Hawthorne, CA · Member since 2016 · 6 posts · 0 votes
Hello BP I was wondering if anyone here has any experience or know of someone wholesaling in Los Angeles. Is it still a good way to get into real estate investing in this area? Properties here are pretty expensive and want to know if it still possible to be successful here. Any advice for a novice like me would mean the world to me. Thank you !
Investor · Riverside, CA · Member since 2011 · 2k+ posts · 3k+ votes
10y
There hasn't been as good a time to be a wholesaler as there is right now. Investors are getting squeezed and dropping out of business for lack of deals. Hard money and private lenders are dropping rates in desperation to put their money to work. And my wholesale profits have never been bigger. The other REAL wholesalers that I associate with agree 100% with these statements.
"the wholesale business margins have gotten very thin and will continue to get thinner within the next year or two."
Disagree 100%. Either become a better buyer or sell to different investors.
Los Angeles, CA · Member since 2016 · 62 posts · 20 votes
10y
It is definitely more than possible to be successful wholesaling in Los Angeles. However, like any booming industry there will be a lot of competition. Just work harder!
Real Estate Broker · Redlands, CA · Member since 2011 · 127 posts · 43 votes
10y
Like @SteveSynder said the Los Angeles Market is crazy competitive. Since the the housing market has appreciated so rapidly over the last few years, the wholesale business margins have gotten very thin and will continue to get thinner within the next year or two.
If you want to start wholesaling properties with a lot of meat on the bone (profits), I would suggest looking East and Inland towards some of the areas where the affordable housing has shifted to such as Inland Empire, High Desert, Coachella Valley and any other markets that always tend to ride on the coattails of the Metro markets such as Los Angeles.
I would also consider expanding your wholesaling beyond single family residential and look towards multifamily 2 - 4 units or even 5 + units. Identifying a d purchasing properties that are undervalued due to under market rents caused by owners with a lower purchase basis that are terrified of losing tenants and raising rents, will definitely provide you with immediate upside appreciation when adjusting rents to market rates as well as covering all your holding costs and a cash flow reward every month.
Rental Property Investor · La Quinta, CA · Member since 2014 · 1k+ posts · 779 votes
10y
Good advice @Nathan Diones. Lots of demand for multi-family in the Coachella Valley area from out-of-area investors, but they normally want places with market rents or aren't great at understanding what markets rents are. Finding places with under market rents provides a good opp.
Hawthorne, CA · Member since 2016 · 6 posts · 0 votes
10y
Thank you for the great advice and for the encouragement! Definately my end game would be to eventually own rental properties. Wholesaling seems like a good way to get start up capital. Would definitely look into the areas mentioned
Investor · Riverside, CA · Member since 2011 · 2k+ posts · 3k+ votes
10y
There hasn't been as good a time to be a wholesaler as there is right now. Investors are getting squeezed and dropping out of business for lack of deals. Hard money and private lenders are dropping rates in desperation to put their money to work. And my wholesale profits have never been bigger. The other REAL wholesalers that I associate with agree 100% with these statements.
"the wholesale business margins have gotten very thin and will continue to get thinner within the next year or two."
Disagree 100%. Either become a better buyer or sell to different investors.
Investor, Coach, Consultant · Redondo Beach, CA · Member since 2015 · 18 posts · 5 votes
10y
Hey @Juan Acevedo First off i do not confuse fact with opinion, If you have a good system and are good at your craft you can definatly make money in los angeles flipping and or wholesaling, never be afraid of competition you should embrace that and create a system to be part of that competition thats what makes this all so fun, not everyone can do it, me personally i love the La market as soon as i get a house completed i have multiple offers in the first couple weeks and i can care less about the competition, i focus on my structure that works for me, If you can make it in La you will find many other areas easy, I'm not far from you if you like you can come visit one of my flips and gain a little experience, i have a couple SFR's i purchased in the La area I'm almost complete with the rehab, good luck to you.
Investor, Trainer, Team Builder · Orange County, CA · Member since 2015 · 49 posts · 14 votes
10y
@Juan Acevedo feel free to add me to your cash buyers list. I work a lot in Los Angeles County and Orange County. Let's connect so that I can tell you more about my criteria.
Real Estate Agent and Investor · Los Angeles, CA · Member since 2015 · 52 posts · 20 votes
10y
If you just do wholesaling, you would be very limited to a very specific type of deal; that is the distressed seller who is willing to sell for cash in 48 hours at 75% of retail.
Our trainees can multiply their earning capabilities with us x3 or x4, as we teach holistic real estate, and how to get into real estate investing by utilizing multiple simultaneous very lucrative strategies, not just wholesaling.
Rental Property Investor · Los Angeles, CA · Member since 2019 · 5 posts · 0 votes
6y
I'm an investor in Los Angeles & currently putting my money towards possesion of lists for distressed properties & cold-calling this list with automated systems.
Hello Jerry, beginner wholesaler/investor here in LA. Are you still flipping houses in LA? I'm having difficulties getting momentum in my wholesale operation, been at it for a year now.
Hello BP I was wondering if anyone here has any experience or know of someone wholesaling in Los Angeles. Is it still a good way to get into real estate investing in this area? Properties here are pretty expensive and want to know if it still possible to be successful here. Any advice for a novice like me would mean the world to me. Thank you !
You can successfully wholesale real estate any where in this country. Its not as easy as the gurus would like you to believe. Some might argue that its one of the harder strategies.
you need the hustlers spirit, problem solving skills, negotiating skills, marketing skills, a good understanding of construction cost, and market analysis skills.
Although it is very possible to use low or no money down, you will quickly learn that a good wholesaler has significant marketing dollars behind them.