6th flip in Los Angeles

6th flip in Los Angeles

Specialist · Los Angeles, CA · Member since 2016 · 165 posts · 88 votes

Hey BP, I just wanted to share my most recent flip. This was in Los Angeles. This is my 6th flip and I haven't had a chance to share every single one but I'm pretty proud of my accomplishments in the last 2 years since I started flipping. I got a lot of negative feedback at first from people telling me it's a bad idea, it's too risky, local seasoned agents telling me I'm too late to the game and you can't do any investing in Los Angeles with $0 money. Well, 2 years later here I am. I started with $0 out of pocket, I've completed my 6th flip, I just purchased my 7th one last week and have 3 other ones in my pipeline, I left my job a year ago to go into this full time, and each deal after the first just kept getting better because I kept learning how to make it better. I'm sharing this not to brag, but to show those of you particularly in Los Angeles, that it can be done if you have enough desire. This is not at all to say it was easy because there is nothing easy about this business. With that said here are the details and links to the pics.

Property: 2/1 800 sq ft./5,000 lot

Purchase price: $413k

Rehab: $55k 

Rehab time: 6 weeks

Initial ARV: $580k

Listed: $599k

Appraised: $635k

Sold: $653k

Pics:

Before - https://app.box.com/s/mhqk541iubkj84ibf4pa9x63cdex...

After - https://app.box.com/s/21n6e5igy958bl6wdzagvmciecyr59z7

20Reply
157 views

Most Popular Reply

San Clemente, CA · Member since 2018 · 9 posts · 4 votes
8y

@Adriel Liwag Great job on this deal man!! Where did you find this deal, MLS, auction?

See this reply in the discussion

55 Replies

Jump to latestLatest
  • Jana CainPro Member
    Enrolled Agent · Richmond, CA · Member since 2016 · 225 posts · 148 votes
    8y

    @Adriel Liwag This is lovely! Great job!

  • Wholesaler · North Hollywood, CA · Member since 2016 · 72 posts · 31 votes
    8y

    @Adriel Liwag, good job!!! Looks good

  • Real Estate Agent · Ontario, CA · Member since 2018 · 3 posts · 0 votes
    8y

    How did get these houses? Regular sales or foreclosure bid?

  • Specialist · Los Angeles, CA · Member since 2016 · 165 posts · 88 votes
    8y

    @Ezichi Oha thanks!

    @Lilly Wang from the network I've built. Most of the time they are sent to me by people I know in my network.

  • Specialist · Los Angeles, CA · Member since 2016 · 165 posts · 88 votes
    8y

    @Account Closed thanks!

  • Metuchen, NJ · Member since 2015 · 374 posts · 27 votes
    8y

    @Adriel Liwag congrats! May I ask what HML you use and the rates they are providing you? I am in search of one right now.

  • Specialist · Los Angeles, CA · Member since 2016 · 165 posts · 88 votes
    8y

    @Ben C. Thanks! I see you from NJ, are you looking for HML for your area or are yo doing business in LA? My HMLs only fund locally.

  • Real Estate Agent · Cypress, TX · Member since 2018 · 156 posts · 73 votes
    8y

    Did you do a lot of the work yourself to keep rehab costs low? I feel like I could easily spend 55k on far less on my personal SFH updates here in Texas. Either way impeccable job!

  • Metuchen, NJ · Member since 2015 · 374 posts · 27 votes
    8y

    Yes I am in NJ. Ok I understand. Well could you let me know the rates and terms they are charging you for a frame of reference?

    Do you do tear down new constructions or only fix n flips?

  • Architect · San Francisco, CA · Member since 2016 · 22 posts · 6 votes
    8y

    That's great! Thanks for sharing. What area in LA have you been flipping?

  • Real Estate Broker · San Diego, CA · Member since 2015 · 725 posts · 129 votes
    8y

    @Adriel Liwag Awesome job, thanks for being willing to share.

  • Specialist · Los Angeles, CA · Member since 2016 · 165 posts · 88 votes
    8y

    @Jessica Wygal no I don't do any work myself at all, it's all done by my crew. Not that I would mind it, I just design and tell them what I want done. I spend my time focusing on my strengths which would be design, networking and finding the deals and funding.

    @Ben C. ya sure. I have a few. Due to my experience, I get 90% LTC, 10% I/O 12 months, 2 points up front with no junk fees and I also have one at 100% LTC, 12% I/O 12 months, 4 points up front and $1,500 in other fees.

  • Tarzana, CA · Member since 2018 · 16 posts · 6 votes
    8y

    Hi Adriel,

    I am brand spanking new to the world of REI and I'm currently reading a bunch of books to learn/absorb as much as I can. I own my primary residence, which is a single family home in Tarzana that I purchased around 2011. I figured if I was ever going to buy 2011 was the time as the market was beginning to come back. Very glad I did because the house has appreciated quite a lot. : )

    Having lived in the area for a few years now I've noticed so many homes  in the Tarzana & Woodland Hills area that appear to be very distressed. So... it occurred to me that this might be a good area to look and learn and one day - hopefully - jump right in.

    That being said, I looked at your before & after pictures.  Amazing!!  Looks great!   Do you have a GC that you work with and highly recommend?  If so, I'd love to get that information.  As I read a bunch a books I figured I could also begin to build a list of potential go-to people... contractors/subs, inspectors, etc.

