buyers Archives - Nyahwa Properties

5 Things You Should Know About Buying Georgia Investment Property With a Group

jenglish647 — Wed, 28 Jun 2023 19:11:09 +0000

of whom invested only $10,000?

Investment groups or real estate syndications are a unification of effort and ultimate decision-making that allows the group to benefit from the shared knowledge and experience of the members to earn a high return on more significant investment properties, such as apartment complexes. In addition, as rents and Georgia property values tend to keep pace with inflation, you have a built-in hedge against inflation.

While each member of the investment group shares in the monthly cash flow and divides the profits when exiting the investment, you also share the risks, so consider the group you work with carefully. Find a good team by performing due diligence; your checklist should involve a review of their track record for beginners. You will also want to explore their portfolio and consider how long they have been operating, the soundness of their entry and exit strategies in past dealings, and the financials to ensure plentiful reserves and conservative underwriting.

These partnerships are open to accredited investors with incomes of $200,000 or a net worth of at least a million dollars, excluding your primary residence. Investing in property with a group makes it easy for individual investors, referred to as passive investors or limited partners, to work together and locate investment properties in asset classes and geography for diversity.

Read on to discover five things you should know about buying Georgia investment property with a group.

Long-Term Investment

The first thing you should know about buying Georgia investment property with a group is that the investment is long-term, typically five to ten years. These funds are not liquid and not easily accessed in the event of personal emergencies. Therefore, funds used for investing in real estate with a group should be exclusive of those set aside as a reserve or remain liquid.

Landlord

In addition, investing with a group allows you the freedom to spend your leisure time as you wish. Because you are not involved in the day-to-day investment property management, the next thing you should know about buying Georgia investment property with a group is that while you have all the financial benefits, you will have none of the responsibilities of a landlord. Late-night calls about leaky roofs, collecting rent, or problems with other tenants will not be your day-to-day issues to handle.

Tax Benefits

You should also know about the tax advantages of buying Georgia investment property with a group. Among these is depreciation, which allows investors to pay a much lower tax rate on the investment; a loss could offset other passive income. In addition, you avoid capital gains taxes until the final sale of your holdings by utilizing the 1031 exchange laws to swap out one investment property for another.

Self-Directed IRA For Investments

Yet another of the things you should know about buying Georgia investment property with a group is that you can use your self-directed IRA to fund your real estate investment. This self-directed option feature of the IRA allows you to diversify your investment portfolio.

Nyahwa Properties

The experienced professional buyers at Nyahwa Properties LLC
can help you learn about the things you should know about buying Georgia investment property with a group. Let the Nyahwa Properties LLC pros guide you to the best investment opportunities available in Georgia, and don’t forget to ask about our current inventory of available properties. With a full-service team of professionals, from identifying great deals to professional property management and everything in-between, let Nyahwa Properties LLC be your team. Contact Nyahwa Properties LLC at (678) 665-4177.

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What Georgia Investors Should Know About All-In-One Loans

jenglish647 — Wed, 28 Jun 2023 18:07:57 +0000

Enter the all-in-one first lien HELOC, which functions much like a line of credit on a credit card; daily deposits in the account guiding the interest rate paid for the principal that day. Specific banks offer the all-in-one loan, which brings your primary mortgage, checking, and savings account together in a combination loan, which borrowers can access like a regular bank account for deposits and withdrawals. In addition, this feature allows you to borrow money and pay it back as often as you like over the 30 year loan period without refinancing. These loans are best suited to borrowers with stable cash flow or periodic large influxes.

All-in-one loans can drastically reduce the time it takes to pay off a mortgage loan, saving these borrowers thousands in interest. The interest on a fixed-rate home equity line of credit (HELOC) takes decades to overcome, adversely impacting your finances and decreasing your potential monthly cash flow. The savings in the all-in-one come through the much lower amortization on the mortgage loan. Read on to learn more about what Georgia investors should know about all-in-one loans.

Interest Saved Vs. Interest Earned

While you may earn a small amount of interest on your checking or savings accounts, Georgia investors should know about the interest saved by allowing the balance to apply to the principal on all-in-one loans, which is another one of the benefits the program offers.

Comparing Apples and Oranges

Amortization for a 30 year fixed or closed-ended with no early payments generally takes 21 years before your payment becomes about 50 percent interest and 50 percent principle. Georgia investors should also know that all-in-one loans are open-ended adjustable-rate mortgages, calculated by the daily outstanding principal balance times the current month’s fully indexed interest rate. Simple interest is calculated daily but charged at the end of the month. All-in-one loans are also tax-deductible.

