California Investment: Strategies For Expanding Your Real Estate Portfolio
In recent years the California investment market has witnessed erratic swings in real estate prices. Although infamous for being home to some of the world’s most expensive real estate more than half a million people move to the Golden State each year.
California investment properties can yield substantial income to investors who understand the market. Housing prices have dropped as much as 30percent in some locations. Many investors are buying homes at warp speed in order to capitalize on reduced housing prices.
California is a desirable place for people to reside and a popular vacation destination. Residents and tourists can enjoy a wide range of activities including golf horseback riding whale watching deep sea fishing snow skiing snowboarding and visiting the numerous theme parks. California offers something for everyone regardless of their age.
Prior to purchasing California investment properties real estate investors should become educated about the market. The Internet is a good place to start. Investors can review comparable sales reports obtain information about schools employment opportunities and anticipated growth cycles.
Once investors determine the location of potentialinvestment properties they should begin networking with other real estate professionals in the area. This can be accomplished by attending investment group meetings or through online networking forums.
It is essential for investors to understand California real estate laws. California is known for having some of the strictest laws on the books. Experts recommend consulting with attorneys to ensure compliance.
Foreclosure homes are a popular choice amongst real estate investors. California is ranked third in the nation for hardest hit foreclosure states. Experts claim more than 100000 homes are currently vacant due to foreclosure. Many of these homes can be purchased for half of their original cost.
Wholesaling is another popular investment technique. Some investors purchase bank portfolios consisting of 100 or more properties. Since they buy in bulk investors can purchase distressed properties for as little as 30 cents on the dollar.
These properties are sold “asis” to buyers. The investor doesn’t make any repairs or invest additional funds into the property. Investors typically sell these properties well under market value in order to attract buyers.
A somewhat “secret” California investment opportunity is that of probate real estate. If a person dies without establishing a trust everything they own is transferred to probate. The probate process establishes the estate’s value validates the decedent’s Last Will and Testament pays outstanding debts and distributes assets to heirs.
When real estate is held in probate related expenses can bankrupt the estate. Probate administrators can elect to sell the real estate to eliminate financial burdens.
Locating probate real estate involves searching public records at local courthouses where probate is handled. Investors can obtain contact information of the estate through probate documents. In some states estate administrators must receive authorization from the court before selling the property.
About the writer: Real estate investor Simon Volkov offers free California investment tips articles and resources via his website at www.SimonVolkov.com.
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