I am a newbie investor, I have a couple of properties but have not gotten much traction with buying off of MLS or direct marketing. I am trying to invest where I live in So Cal but seems like people are confident that even their fixers can go for close to retail. Any pointers, suggestions or insight you can offer would be much appreciated.
Flipper · Mission Viejo, CA · Member since 2014 · 2k+ posts · 1k+ votes
6y
@Gio Fuentes I am finishing up some projects in Orange County, California, but have moved out to the Riverside and San Bernardino areas to acquire more. We are cold calling for leads.
Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
6y
@Gio Fuentes most people's fixers can go close to retail unless they have a problem that actually needs a professional to fix. In SoCal carpet, paint and general outdatedness don't get you very much of a discount like they might in other parts of the country.
Real Estate Agent · Orange County, CA · Member since 2016 · 207 posts · 111 votes
6y
@Gio Fuentes California is a rough place to start off in. Not impossible by any means but you gotta be ready to act quickly and take advantage of a good deal when you see one. Due to the wide margins here there's a lot of deep money looking for opportunities and a lot of times they're happy with decent percentage returns so they'll buy close to retail and a lot of sellers know that. Don't get discouraged tho because one good deal will make it worth your while just have to be patient and take the no's.
Flipper · Mission Viejo, CA · Member since 2014 · 2k+ posts · 1k+ votes
6y
@Gio Fuentes I know where Desert Hot Springs is, but I have never invested there. Flipping is a numbers game and you can flip as long as you do your numbers correctly. Good area, Bad area, Desert area, etc. It does not matter. I currently use 70% of the ARV to determine the MAO (Maximum Allowable Offer) I am willing to buy at.