First Lien

Just as it sounds, Georgia investors should know that one requirement of all-in-one loans is first-lien loans or first mortgages, and there is no need to worry about a second mortgage payment.

Eligible Property

Georgia investors should know that all-in-one loans are available to eligible borrowers, typically with at least 20 percent equity, for a new mortgage, refinancing an existing primary residence, second home, or investment property.

Loan Amount

Georgia investors should know that your eligibility with the lenders of all-in-one loans will be dependent upon the loan-to-value ratio (LTV) and your credit score. These loans are typically for around 80 to 90 percent of the home’s value. However, your LTV and credit score will significantly influence the final decision.

Financing Other Investments

Georgia investors should know about the power of accessing all-in-one loans to leverage their equity and attain more holdings, further increasing monthly cash flow and improving long-term passive income.

No Escrow

Unline conventional mortgage loans, Georgia investors should know that you will be responsible for paying your property taxes and insurance because all-in-one loans don’t involve escrow accounts.

Features

Georgia investors should know they can use debit cards, access mobile banking, and need no overdraft protection with all-in-one loans.

Online Simulators

Georgia investors should know that many sites offer simulators to compare the actual cost of your current mortgage payment against an all-in-one loan. Just plug in the numbers and see the financial advantage for yourself.

The experienced pros at Nyahwa Properties LLC are happy to answer any questions Georgia investors need to know about accessing all-in-one loans. In addition, the professional buyers at Nyahwa Properties LLC can help you evaluate your property’s value and find out if an all-in-one loan is right for you. Contact Nyahwa Properties LLC at (678) 665-4177.

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How to Invest in Georgia Real Estate Using Other People’s Money

jenglish647 — Wed, 28 Jun 2023 17:52:51 +0000

Using other people’s money to invest in real estate offers advantages that new and experienced investors should consider to grow wealth faster and open investment opportunities previously limited by your current cash on hand. But, whatever you do, before you invest in real estate, do your homework and make sure you understand the market, and consider finding a trusted mentor to help you with your investment strategy.

While some real estate investments are short-term, by and large, investors should consider real estate as a long-term investment strategy because the longer you hold property, the more your equity will increase. The adage that time is money holds especially true when investing in real estate; the sooner you get started, the better.

If you are ready to discover how you can take advantage of the opportunities available to allow you to get started, read on as we discuss how to invest in Georgia real estate using other people's money.

Finances

Before investing in Georgia real estate using other people's money, you need to know exactly where you stand financially to set a realistic budget with room to cover any unexpected expenses. When you ask for assistance with your investment business, you can present the numbers, which is the motivating factor for others to back your investments. You should also be aware of your general creditworthiness and review your credit report to correct any errors. Finally, you should also know the current market value of any assets or holdings you may leverage.

House Hacking

Purchasing a multi-family property and then occupying one unit yourself is known as house hacking. With this method, your tenants pay your mortgage, interest, maintenance, and housing costs, allowing you to invest in Georgia real estate using other people's money.

Leverage

Leveraging or borrowing money against the equity in real estate you already own will allow you to invest in Georgia real estate using other people's money. There are many options available for home equity lines of credit, HELOC.

Wholesaling

With strong people and negotiation skills, you could utilize wholesaling to invest in Georgia real estate using other people's money. Find motivated sellers with distressed property, place the property under contract, and then assign it or transfer the agreement to another investor at a profit.

Private Investors

You could locate wealthy individuals among family, friends, or business associates as private investors so you can invest in Georgia real estate using other people's money.

Owner Financing

Finding owners willing to finance your property purchase will allow you to invest in Georgia real estate using other people's money. Often for two years, allowing borrowers to repair credit and work towards saving for a sizeable down payment. Typically, the purchase price and interest on these contracts are higher than current market rates, for offering the opportunity to enjoy homeownership benefits without the finances to qualify with conventional lenders.

Hard Money Lenders

These lenders charge higher rates and short terms, typically focusing on house flippers, who rehabilitate distressed properties and sell quickly for a profit, allowing you to invest in Georgia real estate using other people's money. Hard money lenders either profit from the deal or take possession of the property if you fail to meet the terms.

Save yourself from making costly mistakes, work with an experienced professional investor from Nyahwa Properties LLC. At Nyahwa Properties LLC, we are happy to answer any questions or concerns you have about how to invest in Georgia real estate using other people's money. Let us help you find the best deals in Georgia, and don’t forget to ask about our current inventory of investment properties. Contact Nyahwa Properties LLC at (678) 665-4177.

