $350 to an amount equal to one months rent. Some property managers will charge a second year renewal fee while others will not. This information is all part of the due diligence that needs to be performed prior to investing in a property.
Atlas GCI does have this information available for each area we recommend you invest in. We do not try to influence a property manager to work for less than their standard fee. Again, a good property manager is the key to making the experience of owning investment property fun and headache-free. Especially when you are 2,000 miles away! When we break it down, remember that a 1% discount in management fee equates to about $13.50 a month. A good property manager is worth their weight in gold!
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18. Is there another way to invest in real estate other than the conventional long-term buy-and-hold landlord strategy?
Yes! Sometimes, the long-term buy-and-hold may fit the parameters of some investors. However, it may not be for everyone, depending on your circumstance. The buy low and sell high long-term landlord strategy works in theory, but you must buy right and hope that no major expenses come up in order for you to realize that profit in the long run. Typically, the buy-and-hold landlord strategy requires a good 10 years until the loan balance starts to get paid down rapidly and the market cycle has appreciated over time for an investor to realize that equity.
The real benefit of selling real estate by using Atlass Lease-Option Advantage Program is that you get to decide how much profit you want to make and when you make it. If structured correctly, you can realize all three profit centers when doing a lease option:
- The option deposit up front.
- Monthly Cash Flow
- Back-end Spread
You can read about our Lease-Option Advantage Program and check out our Cash Flow Comparison to see if it fits your investment strategy. You can call or e-mail us for any further explanation.
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