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.
Finding fix and flip properties is a great way to achieve a steady monthly net profit for your invested dollars. House flipping is where you own a home for less than 12 months before selling it at a profit. The longer a house you fix sits on the market, the more expenses you incur. You'll first want to know where the hottest property markets are for the highest capital appreciation. Since Southern California has always been a great real estate market, we've pinpointed three specific locales to help ensure there are plenty of hungry buyers to bid on your renovated home (all prices are referenced from Zillow.com).
With high demand and low inventories of homes for sale, SoCal is a great market for fix and flip investors. Markets are always evolving, always changing, and it pays to stay on top of things. It also pays to heed the advice of those who have been successful in this market for many years. Here are the 5 top tips from successful California Fix and Flippers that we feel are the most valuable:
Flipping houses can be a rewarding endeavor. However, it comes with numerous obstacles. A person must be patient and persistent in order to succeed in this type of enterprise. There are a number of common issues people run into during fix and flip projects. These problems are often shown on popular television shows. But, there are some problematic factors to consider that do not have enough dramatic flair for television. These issues can significantly affect your project. Here, we will take a look at 3 fix & flip problems you won’t see on TV.
When renovating a home, there are areas in which you can afford to be conservative. Other things require more attention, and money, in order to save time and hassle, earn money, and sell faster. Here are five things you should never cut costs on when rehabbing a property.
One of the most lucrative business models in real estate is the fix and flip model. Although foreclosures are on the decline, the market is still on the rise and it is a good time to get into the game. Read on to learn the seven steps for success.
Fixing and flipping real estate can be a wonderful way to make money. However, if you want to be able to make a nice profit, you have to know how to get buyers interested in your fix and flip property. Luckily, following a few helpful tips can help you get people interested so that you can sell your property at a nice profit.
I asked SoCal Real Estate Group members for their opinion of the top 6 ways to add value to their fix and flip properties. The group is made up of local Southern California real estate investors that primarily focus on purchasing and repairing properties that have been neglected. Here is what they came up with: