Borrower Spotlight: California Contractor Realizes Potential in Fix and Flip Space

 

Having spent years remodeling and renovating homes for clients, Will realized the potential in rehabbing and selling his own properties. He has been in the fix and flip game for only a year and a half and just put his sixth flip on the market all while acquiring two more.

Will invests in the greater Los Angeles area and says, “We are always looking for any flip opportunities all while mainly utilizing the MLS. I came across this property listed as a fixer upper, which couldn’t have been more true. It hadn’t been updated since 1961 which means it had the thick green carpet still. These are the kind of properties I am searching for when I look for a flip.”

 

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Will’s strategy is to look for dated properties, like the one mentioned above, and if the numbers make sense he purchases it. But just like any smart investor, if the numbers don’t make sense, he moves onto the next potential investment opportunity.

When he was looking for funding for his property in Lomita, Easy Street Capital had been recommended to him by an acquisition partner. After researching our terms and speaking with Scott Townes, Easy Street Capital’s Partner, he decided to move forward. “Working with Scott has been an incredibly smooth process. It really is easy, working with Easy Street capital.” says WIll.

Will describes the process of working with Scott and Easy Street Capital as truly being easy. “I secured the property with the seller and then sent Scott all of the information needed to get the ball rolling. We were able to close escrow in a few days which allowed me to get to work on the property and have it completed within a few months”. By closing on the investment property quickly, you can keep up with the momentum needed to get your investment property completed and on the market. It’s all about timing in the fix and flip world.

The biggest piece of advice Will has for anyone interested in flipping their first property is knowing what the project will entail. “You have to know what you are doing. If you don’t have the experience then you need to find a contractor who can help guide you. If you don’t know the numbers, you can really fail. If you overpay, you can have a big headache from the very beginning. You will be stuck in a position of not being to make the updates necessary to get the property sold. You have to know the cost of rehab and you have to know what the ARV will be.”

His latest project in Lomita, CA was a very “by the book” flip. There weren’t any crazy unexpected surprises, which is always a relief for any investor. Instead, he had to make sure they put higher-end finishes in this home since it was a higher price point. This is a great example of knowing your market and understanding what buyers in that specific area are looking for when purchasing a home.

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As mentioned previously, Will’s latest project was one without any hiccups but he did make some last minute changes. “The whole project went smoothly but I did decide to change the scope of work in the middle of the project. Originally, the house was a 3 bed 2 bath and after much thought, I decided to make it a 4 bed 3 bath. Given the neighborhood, I saw a need for a house with an extra bedroom and bathroom. I think it was the right direction to take the project in”. Since he wasn’t adding any additional square footage he said the permitting process was fast. Given Will’s experience in remodeling properties, he knows the permitting process quite well for all of the counties he works in. He says that makes the process work even more efficiently.

We really enjoy getting to speak with our borrowers and can’t wait to see what Will does next.

 

 
 

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Jamie Talley
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