Real Estate: Bonanza-Jackpot in the Greater Los Angeles area

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Real Estate Agent with Berkshire Hathaway HomeServices 01238708
https://activerain.com/droplet/5lgR

Real Estate: Bonanza-Jackpot in the Greater Los  Angeles area

I have had conversations with numerous new agents who decided to become Realtors. Many were under the mistaken impression and thought it was going to be easy and fast money. They thought it would be quick and easy just like playing the slot machines. Let’s be realistic how many people got rich playing the slot machines outside of the owners of the Casinos?

www.endrebarath.com

Indeed, the Beverly Hills  Real Estate Market boasts of  Ultra Luxury Homes and Properties, but let’s be clear, there are 15,000 or more agents in my marketplace, and we can only show a handful of Ultra Luxury Homes that sold in the past couple years.

Just like there are many individuals who watch “reality shows” and think, that is how “deals are made”. Sadly, the reality is far from what one sees on TV.

www.endrebarath.com

This brings me to my  main point, there are Real Flippers, Real Developers and then there are those who watch “Reality Remodeling Shows”. The Real Developers focus on detailed research as to what the properties are sold for and the condition, they were in. Then they reach out to their trusted Realtors to give them a “second opinion”. They are still risk takers and are gambling, that the market will continue for a period so they  will not only make a profit, but that they will not lose money.

Then you get the Amateurs, who watch these “remodeling or should I say flipping shows” and do not realize that in Los Angeles it can take a minimum of 6-8 months to get approvals for remodeling a home and another four to six months to update the home. Provided they want to sell it as “the house is sold with permits”. There are a few of the unscrupulous ones that take shortcuts, but end up paying at the end, when the buyer discovers that the updates were not done with permits.

www.endrebarath.com

There is money to be made, but the real developer and real flipper are the ones who are prepared for, updating, staging and holding costs. The likelihood will be that these developers will make a profit. One needs to have a solid understanding of the Real Estate Market and the direction the market is heading. If that is understood and planned for, then everyone can benefit and make a profit.

One should not think that it is easy money, it takes time, financial investment and financial stability to last even when little or no money is made. This applies to both Real Estate Practitioners wannabees as well as ‘Wannabee Flippers’. Most importantly one needs to factor in holding costs as a developer as well as staying power of being a Realtor.

www.endrebarath.com

Now if you  are looking for solid advice from a Realtor who has been in the Beverly Hills Market for over twenty-two years, please reach out to me and I will help you achieve your dreams.

If you are looking for a pet friendly Beverly Hills Realtor who can handle and sell the most difficult properties that no one else could, please reach out to me directly!! If you are considering buying or selling a home, a luxury home, luxury investment real estate, luxury vacation homes, or luxury beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Marina Del Rey, Venice or Malibu, feel free to contact me at 310.486.1002 (m) or homes@endrebarath.com or visit one of my websites at https://www.endrebarath.com  I contribute a portion of my commission to local animal rescue organizations.

 

 

 

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Berkshire Hathaway Home Services
Tags:
los angeles real estate
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developers in los angeles
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flippers in los angeles

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Rainmaker
3,219,233
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Ron and Alexandra Seigel  it saddens and amazes me how so many can fall into this trap, Endre

Nov 04, 2019 09:58 PM #13
Rainmaker
3,219,233
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

George Souto  my friend your comment is killing me good thing I was not sipping on wine:))Endre

Nov 04, 2019 10:00 PM #14
Rainmaker
3,389,310
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Endre - don't you know "there's gold in those 'thar' hills"?  Ah, darn reality!  

Nov 05, 2019 08:28 AM #15
Ambassador
3,394,444
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Boy, what a great job of showing the truth in the myths - as you call them, 'wannabes,' seriously need professionals! 

Funny story - my BFF knows what I do - she's heard the stories over and over and over again. We were out with friends not too long ago and she told me that she had expected her house sale to go like the ones she and her Mom watch on HGTV! She was a little disappointed it didn't!! O M G!  Even someone who has heard the stories, is very intelligent and watches only about two TV shows, thinks HGTV is REAL. Just shaking my head!

Nov 08, 2019 10:21 PM #16
Rainmaker
3,219,233
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Michael Jacobs  indeed there is Gold in the Hills Beverly Hills that is:))Endre

Nov 08, 2019 10:25 PM #17
Rainmaker
3,219,233
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Debe Maxwell, CRS  yes indeed TV is never wrong:))) outside of husbands and wives no one really believes what we go through:)) they buy into the "story" instead:)Endre

Nov 08, 2019 10:27 PM #18
Rainmaker
502,516
Steven Nickens
Elite Pacific Properties Maui - Wailea, HI
R(S)GRI ABR, Maui Real Estate Hawaii

Endre, I really appreciate your knowledge of what is involved in preparing a home for the market. Also the work it takes to rebuild, and prepare for the market, most importantly timing the market. You're a great source of the Beverly Hills market.

