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

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.

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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 days

Now 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 just too good to pass up… and I’m glad we took it… 31.7% net ROI in 150 days?  I’d take it every single time.

So, my friends… some of you are looking for great investment opportunities in California?  Well, I’ve got you covered… but I’ve only got room for a grand total of 5 new turnkey flipping clients right now.

Never heard of Turnkey Flipping?  Well think of it like this:  You fund the deal.  You do nothing else.  And 3-6 months later… you get your money back plus a big, big payday.  That’s the bottom line!

Yes, there’s risk.  It’s entirely possible that California could break off into the ocean and you’d lose your entire investment.  And frankly, that’s one risk that I’ve not yet figured out how to hedge against.

But we have many, many very happy turnkey flipping clients and I’m so excited to offer you the opportunity to join us as a turnkey flipping client in the scorching hot markets of Northern California!

Want to learn more?  Then check out SDIRadio.com/norcal where I have a special webinar waiting on you with more information about this special opportunity.  Again, that’s SDIRadio.com/norcal… during that webinar, I’ll give you a WHOLE LOT MORE case studies, and I’ll give you a thorough introduction to the PROCESS we use for analyzing, selecting, purchasing, renovating and reselling properties.  You’ll understand where all of our efficiencies happen and why it’s possible for US to get great deals in a market that’s so hot it’s practically boiling.

So that’s all for today, my friends… check out SDIRadio.com/norcal for more info right away.  And remember:

Invest wisely today… and live well forever!

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