Among the 23 states that are now suspended from foreclosure proceedings, California was left off the list.  The main reason is California's foreclosure process allows lenders to take back properties owned by delinquent borrowers without any intervention by the legal system.   

Major lenders GMAC Mortgage LLC, JPMorgan Chase & Co. and Bank of America all announced last week that they needed to review thousands of crucial legal documents that they may have signed without reading. But the documents only matter in states that require a judge's order for a foreclosure. The three lenders suspended foreclosures in these states, but announced no changes to their activities in California.

The foreclosure process remains mostly unchanged in California, and the Dalzell Group has been investing in "flip" properties through a strategic partner/operator in LA and Ventura counties for the past year. We wanted to provide you with a brief update of the performance to date and let you know more about the opportunities we see in this segment of the market moving forward.

Since August 2009, we have personally invested funds alongside those of our clients, and have enjoyed solid returns due to a steady flow of distressed inventory and a unique buyer's market.  Below is a brief summary:      

Properties Closed:    21

Average Hold Time:    Apx. 5 months

Average Deal Return:   8.35%*

Avg. Annualized Return:   21.58%*

These properties have been purchased at foreclosure trustee sales (on the courthouse steps) and then rehabbed and resold at market prices. It is a truly passive investment with the operator handling all construction, sales and escrow duties. It's become very evident that today's buyers are focusing on value properties (foreclosures, short sales etc.) and this trend looks to continue as we head into 2011 and beyond.

If you are interested in learning more about investing in flip properties please call or email us today. Investment amounts start as low as $25,000.

We look forward to hearing from you, now continues to be a unique buying opportunity for investors and move-up buyers in Carmel Valley San Diego.  To find Carmel Valley's next great real estate value call the Dalzell Group, your Carmel Valley San Diego real estate agents,  at (858) 755-7740 for a private consultation.