Author: JoinHSHS

  • Pacific Palisades, California

    Pacific Palisades, California

    Pacific Coast Hwy / Entrada Dr median real estate price is $4,355,292, which is more expensive than 99.8% of the neighborhoods in California and 100.0% of the neighborhoods in the U.S.

    The average rental price in Pacific Coast Hwy / Entrada Dr is currently $2,711, based on NeighborhoodScout’s exclusive analysis. The average rental cost in this neighborhood is higher than 84.8% of the neighborhoods in California.

    Pacific Coast Hwy / Entrada Dr is a suburban neighborhood (based on population density) located in Los Angeles, California. This is a coastal neighborhood (i.e., is on the ocean, a bay, or inlet).

    Pacific Coast Hwy / Entrada Dr real estate is primarily made up of medium sized (three or four bedroom) to large (four, five or more bedroom) single-family homes and apartment complexes/high-rise apartments. Most of the residential real estate is owner occupied. Many of the residences in the Pacific Coast Hwy / Entrada Dr neighborhood are older, well-established, built between 1940 and 1969. A number of residences were also built between 1970 and 1999.

    Pacific Coast Hwy / Entrada Dr has a 11.7% vacancy rate, which is well above average compared to other U.S. neighborhoods (higher than 63.1% of American neighborhoods). A relatively large percentage of housing here is seasonally occupied (7.1%), which can occur in some markets dominated by colleges or vacation homes. If you live here year round, you will find many of the homes or apartments are empty for all or a portion of the year.

    Notable & Unique Neighborhood Characteristics

    When you see a neighborhood for the first time, the most important thing is often the way it looks, like its homes and its setting. Some places look the same, but they only reveal their true character after living in them for a while because they contain a unique mix of occupational or cultural groups. This neighborhood is very unique in some important ways, according to NeighborhoodScout’s exclusive exploration and analysis.

    Notable & Unique: Real Estate

    Pacific Coast Hwy / Entrada Dr is a neighborhood that is on the ocean, a bay, or inlet. Many times, such places have amenities that bring locals and visitors to the waterfront for recreational activities or to check out the scenery. In some densely populated areas that are less financially well-off, the neighborhood waterfront can be relatively industrial and less open to recreation. In addition to being coastal, Pacific Coast Hwy / Entrada Dr is a very nautical neighborhood, meaning that it is somewhat historic, walkable, densely populated and on the water. This gives the neighborhood a very nautical feel, with some seaside and shipping feel, which some may really enjoy the sights and sounds of.

    Notable & Unique: People

    If you come to know the people here, you will recognize that you’re in the company of one of the wealthiest communities in the nation. In fact, a mere 0.2% of America’s neighborhoods are wealthier than the Pacific Coast Hwy / Entrada Dr neighborhood. Real estate here is exceedingly well-maintained, and similarly, tends to maintain its value over time. The cars driven are mostly luxury brands like Mercedes, Audi, BMW, and Lexus. If the public schools aren’t up to snuff, the residents of this neighborhood preferentially send their children to private preparatory schools. Vacation to Disney? Yes, but equally popular are summers in Europe. As one would expect in a considerably wealthy neighborhood such as this, Pacific Coast Hwy / Entrada Dr also has one of the lowest ratings of child poverty in the nation.

    In addition, think about the people you know personally. How many of them would purchase box seats to opening night at the symphony? How many of them regularly attend gallery openings, or are the first to reserve tickets to opening night at the ballet? If they’re like most of us, they don’t do any of these things. But if you’re among an exclusive crowd of wealthy and refined patrons of the arts, then you’ll feel right at home in the Pacific Coast Hwy / Entrada Dr neighborhood: a neighborhood in which more “urban sophisticates” live than 99.5% of neighborhoods across the U.S. Here, your neighbors are defined as having urbane tastes in literature, music, live theatre and the arts. They are wealthy, educated, travel in style, and live a big city lifestyle whether or not they live in or near a big city. In addition to being an excellent choice for urban sophisticates, this neighborhood is also a very good choice for highly educated executives, active retirees and families with school-aged children.

    Also, some neighborhoods have residents that are more educated than others. But in this neighborhood there is a dramatic difference. NeighborhoodScout’s exclusive analysis reveals that 45.6% of the adults here have earned a Masters degree, medical degree, Ph.D. or law degree. This is a higher rate of people with a graduate degree than is found in 99.1% of U.S. neighborhoods, where the average American neighborhood has 8.4% of its adults with a graduate degree. If you are highly educated, you may have much in common with many of your neighbors here.

