Cobb County Foreclosures

First off, thanks to Ryan Ward for helping me to publish this chart.  I have been collecting this data for years and just couldn't figure out how to convert my spreadsheet into an image suitable for uploading.  The solution was elusive and he explained it in about one sentence.  Thanks Ryan.

OK, on to the data.  We were looking forward to a slow May at the auction, but you can see that it will be anything but slow.  There aren't as many investors as in past years, but it certainly isn't due to the supply of foreclosures in our county.  Most people don't have the means to participat in a Georgia non-judicial foreclosure auction since the purchaser must pay for the property in cash. 

This limitation gives birth to the notion of wholesale investment properties.  An investor buys multiple properties at auction then wholesales (flips) them to secondary investors who are able to arrange long term financing.  The secondary investor will pay a modest premium for this service, but there are several advantages to this method.  For one, the purchaser gets to inspect the property; a luxury the wholesale investor rarely enjoys.  The single biggest advantage, as just mentioned, is the source of funding.  The wholesale investor must have a large supply of cash to purchase properties at auction.  The secondary investor can buy the property in the traditional manner which allows for long-term financing at interest rates similar to those enjoyed by owner occupied properties.  The last benefit worth mentioning is the price.  Currently, most real estate wholesale companies are able to offer foreclosed properties far below those offered for sale by the banks.  Banks are desperately attempting to recoup their losses in the mortgage industry.  Whereas wholesale investors are simply adding a mark-up to properties that they can pick up at auction.

More information can be found on our website in regards to foreclosures and investment opportunities (link on the right under "Marietta Real Estate").  There is another chart on that site that captures the foreclosure data as a linear graph.  In one picture, it tells the tale.

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