Can anybody advise as to what the best investment/RE strategies are to make money in the current CA market, i.e.; Subject to, Lease option, assignment of contract etc?
Thank you.
Look for foreclosures and bankruptcies. You want things you can quickly flip. The problem with the market slowing is your holding costs could end up much higher than expected.
REO’s are only discounted about 10% which makes margins scary thin. You need to get them pre-foreclosure from the home owner.
Do you think Subject to/and looking for 20-25% below market value properties in this market could pose pretty difficult?
Thank you.
I’m in Southern California and short sales are popping up left and right. I have to find more money partners to keep up with the demand.
Regards
Are banks willing to accept short sales? I’m sure there are plenty of owners that want to do one. I’ve found banks can be rather stubborn if they think a market is still hot. They’ll reject a short sale because they think they’ll get all of the money back on the foreclosure.
Since the California Market is dropping a little, is short selling still the best way out of a deal? I am considering buying a house now and keeping it for a couple years and make profit. (Sorry, don’t mean to steal the thread.)
what is your secret in finding short sale deals?
I pull title on FiSBOs (For sale by owners) and see how much thier property is worth and how much they owe. One of the reasons why people try to sell on thier own is because there is no equity to pay real estate comissions and they have no idea what a short sale is.
Regards
Options seem work in any market. Steve Miles is in California and says he uses options to generate cash quickly.
I am in northern ca. (santa rosa) and there are almost no fsbo at all here. We are having alot of trouble getting a house at all. You can find up to about 15% discount but that is not enough. They here are willing to wait 6-8 months or longer to sell and get there price here or at least closer and they have been getting it as well around the 4-6 month range most of the time.
If you can OPTION a house at 85% you could sell it at 90% and make a 5% spread with only your marketing expenses. No taking ownership, no making payments, no making repairs, etc.