    Finally, priests and therapists would like to think they know the secrets to a truly successful marriage, but according to NeighborhoodScout’s research, the folks of the Pacific Coast Hwy / Entrada Dr neighborhood may actually hold the key. 65.5% of its residents are married, which is a higher percentage than is found in 95.4% of the neighborhoods in America.

    Notable & Unique: Occupations

    The Pacific Coast Hwy / Entrada Dr neighborhood has a higher proportion of its residents employed as executives, managers and professionals than 99.9% of the neighborhoods in American. In fact, 84.7% of the employed people here make a living as an executive, a manager, or other professional. With such a high concentration, this truly shapes the character of this neighborhood, and to a large degree defines what this neighborhood is about.

    Notable & Unique: Diversity

    Did you know that the Pacific Coast Hwy / Entrada Dr neighborhood has more Russian and Armenian ancestry people living in it than nearly any neighborhood in America? It’s true! In fact, 15.1% of this neighborhood’s residents have Russian ancestry and 4.0% have Armenian ancestry.

    Pacific Coast Hwy / Entrada Dr is also pretty special linguistically. Significantly, 2.8% of its residents five years old and above primarily speak Persian at home. While this may seem like a small percentage, it is higher than 99.1% of the neighborhoods in America.

    Notable & Unique: Modes of Transportation

    In the Pacific Coast Hwy / Entrada Dr neighborhood, many people’s commute means walking from the bedroom to the home office. NeighborhoodScout’s analysis found that 19.1% of residents worked from home. This may not seem like a large number, but Scout’s research shows that this is a higher percentage of people working from home than 99.4% of the neighborhoods in America. Often people who work from home are engaged in the creative or technological economy, such as is found in areas around Boston, and in Silicon Valley. Other times, people may be engaged in other businesses like trading stocks from home, or running a small beauty salon.

    The Neighbors: Income

    How wealthy a neighborhood is, from very wealthy, to middle income, to low income is very formative with regard to the personality and character of a neighborhood. Equally important is the rate of people, particularly children, who live below the federal poverty line. In some wealthy gated communities, the areas immediately surrounding can have high rates of childhood poverty, which indicates other social issues. NeighborhoodScout’s analysis reveals both aspects of income and poverty for this neighborhood.

    The neighbors in the Pacific Coast Hwy / Entrada Dr neighborhood in Los Angeles are wealthy, making it among the 15% highest income neighborhoods in America. NeighborhoodScout’s exclusive analysis reveals that this neighborhood has a higher income than 99.8% of the neighborhoods in America. In addition, 0.0% of the children seventeen and under living in this neighborhood are living below the federal poverty line, which is a lower rate of childhood poverty than is found in 100.0% of America’s neighborhoods.

    The Neighbors: Occupations

    What we choose to do for a living reflects who we are. Each neighborhood has a different mix of occupations represented, and together these tell you about the neighborhood and help you understand if this neighborhood may fit your lifestyle.

    In the Pacific Coast Hwy / Entrada Dr neighborhood, 84.7% of the working population is employed in executive, management, and professional occupations. The second most important occupational group in this neighborhood is sales and service jobs, from major sales accounts, to working in fast food restaurants, with 11.7% of the residents employed. Other residents here are employed in clerical, assistant, and tech support occupations (2.6%).

    The Neighbors: Ethnicity / Ancestry

    Culture is the shared learned behavior of peoples. Undeniably, different ethnicities and ancestries have different cultural traditions, and as a result, neighborhoods with concentrations of residents of one or another ethnicities or ancestries will express those cultures. It is what makes the North End in Boston so fun to visit for the Italian restaurants, bakeries, culture, and charm, and similarly, why people enjoy visiting Chinatown in San Francisco.

    In the Pacific Coast Hwy / Entrada Dr neighborhood in Los Angeles, CA, residents most commonly identify their ethnicity or ancestry as German (15.2%). There are also a number of people of Russian ancestry (15.1%), and residents who report English roots (14.7%), and some of the residents are also of Irish ancestry (8.8%), along with some Italian ancestry residents (8.5%), among others. In addition, 15.2% of the residents of this neighborhood were born in another country.

