Ground-Up Construction in Atlanta

It exempts what you build. The 21st Century ROAD to Housing Act became law on July 11, 2026 and takes effect January 7, 2027. It bars a large institutional investor, defined as an entity with investment control of 350 or more single-family homes alone or in concert with others, from purchasing or contracting to purchase a single-family home, with civil penalties up to the greater of $1,000,000 per violation or three times the purchase price, plus annual portfolio reporting to HUD. Purchases under a build-to-rent program, where the investor purchases, constructs, or constructs and retains newly built homes as rentals, are permitted. The seven-year mandatory divestiture in earlier drafts was cut from the final bill, and there is no divestiture requirement for homes already owned. Treat that as a change in where institutional capital can go, not a forecast about your comps, and take the entity-level counting question to your attorney.

Because the institutional footprint here is the largest in the country, so a cap on buying existing homes bites hardest. The American Economic Liberties Project put institutional ownership at roughly 72,000 metro Atlanta single-family rentals; John Burns Research and Consulting measured 27.9% of the metro's single-family rental stock as institutionally owned in July 2025, about four times the national average. Be careful with those headlines: the share swings widely with the definition, and the same review notes three companies own about 19,000 homes, roughly 11% of the region's single-family rental market but only about 0.6% of metro Atlanta's roughly 3 million homes. On the build side, RealPage counted about 3,500 build-to-rent units under construction in Atlanta as of the first quarter of 2026, third nationally behind Phoenix and Dallas, with activity concentrated in the southern and western suburbs and outer counties including Gwinnett, Cobb, Coweta, Newnan and Powder Springs.

Two tracks inside the city, and the jurisdiction matters more than the metro. City of Atlanta building permits are issued by the Department of City Planning, Office of Buildings, while land-disturbance work routes separately through the Department of Watershed Management's construction site development review. That second track is a common schedule driver on ground-up, and it is the one builders forget to start early. Outside the city, Marietta, Sandy Springs, Roswell, Alpharetta, Decatur, Smyrna and Kennesaw all permit independently, so a timeline from one jurisdiction tells you nothing about the next. We don't publish a review-time number for ground-up single-family in Atlanta, because we don't have one we can stand behind. Bring us your actual permit status and we size the term around it. If you stalled on an earlier project, the city launched a Simplified Renewal Pathway effective March 16, 2026 to restart certain residential projects on expired building permits, so an expired permit is no longer automatically a full re-application.

A licensed Georgia attorney closes it, and a security deed secures it. The Supreme Court of Georgia held in In re UPL Advisory Opinion 2003-2 that preparing or facilitating execution of a deed is the practice of law. The attorney has to be physically present; telephonic supervision of a non-lawyer closer does not satisfy it, and conducting a closing and disbursing funds in violation is a misdemeanor that also creates civil liability. There is no path where a title company simply closes the file: the attorney holds and disburses escrow on both the land purchase and your draws. Georgia also secures the loan with a security deed, a deed to secure debt that conveys legal title to the lender, rather than a mortgage lien. We're based in Texas, and Georgia runs the same first-Tuesday non-judicial foreclosure cadence Texas does, so the process is familiar ground rather than local roots we'd claim we have.

Transfer tax on the purchase, and most likely no intangibles tax on the note. Georgia's real estate transfer tax is $1.00 for the first $1,000 of consideration plus $0.10 per additional $100, which works out to 0.10%, or $400 on a $400,000 lot. It is customarily seller-paid under the Georgia Association of REALTORS form, but it is negotiable. Intangible recording tax is $1.50 per $500 of the note's face amount, about 0.30% of the loan, capped at $25,000 and due within 90 days of execution. Short-term notes are exempt, and HB 586 raised the short-term threshold from 36 months to 62 months effective July 1, 2025, which would cover a 12 to 24 month construction note. Confirm that with your closing attorney before you budget the savings, since the Department of Revenue page does not restate the 62-month rule. It is worth getting right either way: unpaid intangible recording tax bars collection by any action, foreclosure, or exercise of the power of sale until the tax, interest and a 50% penalty are paid.

Flat pricing, a full tax bill on the finished house, and an insurance line that keeps moving. As of March 2026 the 11-county Atlanta REALTORS footprint was roughly balanced rather than a seller's market: median sales price $418,000, down 1.6% year over year, 17,723 active listings, up 5.1%, and 4.0 months of supply. On taxes, Georgia assesses property at 40% of fair market value, and the floating homestead cap created by HB 581 never applied to investment property in the first place; Fulton, Gwinnett, Cobb, DeKalb, their school districts and the City of Atlanta all opted out of it anyway. Your finished build gets assessed on what you built, not on the dirt you bought, so underwrite the post-completion number. Insurance is the fastest-moving carry line in the state: Georgia premiums rose 8.6% in 2025 against a 5.6% national average and are up roughly 39.7% since 2021, with another 10% or so projected for 2026. Construction terms run 12 to 24 months, and on a spec deal we'd rather set the term long enough to sell into a slow market than watch you buy an extension. Take the tax planning to your CPA.

About 15% of total cost. We go up to 85% LTC and 70% LTV, whichever binds first, up to $5M. On a $2M Atlanta project that is up to $1.7M from us against cost (2,000,000 x 85% = 1,700,000), with the 70% LTV test applied against finished value. On a spec build into a metro that sat at 4.0 months of supply as of March 2026, the LTV test is usually the one that binds, not the cost test. Subject to underwriting.

No minimum score. We underwrite the land, the build budget, the draw schedule, and the exit. Experienced builders can access higher leverage, so a real track record moves your terms more than your score will. Bring us your permit status, since the city's land-disturbance track runs separately from the building permit and it is the usual schedule driver. Subject to underwriting.

Up to $5M, on a term of 12 to 24 months, with draws released against the build schedule. That covers spec and build-to-rent alike, which matters here given the size of the metro Atlanta build-to-rent pipeline. On a spec deal we would rather set the term at the long end than watch you buy an extension into a balanced market. Subject to underwriting.