| California real estate investing may very well be | | | | today's economy, qualifying for a home loan has |
| the next gold rush for those who invest in | | | | become challenging for buyers with blemished |
| foreclosure properties. According to real estate | | | | credit. |
| information experts, DataQuick, investors | | | | Many California residents want to buy real estate |
| purchased nearly 25-percent of all foreclosure | | | | but cannot qualify for bank financing. Investors |
| properties sold in the Golden State during the first | | | | can help buyers enjoy the benefits of |
| half of 2010. | | | | homeownership by offering seller carry back |
| California real estate investing can be a bit | | | | mortgages or lease options. |
| intimidating for investors who aren't familiar with | | | | Lease purchase option agreements can be a |
| buying foreclosure homes. In order to achieve | | | | great choice for individuals who want to buy a |
| success in the foreclosure niche, investors must | | | | house, but do not have sufficient credit or funds |
| become educated about the California real estate | | | | for a large down payment. Buyers provide a |
| market and real estate laws. This is of particular | | | | down payment and a portion of monthly rent |
| importance for investors who purchase | | | | payments are contributed toward the home |
| foreclosure homes for use as rental properties or | | | | purchase. |
| to offer creative financing options such as seller | | | | Lease options typically extend for 2 to 3 years; |
| carry back mortgages and lease options. | | | | providing tenants time to rebuild or establish credit. |
| California is known for having some of the | | | | Buyers obtain financing through a conventional |
| strictest landlord/tenant laws in the United States. | | | | lender when the lease option expires. If buyers |
| Real estate investors who have not purchased | | | | are unable to obtain financing, investors can |
| foreclosure property are encouraged to work | | | | extend the lease option or enter into a new |
| with a real estate lawyer to ensure they comply | | | | purchase agreement with another buyer. |
| with California real estate laws. Attempting to | | | | Seller carry back mortgages require investors to |
| invest in California's real estate market without | | | | act as the mortgage financier for all or part of |
| legal counsel could lead to costly fines. Investors | | | | the purchase price. Most investors offer partial |
| can learn about all facets of real estate laws by | | | | financing and require buyers to obtain a mortgage |
| visiting the California Department of Real Estate | | | | loan for the balance. |
| website at | | | | Seller carry back financing terms normally extend |
| According to the U.S. Census Bureau nearly a half | | | | for 2 to 3 years, but can be arranged to suit the |
| million people move to California each year. New | | | | needs of all parties involved. Buyers refinance |
| residents require housing. Investors who take | | | | mortgages through a conventional lender when |
| time to understand the housing needs of new | | | | the contract expires. Lease options and seller |
| residents can reap tremendous profits. | | | | carry back contracts should be executed by a |
| When people relocate they tend to prefer easy | | | | real estate lawyer to ensure they are |
| access to interstate systems, healthcare | | | | legally-binding if either party defaults. |
| providers, restaurants, and shopping. They seek | | | | Many opportunities exist to succeed in California |
| out homes in areas with desirable school systems. | | | | real estate investing. Investors can broaden their |
| Investors who research housing trends and | | | | chance of success by developing a solid network |
| review housing prices and rental rates can better | | | | of real estate professionals and creating an |
| determine how to price properties to attract | | | | investment plan. Investors considering buying |
| tenants or buyers. | | | | investment property in California should develop |
| Another popular investing niche involves selling | | | | strategies now because real estate prices are |
| houses by utilizing creative financing options. In | | | | expected to increase throughout the year. |