    The Neighbors: Languages

    The languages spoken by people in this neighborhood are diverse. These are tabulated as the languages people preferentially speak when they are at home with their families. The most common language spoken in the Pacific Coast Hwy / Entrada Dr neighborhood is English, spoken by 84.0% of households. Other important languages spoken here include Spanish, Persian and French.

    Getting to Work

    Even if your neighborhood is walkable, you may still have to drive to your place of work. Some neighborhoods are located where many can get to work in just a few minutes, while others are located such that most residents have a long and arduous commute. The greatest number of commuters in Pacific Coast Hwy / Entrada Dr neighborhood spend under 15 minutes commuting one-way to work (37.0% of working residents), one of the shortest commutes across America.

    Here most residents (89.8%) drive alone in a private automobile to get to work. In addition, quite a number also carpool with coworkers, friends, or neighbors to get to work (5.9%) . In a neighborhood like this, as in most of the nation, many residents find owning a car useful for getting to work.

  • Manhattan Beach, California

    Manhattan Beach, California

    Manhattan Beach is a medium-sized coastal city (i.e. on the ocean, a bay, or inlet) located in the state of California. With a population of 35,818 people and eight constituent neighborhoods, Manhattan Beach is the 222nd largest community in California.

    Manhattan Beach home prices are not only among the most expensive in California, but Manhattan Beach real estate also consistently ranks among the most expensive in America.

    Manhattan Beach is a decidedly white-collar city, with fully 95.14% of the workforce employed in white-collar jobs, well above the national average. Overall, Manhattan Beach is a city of professionals, managers, and sales and office workers. There are especially a lot of people living in Manhattan Beach who work in management occupations (22.58%), sales jobs (13.70%), and business and financial occupations (9.71%).

    Of important note, Manhattan Beach is also a city of artists. Manhattan Beach has more artists, designers and people working in media than 90% of the communities in America. This concentration of artists helps shape Manhattan Beach’s character.

    Also of interest is that Manhattan Beach has more people living here who work in computers and math than 95% of the places in the US.

    One interesting thing about the economy is that relatively large numbers of people worked from their home: 10.36% of the workforce. While this number may seem small overall, as a fraction of the total workforce this is high compared to the rest of the county. These workers are often telecommuters who work in knowledge-based, white-collar professions. For example, Silicon Valley has large numbers of people who telecommute. Other at-home workers may be self-employed people who operate small businesses out of their homes.

    In addition, Manhattan Beach is home to many people who could be described as “urban sophisticates”. Urban sophisticates are educated, wealthy, executives and professionals, who have urbane tastes in books, food, and travel, whether they actually live in a big city, or choose to reside in a small town. In big or medium-sized cities, urban sophisticates tend to frequent art institutions such as opera, symphonies, ballet, live theatre, and museums.

    Because of many things, Manhattan Beach is a great place for families with children to consider. First of all, many other families with children live here, making Manhattan Beach a place where both parents and children are more likely to develop social ties with other families, as well as find family-oriented services and community. The city’s good public school district and large population of college-educated adults provide an environment conducive to academic values. With regard to real estate, Manhattan Beach has a high rate of owner-occupied single family homes, which tends to reflect stability in the local community. Finally, Manhattan Beach’s overall crime rate is lower than average for the country.

    One of the nice things about Manhattan Beach is that it is nautical, which means that parts of it are somewhat historic and touch the ocean or tidal bodies of water, such as inlets and bays. Because of this, visitors and locals will often go to these areas to take in the scenery or to enjoy waterfront activities.

    One downside of living in Manhattan Beach is that it can take a long time to commute to work. In Manhattan Beach, the average commute to work is 30.39 minutes, which is quite a bit higher than the national average.

    Do you have a 4-year college degree or graduate degree? If so, you may feel right at home in Manhattan Beach. 73.55% of adults here have a 4-year degree or graduate degree, whereas the national average for all cities and towns is just 21.84%.

    The per capita income in Manhattan Beach in 2010 was $83,419, which is wealthy relative to California and the nation. This equates to an annual income of $333,676 for a family of four.

    Manhattan Beach is a very ethnically-diverse city. The people who call Manhattan Beach home describe themselves as belonging to a variety of racial and ethnic groups. The greatest number of Manhattan Beach residents report their race to be White, followed by Asian. Important ancestries of people in Manhattan Beach include Irish, English, Italian, and Scottish.

    The most common language spoken in Manhattan Beach is English. Other important languages spoken here include Spanish and Chinese.

