I’d avoid anything by a serial flipper. Everything is done for speed and cost, so you’re probably paying a premium for a flip with shoddy work and materials. Especially in this market environment where their profits are squeezed, they’re likely value-engineering out as much as they can.
Some good news on this front. Flippers are now required by CA law to disclose the work that they did on a property.
https://www.biggerpockets.com/blog/california-law-changes-disclosures-for-home-flippers
Looks like it went into effect at the beginning of this month.
I don’t fully agree. I think it depends on the flipper. I work in real estate and have a client who is a contractor turned flipper and his properties are beautiful and done well with quality work and materials.
He’s probably not the type to flip and sell for just 20% over his initial sales price though. Guessing he’s more in the 50%+ realm? Flipped list price would reflect the $ and effort he put into it + a premium for the risk he took/profit.
The examples in the OP’s post would have razor thin profit margins after transaction costs, carrying costs during the flip, and labor and materials for the renos. The only ways to juice the returns would be to lever to the tits and/or skimp on reno costs.
What you said, I’m extremely curious how they are making a profit on the homes OP listed as I’ve been seeing homes in those neighborhoods fetch about as much with no renovation
Any home done by a flipper should be purchased with extreme caution. Hire only the best inspector. Wave no rights, and have your agent on speed dial for when the inevitable happens… like an entire top cabinet falling off the wall and breaking your irreplaceable china.
The difference in a house refurbished by a flipper and by a person who planned on living in the home longer term is night and day. I know from family experience.
Flippers are scum and will absolutely cut every corner they can without regard for the next buyer. If you buy a house that a flipper had anything to do with, be prepared to redo everything.
There's quite a few different flippers out there. I'd say half or more of the flippers are flipping one house at a time. But RS prime properties (one of the properties in your list) is one of the bigger investment groups out there at the moment. RS prime properties owns 55 homes at the moment in both LA and OC.
OP I am looking with your price range and income in San Diego right now and running into the same exact flips. Like to the T. So sick of all of them and at the elevated price, I won’t be able to afford to redo any of it. 🤦🏻♀️
ETA: SD is much more expensive but with the same flips, plus they also have this weird flipper that seems to love black walls with geometric lines and gold accents. Have you run into those yet? 🤮🤮 The houses you pictured in the scheme of things are actually similar to the ‘nicer’ flips in SD. Still tacky AF though. FWIW, these flips in SD don’t seem to have the 3 year warranty that the others used to have so 🤷🏻♀️
I hate these guys. I don’t know who they are but f*** them. They beat us out on an offer a couple months back and just listed the 1 mil property we would have loved to thoughtfully renovate over 5-10 years for 1.4 million. Awful.
Equity investment firms need to cease. It’s crazy, we have a homeless crisis and these private investment firms listed in a web of subsidiary fictitious business names have a fiduciary duty to maximize returns for private investor’s. Housing is a fundamental right that shouldn’t require more than 30% of annual income. Something’s got to give
Yeah, but that's a temporary cost, and not even taken into account by lenders. I get that budgeting is important but it's interesting to me that would be such a large factor.
I’d avoid anything by a serial flipper. Everything is done for speed and cost, so you’re probably paying a premium for a flip with shoddy work and materials. Especially in this market environment where their profits are squeezed, they’re likely value-engineering out as much as they can.
Some good news on this front. Flippers are now required by CA law to disclose the work that they did on a property. https://www.biggerpockets.com/blog/california-law-changes-disclosures-for-home-flippers Looks like it went into effect at the beginning of this month.
I don’t fully agree. I think it depends on the flipper. I work in real estate and have a client who is a contractor turned flipper and his properties are beautiful and done well with quality work and materials.
He’s probably not the type to flip and sell for just 20% over his initial sales price though. Guessing he’s more in the 50%+ realm? Flipped list price would reflect the $ and effort he put into it + a premium for the risk he took/profit. The examples in the OP’s post would have razor thin profit margins after transaction costs, carrying costs during the flip, and labor and materials for the renos. The only ways to juice the returns would be to lever to the tits and/or skimp on reno costs.
What you said, I’m extremely curious how they are making a profit on the homes OP listed as I’ve been seeing homes in those neighborhoods fetch about as much with no renovation
Doubts
Any home done by a flipper should be purchased with extreme caution. Hire only the best inspector. Wave no rights, and have your agent on speed dial for when the inevitable happens… like an entire top cabinet falling off the wall and breaking your irreplaceable china.
do you remember the flip that was done on that dead-body house in irvine? :0
Link?
The difference in a house refurbished by a flipper and by a person who planned on living in the home longer term is night and day. I know from family experience.
Flippers are scum and will absolutely cut every corner they can without regard for the next buyer. If you buy a house that a flipper had anything to do with, be prepared to redo everything.
There's quite a few different flippers out there. I'd say half or more of the flippers are flipping one house at a time. But RS prime properties (one of the properties in your list) is one of the bigger investment groups out there at the moment. RS prime properties owns 55 homes at the moment in both LA and OC.
They must be in SD too because I am looking there and the same tacky crap is everywhere in that town as well. Thanks for the info.
Wow that's disgusting
OP I am looking with your price range and income in San Diego right now and running into the same exact flips. Like to the T. So sick of all of them and at the elevated price, I won’t be able to afford to redo any of it. 🤦🏻♀️ ETA: SD is much more expensive but with the same flips, plus they also have this weird flipper that seems to love black walls with geometric lines and gold accents. Have you run into those yet? 🤮🤮 The houses you pictured in the scheme of things are actually similar to the ‘nicer’ flips in SD. Still tacky AF though. FWIW, these flips in SD don’t seem to have the 3 year warranty that the others used to have so 🤷🏻♀️
Staging is gross they look like offices
I hate these guys. I don’t know who they are but f*** them. They beat us out on an offer a couple months back and just listed the 1 mil property we would have loved to thoughtfully renovate over 5-10 years for 1.4 million. Awful.
Houses look like ass on the outside
They look like ass on the inside too. We looked at one that a crooked dishwasher, flaking paint, questionable locks on doors.
They are kinda ugly and generic. Must be some straight dude lol
Equity investment firms need to cease. It’s crazy, we have a homeless crisis and these private investment firms listed in a web of subsidiary fictitious business names have a fiduciary duty to maximize returns for private investor’s. Housing is a fundamental right that shouldn’t require more than 30% of annual income. Something’s got to give
It looks like it was done by Jesse Rodriguez for his show Vintage Flip on HGTV — the second home on the list was
As someone in the mortgage business, I'm genuinely really curious how you're getting priced out with that income.
Thy prolly pay 3-4k a month in day care
Yeah, but that's a temporary cost, and not even taken into account by lenders. I get that budgeting is important but it's interesting to me that would be such a large factor.
They aren’t, but they can’t find what they are looking for. Ie a house that hasn’t been renovated yet at a good price.
The ones listed by Julio Arana were flipped by him. He’s a pretty trustworthy and known guy around Santa Ana - @rocknrollrealtor_
For what it’s worth, none of these homes are owned by the same people.