Realtor says flipping SO California is basically over for new REI

[Jeff Wells]

Newbie here. I have been doing tons of reading, talking to people in the business, and getting some names of realtors etc, ie- starting to assemble a team. Just got off the phone with a realtor I was referred to and the things she said was NOT encouraging. Basically in my town, in the Inland Empire of CA, there are usually 3-400 homes available, right now there are LESS than 100. She says there is NO inventory for any kind of flipping. She says the days of low balling are over and it would be VERY hard to get started in flipping at all now. She used to do it herself but now is looking to develop and sell new build homes with a developer/friend. Of course she wasn't interested in bringing anyone into that. She seemed sincere and very nice, but I have a hard time shaking the feeling she wasn't interested in dealing with anyone who wanted to do flips. I NEED a realtor I think, because I have never put an offer on ANY house. But I have a private investor willing to back me. Am I just too late? Seems saturated with people doing this. Any advice? Answers especially appreciated from Southern California people!

[J Scott]

Originally posted by Jeff Gann:

Deal directly with the listing agents. You will have better success.

I don't recommend a new investor ever deal directly with a listing agent. The listing agent represents the seller and has a fiduciary responsibility to the seller, which means it's the listing agent's job to try to get as much money (and anything else) out of a buyer as possible.

Most new investors don't have the knowledge, skills or experience to protect himself from a savvy listing agent. It's just a good way to get taken advantage of.

Once you understand the contracts, the negotiation, the closing process, etc., then you can start to think about working directly with listing agents. Until then, I personally don't recommend it.