I have gotten requests to write an update on my prior post regarding my experiences investing with ATW. I have been hesitant to write an update since this experience has been trying and maybe only reflective of my experience working with ATW. It may not be reflective of everyone else’s experience. So given that, here is an update of my experience.
As a recap, I had purchased three properties from ATW Investments. Two of the properties are located in Seguin, Texas and one in Waco, Texas.
The two properties in Seguin finally sold.
- One property sold on March 8, 2016 and it took about a month to close escrow with the buyer. I had purchased on July 27, 2015. So, it took about 6-7 months from purchase, rehab, sale, and receipt of any funds back from my investment. It’s interesting because the initial proforma mentioned that it would take 4-6 weeks for the rehab. The sale price was within the range originally stated on the proforma.
- The second property in Seguin sold on March 9, 2016 (similar to above). I had purchased it on July 21, 2015. So, it took about the 6-7 months to go through the process. This proforma stated that it would take 8-10 weeks for the rehab.
I had also purchased a property in Waco on July 31, 2015. It is still in rehab as of the date of this post (5/22/2016). So, it is going on 10 months of rehab. When I ask for a status update, the reply is that it will take “two more weeks”, or we’re “waiting for an inspection.” Brian has offered to purchase the property back. I figured that since I have waited 10 months already. I should hang in there. If I sold it back, Brian would probably sell it to the next investor and it’ll only have a short time before it finishes.
In summary, here are the downside that I have experienced.
- I did not make any money from my investments for 6+ months.
- I paid insurance for these properties during this whole time. So, I have been making a monthly payment to pay for the insurance to cover the properties during the rehab.
- I have had to also pay property taxes on the properties. This is a pretty big expense since Texas has a high property tax.
- I have had to reach out for updates. ATW is not very proactive in providing status updates unless there is a status change (in my case, there has been little status change for 6 months). I have had to reach out for updates on these properties. During the Boot Camp, there was a mention of getting a weekly video updates. I found these to be very sporadic. I definitely did not get a video update every week over the last 10 months. This overall has been a cost of my time and stress.
- ATW has added some extra fees to the process (e.g. $50-$100 recording fee, plus some other fees).
The upsides are:
- The two properties have sold within the parameters laid out in the proforma (e.g. sale price, and monthly rent.
- I have been waiting for inspections on the Waco property. So, hopefully, the inspectors are making sure that the rehab is up to code and that the rehab work meets the current standards and regulations.
On an interesting note, I did get one reply to my post from a buyer of an ATW property after it had been rehabbed. The reply mentioned that the “the house foundation is in desperate need of repair, cracks all over our walls, holes in the floors that were just cover with laminate. Little rehab done to this home. all they did was plaster and paint the cracks on the wall”
I’m sad to hear about that buyer’s experience. Maybe reach out to ATW for help. Potentially, you could sell back the property to ATW, sell it to a 3rd party, or ask them to fix the issues.
So, if you are buying a ATW rehabbed home or any home, I would recommend getting a home inspection by a qualified home inspector as a contingency during the closing process.