All Forum Posts by: Tim G.

"When everybody is digging for gold, it's good to be in the pick and shovel business" - Someone smarter than me. 

It's a good time to sharpen the axe, in my home market of metro San Diego, so far this month. 17 LLC's have completed the purchase of a residential real estate property (SFR, Condo, 4 units and under). Those numbers are alarming, home flipping companies have effectively left my market.

Those numbers scare me, and for anyone looking to wholesale real estate right now. From someone who has done it for a decade with marketing like promoted above. It's a scary time, buyers are not buying or they want homes at discounts that most sellers are not yet ready to face. There is always opportunity but make sure you know your market and know what is happening in it before committing to a marketing budget built for 2021. 

The question I would be asking is, who is buying right now in my target market? 

 We can talk about it. It looks like you work for a company selling those services. In fairness to being transparent, that should be disclosed. 

 Ones with equity. I found folks at the point of foreclosure often wanted and needed the absolute most for their homes, were difficult to deal with and had a pattern of not making a hard decision. Hence being that far into the foreclosure process. That said, some friends have done well in that arena, I just hated it. 

The market has shifted, there are much fewer buyers for deals right now. That needs to be considered. In most cases, I think a retail buyer is going to be the best option unless the home cannot be financed. 

I will preface this with one fact. I never found success with preforeclosure deals. So my experience with them is limited. As Bryant said, there are very few investor buyers right now in our market. The big dogs who used to buy 20+ a month are now maybe buying a couple.... maybe. 

So if you lock up a deal, taking it on subject 2 or finding a retail buyer (if it's in good enough condition) are likely going to be the best moves right now. Since you have your license I'd probably encourage listing the properties as that will likely get the most exposure and success in finding an end buyer. 

What do you want to know? 

Welcome to the party surf bro! 

Are you a speculator or an investor? 

I'm local and on the fence, I'm concerned content might be outdated due to shifts in the market recently but would always enjoy networking if that is the case. So we'll see...

San Diego market is past two months inventory. Many flippers hit pause, many newer flippers haven't caught on to why they can suddenly buy deals and I worry they will be stuck holding the bag. The largest home flipper in town trimmed its inventory from 160m to 40m by wholesaling or listing deals as-is. 

There is so much going on (change in buyer sentiment) and not going on (investors have virtually stopped buying to flip unless they can factor in a 20% drop) at the same time. A 20% correction is now on the table as a possibility. Based on the data right now. 

I think monthly sales will be lower than anticipated, then increasing the monthly supply due to low volume.