The New Breed of Investment Property in Los Angeles
There are several things you need to take into consideration when setting out to purchase Los Angeles investment property. You first should ask yourself whether you are out to make quick profits, only holding on to properties for a short period of time; or if you want to allow your portfolio to grow at a more conservative pace with a collection of rental properties generating a steady stream of income over time.
In either case, the type of Los Angeles investment property you choose to buy will have a big effect on how successful you are. For many years, LA area real estate investors focused mainly on the foreclosure market. But the competition for these properties has really driven the cost to purchase these homes through the roof. As a smart investor you know that the deal is won or lost on the front end. If you pay too much for a property it can take forever to be able to make that money back when you go to sell it.
But don't let this discourage you. There are still profitable investments to be had, you just need to know the right kinds of properties to buy and where to find them. That's why you're here.
One type of property that still produces profits for LA investors is pre foreclosures. These are homes that have not hit the bank's foreclosure list, but the owner knows that they are quickly headed in that direction. Whether caused by a job loss or resetting mortgage interest rates that have driven their payment up too high, their inability to pay the mortgage can result in an easy way to grab some easy profits for you. It doesn't have to be all bad for the homeowner either. You are freeing them up from the burden that is their monthly mortgage.
Another class of investment property in Los Angeles to consider is wholesale properties. These are homes that in most cases are owned by other investors who want to get rid of them quickly. They typically need some work that the investor doesn't have the time or patience to see through to the end. Your willingness to take on the task of rehabbing the property can really pay off.
MyHouseDeals.com has the best list of LA area pre foreclosures and wholesale properties. Not only do we list the properties, but we take a proactive approach to vetting the details provided by each owner to make sure our members are only seeing the deals with the most profit potential.