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Flipping California!  A High-Yield Turnkey Flipping Strategy  |  Episode 155

Flipping California! A High-Yield Turnkey Flipping Strategy | Episode 155

FromSelf Directed Investor Talk: Alternative Asset Investing through Self-Directed IRA's & Solo 401k's


Flipping California! A High-Yield Turnkey Flipping Strategy | Episode 155

FromSelf Directed Investor Talk: Alternative Asset Investing through Self-Directed IRA's & Solo 401k's

ratings:
Length:
7 minutes
Released:
Nov 2, 2015
Format:
Podcast episode

Description

You want great investment opportunities in the Golden State of California!  Well, we’ve got the great opportunities you’ve been looking for in Cali, and I’ll tell you all about them right now.  I’m Bryan Ellis.  This is Episode 155.----Hello, SDI Nation!  Welcome to the podcast of record for savvy self-directed investors like you!Here we are on another glorious Monday!  I don’t know if you look forward to Monday like I do, but my friends… it’s got to be my favorite day of the week… Except for the other 6, which I also love!Folks, a disproportionately large number of you, my dear listeners, live out in California.  And a lot of you who don’t live there would like the opportunity to invest there.Today, I’m going to tell you about a way to do that that’s Simple… Safe… and Strong.  Crazy strong, actually.Let’s start with a little example, shall we?Just a few weeks ago, the SDI Flipping Team in northern California closed a very good – and rather typical for us – real estate flip transaction.Will you bear with me for 30 seconds while I give you some numbers for those of you who are detail oriented?  Don’t worry… I’ll reduce it down to net profit and total duration in just a second.  Here are the quick details:  This house sold for $180,000.  We bought it for $121.  Put about $14,000 worth of rehab into it.But for any deal, there are really only 3 bottom line numbers that matter – out-of-pocket investment, net profit, and duration.And for this deal – on Houston Avenue in Stockton California – the total out-of-pocket was $135,500.  Total NET profit… after all costs… was $38,200… which is 28.1% cash-on-cash profit… and it all happened in a total of 45 days.If you’re listening to this podcast on our website at SDIRadio.com, just scroll down to see a picture of this property – courtesy of Zillow – and a delightful little table showing those numbers:Purchase Price:  $121,00Resale Price:  $180,000Out-Of-Pocket Costs:  $135,500Profit:  $38,200 (28.1% Cash-on-Cash)Duration:  45 daysNow here’s the thing, folks:There’s nothing that’s unusual about that, for experienced flippers.In fact, RealtyTrac releases a report each quarter about flipping activity in the United States.  The most recent such report is for the third quarter of 2015 – released just in the last few days – and what it shows is that real estate flipping is BIG……with over 43,000 flips completed in just the third quarter of this year.  That’s 5% of all home sale volume, but the really interesting stats are the average gross profit number – a whopping $62,122 per deal – and the average gross ROI – also a MASSIVE 33.8%.So there’s huge results being generated in very large volume out there right now, if you’re in the right market.So why are we focused on Northern California?Well folks, it’s just a question of looking at the data.Just this morning – November 2, 2015 – realtor.com released their latest list of 20 hottest markets in America… and almost half of those 20 markets for the entire country are… wait for it…In Northern California!  Whether you’re talking about San Francisco or Sacramento or Stockton… that’s really where the action is.Now, let’s be clear… this isn’t a low-dollar game.  The one region of Northern California where we focus is, I believe, the very best option available because the prices there are more affordable, but even so, you really shouldn’t even think about getting involved in flipping in NorCal unless you have a budget of at least $200,000.But if you do… just think of it!The example I gave you is just one of DOZENS my teams has performed this year… and that one isn’t particularly unusual.We closed on another one just recently in Stockton… the #11 hottest market in America… And this one yielded a net profit of almost $56,000 versus an investment from our client of $176k… that’s a net roi of 31.7%!That one took 150 days… but only because we had to evict a tenant from the property after we bought it.  But we knew that going in, and frankly… the numbers were ju
Released:
Nov 2, 2015
Format:
Podcast episode

Titles in the series (100)

Do you INSTINCTIVELY KNOW that Wall Street doesn't have your best interests at heart, and that there's a better way to grow and protect your money to build wealth for generations? Then this is the alternative investments show for you. Self Directed Investor Talk is America's ONLY Podcast exclusively for Self Directed Investors (whether using a Self Directed IRA, Solo 401k, or non-retirement accounts) who trust themselves more than they trust Wall Street. You'll get innovative investment strategies, deadly accurate market analysis, and uniquely vetted profitable investment opportunities that conventional financial advisers don't even know about. You'll receive a powerful new episode every day of the week... and each episode is 10 minutes or less! Check it out right now! See acast.com/privacy for privacy and opt-out information.