Wholesaling

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Tips on Buying Real Estate with your IRA in Georgia – Nyahwa Properties

jenglish647 — Wed, 28 Jun 2023 17:10:34 +0000

While most people understand that real estate is an investment, many people are taking advantage of the qualified retirement accounts to purchase real estate as an appreciating or revenue-generating instrument like IRAs.

It’s really important to understand the tax implications, legal ramifications, and various other intricacies of purchasing Georgia real estate within your IRA.

So, let's dive into some tips on buying real estate with your IRA in Georgia!

Tips on Buying Real Estate With Your IRA in Georgia

If you don't have a self-directed type IRA... first off... you'll need to connect with your trusted financial advisor to find a reputable and low fee self-directed IRA. Or, connect with us and we can direct you to some very good self-directed IRA companies we've worked with in the past.

Open a Self-Directed IRA

The first step for purchasing investment properties in Georgia within your IRA is to open a “self-directed” IRA. You can do this by visiting a qualified financial advisor or other trusted fiduciary to act as the IRA custodian. A fee-only financial advisor can help you set up this account with minimal hassle, while a commission-based financial advisor may attempt to steer you clear of purchasing tangible assets within your IRA (he or she won’t earn much on the investment).

Types of Properties You Can Buy With Your IRA and Rules

You can own a wide variety of properties within your IRA, including residential, commercial, and industrial structures, as well as unused land. Many savvy investors choose to purchase parking lots, storage unit facilities, and other types of property that require little maintenance but generate steady income.

Your IRA cannot own any home where you live or vacation. Legally, you aren’t even allowed to spend one night in the property. You cannot avoid this restriction by “renting” the property from your IRA, or renting to your spouse, children, grandchildren, parents, or grandparents, nor can you use an IRA to purchase a property from close family. You could, however, rent property to a sibling, cousin, or friend. A solution that many investors implement is to purchase a home for their IRA, rent it out for income until retirement, then assume residence upon retirement.

How Does Income Work With Real Estate In An IRA?

The income generated in your IRA may not be used for your “personal current benefit.” This means that all income generated by the property must remain within the IRA until you retire. Selling the property will require you to leave all profits within your IRA. Also, property taxes, insurance, improvements, and other costs associated with the property must be paid by the IRA. Failure to comply with these regulations could disqualify your IRA, subjecting you to income taxes on the entire value of the property, plus a 10% early distribution penalty.

It’s important the all distribution rules associated with an IRA (or Roth IRA) including taxation, required minimum distributions, beneficiaries, and other factors do not change when using a self-directed IRA to purchase a property. There can be a huge upside to real estate in your IRA, but it’s best to know exactly what’s in store.

Learn About Our Properties In Georgia Call Us (678) 665-4177 or join our Investment Property Buyers List Today! >>

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Investment Property Tax Deductions List for Georgia

jenglish647 — Wed, 28 Jun 2023 16:50:51 +0000

Uncle Sam gives, and Uncle Sam takes away.

But in the case of buying local Georgia investment properties... you can earn investment property tax deductions for your Georgia properties.

For real estate investors, the United States provides the opportunity to earn a living purchasing investment properties... and holding those properties as investments, and of course the income from those properties is taxed.

But many new investors often overlook tax deductions that could have an impact on their bottom line. Today, we’re going to take a look that Georgia real estate investors can take advantage of.

Income Sources You Can Potentially Deduct

Repairs and expenses paid by rental tenants are considered income. This could include an emergency water heater repair that tenant took care of on his own. These repairs can be deducted.
In some cases, tenants will trade repairs and upgrades to a rental unit for a reduction of rent. These services can be deducted, so long as they’re claimed as income, and must be charged at fair market value. You cannot work out a deal with your tenant to fix a light switch for three months rent, then deduct that ludicrous “income” on your tax return.

Security Deposits

A security deposit is not taxable, based on the thought that your intent is to return this deposit at the end of a lease term. However, if a tenant breaks the lease and forfeits his or her deposit, you can claim the security deposit as income, so long as the deposit is used to make repairs.

These repairs are deductible expenses.

Make sure with your accountant or local property manager that they're handing your security deposit accounting correctly so you're not paying income tax on security deposits that you'll be turning right around and paying back when a tenant leave.

