California real estate investing is a challenging market for experienced investors, not to mention new investors in practice. The Golden State is in a cycle of foreclosure acquisitions since the banking crisis. However, this has opened the door for investors to buy real estate below market value.
Real estate investing in California can be a lucrative practice as long as investors take the time to get to know the area. Housing prices have seen a 40 percent drop in many markets. Today, investors can locate affordable homes in areas such as Malibu, where prices have often been prohibitive to generate positive cash flow.
Housing prices are already rising in the interior such as San Diego, Los Angeles, and San Bernardino. Investors interested in real estate in these areas should now develop a strategy to take advantage of lower prices.
To make money through California Investments, investors must spend time to see the state of the market and the real estate available. This is especially important when investors plan to use real estate as a rental home or the offer owner will afford the financing option.
It is important for investors to learn landlord/tenant laws, as California has some of the most stringent in the country. A good place to start is the California Property Management website. Visitors can find information about rental laws, compliance rules, download brochures and various forms of real estate.