  • Growing New Leaders Today

    Growing New Leaders Today

    Hershel Strother Home Services values forward-thinking real estate professionals who think big and act bigger. We focus on developing new leaders throughout California who are rooted in a relationship-driven model and not a transactional model. We love collaborating with creative purpose driven go-getters who have high moral standards and believe that adding value to the lives of others through service is one of the highest measures of success.

    We are a NO EGO-NO NONSENSE family who loves to see each other thrive and win together. We look out for one another and that is why we grow with one another.

    If you are looking to be a top performer in our dynamic industry or know someone who is looking for a brokerage they can call home, we welcome you to reach out to us via e-mail: JoinHSHS@gmail.com or share this blog on your social media pages.

    Thank you in advance for your trusted recommendations and we look forward to connecting great opportunities with phenomenal people.

    Now Hiring: WATCH NOW (Click)

    Blessings to you!

    Updated: March 19, 2018

  • California Rentals Are The Future

    California Rentals Are The Future

    Are you curious where California real estate is headed. We are staring in the face of Rental-mania and who ever owns rental property will be headed straight to the bank with their deposits.

    Between 1991 and 2009 most building permits were for detached homes. This was your single family building craze. But starting from 2009, most of the building permits taken out have come in the form of multi-family units largely for apartments. Builders realize that future demand is going to be in the form of renting.

    Millennials and Generation Y also have an increasing tendency towards renting rather than owning. Of course older generations think that everyone is like them and that at some point, they are going to get the McMansion bug. Studies also show these two generations are living with parents or family members longer, having smaller families, getting married later, and find themselves with less job security.

    Hershel Strother Home Services would like to show you the benefits of adding to your real estate portfolio so you and your family can thrive for years to come. We know the market, we know our neighborhoods and we know how to create wealth through real estate.

    Call and speak to one of our qualified Advisors today: 1-877-979-3226/YS.WE.CAN or e-mail: Solutions@JoinHSHS.com

    Updated: March 29, 2018

  • January 2018 Hottest Markets for Real Estate

    January 2018 Hottest Markets for Real Estate

    As of January 2018 America has spoken and here is the list of top 20 markets and guess what, California claims 13 spots. Despite rising home prices, California is seeing HUGE growth. Question is: Are you invested in today’s real estate market? There are many approaches, some wait for the home prices to go down which we aren’t seeing as of yet while the interest rates are on the rise and others are hoping that the rates go back down while the Feds have spoken their peace on that.

    You can’t chase the market but you can benefit in today’s real estate market if you act strategically now. We would like to sit down with you to go over your desired goals, how your budget can best suit your family needs and individual markets that are of interest in more detail. If you are selling, we have a strategic marketing plan to maximize your return. If you are buying, we have a proven approach that will get you and your family more house for your dollar at a price that is fair.

    Call 877-979-3226 or e-mail Solutions@JoinHSHS.com for a FREE no-hassle consultation today.

    1 San Francisco, CA 
    2 San Jose, CA
    3 Vallejo, CA 
    4 Colorado Springs, CO
    5 Midland, TX
    6 San Diego, CA 
    7 Santa Rosa, CA 
    8 Sacramento, CA
    9 Denver, CO
    10 Stockton, CA 
    11 Modesto, CA
    12 Dallas, TX
    13 Fresno, CA 
    14 Los Angeles, CA 
    15 Columbus, OH
    16 Chico, CA 
    17 Oxnard, CA
    18 Santa Cruz, CA 
    19 Detroit, MI
    20 Boise City, ID

    Updated: March 31, 2018

  • Owning vs Renting “The Debate”

    Owning vs Renting “The Debate”

    Owning a home has great financial benefits, yet many continue to rent! Today, let’s look at the financial reasons why owning a home of your own has been a part of the American Dream for as long as America has existed.

    “Buying remains the more attractive option in the long term – that remains the American dream, and it’s true in many markets where renting has become really the shortsighted option as people get more savings in their pockets, buying becomes the better option.”

    What proof exists that owning is financially better than renting?

    1. In a previous blog we highlighted the top 5 financial benefits of homeownership:

    +Homeownership is a form of forced savings: Paying your mortgage each month allows you to build equity in your home that you can tap into later in life for renovations, to pay off high-interest credit card debt, or even send a child to college. As a renter, you guarantee that your landlord is the person with that equity.