Other Common Investment Property Tax Deductions

The portion of your mortgage that is directed towards interest is 100% tax-deductible. Your mortgage lender will provide you a form in January stating this total.
Travel to and from the property to make improvements, show the property, or collect rent are considered work expenses, and deductible.
Certain deductible expenses that investment property owners take advantage of include taxes, insurance, tax return preparation costs, lawn & garden care, losses resulting from theft or “acts of god” (floods, earthquakes, and other disasters), legal and professional services.
Depreciation on the value of the property is deductible. This can be complicated to calculate, and it’s recommended to speak with a local Georgia accountant.
Your home office, if used to run your real estate investment business, can help generate tax deductions as well as long as the home office meets the minimum requirements (consult your tax advisor)

By taking advantage of all applicable tax deductions, investment property owners can increase their revenue and reduce their tax liability, opening the possibility to purchase additional properties. There may be other ways to decrease your tax liability. Talk to your financial advisor or certified public accountant, as they typically keep abreast of new tax deductions that Georgia investment property owners can claim.

Looking To Pick Up Some Local Georgia Properties? Call at (678) 665-4177 or, join our Local Investment Property Buyers List >>

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Foreclosure property listings in Georgia – what’s real and what’s not?

jenglish647 — Wed, 28 Jun 2023 16:06:50 +0000

There’s a ton of information on finding foreclosures in Georgia, and lots of services that will charge you for access to their data. In fact, we have our own foreclosure property listings in Georgia right here. Join our Foreclosure Property Alert List here >>

But...

How do you tell the difference between credible information and useless marketing gimmicks with local foreclosure properties?

Foreclosure property listings in Georgia

Some services – like foreclosure.com – are doing a great job consolidating information from many sources. Investors like us use them all the time because it’s cheaper and faster to use their information rather than combing through the classifieds ourselves. But the major drawback with online services like that is the information in them can be a tad old.

You may be looking at foreclosures that other investors who got their info directly from the courthouse got weeks or months ago.

We also use other sources too.

Lots of real estate agents who “specialize in foreclosures” publish their own lists, but these are often just marketing gimmicks to trade your contact info for stale goods.

There’s no harm in signing up for free lists – if the info is no good, just unsubscribe.

You’ll probably spend a lot of time getting excited about properties that are already sold or no longer available, but that’s part of the learning curve when you’re just starting out in the foreclosure market.

When you’re evaluating a new list to see if it’s worthwhile, compare the properties on the list to what’s published in other lists.

If you consistently don’t see any new or exclusive information on the list that you can’t get elsewhere, don’t use it.

We’re not real estate brokers, so we don’t sell information or give away crummy lists.

The properties we advertise are our own investments that we've picked up or have on contract, so it’s a short but exclusive list.

We’ve built a small, tight network of long-term investors who want to purchase credible investment properties in Georgia.

We find deep discounts and pass them along – while keeping a reasonable return that allows us to stay in business.

When we lock up a great deal on a cheap foreclosure (or non-foreclosure - distressed house), we put it out to our list and sell it fast.

If you’re ready to buy and looking for cheap property, sign up – you’ll only hear from us with exclusive deals in Georgia you won’t find anywhere else.

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How to Bid On a Short Sale Property Georgia – Nyahwa Properties

jenglish647 — Wed, 28 Jun 2023 14:51:12 +0000

Short sale properties can be a great source of income for investors and a great deal for home buyers.

It’s important to keep in mind that a short sale is one where the bank has approved a loss on a current loan. They’re losing money, so they want to unload.

Generally, the current owner is in a rough time, or wouldn’t be facing the loss of the property. Difficult times mean tremendous amounts of stress and emotional turmoil.

How to Bid On a Short Sale Property Georgia

Managing relationships is always the key to any negotiation.

For the bank, a short sale is an unemotional transaction. An owner may be letting go of a property with great emotional significance.

You’ll have to take different approaches with every party to a short sale transaction to get the best result.

Data is on your side. Look up comps to get an accurate picture of the market, and seek out justifications for your offer prior to submitting a written bid.

In a short sale, you have to get agreement from the owner and the bank(s) involved on the purchase price and the terms.

Getting written permission from the owner to discuss terms with the bank can be really helpful, but check with a good lawyer to make sure you have the right documents before you ask the seller to sign anything that might violate Georgia law.

Your relationship skills are super important during this process. The bank will often require days, even weeks, to respond to offers and move forward. Often they request additional BPOs (Broker Price Opinions) or modify appraisals, and they sometimes like to involve different negotiators.

It can be intensely frustrating, so prepare yourself and don’t stress.

Get fully approved for any loan you plan to take long before you make an offer. Make sure your lender can close at the drop of a hat, because once the approval comes for the short sale transaction you need to be ready for escrow.

We secure properties via short sale, and we work with many investors and buyers who are looking for great deals on properties in the Georgia area.

Give us a call (678) 665-4177 or get in touch anytime to find out how we can help you!

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