Los Angeles Wholesale/Investing Business

3 Replies

So i have been reading all these posts on how wholesaling is dead in Los Angeles and how flipping is harder now. On some post i think someone said  they spent $4,000 on marketing and got nothing!  So what can a newbie do now?

 What areas of SoCal are still reasonable to flipp?  I'm willing to travel.  

I've been doing research on the San Bernardino area and Compton area, and the houses LOOK like great opportunities, but whoever i talk to tells me to stay away from does areas. 

Also Since i have my license i figured i can offer to List a house if a wholesaling deal doesn't work out.  Are there any agents who have actually done this?

Originally posted by @Gary Erdoglyan :

So i have been reading all these posts on how wholesaling is dead in Los Angeles and how flipping is harder now. On some post i think someone said  they spent $4,000 on marketing and got nothing!  So what can a newbie do now?

 What areas of SoCal are still reasonable to flipp?  I'm willing to travel.  

I've been doing research on the San Bernardino area and Compton area, and the houses LOOK like great opportunities, but whoever i talk to tells me to stay away from does areas. 

Also Since i have my license i figured i can offer to List a house if a wholesaling deal doesn't work out.  Are there any agents who have actually done this?

Posts like this are so.. to paraphrase Donald Trump, I don't want to use "idiotic" because that would be insulting. Wholesaling and flipping are dead? Do you actually believe that? 

You're licensed. Have you pulled up the MLS and LOOKED to see if there are investor rehabs being sold in Los Angeles? I'm thinking... No, you did not.

You can flip houses anywhere in SoCal. From the southern end of San Diego by the Mexican border all the way up to the northern end of Los Angeles county. The question is, where do YOU want to invest? If you like Compton, focus on Compton. I have a friend who does lots of deals in that area. 

As far as offering to list a house that you tried to buy at a wholesale price, how do you think that is going to go over? Here's how I imagine it might go:

Agent/Wholesaler: I'd like to buy your house for $100K. 

Seller: That is too low.

Agent/Wholesaler: How about I list it for $200K?

Seller: You just offered me $100K. Why do you think you can sell it for $200K? You said you would only pay $100K for it! 

Agent/Wholesaler: ....??

Also, here in California, everyone has a cousin/nephew/brother/aunt that is a licensed agent. Plus, there are expert agents who target neighborhoods and market the crap out of their services to the people who live there. 

Pick an area you like. Learn that area. Look at what is selling in the MLS. Look up on title to see who is selling those houses. Get in your car and drive the streets. Look at the properties. Learn the retail and rental values. I can tell you what a 2/1, 3/1 and 3/2 will sell for and rent for in my primary target markets. There are tons of deals to be made in every city in SoCal. Some more than others. Don't believe the nay sayers. They just can't find any for themselves so they like to spread their misery around.

I have one wholesale deal in escrow, 6 rehabs going and one eviction on a property I just bought and will hold as a rental that blows the pants off the 1% rule - all here in SoCal.