Rehabbers/ Contractors

[Bill Newport]

Hello BP Members. I am Bill, a new investor from Orange County, Ca. I wanted to first introduce myself and say I wish I would have found this site years ago. Second, get your opinions on flipping and wholesaling in California. It seems like it is difficult to get properties here at a enough discount to make it worth wild for a wholesale transaction or flip, in which a hard money lender or private investor would even consider a deal. Lastly, can recommend a rehabber or contractor that is good at what they do, along with being as cost effective as well all would like? Your opinions and recommendations are greatly appreciated... Thank you..

[Mike S.]

@Bill Newport Welcome to BP

There is a ton of great info on BP with regards to creative ways to identify and contact motivated sellers.

The biggest challenge in SoCal is that most homeowners can easily sell a property on the MLS EVEN WITH the following issues

1) house is in bad condition, no appliances, needs serious rehab etc.

2) house needs to be sold fast

3) house needs to be sold without loan/inspection contingencies

4)house has unpermitted additions

now lets look at this from the standpoint of a motivated seller lets say the house sells for 500k in as is condition on the MLS the seller pays 7% (commission plus closing cost) that is 465k in the sellers pocket. The house goes to the highest bidder (usually a large company that does a bunch of flips capable of operating on very tight margins) the type of companies that buy at the trustee sales. ARV of the house is 625k.

why would the seller not list it and sell it at a much deeper discount to you?

There are definitely reasons why you might get this at a deeper discount the main thing is you need to get to the seller before the agents/other investors and wholesalers do and in SoCal the competition is fierce but I do see these off MLS deals being done with nice margins so it is possible.