What is Attracting Hard Money Lenders to the Los Angeles Market?
Los Angeles never fails to live up to the reputation of City of Angel. Pleasant weather, beautiful seashores and the hub of entertainment all makes it a dreaming place to live and stay. In recent years, hard money investment marks another key driver for the rapid growth of the Great Los Angeles Area. Here’s a list of main indicators enticing floods of investor to anchor their American dreams in the City of Angels.
Remarkable Record Profits spark the market
Can you imagine that the average profits reached nearly $127,000 per flipped home in Los Angeles County referring to Orange County Register? The profits were the highest in the region , and in history. Just calculate it by yourself, providing that the median per-flip purchase price is $362,121 and the median sales price is $489,000. How come flippers and investors omit this fortuitous area for even once?
Besides, fix and flip investments are more and more trending these years, making up 7.6 percent of all home sales in this area. To be specific, this figure equals to 5,470 homes which were sold in Los Angeles during 2016.
Gentrification Accelerates Neighborhood Recognition
Houses located in Glassell Park and Eagle Rock are now listing north of $800,000. It sound crazy, right? However it is quite reasonable as neighborhood recognition adds the housing value implicitly. With the advent of gentrification, Los Angeles is now considering as a whole without distinguishing the differences between urban areas and rural areas.
Millennials are fueling the housing market: Invest first, then sell later
Don’t overlook the capabilities of Millennials. They are the best salesmen to themselves. According to the Los Angeles Times, hipsters are now becoming flipsters, who regard purchases of old but more affordable homes in “highly urban areas” as investments in their commuting time.
“In my classes, I always talk about ‘eating your own cooking,’” quoted Paul Habibi, professor at UCLA Ziman Center for Real Estate. “It’s easier to design something that’s palatable to both you and the end user. Hipsters know what other hipsters like best.” Nowadays, who knows the best about Millennials? They themselves! It’s no wonder that they are now selling houses to fellow hipsters.
Now it’s your turn to make investment decisions!
Find it hard to choose your own fix and flip option to invest in Los Angeles? Sunset Equity is always ready to help you make difficult decisions in real estate industry. We offer professional consulting, and wait for your success in the future.