Hello BP Members. I am Bill, a new investor from Orange County, Ca. I wanted to first introduce myself and say I wish I would have found this site years ago. Second, get your opinions on flipping and wholesaling in California. It seems like it is difficult to get properties here at a enough discount to make it worth wild for a wholesale transaction or flip, in which a hard money lender or private investor would even consider a deal. Lastly, can recommend a rehabber or contractor that is good at what they do, along with being as cost effective as well all would like? Your opinions and recommendations are greatly appreciated... Thank you..
@Bill Newport Welcome to BP
There is a ton of great info on BP with regards to creative ways to identify and contact motivated sellers.
The biggest challenge in SoCal is that most homeowners can easily sell a property on the MLS EVEN WITH the following issues
1) house is in bad condition, no appliances, needs serious rehab etc.
2) house needs to be sold fast
3) house needs to be sold without loan/inspection contingencies
4)house has unpermitted additions
now lets look at this from the standpoint of a motivated seller lets say the house sells for 500k in as is condition on the MLS the seller pays 7% (commission plus closing cost) that is 465k in the sellers pocket. The house goes to the highest bidder (usually a large company that does a bunch of flips capable of operating on very tight margins) the type of companies that buy at the trustee sales. ARV of the house is 625k.
why would the seller not list it and sell it at a much deeper discount to you?
There are definitely reasons why you might get this at a deeper discount the main thing is you need to get to the seller before the agents/other investors and wholesalers do and in SoCal the competition is fierce but I do see these off MLS deals being done with nice margins so it is possible.
Thank you for your reply Mike S., very helpful....
Welcome to the BP family. Get into the podcasts and select the ones that interest you most, go into the learn section and review previous published information, utilize the key word section and participate and your on your way.
@Bill Newport One option for new investors is always gonna be gorilla driving for dollars campaigns. Pick an area that you like and look for properties that have visible signs of distress.
+Roof needs Fixing
+Lawn looks not manicured or cared for
+trash , cars on lawn
+Dented/Missing Garage doors
Then you can easily send handwritten letters to these addresses to try to get in contact with the owners. It helps to send a few letters that express that you are interested and able to buy their homes at a discounted price, and will help them deal with any of the financial problems the seller may have.
Hello Bill. You came to the right place! I’m a buy/fix and hold investor in the Bay in CA. But you’ll find a variety of all strategies here on the website. A few tips on the website and on meeting some fellow investors:
Search for local meetups here or google a local REI club to network with other investors. On the site, the "Learn" link across the top navigation bar has lots of great info, and so do the forums. You can tag people by typing @ before you type their name, then clicking their name when it pops up at the bottom of the message box. You can click on the ‘vote' button if you like someone's post or is helpful, and there are ‘awards' to earn on your profile. Good luck on everything!
Welcome to BP, @Bill Newport !
Thank you everyone for your posts....
Hey @Bill Newport welcome to BP! Glad to have you!
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