Real Estate Broker · Orange, CA · Member since 2015 · 79 posts · 86 votes
I am a property manager and relatively green investor in Orange County, CA. I own three rental properties in my county.
I'd like to continue to grow my buy and hold portfolio, but my problem is deal flow. I'm looking to buy properties in my area at 70% of ARV, fix them, and rent them.
I've read that wholesalers generally shoot to get a property under contract at about 65-70% of ARV. I know Orange County is a hot, premium market. So, here is my question:
1) Is buying at 65-70% ARV realistic in Orange County? If not, please educate me.
Real Estate Broker · Orange, CA · Member since 2015 · 79 posts · 86 votes
10y
I seem to have answered my own question!
The answer is that, yes, 70% of ARV is possible in Orange County. It's possible anywhere! But much harder to come by. In Orange County, or any other premium real estate market, closer to 80% ARV is a more realistic find.
If there are any investors in Orange County that have a different experience, I'd love to hear it. I'm here to learn!
Flipper/Rehabber · Tustin, CA · Member since 2015 · 433 posts · 103 votes
10y
@Eric G., I found it difficult myself to wholesale in Orange County, CA. I was also going for ~70% ARV. In this market, I was told that wholesaling was feasible two years ago, but with the market as it is now, it's much harder to do. The homes that I find that truly have motivated sellers have already been approached by acquisition companies. The other homes that haven't been approached by them definitely did not entertain the thought of 70%ARV.
You may be able to find a deal if you have the time to really go out and find the motivated sellers. The ones I found weren't there just yet, so they kept wanting more for their property. Good luck. Keep us posted. I'd be ecstatic if I could wholesale just a few properties in Orange County..heck..maybe even just one!