Realty411 Magazine Feautring Memphis Invest | Page 30

Property Rehab Tours Hit Southern California C hristian and Ruth are real es- tate investors who are also known as the “Property Flip Pros.” They regularly take a bus load of investors around Southern California to show them their own projects and to teach them how to rehab properties. They personally are taking full advantage of the current foreclosure market. One of the best ways to learn is through experiencing things first hand, the same holds true for rehab- bing properties. The best way for po- tential flippers to learn how to rehab properties is to learn from the pros in person. This is exactly why Christian Yepez and Ruth Ortiz decided to start providing investors with property tours. The experienced rehab duos have been flip- ping for 15 years. “Many investors want to do what we do, but they don’t know how,” Ruth says and adds: “We take them through the process and we tell them what we do to add value and make the property sell faster and for more money.” The tour I attended was frequented by a group of about 30 investors. All were eager to learn some real estate secrets and shortcuts. Many of the people on the tour Realty411Guide.com were already investors, most of them were looking for the type of surge in cash that only real estate can provide in today’s great foreclosure market. New investors find this property flip tour very educational, there is a lot to learn, this is the Real World of the property flipping business. Ruth and Christian provide one of the few property bus tours in Southern Cali- fornia. When asked what areas they like to focus on, Christian replies: “We will go anywhere the numbers are good.” Like most experienced rehabbers, Chris- tian and Ruth rely on a combination of pri- vate and hard money to acquire, renovate PAGE 30 • 2011 and carry the property until it’s sold to a retail buyer. They rely on good business relationships with REO brokers and real estate agents who bring them deals often. They also utilize well trained virtual assis- tants to scout different multiple listing ser- vices for deals and also to help them submit low ball offers. Many offers need to be made before one sticks. “Sometimes we’ll land a deal that we forgot we made an offer on,” chuckles Ruth. In addition to scouring the MLS, Christian and Ruth buy properties at auc- tion and pick up discounted REOs and shortsales, they also on occasion work with distressed owners and negotiate short sales. Being bilingual (English/Spanish) gives the team a competitive edge in bargaining directly with contractors for the best rehab estimates. “Cost is a big factor in the success of a rehab, we try and hire the most affordable crew we can even if it means having to su- pervise them more,” admits Ruth. The last entire home rehab they com- pleted cost only $25,000. Regular price for the same project elsewhere runs around $40,000. That price includes a new kitchen, new two bathroom remodels, new floors reWEALTHmag.com