Fixing and flipping houses seems like a pretty straightforward process from the outside. All you really have to do is find a distressed property, put time and money into renovating it, and then sell or rent it out. However, it's not that simple, in fact, it's a much more complicated process than most people think. There are many things that can go wrong; however, there are three things that can turn a renovation into a nightmare. Successful flippers understand this risk, and work diligently to avoid these scenarios at all cost.
You might think that California offers a myriad of different types of properties that you can fix and flip. While there are homes of every size, shape, style and price range imaginable, they all have certain commonalities. Likewise, it doesn't matter whether the home is a single family home or a rental unit, they are very similar in terms of structure and investment potential. For most real estate investors, there are only two common types of fix and flip houses you will see a lot of in California; foreclosure auctions and short sales.
If you're looking at a property with the intention of renovating and remodeling, you need to recognize a bad sign when you see it. If those bad signs start piling up, then a challenging renovation can turn into an absolute nightmare. To ensure you don't get sucked into a money pit, make sure you look for these 4 signs before putting your name on the dotted line.
Summer is moving fast, and if you're in the market to buy a home in California, it's time to take action before the season ends. The reason summer is such a good time to buy a house is because so many conveniences exist.
When you're picking up a property to quickly fix and flip, you want to be sure that you aren't running into more problems than you can fix. Some potential problems with a fix and flip house are easy to overlook on your first walk-through. Make sure you take a second look to avoid more serious problems.
You've painted the walls, replaced the appliances, and transformed your real estate investment from a drab, dilapidated property to an attractive, warm, and inviting family home. Once you've listed the house online, it's time to plan your first open house. What can you do to make the open house as successful as possible?
Investing in property in California is a daunting task, to say the least. Choose the right property and you'll reap the rewards; the wrong one will end up costing you dearly. Even the most experienced real estate investors occasionally find themselves on the losing end of a deal. Don't let that keep you from investing, though. You can minimize the potential for losses if you remember these four things to look for when evaluating a property.
As a hard money loan officer, I like to think of myself as a soldier on the frontline. I am in the trenches looking at fix and flip loan scenarios, speaking with Small Balance Real Estate (SBRE) entrepreneurs, buyers and sellers agents, and attending lending conferences. Based on the trends that I am seeing, below is what I believe you can expect this summer in the California fix and flip real estate market:
The question that every small balance real estate (SBRE) investor should ask themselves on every property they purchase is: How can I maximize my return on investment? There are several areas that you can make a small financial investment in your property and maximize your returns upon sale. The MLS is full of examples of the do’s and don’ts when marketing a property for sale. These suggestions have helped me add value to my investment real estate for next to nothing out of pocket.
Things have come a long way since the housing bubble crash of 2008 and the years following, when around 80% of homes on the market were foreclosures. It was a golden time for house flipping. That's mostly not the case now, so home flipping definitely has some challenges. Those challenges increase in areas like Southern California, where home prices are higher than the average in most parts of the country.