    +Homeownership provides tax savings: One way to save on taxes is to own your own home. You may be able to deduct your mortgage interest, property taxes, and profits from selling your home, but make sure to always check with your accountant first to find out which tax advantages apply to you in your area.

    +Homeownership allows you to lock in your monthly housing cost: When you purchase your home with a fixed-rate mortgage, you lock in your monthly housing cost for the next 5, 15, or 30 years. Interest rates have remained around 4% all year, marking some of the lowest rates in history. The value of your home will continue to rise with inflation, but your monthly costs will not.

    +Buying a home is cheaper than renting: According to the latest report from Trulia, it is now 37.4% less expensive to buy a home of your own than to rent in the US.

    +No other investment lets you live inside of it: You can choose to invest your money in gold or the stock market, but you will still need somewhere to live. In a home that you own, you can wake up every morning knowing that your investment is gaining value while providing you a safe place to live.

    2. Studies have shown that a homeowner’s net worth is 44x greater than that of a renter.

    3. Just a few months ago, we explained that a family that purchased an average-priced home at the beginning of 2018 could build more than $44,000 in family wealth over the next five years.

    4. Some argue that renting eliminates the cost of taxes and home repairs, but every potential renter must realize that all the expenses the landlord incurs are already baked into the rent payment– along with a profit margin!!

    Bottom Line

    There are some people who have not purchased homes because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize, however, that unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.

    As Entrepreneur Magazine, a premier source for small business, explained in their article, “12 Practical Steps to Getting Rich”:

    “While renting on a temporary basis isn’t terrible, you should most certainly own the roof over your head if you’re serious about your finances. It won’t make you rich overnight, but by renting, you’re paying someone else’s mortgage. In effect, you’re making someone else rich.”

    Christina Boyle, Senior Vice President and head of the Single-Family Sales & Relationship Management organization at Freddie Mac, explains another benefit of securing a mortgage as opposed to paying rent:

    “With a 30-year fixed rate mortgage, you’ll have the certainty & stability of knowing what your mortgage payment will be for the next 30 years – unlike rents which will continue to rise over the next three decades.”

    As an owner, your mortgage payment is a form of ‘forced savings’ which allows you to build equity in your home that you can tap into later in life. As a renter, you guarantee the landlord is the person building that equity. Owning a home has always been, and will always be, better from a financial standpoint than renting.

    JOINHSHS.COM: Before you sign another lease, let’s get together to help you better understand all your real estate options. Call 877-979-3226 or e-mail: Solutions@JoinHSHS.com.

    UPDATED: April 2, 2018

  • Find Distressed Properties

    Find Distressed Properties

    Who isn’t looking for great distressed investments to possibly flip or add to your real estate portfolio? We know just how to help you.

    Key Takeaways

    • A distressed property is one that can no longer be maintained by the owner, for a variety of reasons.
    • Finding distressed properties can be made easier with some creative strategies.
    • Don’t forget to incorporate important tips when finding distressed properties in your market.

    Maybe you have bought and sold a few properties over the years or sold as many 200+ homes like I have, perhaps you’re new to real estate investing or are a professional interested in trying their hand at a new strategy, but regardless, chances are you’ve been wondering how to find distressed properties for sale in California. Distressed properties in California are attractive to investors because they often offer deals that are undervalued, helping to increase the prospective profit margin. Below you will find a discussion on creative ways to find distressed properties, including how to buy distressed properties, and some important tips to keep in mind.

    What Is A Distressed Property?
    A distressed property is a property that can no longer be maintained by the current owner, either physically or financially or both. Some properties are found to be in poor condition due to neglect, or because it is at risk of being foreclosed upon.

    How To Find Distressed Tennessee Properties: 7 Creative Tips

    • Look for properties that are in a state of neglect.
    • Search for properties with delinquent taxes.
    • Find properties with delinquent mortgage payments.
    • Identify properties that legally must be sold.
    • Look into probate real estate opportunities.
    • Peruse REO and bank-owned property listings.
    • Don’t forget about government-owned properties.

    If you’re wondering where to find distressed California properties, there is a traditional method that transcends time: hopping in the car and driving around. Assuming you already have a target neighborhood in mind, simply drive around and look for properties that stand out from others due to a state of neglect. Tell-tale signs to look out for include an overgrown yard, broken windows and shutters, exterior paint that is faded or peeling, notices that are posted on windows and doors, and junk mail and newspapers that are left uncollected. If you find a property that meets any or all of these descriptions, be sure to write down the address so you can start investigating.

