The most important thing to remember about investing in L.A. is to never buy a mediocre property. There is a startling potential for appreciation on properties in the L.A. Basin proper and beach cities. This is going to get a lot of people mad... but everywhere else is strictly second rate. If you're not taking advantage of this when you buy a property in Los Angeles you should probably be investing somewhere else given the kind of deals that you can get in places like Las Vegas, Texas, and Florida right now.
This being said, L.A. isn't a great town for profitable multi-unit properties, especially from Downtown to the beach, which is some of the most expensive real estate in the country. Single family homes can't be rented profitably anywhere in the city and multi-unit properties that run close to, or in the black are unheard of in all of the upscale areas from the Beach Cities & Westside to the Hollywood Hills.
The best investments in the L.A. Basin are found in an arc from Downtown and Koreatown to mid-Wilshire, Picfair (Pico & Fairfax,) and the Baldwin Hills. This is essentially where the 'gentrification' of the L.A. Basin halted a couple of years ago. Profitable multi-units can occasionally (though not routinely,) be found in these neighborhoods and the potential for appreciation is considerable. I expect the Los Angeles basin to go high-rent from the beaches all the way to Downtown & USC, and southward to the LAX International Airport glide path over the long-term as the market starts to get healthier.
This leaves Long Beach. In my opinion, Long Beach (and San Pedro to a lesser extent) are the best investment opportunities available in Southern California. There are usually a more than a few profitable properties available as well as a hand full of really attractive investments on the market at any given time in these undervalued communites around the habor. As the only affordably priced coastal real estate from San Diego to Santa Barbara, the full revitalization of these cities is inevitable and in fact, already well underway.
Profitable muti-units by the beach with a lot of potential for appreciation, what's wrong with this picture? Maybe nothing.
Please feel free to contact me If you'd like more information about investment properties in Los Angeles. Best of Luck.
The Foreclosure process starts when a homeowner cannot pay the mortgage and ends when the home is resold.
The three stages of Foreclosure are: Pre-Foreclosure, Auction, and REO/Bank Owned.
Pre-Foreclosure is the time period a homeowner has to repay the delinquent amount of the mortgage.
If a homeowner does not pay the mortgage the home is auctioned
If the bids do not meet the reserve the lien holder (bank) reclaims the property and it becomes a Bank Owned REO.
Citizens Choice Mortgage
If you buy to see the house go up in value you could be very disappointed if it goes down, and those lower prices are likely to come over the next few years.
One of the best ways to reduce the competition is to buy property at the trustee auctions. In Los Angeles as in most areas these are all cash only sales. This reduces the competition and therefore also typically reduces the selling price.
The company I work with for buying trustee auctions homes is tREO Capital Group. They have a great platform and they even guarantee title. This helps to reduce risk. If you have more questions please feel free to contract me at any time.
<a href="http://www.SmarteRealEstate.com/treo-properties">Los Angeles Foreclosure Homes</a>
working with your Realtor to find the homes with the best equity. Foreclosures are a consideration, but may have to do more work on them. Short sales are also a consideration if you are willing to travel down an unknown road with unforseen risks - can work out really well if you have the patience.
Best of luck
You need an aggressive agent to find the best short sale deals, one who will also personally meet with appraisers & present the best case to the bank on why the price offered IS still a good deal for the bank & will net them more than if they let it go to auction.
Feel free to call or email with any questions.
#1 Listing and Selling Agent
In my opinion, some of the best opportunities for investors right now is in the distressed property arena, more specifically purchasing short sale property. In many markets, more than half the given properties available at any one time are short sales, and many buyers and agents do not want to even pursue them, because they feel it is "too much trouble" or a "waste of time" considering the bank may not accept the offer after weeks or months of waiting - because of this there can be less competition among buyers. There are definitely some great deals to be had in this area, and if you are diligent and patient, there are some fantastic opportunities to purchase properties often below fair market value. Feel free to contact me if you would like any more information or have any other questions.
Have a great day!
Coldwell Banker Residential Brokerage