Temecula, CA

Hello Everyone,

I heard that Temecula, Ca Is a good place to own real estate.

Is it true that the equity in homes are rising like crazy every year? ???

Has anyone here invested or own any properties there? If so, what’s your take on it? ???


Temecula is a pretty good area to invest if you can buy right. The California market is a very aggressive market and economics show Riverside and San Bernardino counties are growing like crazy. If you can buy right and stay in these counties you should be alright in California.

You may even look at San Jacinto, growth is there and still under valued.

Best of luck :slight_smile:

Thanks Midas,

I asked because i have a friend who is a begining investor and just recently bought a house out there. He told me that the market is good there.

He wants to “rent my credit” to invest in San Diego and says i could make 10k a house. He basically finds houses with equity built in them, has me finance them for zero down and no closing costs and pays me the 10k (for using my credit) and pulls out the equity himself. He has done it several times with others.

What are the pros and cons? Anyone else’s advice is greatly appreciated.

Why doesn’t he use his own credit?



What is your question?


Sorry I should have said good question above.

What ???are you reading a newspaper from 2003???

The market is getting fairly soft here in SoCal and volume and prices have dropped; particular down in the San Diego area (which is near Temecula).

You mentioned 10K in equity; that’s a rounding error in this market place.

You should really get up to speed if you are going to jump into this market so you don’t join the growing list of casulties of newbie RE investors.

Sorry to be blunt, but thats the real deal. There is money being made in this market today, but there are also people that are $100k+ under water.

Mike in Calif

P.S. I have properties in Orange and San Bernardino Co. and I follow Northern Riverside Co. as well.

Because his credit is bad. And not from investing.

Lol, No im not reading a paper from 03. I was given this information by someone who just bought a house there.(Temecula, not San Diego im from there)

And im not going to just “jump” into this, thats why im here asking questions and looking for answers from experienced investors. :slight_smile:

Explain please.

He basically finds houses with equity already built in them from distressed owners in San Diego. (foreclosures)

So you have good credit and he has trashed his and you’d even consider letting him use yours?

If he couldn’t (and doesn’t) take care of his own what do you think would happen to your if the going got even a little rough?

I would never trust someone else to play loose and free with my credit --I’ve worked waaaaay too hard to get it and keep it where it is. Don’t let the chase for some $$$ get in the middle of your personal financial well-being…

My two cents.


Yes, there are some real opportunities in this area for pre-foreclosure investing. However, there are specific ways to correctly structure those transactions (see Ca code sect 1695 and 2927). In a nutshell, you need to accurate determine the equity in the house and then purchase that equity for some discount (50% is very typical) and take title subject to the existing financing.

I don’t know exactly what the pricing looks like in Temecula, but 10k is not even close to enough margin. I would guess houses are 300-500k so you need to have at least 50K to really allow for reselling cost, hold expenses, etc to make a decent return.

You should considering spending some time over at www.foreclosureforum.com. This is NOT my website, but rather there are some folks who post over there that have decades of experience doing these types of deals.

As for the partnership. Be very careful; particularly about the “using my crdit thing”. Many partnerships go bad and it turns into a mess (we see some those posts here). I have been personnally been in one a number of years ago (used an LLC) that end with a less than satisfactory outcome (for me). The real key is structure your partnership agreement in WRITING and clearly explain how it can dissolved, how one partner can exit and how to resolve disputes. It is very usually that people are all revevved up to get started making money and forget or don’t want to deal with those details. Signing on the dotted line of the closing docs is the easiest part of the whole deal; working with other people and dealing with their flaws, weaknesses and limitations is the real challenge.

So, get more knowledge and get a good agreement in place if you want to work with your buddy.

His credit was messed up way before he even thought about investing. Now that he’s making some good money in this game (thanks to a mutual friends father who is a seasoned realtor/investor) he is now in the process of getting it fixed.

But you are absolutly right, I have spent the last year and a half working to get my credit clear and to where it is now and i’ll be hotter then fish grease to have it messed up because i did’nt invest right.

This is something i definitely will be thinking through.

Thank you for your advice it is greatly appreciated.