    For those wondering how to find distressed California properties other than driving around, there are multiple methods to searching online. However, it should be noted that distressed properties come in many forms, and are not always called “distressed” outright. Look for ‘distressed properties for sale by owner’ that are delinquent in taxes and mortgage payments, properties that must be sold legally due to bankruptcy or divorce, probate deals, and properties that are owned by the banks or the government. Starting with the first example, finding properties with tax delinquencies is luckily a straightforward process. The hardest part will be finding your local tax assessor’s web page that lists these properties. After you have found the site, simply search the listings until you have found a property you’re interested in. Another type of property that might be in distressed is one for which the owners have been delinquent on their mortgage payments, also known as “underwater.” These properties are usually in “pre-foreclosure,” and can be found on multiple listing sites such as your local county website or paid sites such as Foreclosure.com.

    Properties that must be sold legally, such as through bankruptcy or divorce, may also be in distress. When looking through your county foreclosure listings, you may have already noticed listings that are listed as being auctioned for bankruptcy or divorce. Although not every county is required to list such properties, you can at least find properties that are up for auction. The probate court is yet another creative space to find distressed properties. A probate property is one that was owned by someone who has passed, but without leaving the property to anyone in their will. It should be noted that making an offer on a probate sale requires a special process, as the property is being sold by an attorney or an executor. Finally, investors should search through REO (real estate-owned) and government-owned properties that have already been foreclosed upon. When a property owner fails to make mortgage payments, the provider of the mortgage loan (in this case the bank or the government) retains the rights to reclaim the property. Many local and national banks have their own property listing sites, as do government entities such as Freddie Mac and Fannie Mae.

    How To Find Distressed Properties On The MLS
    Although a real estate license is required to access the MLS, investors have the opportunity to work with a professional with access to obtain listings. Listings are identified with a status such as short sale that can help signal a distressed property. In addition, look for properties that have been listed for longer than 90 days. The 90-day mark is a key indicator that will signal the motivation level of the seller. The longer a property stays on the market, the more motivated, or desperate, the seller will become. This can often lead to great deals and savings for investors if they know where to look.

    Also, you can now search on sites by using keywords like, “distressed, fixers, flip, investment opportunity”. HSHS Advisors will load up specific keywords as they enter the information in the MLS for those that know exactly what they want.

    3 Important Tips For Buying A Distressed Property
    Choose a target neighborhood: If you don’t already have a target market in mind, selecting a neighborhood will help focus your search. If a specific neighborhood does not yield satisfactory results, there is no harm in widening your search gradually.

    Don’t just look for the “distressed property” label: It is important to keep in mind that many sellers would never want to call their own house a “distressed property.” If you’re wondering how to find distressed properties for sale without actually using the word “distressed,” look for owners who are quite motivated to sell. This may be because they are delinquent on taxes or mortgage payments, or are going through bankruptcy or divorce. Remember to search through government and lender listings, as well as probate auctions.

    Get pre-approved with one of our preferred lenders: Once you find the perfect property for sale, time may be of the essence. By making sure you are ready to make a credible offer by getting pre-approved for a loan, buying distressed properties will be a much smoother process.

    Finding distressed properties for sale is no easy feat, but once you combine several creative strategies for identifying and targeting these properties will offer great reward. By incorporating our creative tips listed above, including the important tips to keep in mind, you will be on your way to finding these coveted investment opportunities.

    Between residential and commercial properties, which type of distressed property would you target? Feel call us today at 877-979-3226 to discuss your real estate options and get answers to your questions.

    UPDATED: April 5, 2018

  • Flip with No Money

    Flip with No Money

    Have you ever thought of flipping property but have no money of your own? Never fear… Listen up!

    Key Takeaways

    • There are no rules stating that the money you use to flip houses needs to be your own.
    • There are two necessary assets every investor needs at their disposal: private and hard money lenders.
    • While they may come at a higher price, private and hard money lenders are often the greatest source of funding for investors to take advantage of.

    Let’s make one thing clear: it is entirely possible to flip houses in California with no money out of your own pocket; not only that, there are plenty of investors willing to fill your pockets with their money — if you can prove to them that you deserve it, that is.

    If you want to start investing in California Real Estate today, using other people’s money will most likely be your quickest path to success, but you need to know who to look for. Below you will find your best options for funding your first deal.

