The California investment market has experienced its fair share of busts and boons. The past two years have been particularly brutal for California’s real estate market. Housing prices have fallen by 40-percent in some cities and towns; leaving numerous homeowners owing more on their home than its appraised value.

Many California investment properties available today consist of foreclosure and bank owned homes. Foreclosure homes can be a profitable investment choice for real estate investors ambitious enough to restore properties to their original luster.

Borrowers facing foreclosure typically forego making repairs or maintaining properties. In most cases, investors will need to engage in physical labor or hire contractors to make repairs and renovations.

California ranks third in the nation for foreclosures. Industry leader, RealtyTrac, states 1 in 165 California homeowners have been affected by foreclosure. Statistics show more than 100,000 bank owned properties are currently for sale in the Golden State.

Foreclosed properties can be purchased through private or public auctions. Investors should engage in due diligence prior to bidding on distressed properties. Otherwise, the exceptional real estate deal could end up being a massive money pit.

Bank owned properties are foreclosure homes that did not sell at auction. Once properties are returned they are sold through the lender’s loss mitigation department. Although bank owned homes can be purchased below market value, investors generally must make multiple counter-offers. The process can take weeks or months to complete.

Wholesaling for quick cash is becoming a popular technique amongst investors. Wholesaling requires investors to purchase distressed properties well below market value, then resell the real estate in ‘as-is’ condition to another buyer.

Investors engaging in wholesaling can earn profits up to 50-percent. Profit factors include property condition, purchase price, and ability to locate buyers. Real estate wholesalers can easily earn six-figure incomes wholesaling California investment property.

California probate properties are another popular investment strategy. When a person dies everything they own must be transferred to probate. The estate is administered by a designated estate executor. If the property has a mortgage loan attached, the estate must continue making payments throughout the probate process.

Experts state the average probate estate takes three years to settle. This can cause extreme financial burden for the estate. In some instances, a probate judge will order the administrator to sell the home.

Most probate executors are unaware they can sell real estate to reduce financial burdens. Investors specializing in probate properties provide much-needed relief to financially-strapped estates.

California probate properties can be located by visiting county courthouses where probate matters are handled. Probate estates are a matter of public record and contain contact information for the estate administrator. Investors can gather required information through the decedent’s Will.

Investors can purchase probate real estate directly through the estate administrator. In some instances, court approval is required. If more than one heir is entitled to the property, each must agree to the sale unless ordered by the court.

These are just a few California investment opportunities. If you have been considering purchasing real estate in the Golden State, now is a good time to organize investment strategies. Housing prices will eventually rebound. Take advantage of California’s distressed market and cash in on this profitable market.

Author Bio: Investor and author, Simon Volkov, provides free real estate investment articles offering tips, insider-secrets, and valuable resources via his website at www.SimonVolkov.com. Simon specializes in buying and selling distressed properties, probate real estate and California investment properties.

Category: Real Estate
Keywords: california investment, bank owned, wholesaling for quick cash, investment property, probate