6th flip in Los Angeles

54 Replies

@Jerry Murphy thanks!

@drew 

@Drew Slater thanks! Most of my off market deals are brought to me by my network of different people but I'm also doing my own campaign. 

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How did get these houses? Regular sales or foreclosure bid?

@Adriel Liwag congrats! May I ask what HML you use and the rates they are providing you? I am in search of one right now.

@Ben C. Thanks! I see you from NJ, are you looking for HML for your area or are yo doing business in LA? My HMLs only fund locally.

Did you do a lot of the work yourself to keep rehab costs low? I feel like I could easily spend 55k on far less on my personal SFH updates here in Texas. Either way impeccable job!

Yes I am in NJ. Ok I understand. Well could you let me know the rates and terms they are charging you for a frame of reference?

Do you do tear down new constructions or only fix n flips?

That's great! Thanks for sharing. What area in LA have you been flipping?

@Adriel Liwag Awesome job, thanks for being willing to share.

@Jessica Wygal no I don't do any work myself at all, it's all done by my crew. Not that I would mind it, I just design and tell them what I want done. I spend my time focusing on my strengths which would be design, networking and finding the deals and funding.

@Ben C. ya sure. I have a few. Due to my experience, I get 90% LTC, 10% I/O 12 months, 2 points up front with no junk fees and I also have one at 100% LTC, 12% I/O 12 months, 4 points up front and $1,500 in other fees.

Hi Adriel,

I am brand spanking new to the world of REI and I'm currently reading a bunch of books to learn/absorb as much as I can. I own my primary residence, which is a single family home in Tarzana that I purchased around 2011. I figured if I was ever going to buy 2011 was the time as the market was beginning to come back. Very glad I did because the house has appreciated quite a lot. : )

Having lived in the area for a few years now I've noticed so many homes  in the Tarzana & Woodland Hills area that appear to be very distressed. So... it occurred to me that this might be a good area to look and learn and one day - hopefully - jump right in.

That being said, I looked at your before & after pictures.  Amazing!!  Looks great!   Do you have a GC that you work with and highly recommend?  If so, I'd love to get that information.  As I read a bunch a books I figured I could also begin to build a list of potential go-to people... contractors/subs, inspectors, etc.

Hope to hear from you.


Best,

STEPHEN

@Stephen Marlin thank you. That’s great about your Tarzana property. I’m familiar with the area as I grew up in the Valley and my first few flips were in West Hills and Lake Balboa. I do have a contractor that works for me but unfortunately at the moment I’m keeping him busy enough that he can’t take one any other jobs. I knew others but would not recommend them. A great way for you to find some is by identifying homes as your driving around that are being renovated. You can pull over and ask the workers for their info amen if they’re taking on other jobs. If they’re aren’t a Brent ok they’ll usually tell you straight out. Keep up the educating and good luck on everything. Feel free to reach out if you need anything else.

Thank you, Adriel. Much appreciated. Funny thing ... I did just that today. There is a home around the corner that is being flipped. They took it down to the studs. Been watching the progress and seems to be moving at a reasonable pace. I pulled over today to ask who the GC was. However, they just have me the name of the entity flipping. The LLC. I will continue to look around for great GC. Thank you.

Best,

STEPHEN

Congrats! I'm new to REI and I'm interested to know how much is the net out of the $468K initial investment after taxes, HML payoff, agent fees etc.? I read in another thread that the tax in flip investments in L.A. is really high. That sold price for a 2/1 800 sq ft. is unreal! What made you decide to flip instead of BRRR?

@Adriel Liwag Well done, Adriel! This is a huge inspiration. Keep up the great work and keep us posted on your journey.

Very inspired! 

After dreaming of flipping in LA for so many years, I've finally reached the point where I have to pursue it. Glad to hear deals are there for those that work hard. 

Originally posted by @Adriel Liwag :

Hey BP, I just wanted to share my most recent flip. This was in Los Angeles. This is my 6th flip and I haven't had a chance to share every single one but I'm pretty proud of my accomplishments in the last 2 years since I started flipping. I got a lot of negative feedback at first from people telling me it's a bad idea, it's too risky, local seasoned agents telling me I'm too late to the game and you can't do any investing in Los Angeles with $0 money. Well, 2 years later here I am. I started with $0 out of pocket, I've completed my 6th flip, I just purchased my 7th one last week and have 3 other ones in my pipeline, I left my job a year ago to go into this full time, and each deal after the first just kept getting better because I kept learning how to make it better. I'm sharing this not to brag, but to show those of you particularly in Los Angeles, that it can be done if you have enough desire. This is not at all to say it was easy because there is nothing easy about this business. With that said here are the details and links to the pics.

Property: 2/1 800 sq ft./5,000 lot

Purchase price: $413k

Rehab: $55k 

Rehab time: 6 weeks

Initial ARV: $580k

Listed: $599k

Appraised: $635k

Sold: $653k

Pics:

Before - https://app.box.com/s/mhqk541iubkj84ibf4pa9x63cdex...

After - https://app.box.com/s/21n6e5igy958bl6wdzagvmciecyr...

Just wanted to say the house is beautiful. I love the exposed wood mix. Sometimes the modern white can be too much, and it is tastefully done. Anything you would have done differently on this project? Looks like one of the burbs in downtown LA??

Thanks Heath, no I wouldn't have done anything different.

@Henry Ngo at the moment I'm flipping to build capital to be able to BRRR. Otherwise, if financially I can, I would very much rather BRRR.

@Christina J. Thank you!

@Jason Flynn Yup, it's possible for those willing to put out the hard work.

@Adriel Liwag I am learning looking to start up next year in Los Angeles. So glad to see you are doing well. I have a little saved and I read you have a partner that provided the capital for the first flip. How does the HML work exactly? Are you financing the repairs as well? Being so new I am not sure how the fix and flip works with HML and partners mixed in. Any tips for a newbie would be super awesome. Wishing you continued success.

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