All Forum Posts by: Steve L.

I am an agent so I put my properties in the MLS myself. Your biggest issue with a flip like this, you cannot accept any FHA offers for more money then you paid until day 91 of owning it. So from day 1-90 your only option is conventional offers. There are very few conventional "retail" buyers right now.

We do MLS, CraigsList and put a sign upfront. 10% of calls from CraigsList, 10% from the sign and 80% from the MLS. Most of our sales have another agent involved.

Learn not to rush the repairs... with FHA's rules in this market it doesn't do anything but cause frustration.

What happens if you go over budget? What happens if the property sells for 160,000 or 150,000? What about escrow fees and closing costs?

Jason,

I think you are asking some good questions. You seem responsible with your money and can find avenues to invest and make much more cash than $500 a month.

The LA market is very local. The lower end areas there are great deals to be had right now (Inland Empire, Compton, Santa Ana, Lancaster etc). In the higher end areas prices have not moved down very much yet (Woodland Hills, most of OC, etc).

If you're wanting to buy long-term and live in a place 5-10 years, I don't think buying is a horrible decision.

We went to an REDC Auction in California... looked at 30 properties and established max bids on all of them.

Most properties went 2x our maximum bid with some of them going for only 1.5x. Waste of time.

I did hear that in more rural areas the deals are better.

I think wholesalers are a good source of deals. But be careful to pick a good one.

Pick your market first and focus on one area versus many different areas. I'd probably visit the area before you buy anything and get a comfort zone for what you're doing.

We buy and sell in Southern California. Most of our buyers are first time buyers who are renting right now. Their new mortgage is less then rent for a fully remodeled house.

We also wholesale pre-rehabed properties to other investors, they are buying mostly to rent. If a property cashflow sufficiently now and your planning to hold long-term why not...

I am partnered with my father. We both have different skill-sets and a lot of the same ones. Between us we do what needs to get done... sometimes he does WAY more sometimes I do WAY more.

We disagree, but we are family first. At the end of any discussion, argument, etc we know that we are not willing to put our family relationship on the line we typically can come up with a solution. This type of relationship is not for most people...

Overall, I've been involved in numerous partnerships. Some have succeeded, some have failed. If you're going to work with a friend, I'd suggest a lose arrangement. Before you do anything complicated do one property together... see how it goes. After a couple, you will know if you can work with the person or not.

Trust is key...

Good luck.

Lee - don't fall in love with the first deal you come across. It is a buyers market. A better deal will come by if you look hard.

Let the bank chase you...

We buy almost everything right out of the MLS, but mostly because of this market (ALL REOs).

Most agents seem to not like investors, nor do they make a ton of money off of us.

I have a real estate agent but mostly do investing. We now have enough flips where I want to order some hanging yard for sale signs. I have scoured the internet and don't really see too many reputable sources that make these.

Anyone have any companies they recommend? I am from Southern California.