Thread: any million $$$ flipper's out here?

Just thought I would ask if any one is flipping homes in the $1-2 mil price range in Souther Cali? If so what return do you guys see on the investment in percentage terms? You can PM if you wanna keep it private. Thanks for the help.

Yes, but in the Caribbean, market is still decent if you build a unique property that stands out from the crowd and of course, location, location, location. Starting my next project in Q1 2011.

Flipping million $ properties is risky, but has a very high reward if done right:

1) Unless you have a ton of cash, your going to have to finance which in CA envokes a flipper rule where you must hold the property 90 days. I don't know where you live but it's something too look into.

2) These homes are usually bigger and thus require more material and more expensive materials.

3) It's easier to sell entry level homes. People with more money are generally picky and want to disect every property each and every way possible. Entry level buyers are usually just excited at the opportunity and move quick.

But at the same time, if you can find a home that is in an A area but just needs the work to fit in with it's A neighbors, it's worth it. Just be ready to spending 6 figures in rennovation and a long sales process.

What I do is entry level homes in the San Fernando Valley. Buy these homes between $250-300K, put in about $30K of 'green' rehab and put in back on the market for $340-400K depending on scope of work and the comps.

One strategy that seems to always work is slightly under-pricing at the property at the time of sale. Before you know it you've got 20 offers on your desk and you can go though the counter process with each of them and eventually. Once first time home owners get into a counter process their emotions get involved and they tend to offer more and more until they get what they want. Eventually, you'll get more than what you orginally hoped for.