Since the recession, Southern California has been slowly rebounding to a thriving economy. A high foreclosure rate comes along with a large inventory for fix and flip properties. Each of these cities below shows positive signs of population growth, bringing new opportunities for fix and flip real estate investors. If you’re sold on the idea of flipping houses but unsure where to start, the team at RTI Bridge Loans are here to talk about some essentials to help.
Table of Contents
What are Fix and Flip Loans?
Fix and flip hard money loans are short-term real estate loans designed to help an investor buy and renovate a property and then later sell it at a profit—generally within 12 to 18 months.
Why it’s a Good Time to Flip Houses in Southern California
Southern California has one of the hottest housing markets in the country. For fix and flip investors, it’s a once-in-a-lifetime opportunity to make good money. Despite the expensive housing market valuation, investors who choose the appropriate properties and flip houses in Southern California win handsomely. In some Southern California neighborhoods, house values increase by over 10% yearly.
It’s easy to see why real estate investors are flocking to the Southern California real estate market. Residences in Southern California are in more demand than they are available, resulting in a strong seller’s market. Furthermore, Southern California’s super expensive housing costs make houses less accessible to first-time investors and homebuyers. You’ll need more money to get started, which means there will be fewer novice investors and, as a result, less competition in this business.
To best position yourself for success in Southern California house flipping, ensure that you:
If it’s within your budget and financial abilities, invest with cash. If not, you can’t go wrong with fix and flip loans from a credible hard money lender. Contact RTI Bridge loans for all your hard money lending needs!
Avoid Massive Overhauls
Everyone expects to make repairs, but knowing what repairs to avoid, especially when using fix and flip loans, is a great way to save yourself from a flip gone wrong.
Go with the Market
Houses in Southern California are no exception to the rule that every real estate investment is very niche and local area dependent. Paying attention to current market events and learning to react swiftly with sound financial backing is critical.
Networking is essential, no matter what your goals are in real estate. Focus on networking with real estate agents, attorneys, and hard money lenders who may be aware of off-market properties in your area.
Location, Location, Location
The location of a property is critical if you’re looking for profitable fix and flip opportunities.
Hottest Fix and Flip Real Estate Market Right Now
Once you formulate a plan on how you’ll finance your house flipping project, it’s time to find the best cities in Southern California that will bring you a higher return on investment.
San Diego is ranked first on our list. Strong population growth, a shorter time on the market, and a median household income of over $108,864 all indicate continued flipping success. The San Diego market is booming, and many fix and flip investors have successfully leveraged their capital with RTI Bridge Loans.
The streets are immaculate, parks are everywhere, and the feeling of community makes Brentwood a great place to live! Yes, Brentwood is a little on the expensive side, but the increasing rents and housing prices create the potential for increased yields for house-flipping investors interested in investing in Brentwood.
The City of Angels has one of the hottest neighborhoods in the country in terms of house flipping potential, thanks to the housing volume and the wide price range. Even though people know Los Angeles for its expensive living, experts consistently rank it as the leading market for real estate investment. From El Sereno to Cypress Park, Ladera Heights, Sherman Oaks, North Hollywood, and all residential points in Los Angeles, house flippers are breathing new life into houses.
Less than an hour from Los Angeles, California, Irvine is home to beautiful parks, friendly people, low crime, and excellent schools. With Irvine’s population expected to continue growing, the city is sure to become an even more popular area for living and business, which makes it a great pick if you want a successful and financially rewarding house flip.
As long as you adhere to good house-flipping practices, turning a profit in the Long Beach area of Southern California should be easy. As the adage goes, it’s best to strike when the iron is hot. If you’re considering going in on a fix and flip in the Long Beach market, now is the time, as the Long Beach real estate market is as hot as it can be.
Costa Mesa features fantastic scenery, one of the nation’s largest shopping centers, and some of the best beaches in Orange County. This market is favorable for house flipping because of the surge of homebuyers and the fair average home price. The Costa Mesa market is booming right now, and many fix and flip investors have successfully leveraged their capital with fix and flip loans from RTI Bridge Loans.
It’s no secret that Huntington Beach is a fantastic place to live. Huntington Beach has all the factors that give it excellent house-flipping potential because of its stunning Pacific Ocean beaches, perfect year-round weather, and bustling nightlife and food scene. The only downside may be finding that ideal fixer-upper to flip. But, if you can find it, you can profit significantly.
Financing Designed for Southern California House Flippers
Southern California property flippers need financing from a team that understands the local property markets and the costs associated with Southern California purchasing, renovating, and permits. RTI Bridge Loans is a Gardena-based firm that works directly with property flippers in Los Angeles and Southern California.
We are familiar with residential neighborhoods and each micro-market cycle, so we can get you the best financing possible, allowing your fix and flip projects to stay on schedule and generate the most revenue. Contact our team at RTI Bridge Loans today at 562-857-2285 or fill out our online form to learn more about our fix and flip financing solutions for properties in Southern California.