Clancy Fort

There are lots of keys depending on you strategy and how much work you are willing to put into the property.

What is your investment strategy? Appreciation or Income. If you picked appreciation, you're probably buying a plex, condo or single famly home. These appreciate with the market and use conventional financing. If you picked income, you need to run the numbers to figure out what you probable income is and you are probably looking at properties bigger than 4 units.

Maturity - When does the property mature (i.e. How long before it is profitable?) Granted...I'm in California, where finding a mature property from the start is a difficult proposition. The general rule is that you should get to maturity in 18 months based on your initial equity level. If you're doing a 1031 exchange you should reach maturity immediately.

As a general rule, plan on buying for the long term. This will take market conditions out of the equation. At least in California over the long term the property will appreciate and the rents will go up. The longer you hold it the more money you make.

This advise is California specific. If you are looking in other areas in the nation, you should be looking for mature properties from the start.

here are two basic rules to follow which should keep you out of trouble...
1. Never pay market for the property...find the deal.

2. You're not going to live in it. It's an investment. Don't buy it because it's pretty. Buy it because it makes money. - Wed May 23 2007, 10:17

The simple answer is "no". California has winter just like everyone else. It's just that our winter is very mild in comparison. In the winter the water temp drops into the 50's in comparision to the summer when the water is in the 60's. The best beach months are May - September with some good days in March, April and October. In Southern California, we rarely see temps below 50 in the winter at the beach and in good beach months temps are usually in the 80's. - Wed May 23 2007, 09:55

I do love the Internet for Open Houses. The best place I found is REALTOR.com. I get the most qualified traffic by far from them. Second is craigslist and my broker's website. Signs are great but they attract lots of unqualified buyers.

As far as print advertising goes...if your broker is advertising open houses as part of their print campaign, this is another great vehical. - Wed May 23 2007, 09:40

Orange County is an extremely diversified county with lots of different communities to choose from. Most people start with their commute time to work first and then pick a community within reasonable driving distance.

If you're working in Los Angeles, you might be looking in North Orange County, Huntington Beach, Seal Beach, Cypress, Foutain Valley.

If you working in Irvine, you could reasonable live anywhere in the county since it's in the center.

If you working in San Diego County, you should consider San Clemente, Dana Point or San Juan Capistrano.

If you'd like to live next to the beach, but have a limited budget. I would recommend looking in Dana Point or San Clemente.

If you like the weather hot, you might consider inland, Coto De Caza, Rancho Santa Margarita, Yorba Linda or Anaheim Hills.

Your choices are too numerous to mention. A good suggestion if you've never really been to our fair county is to take a few days and have a friend or REALTOR give you the grand tour. Each city has it's own unique qualities. The question is which one is right for you and your needs. - Mon May 14 2007, 12:40

Think of it as a job application process. You have the job that needs to be filled and the REALTORS are the applicants. INTERVIEW the REALTORS with a set group of questions. Give the REALTOR some basic background information...how much you think you can afford; what type of home you’re looking for; what your hopes and dreams are; etc. Now ask...

With my budget where should I be looking (testing the inventory knowledge)?
How do I do it without getting into financial trouble (testing experience and troubleshooting knowledge)?
What should I do to prepare for this purchase (testing experience and troubleshooting knowledge)?
What can I expect when we go buy (testing experience and knowledge of market conditions)?
What is reasonable to ask for from the seller when I make an offer (testing experience and knowledge of market conditions)?
Can you explain the contract to me and what are the loop holes in the contract (This is very important and can save you lots of money) (testing contract knowledge…this is huge. If the REALTOR can’t explain how the contract works, you shouldn’t work with them)?
Ask for references.

More questions will come up as you get into this conversation.

You are looking for a professional who knows what they are doing. They will be able to find you the right home if it exists. They will be able to negotiate the best price and give you sound strategy so you don't get caught in a risky financial position. Pick the REALTOR that answers with solutions that meet your needs and protect you in case something goes wrong.

Buying real estate is probably the largest purchase you will make in life. If you're going to risk that kind of money, make sure the person helping you knows what they are doing.

Don’t let the home you looking at take priority over the professional you’ve chosen to help you. A licensed real estate agent can help you purchase any home whether it is on the market or not. A listing agent that tells you they can get you a better deal on the home if they write the offer is lying to you or not representing their client, the seller, in an ethical manner. - Mon May 14 2007, 12:27