    Your Options For Flipping California Houses With No Money
    Of course there is no rule an investor needs to fund a deal with their own money. As it turns out, there are several options for funding a deal made available to today’s investors, none of which will require you to use capital from your own pocket. In fact, it’s quite easy to argue that using other people’s money is the gold standard, at least when it comes to investing in real estate. If for nothing else, private lenders, hard money lenders and any house flipping investors with an interest in making money are all more than viable options to seek out for your next deal.

    Private Lenders
    More often than not, private lenders will serve as an investor’s greatest source of funding. After all, private money lenders are essentially banks without the endless hoops to jump through most traditional lenders have become synonymous with. That said, private lenders are anyone with a few extra dollars in their pocket, a desire to invest, and a propensity to have their “ears bent.” Perhaps even more importantly, they are not associated with a financial institution or a government-backed agency, such as Fannie Mae or Freddie Mac. That’s an important distinction to make; it means they are able to make their own rules.

    With the ability to set their own parameters, private money lenders will typically come at a steep price; it’s not uncommon for their fee to rest somewhere in the neighborhood of six and 12 percent, but I digress. While the average private money lenders rate is slightly higher than that of a traditional lender, they can have the money in an investor’s hand in as little as a few days, or even hours. Therein lies the greatest benefit of working with private money lenders: speed of implementation. The slightly higher interest rate is well worth the cost of admission if it means an investor can secure funding in as little time as possible. Not surprisingly, most investors will find that the speed in which they are able to make an offer is more important than the interest rate it came with. Traditional banks, on the other hand, may take as long as 30 to 45 days to close on a loan, or just long enough to let a deal slip through your fingers.

    In exchange for the funds, most private money lenders will require a bit of an insurance policy; or, more specifically, a promissory note and a mortgage or trust deed on the subject property. Some private lenders will even want borrowers to take it a step further and guarantee the loan with their own assets, but everything is negotiable.

    California Hard Money Lenders
    In their simplest form, California hard money lenders are lending companies that offer specialized short-term real estate-backed loans. Unlike their private money counterparts, they are actually affiliated with a company that specializes in lending. However, not to be confused with traditional lending institutions, hard money lenders will typically offer shorter loan terms. Whereas transactional lenders will offer loans up to 15 and 30 years, hard money lenders tend to stick with a six month to two year window.

    Other than their affiliation with an actual company, hard money lenders will operate a lot like a private money lender. Not only are their lending guidelines a lot looser than traditional institutions, but their rates are also slightly higher. Hard money lenders will usually ask for about 11 to 15 percent and about five points (additional upfront percentage fees based on the loan amount). It is worth noting, however, that there are no universal hard money lender guidelines; each one will come complete with a different set of criteria.

    It is also important to note that most hard money lenders will usually only loan a percentage of the purchase price — typically around 60-70 percent, to be exact. That, will require most investors to look elsewhere if they don’t want to spend any money out of their own pockets; perhaps a private lender.

    California House Flipping Investors
    Both private and hard money lenders are a great way for investors to flip houses with no money out of their own pockets, but they are not the only ways. There is one additional way to flip a house without using any of your own money: partner with house flipping investors. It is entirely possible that teaming up with someone that is already flipping houses can be your next best move, and there’s no reason they couldn’t provide you with the funding you need. That said, a partner with money is just as good as a private lender or hard money lender.

    Instead of taking on your next deal alone, consider the idea of partnering up with house flipping investors. Provided the right alliances are made, there’s no reason your partner can’t fund the deal — so long as you bring value to the table. It is worth noting, however, that if you aren’t bringing the funds to the partnership, you had better bring a lot of value elsewhere. Perhaps you actually know of a deal, or maybe you have the right contacts. Whatever the case may be, as a partner, you need to be able to carry your own weight. At the very least, partnering with investors that already have money is a great way to get started investing.

    Can You Start Making Money Flipping Houses Today?
    Through no fault of their own, far too many new investors are unaware of the funding opportunities made available to them. For one reason or another, they are convinced they need to use their own money to buy a home, but they couldn’t be more wrong. In fact, you don’t need to use any of your own money if you want to start investing today. That is not to say having your own money wouldn’t help, but it’s certainly not necessary.

    If you want to start investing today, your best chances of receiving funding are going to be private money lenders, hard money lenders and partners. Each of these three options is made available to investors the day they get into the game.

    Contact HSHS for more details and discover your real estate options: 877-979-3226

    UPDATED: April 5, 2017

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