Hi, I am so new in this area. I need some direction on how to locate preforclosures, and what could be a good course to read on this. pls. help. thanks.
First, you have posted this on a forum that specializes in tax sales and tax lien investing. You might get a better response if you post on some foreclorure venue.
Try www.foreclosures.com, located near y ou. Also, check out the San Francisco Learning Annex' web site. and look for "foreclosure/" Bruce Norris is Scheduled to speak all day soon. He is a super buyer of bargain property in So. CA.
I doubt if you will find much success with preforeclosures in Sacramento, as the market is so hot. Anybody who is in default need only list their property with a real estate broker and it will typically sell within a couple of weeks.
There are investors wirting me about every week asking if I will sell my Sacramento properties. Real estate licensees are sending me solicitations every week to list my property for sale.
Property values are going up about 12-30% a year, so everybody is excited about real estate in Sacramento. Three of my renters have asked me about buying my house that they live in. That is ALL the renters I have in the county.
I think that the central valley and the "Rim," Foothills 2500-4000 ft elevation is a good location for investing for the long term. Good appreciation likely. Probably break-even or positive cash flow. So don't be discouraged. There is a place for you as an investor.
I just don't anticipate much success with preforeclosures. Unless you are willing to work extremely hard to make it occur.
I have just finished reading your post on 9/24/2002. If your properties have been increasing in value between 15 and 30% per year, do you ever worry that that rate might be unsustainable? I have some rental property in Columbus, Ohio and these have appreciated a remarkable amount while the rents have not kept pace. It seems to me that at some point, it would make more sense to sell than to continue to hold the property and rent it.
I don't see property values in CA declining dramatically any time soon. We have the highest rate of population increase of any state in the union. There are fewer living units being built in the state than the increased population demands. So prices will continue to go up dramatically, I think.
The whole country has has good appreciation over the past three or four years. Probably most of this is due to the low interest rates on mortgages. When the interest rates go up again, the amount of house people can afford will be lower, so prices will probably drop down some.
If you have those low interest rates on your rental properties, you will have good cash flow.
It is possible that the rents will increase some to come into line with the value of the properties. It seems to me that single family house prices and income or apartment prices are going to be pretty closely linked. When houses start getting too high-priced, more people will continue to rent and not buy, thus moderating the house prices and making demand for apartments greater, thus encouraging higher rents. When the houses get a lot cheaper, more people will buy rather than pay high rent. Thus, the house prices will tend upward and the rents will have pressure to go down because of the fewer renters.
Don't ever worry about short-term changes in the prices of properties. There are only two ways to invest that seem sensible to me: hold rental properties forever or until you die, whichever comes first, or else "real estate merchandising," buying properties below market value and reselling as soon as possible for a profit.
You need not even concern yourself with prices of properties if you are a long-term rental property investor. Just make sure you are buying with criteria that provide you with a profit and a little margin in case rents drop. Then ignore prices completely.
When you do fast-turnover merchandising, you can pretty well ignore prices also. Just be sure you buy at a low enough ratio of market value to make a profit when you resell, even if you have to resell a little below market value.
Don't sell because prices are going up. Don't sell because prices are going down.
Sell because you see a better investment. Sell because your investment approach has changed and the properties you hold are no longer suitable for it. Sell because you are in financial hot water and need to sell to get out of it. These are the only reasons to ever sell. At least in my opinion.
Gwaskyke--(CA)---------------
First, you have posted this on a forum that specializes in tax sales and tax lien investing. You might get a better response if you post on some foreclorure venue.
Try www.foreclosures.com, located near y ou. Also, check out the San Francisco Learning Annex' web site. and look for "foreclosure/" Bruce Norris is Scheduled to speak all day soon. He is a super buyer of bargain property in So. CA.
I doubt if you will find much success with preforeclosures in Sacramento, as the market is so hot. Anybody who is in default need only list their property with a real estate broker and it will typically sell within a couple of weeks.
There are investors wirting me about every week asking if I will sell my Sacramento properties. Real estate licensees are sending me solicitations every week to list my property for sale.
Property values are going up about 12-30% a year, so everybody is excited about real estate in Sacramento. Three of my renters have asked me about buying my house that they live in. That is ALL the renters I have in the county.
I think that the central valley and the "Rim," Foothills 2500-4000 ft elevation is a good location for investing for the long term. Good appreciation likely. Probably break-even or positive cash flow. So don't be discouraged. There is a place for you as an investor.
I just don't anticipate much success with preforeclosures. Unless you are willing to work extremely hard to make it occur.
Good Investing******Ron Starr***********
Dear Ron,
I have just finished reading your post on 9/24/2002. If your properties have been increasing in value between 15 and 30% per year, do you ever worry that that rate might be unsustainable? I have some rental property in Columbus, Ohio and these have appreciated a remarkable amount while the rents have not kept pace. It seems to me that at some point, it would make more sense to sell than to continue to hold the property and rent it.
How do you make this decision?
curtbixel--(OH)--------------------
I don't see property values in CA declining dramatically any time soon. We have the highest rate of population increase of any state in the union. There are fewer living units being built in the state than the increased population demands. So prices will continue to go up dramatically, I think.
The whole country has has good appreciation over the past three or four years. Probably most of this is due to the low interest rates on mortgages. When the interest rates go up again, the amount of house people can afford will be lower, so prices will probably drop down some.
If you have those low interest rates on your rental properties, you will have good cash flow.
It is possible that the rents will increase some to come into line with the value of the properties. It seems to me that single family house prices and income or apartment prices are going to be pretty closely linked. When houses start getting too high-priced, more people will continue to rent and not buy, thus moderating the house prices and making demand for apartments greater, thus encouraging higher rents. When the houses get a lot cheaper, more people will buy rather than pay high rent. Thus, the house prices will tend upward and the rents will have pressure to go down because of the fewer renters.
Don't ever worry about short-term changes in the prices of properties. There are only two ways to invest that seem sensible to me: hold rental properties forever or until you die, whichever comes first, or else "real estate merchandising," buying properties below market value and reselling as soon as possible for a profit.
You need not even concern yourself with prices of properties if you are a long-term rental property investor. Just make sure you are buying with criteria that provide you with a profit and a little margin in case rents drop. Then ignore prices completely.
When you do fast-turnover merchandising, you can pretty well ignore prices also. Just be sure you buy at a low enough ratio of market value to make a profit when you resell, even if you have to resell a little below market value.
Don't sell because prices are going up. Don't sell because prices are going down.
Sell because you see a better investment. Sell because your investment approach has changed and the properties you hold are no longer suitable for it. Sell because you are in financial hot water and need to sell to get out of it. These are the only reasons to ever sell. At least in my opinion.
Good Investing********Ron Starr************