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Rehabbing & House Flipping

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Mauricio Hernández
  • North Hollywood, CA
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Flipping in Los Angeles. Do you know something that I don't know?

Mauricio Hernández
  • North Hollywood, CA
Posted Apr 20 2015, 09:44
Hi; i am located in the San Fernando Valley. I started this business about a year and a half ago and I am working on my #3 project. I'm having hard time finding my next property. First of all there is not much deals on the market and when they come out they sell for much higher than what I think is worth to an investor. It looks to me that investors are over speculating on the exit price and paying much more than what is worth. Leaving little room for profit and basically no room if a loan is needed. (Prices are going up on the purchase but not as much on the selling) Basically working for a 7 to 10 percent margins. Which seem to be a bit risky and not enough for the length of the projects. I'm talking about large additions and teardown projects. On the other hand I see some developers doing 5 projects at the same time. I would appreciate if you can share your thought or any tips on how others are finding good deals in my area that I might not be aware of it. Btw Cash is not king anymore most buyers are cash buyers now a days.

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