    Hope to hear from you.


    Best,

    STEPHEN

  • Specialist · Los Angeles, CA · Member since 2016 · 165 posts · 88 votes
    8y

    @Stephen Marlin thank you. That’s great about your Tarzana property. I’m familiar with the area as I grew up in the Valley and my first few flips were in West Hills and Lake Balboa. I do have a contractor that works for me but unfortunately at the moment I’m keeping him busy enough that he can’t take one any other jobs. I knew others but would not recommend them. A great way for you to find some is by identifying homes as your driving around that are being renovated. You can pull over and ask the workers for their info amen if they’re taking on other jobs. If they’re aren’t a Brent ok they’ll usually tell you straight out. Keep up the educating and good luck on everything. Feel free to reach out if you need anything else.

  • Tarzana, CA · Member since 2018 · 16 posts · 6 votes
    8y

    Thank you, Adriel. Much appreciated. Funny thing ... I did just that today. There is a home around the corner that is being flipped. They took it down to the studs. Been watching the progress and seems to be moving at a reasonable pace. I pulled over today to ask who the GC was. However, they just have me the name of the entity flipping. The LLC. I will continue to look around for great GC. Thank you.

    Best,

    STEPHEN

  • Los Angeles · Member since 2018 · 13 posts · 0 votes
    8y

    Congrats! I'm new to REI and I'm interested to know how much is the net out of the $468K initial investment after taxes, HML payoff, agent fees etc.? I read in another thread that the tax in flip investments in L.A. is really high. That sold price for a 2/1 800 sq ft. is unreal! What made you decide to flip instead of BRRR?

  • Rental Property Investor · Chattanooga, TN · Member since 2015 · 208 posts · 94 votes
    8y
    @Adriel Liwag Well done, Adriel! This is a huge inspiration. Keep up the great work and keep us posted on your journey.
  • Member since 2018 · 1 post · 0 votes
    8y

    Very inspired! 

    After dreaming of flipping in LA for so many years, I've finally reached the point where I have to pursue it. Glad to hear deals are there for those that work hard. 

  • Developer · Los Angeles, CA · Member since 2015 · 48 posts · 12 votes
    8y
    Originally posted by @Adriel Liwag:

    Hey BP, I just wanted to share my most recent flip. This was in Los Angeles. This is my 6th flip and I haven't had a chance to share every single one but I'm pretty proud of my accomplishments in the last 2 years since I started flipping. I got a lot of negative feedback at first from people telling me it's a bad idea, it's too risky, local seasoned agents telling me I'm too late to the game and you can't do any investing in Los Angeles with $0 money. Well, 2 years later here I am. I started with $0 out of pocket, I've completed my 6th flip, I just purchased my 7th one last week and have 3 other ones in my pipeline, I left my job a year ago to go into this full time, and each deal after the first just kept getting better because I kept learning how to make it better. I'm sharing this not to brag, but to show those of you particularly in Los Angeles, that it can be done if you have enough desire. This is not at all to say it was easy because there is nothing easy about this business. With that said here are the details and links to the pics.

    Property: 2/1 800 sq ft./5,000 lot

    Purchase price: $413k

    Rehab: $55k 

    Rehab time: 6 weeks

    Initial ARV: $580k

    Listed: $599k

    Appraised: $635k

    Sold: $653k

    Pics:

    Before - https://app.box.com/s/mhqk541iubkj84ibf4pa9x63cdex...

    After - https://app.box.com/s/21n6e5igy958bl6wdzagvmciecyr...

    Just wanted to say the house is beautiful. I love the exposed wood mix. Sometimes the modern white can be too much, and it is tastefully done. Anything you would have done differently on this project? Looks like one of the burbs in downtown LA??

  • Specialist · Los Angeles, CA · Member since 2016 · 165 posts · 88 votes
    8y

    Thanks Heath, no I wouldn't have done anything different.

  • Specialist · Los Angeles, CA · Member since 2016 · 165 posts · 88 votes
    8y

    @Henry Ngo at the moment I'm flipping to build capital to be able to BRRR. Otherwise, if financially I can, I would very much rather BRRR.

    @Christina J. Thank you!

    @Jason Flynn Yup, it's possible for those willing to put out the hard work.

  • Glendora, CA · Member since 2018 · 49 posts · 16 votes
    8y

    @Adriel Liwag I am learning looking to start up next year in Los Angeles. So glad to see you are doing well. I have a little saved and I read you have a partner that provided the capital for the first flip. How does the HML work exactly? Are you financing the repairs as well? Being so new I am not sure how the fix and flip works with HML and partners mixed in. Any tips for a newbie would be super awesome. Wishing you continued success.

  • Investor · Charlotte, NC · Member since 2017 · 791 posts · 479 votes
    8y

    @Adriel Liwag Congrats! Keep up the success man.

  • Specialist · Los Angeles, CA · Member since 2016 · 165 posts · 88 votes
    8y

    @Scott Morongell Thank you!

  • Member since 2019 · 1 post · 0 votes
    7y

    Hi Adriel, this is a great story! I'm thinking about doing the same thing. How do you look for the houses? Do you look for house on auction? Thanks!

Join the conversationCreate a free account to reply, vote on answers and follow this thread.