Nov 08, 2019 11:17 PM #19
Rainmaker
456,669
Scott Seaton Jr. Bourbonnais Kankakee IL Home Inspector
SLS Home Inspections-Bradley Bourbonnais Kankakee Manteno - Bourbonnais, IL
The Home Inspector With a Heart!

These shows have impacted home inspections because now everyone who watches thinks that we know how much it costs to do any repairs on issues we see at an inspection. When you watch the 5 minute portion of a buyer show, after their offer has been accepted, you'll see the inspector look at something like the water heater or a crack in a brick wall, scratch his chin and say something like "That's not good."  Then you'll see the buyers eyes pop wide open and say "How much does that cost to fix?" Then the wise inspector peers over the shoulder of the buyer at the producer who's holding a sign with the exact repair cost from a contractor, and says $326.48 or whatever. The buyers look at each other and say, I guess we can afford to have a water heater.  It's all a big fake, but the people that watch these shows now think ALL home inspectors are repair cost experts. I can tell you, we are not. I'm thinking a seperate blog post is coming to tell this exact story. 

Nov 09, 2019 05:35 AM #22
Rainer
289,272
Doyle Davison
Surf City Realty 714-968-6767 - Huntington Beach, CA
30 years as your Concierge services listing broker

I have flipped tri-states, each state and area is a completely different animal. It’s amazing what people believe watching cable or YouTube.

Nov 09, 2019 08:26 AM #23
Rainmaker
528,950
Hella M. Rothwell, Broker/Realtor®
Carmel by the Sea, CA
Rothwell Realty Inc. CA#01968433 Carmel-by-the-Sea

I had one flipper call me not too long ago, she was in tears. She had sunk all her money into the project and now it wasn't selling at the price she needed to get out of it. She had the house listed with someone else and I couldn't help her. It's now finally in escrow and I really hope it will work out for her. Would not be surprised if it came in low. Heartbreaking.

Nov 09, 2019 11:10 AM #24
Ambassador
2,893,267
Anna Banana Kruchten CRB, GRI, WLS
Phoenix Property Shoppe - Phoenix, AZ
603-380-4886

Hey Endre how many times have we all heard stories from new agents....that live and breath realty tv shows. It's not real folks.....it's just not. As you've well pointed out it takes a great deal of expertise and knowledge to procure, prepare, deal with city permits, a ton of obstacles ++, lots of cash on hand etc. The key......hire a local expert which we all know is you Endre.

Nov 09, 2019 05:30 PM #25
Rainmaker
3,219,233
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Steven Nickens  thank you and I appreciate your comment, Endre

Nov 09, 2019 07:53 PM #26
Rainmaker
3,219,233
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Scott Seaton Jr. Bourbonnais Kankakee IL Home Inspector  I agree with you and ironically I had a home inspector not my choosing... that kept throwing numbers out and we were all scratching out heads... clearly it was coming from watching too my Reality TV:))Endre

Nov 09, 2019 07:54 PM #27
Ambassador
916,045
Lynn B. Friedman
Atlanta Homes ODAT Realty Call/Text 404-939-2727 Buckhead - Midtown - Westside -- and more ... - Atlanta, GA
Concierge Service for Our Atlanta Sellers & Buyers

Hi Endre --
Looks easy to do but the only thing that is really easy once the project starts is how fast the money disappears...
All the best - Lynn

Nov 09, 2019 09:48 PM #28
Rainmaker
3,219,233
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Doyle Davison  indeed reality is a bit different, thank you for stopping in, Endre

Nov 09, 2019 10:18 PM #29
Rainmaker
3,219,233
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Hella M. Rothwell, Broker/Realtor®  I agree it is heartbreaking when they call you too late...Endre

Nov 09, 2019 10:20 PM #30
Rainmaker
3,219,233
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Anna Banana Kruchten CRB, GRI, WLS  I so appreciate you adding to the conversation and you are right, Endre

Nov 09, 2019 10:21 PM #31
Rainmaker
3,219,233
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Lynn B. Friedman  indeed those who do not know what they are doing could loose a lot of money fast, Endre

Nov 09, 2019 10:22 PM #32
Rainmaker
636,001
Debra Leisek
Bay Realty,Inc Homer Alaska - Homer, AK

First off I cant imagine working in an area with 15,000 Real Estate Agents!

But no matter where you are its the same story people think real estate is easy and big money and little or no effort. The easier we make it look the easier they think it is... maybe we should let people know all the hoops we go through and problems we solve to get from point A to point B 

As always a great post!! Thank you Endre!

Nov 10, 2019 12:31 AM #33
Rainmaker
193,374
John Henry, Florida Architect
John Henry Masterworks Design International, Inc. - Orlando, FL
Residential Architect, Luxury Custom Home Design

Great Reality Check: telling it like it is.  This can be a money making business for the flipper or developer but LA is full of regulations and it takes time and deeper pockets than the typical remake in a small town.  Thanks, Endre Barath, Jr. 

Nov 10, 2019 04:10 AM #34
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Endre Barath, Jr.

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