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:
CA Fix and Flip Tip #1: Hit the Books
The number one piece of advice successful California flippers have is to study. Spend some time reading. This includes reading a business or real estate text, reading a blog or informational website, or information specific to your real estate market in a local newspaper or magazine. In short, devote some time to your ongoing education every day.
CA Fix and Flip Tip #2: Find a Guru
Book learning isn't everything, of course. So find someone who is doing what you want to do and see how they do it. Maybe they are buying multiple properties a year, maybe they are just amazing at finding and buying the right properties, or maybe their valuation formula is always on the money. Whatever it is, study what they did. Study what they did right, as well as mistakes they may have made along the way. That doesn't mean you'll duplicate their methods, but take what you can from them and incorporate it into your approach.
CA Fix and Flip Tip #3: Don't Get Emotional
It's important to keep an open mind and a positive outlook, but that shouldn't blind you to any potential downsides of a transaction. Being able to analyze risk and reward accurately is very important because an analysis based on hard information, both financial and technical, can help guide you. That doesn't mean you don't listen to your gut when it tells you that the deal is right even though there are red flags. But you'll be armed with solid information that shows what those red flags will do to your potential profit. Perhaps the deal isn't one you want to do after all.
CA Fix and Flip Tip #4: Ride the Waves
Flexibility is key to success in an environment that is constantly changing. You must be willing to look at your overall approach and identify ways that aren't working for you any longer. You may need to look at what kinds of properties you generally go for, or adjust your approach in other ways. If you don't keep up with the ways the market is changing and maturing (which relates to our first piece of advice), you'll slowly find yourself doing less and less business.
CA Fix and Flip Tip #5: Find Your Dream Team
As you fix and flip more properties, you should develop a go-to team. You need a team of people who make your process as smooth as possible. These are people you trust and who you know can handle any obstacles that may (and probably will) arise. Longtime California real estate investor Mike Cantu advises that "for the long haul you need a good team. Escrow, title, attorney, contractor, handyman, etc. Your team can make or break you in this business."
To discuss making Trust Deed Capital part of your team, contact us and learn about the services we can offer you.
