BiggerPockets

Rehab Flipping in Southern CA

Tuesday, May 12

When the real estate market was going crazy and prices were climbing 50 times faster than incomes, flipping in CA was so easy, even a cave man could do it. In fact, several did! (ha ha) In a down market, flipping is not so easy and requires a combination of great contacts, extensive market analysis and research, tons of man hours, and a bit of luck getting the right place for the right price.

So, can investors flip in Southern CA, making nice profits while not exposing themselves to undue risk? The simple answer is yes, but as previously stated, it is easier said than done.

I currently contracted an REO in Granada Hills, CA and was able to get this great property for a steal from the bank. I had sent out some emails to persoanl contacts as well as posted an ad for it here on BP and had quite a lot of responses, all wanting more information, which I provided. During the process of my due diligence, which included getting bids from contractors and service providers for the rehab/upgrades, I found that the projected repairs were higher than the actual costs and the re-sell value projected was lower tahn the actual. That is a very uncommon occurance, usually the other way around. That being the case, I have decided it has too much equity and profit to give away and thus, I will be completing the transaction and rehab /flip myself and not wholesaling it to anyone.

Lesson to be learned here? If you snooze, you loose! If any one of the many interested parties had pulled the trigger fast enough and contracted with me, they would be reaping the rewards of my aggressive repair numbers and lower re-sell numbers.

Since I intend on posting more frequently on my BP Blog here, I will be writing about this project from start to finish so that you may all benefit from reading and viewing an actual CA rehab flip from start to finish (including the pool party bash after rehab work is done). The before pictures may be found on my property listing, however, keep in mind that I will no longer entertain an offer to purchase it.

William Barnard is Managing Partner of Nationwide Property Investments, LLC and President of Barnard Enterprises, Inc. Will participates in millions of dollars in real estate transactions each year and has experience in nearly every aspect of real estate investing, including rehab flips. Join his FREE Membership at www.nationwidepropertyinvestments,com and start or continue on your journey to creating wealth through real estate!

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