Blog - Archive for April, 2010

Still Flipping Out

April 26th, 2010

Recently at one of my open houses I was asked, “are people still buying then flipping a property”. For those of you not familiar with the jargon the question is – “Are people still buying property and making the necessary repairs or improvements to put it back on the market for a profit.” The answer is “Yes”. Experienced investors know that their money is made up front. This means you buy a property below market value that has upside potential once the necessary repairs are made. Recently my business partner and I listed a property for a client that fit this bill. He originally purchased it as a foreclosure. During our open houses many of the would be bidders came through to comment on the improvements and share on how they had considered buying the property originally but were deterred by the many known and unknown repairs required, the property was being sold “As Is”. Our seller, after careful analysis of the area sales comparables and a very good knowledge of the location, made the move to purchase. He knew that if he were the successful bidder he could always complete the repairs onĀ  the building and rent the units for income, the area rent average was high enough to cover any mortgage, taxes or insurance on the property with utilities being paid by the tenants. Or, he could sell the building recouping his renovation costs and any sales commissions while still achieving a profit . After the renovation he decided to sell. We had offers within the first two weeks of the listing, he accepted an offer and 45 days later we closed escrow. Yes, there is always an element of risk with this type of transaction but at the end of the day the risk taker can still turn a profit on the right buy. I want to stress that the knowledge of the neighborhood, attention to the area comparable values along with the guidance of an experienced Real Estate Area Specialist made for a very smooth profitable transaction.

L.A Metro Home Hot Pick – West Hollywood Fixer

April 17th, 2010

1050 Genesee FrontCity West Hollywood fixer upper ready to be transformed into your dream home. Large flat lot with room for pool. House is surrounded by mature greenery, gigantic Birds of Paradise, Bougainvillea and Cacti. There are 2 bedrooms 1 bathroom with plenty of space to expand. Plans are available to build 5 townhouses on this site. Very easy to see. Call Paul Cruz 310-498-4942.