I have been listening to many of the podcasts and learning about the various investing strategies but am trying to narrow down to a single niche that i can focus on and get started with.
I have a strong construction background and would really like to get into fix and flipping SF homes but here in Los Angeles and Long Beach (where I'm located) properties are so expensive, so coming up with the upfront cash to fund the project is the tough part. I recently re-financed my home and was able to pull a HELOC to possibly partner on a deal but still do not have enough to cash to fund entire deal.
Here in Los Angeles how have people been finding the good deals for fix and flipping? I have thought about doing direct mail to get leads and possibly a better deal, does anyone have experience with this strategy in east Los Angeles County / Long Beach Area?
My thought would be to find a local Hard Money Lender along with partnering to fund the construction/ holding costs of the project to get my first project completed. But I have also been hearing that even with a HML, this is still not competitive enough to get the best deals.
If there are any successful fix and flip investors in these areas that could share some insight and whats working for them, that would be great.
I have spent about a few solid half-days looking at LA deals, but the only conclusion I could arrive is it will be better to find land deals and build your own market. Now I wont be happy with 5% net income from the property that I sell, I mean, if I sell a 400k house and I only make 20k and spend a lot of time and 6 months, it would not be worth it to me. I compared it to, say an agent will get 16k for simply selling the house, so it won't be as attractive to me. With building a house, I could easily create 65% ARV and let the pieces fall into their place. Now you said you have a strong construction background, use that to channel the niche, not a lot of investors have that skill, that's why they are using their money to make money for them. I like to work for the risk, the greater the risk, the greater the reward.
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