REO, Flip Advise in Sacramento, CA- Help!!

[Chris Ferren]

Hey All,

I've been lurking on this board now for a few weeks, and this is my first post. I'm pretty new to real estate. I bought an REO about 18 months ago that is my primary residence, and I'm currently in the process of buying my first rental with my business partner. Ive learned a lot of helpful info on here, like the 50% rule, and I think we have a pretty good ROI. It will make a great rental.

However.... my problem is this.

I've been actively looking for homes through my agents MLS she signed me up for (however I don't think this is the real MLS) as well as looking in Fannie Mae Home Path site. I would really like our next purchase to be a rehab and flip, however I can't seem to find any that would be profitable flip. I've been following the 123flip.com site by J Scott and I've gone through every post from the first property through the 6th one so far. However, I can't seem to find these type of deals on homes.

J Scott, other investors, flippers... I need some advise. Perhaps the Sacramento market is substantially different than Atlanta area and other areas for flips. Can't seem to find deals for good rehabs, and it's a bit frustrating. Any words of wisdom?

I appreciate all your responses and I look forward to learning and discussing deals. Thanks.

Sac Investor

[Luis A.]

Not perhaps, the Sacramento market is completely different than Atlanta. I lived in Cali for 5 years before moving to ATL and can tell you it's different.
However, what you need to focus is the percentages not the actual dollars...50% of market value is the same in Atlanta or Sacramento and that is what you are looking for.

You want to buy something deeply discounted (60, 50, 40 cents on the dollar), fix it and sell it for a lot more. The key is determining what that dollar is in your area.

Like you when I started I was not finding those deals. The agent I was working with once call me all excited because she had found a property that could be purchased at a 10-20% discount, LOL.But you have to keep looking, find the resources, talk to other investors and dig, dig, dig...those properties are out there.

After a while those properties start coming to you. I have been lucky to be able to set foot in some of J's rehabs to better understand how to get those deals. I suggest you do the same. I guarantee there are people flipping houses in Sacramento, find them, contact them and ask for help and offer to help them out. You will be surprised how willing to help many other investors are.