Is This Flippin’ Easy? Luxury Re-Sales Turning Big Profits in L.A.

High-end home flippers are currently making 20 percent and higher on their investment.

In case you need any more signs the housing market is getting back on track, the Los Angeles Times reported this week an increasing number of high-end homes are being “flipped” for lucrative profits.

The numbers in the article are staggering. For example, a mansion in Beverly Crest owned by Rihanna was purchased for $4.5 million last year and, following a modest upgrade, is back on the market with a price tag nearly double—$9.95 million.

Flipping homes—which is defined as a home being bought and resold within six monthsis up 25 percent from a year ago across the nation, according to the Times. It’s been particularly trending in the luxury market. The reason is simple. Flippers in the luxury real estate market are currently seeing returns on investment of more than 20 percent, one real estate analyst told the Times.

Leading the spike in profits is a shrinking supply of high-end homes and purchase terms that are agreeable even on a historic level.

“There’s a sentiment now that you don’t really want to miss the boat,” UCLA professor Paul Habibi told the Times.

Those looking to get in on the action probably need to act fast. To give you an idea of the supply shortage, the Times pointed out there are generally enough unsold homes to fill up to seven months of transactions. Right now there is only a 5.7 month supply of homes selling for a million dollars and up, a sharp downturn from last year when there was a 10.7 month supply.

Locales drawing attention from high-end flippers include Hollywood Hills, particularly the Birds Street area; West Hollywood, Beverly Hills and Venice.

About Gary Gold

Gary Gold is a marquee name in luxury real estate and his sale of The Playboy Mansion sets a record as the first residence to sell over $100,000,000 in Los Angeles. Gary is also one of its most successful trend setting agents. He’s an internationally recognized expert known for his creative use of technology, marketing and publicity to sell some of the finest homes in the world. Gary is further distinguished by the rare ability to secure high net worth, qualified buyers from digital marketing. This success, year after year, continues to produce a steady stream of buyers from not only the Los Angeles area, but throughout North and South America, Europe, and Asia.

Gary has sold thousands of estates and luxury properties over the course of his career. High-end developers have consistently relied on Gary’s broad expertise on projects ranging from luxury condominium developments to major estates. He is a sought after speaker, panelist and educator at industry conferences. Gary has been cited as an expert for publications and broadcasts that include CNN, Fortune, Barron’s, Wall Street Journal, The Washington Post, Access Hollywood, CBS Evening News, e! Entertainment Television and The London Telegraph.

Gary Gold began his career in real estate over 25 years ago and has been a top producer with Hilton & Hyland since its inception. Hilton & Hyland is Beverly Hills preeminent luxury real estate firm, with over $2.7 billion in annual sales.