by propertizeco 
Real estate investments in Georgia can be a complicated process. Without the right knowledge and resources, these investments can quickly become overwhelmed with complications, putting your finances at risk.
Fortunately, ProPertize&Co. has created a simple yet comprehensive real estate investment checklist to help you avoid the common mistakes most investors make when entering the Georgia real estate market. Our 12-step checklist will provide you with easy-to-follow instructions that will ensure you have the right foundation for success.
We have broken down each step into actionable steps that will guide you through from beginning to end. Along the way we will cover topics such as researching the market, finding the best deal, understanding local regulations, getting financing, and more. A successful real estate investment starts with the right knowledge and resources – ProPertize&Co.’s checklist has everything you need to get started.
Prioritize the involvement of a reputable realtor
The process of real estate investment can be intense and overwhelming. To ensure that you are making smart decisions, it is essential to prioritize the involvement of a reputable realtor from the start. A skilled realtor will bring valuable knowledge and insight to assist you in every step of the way.
As a licensed pro, they will be able to:
- Provide access to reliable information about the local market, such as pricing patterns and regional trends
- Help you determine what type of property aligns with your investment goals
- Introduce you to potential properties that fit your budget and criteria
- Guide negotiations with sellers for a favorable purchase agreement
- Assist with terms and conditions like due diligence and lease options
- Explain any necessary paperwork related to closing day
- Offer resources to help secure financing if needed.
Finding the right realtor is worth the time, effort, and sometimes money. It’s an important step towards making sure your real estate investment experience turns out successful.
Ensure the legitimacy of the property title before making any payment, and proceed with transferring the purchase price exclusively upon confirmation of clear and valid title ownership
Purchasing a piece of real estate is perhaps the biggest financial decision you will ever make. You must ensure that the seller has the right to own and transfer the land; doing otherwise can lead to costly legal battles down the road.
Before making any payment, take active steps to ensure the legitimacy of the property title:
- Make sure that all liens, mortgages, and encumbrances connected to a property are extinguished or subordinated prior to closing.
- Confirm zoning laws with your local planning department; this helps guarantee that you can use the property as intended.
- Order a title search from a reputable source to identify any previous owners, unpaid taxes or other issues that could prevent you from owning and using the property.
It is only after confirming clear and valid title ownership that you proceed with transferring the purchase price. Refer to ProPertize&Co.’s Real Estate Investment Checklist for Georgia as needed for more guidance on how best move through this important process.
Verify with City Hall if any administrative proceedings are pending concerning the property before proceeding with the transaction
Before you commit to a property, it is important to make sure that you are aware of any administrative proceedings that may be pending concerning the property. These proceedings could affect your ability to purchase the property.
Verifying with City Hall is a simple process, but one that can save you a great deal of time and money in the long run. The steps you should take are:
- Contact the local City Hall for a list of pending administrative proceedings concerning the property
- Request copies of any such proceedings from the City Hall
- Have an experienced Georgia real estate attorney review these proceedings and advise accordingly
- If necessary, consult with other professionals such as an accountant or engineer to assess their impact on your purchase and/or potential rental income from the property
- Proceed with the transaction only once you have obtained all appropriate legal and financial clearances necessary for your investment plan
By taking these extra steps, you can ensure that your investment is sound and safe from any potential legal issues in the future.
Confirm the existence of an occupancy permit for the property to ensure compliance with local regulations and standards
Before signing on the dotted line, it is essential to be sure that there is a valid occupancy permit for the property. An occupancy permit confirms that the property complies with local regulations and standards concerning its condition.
To find out the details of an occupancy permit in Georgia, you can contact your local office of building safety. They can provide you with information on whether one exists for the property and any necessary steps to ensure that the property meets regulations. Additionally, they can provide you with guidance on other permits required for a particular dwelling type or location.
You should also examine other documents related to the property, such as rental agreements and/or expired occupancy permits. These documents will help you verify that all conditions within the property comply with local requirements, protecting both your investment and your rights in case of any disputes down the line.
