All Forum Posts by: Brock VandenBerg

Is anyone finding fix and flip opportunities in San Diego in this slowing housing market? I am being told that listings for homes in poor condition are still receiving multiple offers, but they appear to be listed on the market for longer.

Thanks for the posting Aly! We can always help with Fix & Flip financing.

Congrats on your flip!!!

Hi Bibiana. I have funded several hard money rehab and bridge loans in El Centro. Based upon my experience, you will get better pricing on income properties, but that doesn't necessarily mean it's a better investment.  Prices do not appreciate in the El Centro market as much as they do in San Diego, CA and because you have a lot more investor buyers, values can change quickly when the market slows. Also, tenants send to be very seasonal so be ready for higher turnover.

Networth finds a lot of great opportunities throughout San Diego. Keep up the good work.  And remember, if you need a fix and flip loan, consider TaliMar Financial at talimarfinancial.com or contact Brock VandenBerg at (858) 613-0111 x1.

Looks like an interesting investment opportunity. If you have a buyer that doesn't qualify for conventional financing, consider a hard money bridge loan from TaliMar Financial.  Check us out at talimarfinancial.com or call me at (858) 613-0111.

I think your two biggest risks are if there was an accident at the property and the City shutting you down. First, if the renovations were not done to code and a tenant got hurt as a result, you could be facing a pretty hefty lawsuit. Additionally, with some many people in one property, you may start getting complaints from neighbors who could turn you in. Both these issues could lead to tenants complaining that you are offering illegal housing and threatening you with an early termination on the lease. Regarding, insurance, you might be able to get a policy, but if you submit a claim, the insurance company may deny the claim due to your illegal use of the property.

You will need to personally weigh the risk vs. the reward.

Welcome to BP. Check out some of the local real estate investor meetings around San Diego.  One option would be the SDCIA event in Mission Valley. They hold the event monthly.  We are a Sponsor and have been attending for 7+ years. Its a great opportunity to meet like minded investors and network with experienced investors.  If you do come, please feel free to come back to our booth and introduce yourself.

Depends on what you are looking to do with the house. Are you simply looking to flip the property or buy and hold? Most of the deals we finance for flips, investors make around an 8% return on total project cost and roughly a 25% return on invested capital (assuming they use debt to purchase / rehab the property). If you are are looking to reposition land or obtain approvals for higher density, the returns can go up substantially. 

I believe San Diego offers excellent real estate investment opportunities.  But it definitely isn't a market that you are going to walk down the street and purchase a dilapidated home, rehab, and rent it for a profit. San Diego suffers from a massive housing shortage (and massive is an understatement). Most of the real estate investors that we are working with are either buying for a long term hold (starting at a 3 - 4 cap and increasing rents annually) or buying existing single family homes and adding square footage. I financed a project in Imperial Beach in which our borrower purchased a property with two homes on one lot. He is in the process of splitting the lot and will sell each home individually after a moderate rehab. There is plenty of opportunity. I would recommend connecting some real estate investors / brokers at the local real estate investor events.