Let’s Ask Katie-Holiday Edition!
Expert Advice for all your Real Estate questions from Katie Machoskie
Hi Katie,
I would like to get into building homes or flipping houses. I watch all the HGTV shows and it seems like it would be so much fun. Any advice for a newbie investor?
Sandy B, Newport Beach
Hi Sandy,
You’re on the right track. Real Estate is historically one of the safest investments. One of my favorite adages is, “Don’t wait to buy real estate, buy it and wait.”
Buying land or a tear down is for investors who are willing to take on more risk. It can take 12-36 months to complete a new construction project. From a creative angle, building is gratifying because you get to design, build and brand your product from the ground up. Scarcity sells and new construction is always appealing to buyers. You control the outcome–will it be a custom dream home for a specific buyer, a boutique multi-family project, or a design-forward spec home? Partner early with experts in zoning, design and construction. Lean on your real estate agent for referrals, because they typically know where the talent is and who best to avoid. The down side? Be ready for entitlement delays, rising construction and insurance costs, and holding periods.
If you are new to remodeling and building, I’d suggest you consider a flip. Flips are lower risk, and require a lower investment than a new build. Margins are tighter and materials may be pricier but smart investors who buy right, move fast and keep renovations timeless are continuing to cash in. Find a real estate agent who has access to off market opportunities and is a shrewd negotiator. Before you close, you should have a clear design and remodeling plan. The key is to find a home in a high-demand or up-and-coming neighborhood, get the best deal possible and be ready to move f-a-s-t!
Katie Machoskie is a REALTOR and Founder of the Machoskie & Associates team at COMPASS in Orange County. With over 22 years of experience, she has over $1.4 Billion in sales. She and her team of neighborhood specialists are ready to assist you anywhere in OC. Have a question? Email her at
[email protected] DRE#01380037 Follow her on Instagram
@machoskiehomes.com"
Sheldon White
