Seeking advice in flipping houses.

12 Replies | Los Angeles County, California

Im looking for a real estate investors/ flipper who is willing to share some knowledge in the home auction business. I'm highly interested in investing in real estate.  Any information would be very much appreciated.  Thanks in advance. 

Originally posted by @Armando Rodriguez :

Im looking for a real estate investors/ flipper who is willing to share some knowledge in the home auction business. I'm highly interested in investing in real estate.  Any information would be very much appreciated.  Thanks in advance. 

I can think of two types of home auction. Foreclosures and those that actually are not in foreclosure but hold an auction to sell a house. In some ways listing way low on the MLS has the same effect. It is market specific and works in hot markets but not so well in regular markets.

What are you trying to accomplish?

Several types of foreclosures - bank, tax, hoa etc. I prefer tax or county foreclosures because it’s usually the senior most lien except federal liens.
Obviously foreclosures carry higher risks, therefore may offer higher returns.

There is a a course taught by Lloyd segal for flippers and wholesalers. I would recommend you attend. Happy to network and assist.

I think any wholesaling course or group you can join would help a lot. There's a lot of free research you can do online and specifically on BP on those subjects.

My other recommendation would be to go to as many auctions as you can. There's nothing like real-world experience and seeing others in action.

Hello Armando!  I hope you get several answers here.  First, I would try to learn all about it to gain confidence.  Home auction like most other niches, you will do well depending on how hard you work.  Do not buy single family homes for rentals because there are many things to look out for.  I have been doing this full time, 7 days per week, for about three years.  Since I am bedridden I have lots of time to do that as much as I want.  Before that, I had about 30 years in construction and real estate brokerage licensing around Dallas, Texas which is where I was born and raised.  I did graduate from college with honors .  Since you did not say what your goals are, I have to make several assumptions.  I will assume that you want rentals. having experience before getting into apartments is a myth.  Just start off small and then slowly expand.  Many of the small complexes are owned by older individuals that do not know what what they are doing and tend to be motivated and might do owner financing.  The more units you own in one place the better you will be.  When you get up to about 30 units you can afford a property manager.

Home auctions can be OK but go to the first one or two just an observer to see how it works and you might get acquainted with some of the others that show up and network with them.  When you think you are ready to buy show up with a budget amount in your mind and stick to that and do not get emotional about purchasing something.  One of the largest drawbacks is the having to pay in full that same day.  Try to spend some of your pre-auction time to look at the units you will bid on.  All counties have their own rules and contact them to get the details like frequency, the time, and where they are held,

Most counties have what is called a "redemption period" of time that the previous owner will have to pay the taxes that are owed.  Whatever you may have paid back what you invested.  That type of deal might pay off for flippers depending on the location, price paid, and the demand in that area.  Before your bid do the research on that property.  If that unit is empty it may have been for a few years.  Much of your competition is probably investors but do not let that scare you.  The county sells a interest only obligation or a property.  Know what is being offered.  If you are taking advice about that from a company or an Individual they need to have experience in the same field of what you are asking.  It is usually better to do that face-to-face rather than over the Internet. 

No matter what you choose to do always do your research including evaluation and inspection.  Always feel good about what you are offering.  The more creative you can be, the better.  Most successful people usually are brave.  Good luck to you!

@Armando Rodriguez , There are 478 listings in L.A county on now, not sure if you've looked on there. Seems hard to find deals even at auction now since the market is so hot in L.A now. Some of the listings are online auctions but then they have live auctions which seem to be in Norwalk. 

I actually bought my primary residence in L.A back in 2010 on realtybid and got a good deal on it..but have since sold it.. but that was when the market was totally different than today of course. 

Also bought some lots of land off auction years ago.

@Joseph M. pretty much covered it. You can always just google upcoming auctions and it should be pretty easy to see where and when the next one will be. I definitely recommend checking one out and experiencing it in person at least once. Good networking opportunity as well as a lot of investors will be there.