Real Estate: My ATW Investment Update (Part 3)

This is my 3rd update post regarding my experiences investing with ATW Investments in San Antonio Texas owned by Brian Peyton.  As mentioned on my earlier 2 posts, I had purchased 3 properties from ATW back around July 2015.  Two of the properties had sold and the third was still in the rehab process.

The third property in Waco Texas finished rehab around August 3, 2016. [I’m not 100% sure of the rehab completion date since I wasn’t informed when the rehab was complete.  I have had to reach out to them every two weeks for an update.  My experience is that you have to reach out to them for updates versus them updating you.]

I had purchased the Waco property on July 31, 2015.  So, it had taken about a year to finish the rehab.  During this time, I have had to pay insurance and property taxes while making no income on the property.

As of today (October 6, 2016), the property is being marketed for sale.  So, it has been approximately 14 months since I purchased this property and still no cashflow.  Brian has offered to buy back the property from me and sell it to someone else.  However, I figure that I have waited this long if I sold it to someone else they would benefit from all of my months of waiting and expenses of carrying the property.

Also, I discovered that one of the purchasers of my other ATW property hadn’t made their mortgage payment.  So, I may end up having to foreclose on them.

In summary, I would caution any future ATW investors to consider the potential long term period of time that they will need to wait to get any return on their investment (in my 3rd case, 14 months and counting).  During this time, they will need to feed the investment by paying the monthly insurance and any property taxes.  Also, even after a property is sold, you may have the traditional real estate investment issues such as tenants/buyers not making their rent/mortgage payments and having to foreclose.

I’ll update folks when the 3rd property finally sells.  It will be a time of celebration.

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