Engage the services of a surveyor to accurately determine the precise size and boundaries of the property
Before you start the purchase process, it is important to know exactly what you are getting, and that means engaging the services of a surveyor. A surveyor will help you accurately determine the precise size and boundaries of the property so that there are no surprises when it is time to close.
An experienced surveyor can also provide critical information about potential issues, such as any outstanding mortgages or liens on the property, any boundary disputes with neighboring properties, and any existing easements or encroachments that would affect use of the land. All of this information will help you make informed real estate decisions.
A professional land surveyor can also provide other services related to your purchase such as:
- An elevation certificate to ensure your building meets local flood regulations
- A topographic map so that you know exactly what terrain is on the property
- Utility mark-outs to ensure underground lines are where they should be
- Boundary line adjustments when needed.
Retain the expertise of a local legal counsel to assess potential litigation risks associated with the property
Retaining the services of a qualified, experienced legal counsel is essential in any real estate investment, and this advice is especially relevant in the Georgia market. Although certain laws and requirements may be universal, there are unique aspects of Georgia’s legal framework that require special attention.
Your legal counsel will provide guidance in reviewing:
- The property title to ensure it is free from any liens or other encumbrances
- Regulatory compliance with local zoning codes
- Any existing or potential violations of the Georgia Right to Farm Act
- Any potential environmental issues associated with the property
- Potential litigation risks associated with the property.
Having an experienced attorney at your side can help you identify any potential issues before committing to the investment. This may save you from making a costly mistake and will also provide peace of mind as you move through the process.
Thoroughly investigate the property for any tax liens, tax pledges, mortgages, or other encumbrances, and ensure the Seller’s financial obligations are clear
Investigating the financial health of the property before you make a purchase is an essential step in the buying process. This includes checking for any tax liens, tax pledges, mortgages, or other encumbrances. As an investor, you must be sure that all of the Seller’s financial obligations are clear before making any purchase.
This investigation can be done by running a title search on the property and finding out if there are any outstanding debts or other claims against it. You can also ask an attorney or real estate professional to review records such as deeds of trust and other documents that show liens and encumbrances on the property.
Once you have confirmed that all of the financial obligations are clear, you can make an informed decision about whether to pursue a purchase. If there are any liens or encumbrances on the property, it is important to review them in detail and decide if they can be resolved in a timely manner so that they will not affect your investment in the long-term.
Involve local legal counsel throughout the negotiation process with the Seller(s), notaries, etc., and secure terms such as Seller’s vacation of the property before signing the sale-purchase agreement
Before signing any sale-purchase agreement, you will need to properly involve local legal counsel throughout the negotiation process with the Seller(s), notaries, etc., and secure terms such as Seller’s vacation of the property. This essential step is key to making sure that all parties involved are aware of their respective obligations in order to avoid any unforeseen conflicts once the purchase is finalized.
The importance of involving legal counsel throughout this process cannot be understated. A trusted lawyer can help you with:
- Setting up a legally binding contract between you and the Seller
- Gathering all relevant documents such as title records and due diligence reports
- Making sure that all terms are clearly defined in the agreement so that each party is well aware of its responsibilities
- Working out any other legal complexities that may arise during negotiations
Having an attorney by your side will provide you with added peace of mind throughout the entire process, giving you confidence that everything is going to plan and that there won’t be any surprises down the line.
Consider partnering with a local bank for financing or co-financing options for the property transaction
Before you sign on the dotted line for a property, it pays to have a few financing options in mind. Partnering with a local bank can open up some unique opportunities when it comes to buying real estate in Georgia. Here are a few benefits of working with a bank:
Low-Interest Rates
Most banks offer competitive loan and mortgage rates that may be lower than those from more traditional lenders. This can help you to save on interest payments throughout the lifetime of the loan.
Accessibility
Banks are more accessible when it comes to mortgages and other real estate investments: they can easily provide financing options tailored to suit your needs. This makes them ideal for first-time investors or those who may not yet have built up a substantial credit history.
