Fourteen years ago, Khari Washington sold his car dealerships to invest in real estate. And he has never looked back. 

As a broker and founder of 1st United Realty & Mortgage Inc. in Riverside, California, Washington has built an impressive portfolio in rental real estate spread across Southern California. He’s also an experienced home flipper, buying and selling a couple of properties each year. At the time of writing, he was in the process of flipping $1.8 million in property. 

Success runs in Washington’s family: He’s the third generation involved in real estate. He spoke with Story by J.P. Morgan about his family’s influence on his career and his approach to real estate investing.

Q: How did your journey in real estate begin?

A: I come from a real estate family. My grandfather Herbert Boulin was a real estate broker. He was active in trying to help Black families get more money when the government decided to eminent domain households for the Pasadena Freeway in the 1960s. He also helped many people in the Altadena and Pasadena areas buy homes. 

My mother became a real estate agent, and my dad was a real estate broker. They would buy houses, fix them up and sell them. When I was young, we would look at beautiful homes just for fun. 

Fourteen years ago, I owned two small used car dealerships and decided to pivot into real estate. This was during the lead-up to the 2008 financial crisis. Our sales began to suffer, and it seemed like the industry was feast or famine. I liked how real estate sales were asset-light for the brokerage company, and more of the revenue turned into profit than in the car business. I got my real estate license in 2007, sold my dealerships and haven’t looked back.   

Q: How did you get into flipping properties?

A: After doing a few large real estate transactions for clients, I decided to venture into flipping around 2010. I think my parents’ previous flipping ventures inspired me. Being a broker is extremely helpful with our flipping business, and it gives me a massive advantage over other flippers. I have better access to comparables and more experience valuing properties, so my estimated buy-and-sell valuations for homes are better than other flippers’. I also get to keep the buyer's agent commission and the listing commission since we are our client. 

Q: When you flip properties, you’re often making big improvements to them. Where does your home design inspiration come from?

A: I design my flips to appeal to a vast number of people. I try to keep up with new home design trends and bring those elements to my homes. I get a lot of inspiration from model homes and home design apps. I also see what our brokerage clients like and see design trends change in real time. We can then take those insights into our projects.