The Ultimate Guide to Flipping Houses in California
This year is turning out to be a particularly great one for house flippers, who are profiting from the wave of people leaving their apartments in the cities in search of houses in the suburbs. Urban. And the evidence is clear to see. According to Attom, the average gross earnings from flips last year were the highest they’ve been since 2005.
And flippers aren’t the only ones reaping the benefits. Buyers are too. What better kind of property to call their new home than a newly renovated house close to all of the amenities they’re looking for?
While not the cheapest, the Golden State is often a strategic choice for experienced flippers with sharp business judgment, looking to make a profit they can invest into their next venture.
If this sounds like it could be you, then sit back and relax as we walk you through the ins and outs of flipping houses in California.
Why Should You Fix and Flip in California?
Elevated real estate prices and a high cost of living can sometimes discourage flippers from investing in California. However, if you’re a flipper looking for a bargain, don’t let this put you off. We’re here to tell you why flipping houses in California is still worth your while.
- Bigger loan prospects: Because of the high prices in California (the median house price is more than double the national average), private lenders are generally willing to adjust their loan limits accordingly. What’s more, a high loan amount = higher profits for flippers.
- A large pipeline of foreclosure properties coming to the market: In California, the foreclosure moratorium has just been lifted. As a result, there are set to be a large number of foreclosure properties available throughout the Golden State. With this space!
- Strong buyer market: No matter how high house prices are, buyers are almost guaranteed to keep flocking to California because of how great it is to live there. It’s also fair to say that most house-hunters in California probably have a bigger budget to accommodate for all of the added extras that come with living in this idyllic state. With 28 national parks to choose from, 800 miles of coastline, and diverse multiculturalism, who wouldn’t want to live there?
If you’re thinking about flipping houses in California, contact an industry-leading private lender to get the funds in 3-7 days.
How to Flip Houses in California
Still wondering how to flip houses in California? Let us break down the process so that you can see just how simple it is. Here are some tips you can follow:
Narrow Down Your Search
As the third-largest state in the U.S., California has a huge surface area covered in real estate to choose from. It’s also home to some of the most expensive neighborhoods in America, so be sure to narrow your search for fix and flip properties down to the cheaper areas. More on that in our next section.
Look Out for REO Properties
Once you’ve identified the areas you want to look for real estate in, one of the most complex stages of the process is actually tracking down the houses you want to flip.
In California, one of our top tips is to look for Real Estate Owned (REO) properties, which have fallen into the hands of lenders after borrowers have defaulted on their mortgage payments. In the first quarter of this year, California was the state to register the third-highest number of REO properties in the U.S.
Make a Name for Yourself
With our previous point in mind, networking is also a very important part of flipping in California. As the saying goes, fixing and flipping often comes down to who you know and not what you know, so make sure you introduce yourself to the money lenders, wholesalers, and real estate agents in the area. They might be able to pass on tips of ideal fix and flip properties before others catch wind of them.
So you’ve tracked down your ideal fix and flip property to renovate. Now, the most important part of the game is making sure you have enough money to purchase it, renovate it, and ensure you make a profit from it. Use the 70% rule to make sure your profits are guaranteed. Here at We Lend, we provide tailor-made private money loans that you’ll be able to access within a week of applying for funds.
Best Cities to Flip Houses in California
As we’ve previously mentioned, there are definitely some areas of California you might want to avoid as a flipper. Flipping houses in the Bay Area, for example, requires a lot of forward planning to guarantee a healthy profit from your venture. However, it’s still important that you get the balance between affordability and desirable locations right. After all, this is the key to a successful flip.
With this in mind, here are some of the best places to flip houses in California:
If it’s ROI you’re looking for, there’s no better city for house flipping in California than Fresno. This is because the value of homes in this city is growing substantially quicker than in other, more expensive cities in California. Once rated the second-best city to flip houses in the U.S., Fresno has a suburban feel and is home to lots of families, as well as young professionals.
Los Angeles is one of the most profitable areas in California for fix and flips. In fact, The Orange County Register reported profits averaging nearly $135,000 per flipped home in Los Angeles County, the highest in the state. What’s more, as one of the most populated counties in the US, you’ll be able to find a fix and flip property that’s right for you.
If you’re hungry for some healthy flipping competition, look no further than the city of Irvine. This master-planned city in Orange County became famous for its “tech powerhouse” status a few years ago.
The last city we’d recommend for house flipping in California is Ventura. This coastal city racked up a whopping $180,000 in gross flipping profits last year, which was among the highest in the U.S, according to CNBC. From schools to beaches, surf spots to cafes, this city has great amenities that will attract buyers from far and wide.
Before you ask “do you need a license to flip houses in California?” The answer is no. So what are you waiting for?
Breathtaking scenery, a great location, and opportunities for some serious profit make California a challenging but exciting place to flip houses in 2021.
Now you’re equipped with all the information, there’s only one thing for it. Take the plunge and start flipping houses in California today.