Knowledge & Expertise
Banks have experienced professionals at hand who have the knowledge and expertise to provide valuable guidance throughout the process of acquiring property in Georgia – from start to finish. They can help ensure that deals are structured as efficiently as possible and provide helpful advice on navigating regulations and taxes that may apply in certain markets or situations.
Engage the services of an auditor and a lawyer with expertise in tax planning to ensure compliance with tax regulations and optimize financial aspects of the transaction
Hiring qualified professionals is always a good idea, and it is especially important when investing in real estate. An auditor and a lawyer with expertise in tax planning can help ensure compliance with complicated tax regulations and ensure that you are able to optimize the financial aspects of the transaction to your benefit.
The auditor will be responsible for ensuring the accuracy of all financial records related to the investment, including reviewing third-party documents such as title documents and performing analyzes on income, expenses, property values, and any other factors that could affect the profitability of the investment.
The lawyer will be able to provide you with advice on any legal matters related to your investment, from registering the deed in your name or setting up an LLC for asset protection purposes, to negotiating lease terms with tenants. They can also help you develop plans for minimizing taxes on your property investments.
By engaging these two professionals, you can have peace of mind knowing that you are taking all of the necessary steps to ensure a successful real estate investment.
Consult with a design engineer to assess the structural integrity and sustainability of the building before finalizing the purchase
Before making the final decision to invest in a property, it’s always wise to consult with a design engineer for an assessment of the structural integrity and sustainability of the building. This step is important as it can give you an insight into any future repairs that may be needed. Additionally, the design engineer can help give you insight into how sustainable solutions—such as renewable energy sources—can be implemented during and after construction.
There are several signs that may indicate a need for structural maintenance or repair, such as:
- Cracks in walls
- Structural leaning or sagging
- Discoloration on walls or ceilings due to water damage or other issues
- Roof tiles that need replacing or lack proper insulation
A reliable design engineer is a great asset when assessing these types of issues, and can provide valuable advice on ways to make renovations. By consulting with a professional beforehand, you can save time and money in the long run by preventing further damage.
Make an Offer and Negotiate the Deal
The last step in the investment process is negotiating and making an offer for the property you are interested in. Before you make this offer, you must know and understand the target’s motivation, market economics, and be armed with market data.
To ensure a successful negotiation process that results in a deal that is beneficial to you both, ProPertize&Co. recommends the following steps:
- Research the Real Estate Market – Knowing and understanding the local real estate market dynamics will not only help you to understand how much a property should cost but also where it may fit into your investment strategy.
- Decide on a Price Point – You should base your price point on your local market conditions and comparable properties in the area. Take into account things like repairs and renovations needed to bring the property up to its full potential value before making an offer.
- Prepare Your Offer – Preparing your offer should include language that protects both parties, lays out contingencies for negotiations and details what documents will need to be provided during due diligence such as title searches or surveys of the property to ensure there are no surprises after closing.
- Make Your Offer – Now it’s time for action! Make sure your offer is reasonable, clear, well-worded, easy-to-understand and ready for negotiation if necessary for either party’s desired outcome.
- Negotiate Terms of Agreement – Negotiations are necessary in nearly every real estate transaction; it’s important to know when and how to negotiate terms of agreement to reach a positive outcome that works best for all involved parties.
- Close on Your Property – Congrats! After all of the hard work has been done, both parties will sign all documents associated with closing on your property purchase and it will finally be yours!
Taking the right steps is essential to having a successful real estate investment journey in Georgia. ProPertize&Co.’s real estate investment checklist lays out 12 important steps to ensure you are well equipped to make the most out of your investment. From researching the market and understanding all the available options to getting the necessary documents before closing a deal and properly managing your property, this checklist has everything you need to get started. Whether you’re a seasoned investor or a novice, ProPertize&Co.’s real estate investment checklist will arm you with the knowledge and tools you need to create a profitable, long-term investment.
