Southern California Luxury Home Investors

While home values are increasing all over the country, those who have taken advantage of the influx of distressed homes to fix-and-flip are now finding a rather dried up market. So what is the next move for these savvy real estate investors? The answer can be found along the Southern California coast where investors are buying up property and making luxury homes even more luxurious.

American Coastal Properties is just one company that found that it needed to innovate its strategy as the national real estate market became healthier and healthier. Following the housing bubble burst in 2008, the five investors that have now formed a strong partnership, found themselves very busy buying bank-owned homes from auction, remodeling them and then selling them for a monetary gain. With news of recovery, the group has happily moved on to bigger, and riskier, things.

“We were purchasing properties at the trustee sales, buying from banks, fixing them up and reselling,” Nick Sinatra, founding partner of American Coastal Properties, said to U-T San Diego. “That business sort of was getting squeezed out by some of the institutional people, so we started to look at adding more value through construction.”

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Focusing on ultra high-end areas of Southern California like La Jolla, Del Mar and Solana Beach, American Coastal Properties is buying older homes and completely re-working them to add square footage and luxury amenities to sell for a gain. While this particular group of investors is well-versed in house-flipping, working within a recovering, yet still shaky, economy on older homes can bring about surprises like crumbling walls and shady deals that can cost millions of dollars.

Southern California Market Ideal for Flipping Higher-Priced Properties

Since its inception in 2012, American Coastal Properties has flipped about 50 high-end homes in Southern California. Coming down the pipeline now are 12 projects in San Diego and 30 in Los Angeles. One recent win for the group was a property in downtown San Diego, which was purchased for $720,000 and restored and sold for $1.825 million.

According to Mark Goldman, real estate lecturer at San Diego State University, groups like American Coastal Properties stand to make impressive profits not just because of the sheer amount of high-end properties in Southern California that are in need of updates, but it’s also a function of the recovering economy.

“Value-add investors with the skills and resources to improve property will seek the highest return for their efforts,” Goldman said to U-T San Diego. “They cannot find as many low-priced houses in bad condition since the foreclosure inventory has dried up. So, higher-priced properties provide a better profit margin if they can be improved and placed back, in better condition, onto the market.”

American Coastal’s investors and contractors are determined to make this happen by improving properties throughout Southern California and are, in turn, making a more exciting market for SoCal’s high-end home buyers.

Are you interested in finding a luxury home in Southern California? Please feel free to contact our team of luxury property experts as we’d love to help you find a beautiful home that meets all of your needs.

Check out these La Jolla homes priced from $2.25 million to $2.75 million

  1. 2 beds, 2 baths
    Home size: 1,640 sq ft
  2. 2 beds, 2 baths
    Home size: 1,640 sq ft
  3. 4 beds, 3 baths
    Home size: 2,603 sq ft
    Lot size: 22,215 sqft
  4. 3 beds, 3 baths
    Home size: 2,603 sq ft
    Lot size: 22,215 sqft
  5. 4 beds, 4 baths
    Home size: 3,127 sq ft
    Lot size: 5,502 sqft

See all City of La Jolla Luxury Homes For Sale.
(all data current as of 10/22/2017)

Listing information deemed reliable but not guaranteed. Read full disclaimer.