I’m Ted Thomas, and I’ve been involved in real estate for decades. In the last 30 years, I’ve specialized in a subset of the real estate business called tax lien certificates and tax deeds. These are properties that are just like traditional real estate, homes, small apartment properties, residential vacant buildable lots, small farms, and small acreages of land.
Today I’m answering your question about the best place to buy investment property in California.
Want to learn how to purchase bargain real estate? Would you like to buy mortgage-free property for pennies on the dollar? Or earn double-digit interest rates secured by real estate? Then you don’t want to miss this FREE Mini Course.
How to Start Investing in Real Estate in California
Is California a good place to buy an investment property? Yes, however, to get started, it’s not going to be an easy process. Prices are high and appear to be going higher. The market is changing, and the change, in my opinion, is where you’ll be able to make money. So, let’s think about the future in order to operate in today’s market.
Only savvy, shrewd investors who are educated are going to make significant money in this market.
Which location is best for property investment? What are the best places to buy in California? The strategy I’m going to give you isn’t going to narrowcast to just one location. There are a lot of markets that work. From San Diego and Los Angeles to Fresno and San Jose, Sacramento and Redding, this always works.
A Strategy for Creating Cash Flow With Real Estate
Today, I’m discussing the best place to buy investment property in California, and I’m going to reveal a strategy that requires patience and will benefit the investor who’s thinking out of the box.
To start with, I made my home in California in the San Francisco Bay area for 30 years, and I purchased and resold dozens of single-family homes, 50 and 60 unit apartment properties, and mid rise office buildings.
Lesson #1 – Buy and hold is still a lifelong strategy for conservative investors. However, if you want cash flow and to make a business out of investing, you will need alternatives. This requires you to be slightly more aggressive.
When Is It a Good Time to Invest in Real Estate in California?
Real estate is affected by whatever the political atmosphere is already doing. Property values increase for years, and they also will have times when they decrease for years, which allows you time to sell at the top of the market and rebuy at the bottom of the market. That’s a reality of the marketplace if you’re patient.
Why does this work? Because the market responds to the economy and politics. In the period of 1986-1990 and again more recently in 2008-2012, the real estate market revealed some devastating declines; the market collapsed 25%, 35%, and even 60%. Unemployment was massive. Interest rates were high, and foreclosure was high.
The cycle is always the same, boom then bust, and the bust is brutal.
Buying Real Estate During Booms and Busts
Many real estate investors who buy and hold were okay, but the new buyers in the declining market found it painful as prices dropped below the amount of their mortgage. The market retracted and retrenched as much as 60% on some types of real estate.
The big money, the Warren Buffets and the old-time investors, patiently waited as the market declined. When they estimated it was close to the bottom, they bought thousands of single-family homes – thousands being 10,000 homes and more!
How does the little guy buy low and sell high? That’s a good question, and I’m going to give you some answers that work if you do.
If you watch the market and you see the rapid rise, realize that there will be a time when it will stop rising. One of the triggers is always interest rates. The tough part is surviving the crash that’s coming. Most investors lose their assets.
I have a free gift for you, a special mini course that will show you how to profit with tax lien certificates and reveal the secrets of tax deed investing. Get your FREE gift today.
Best Place to Buy Investment Property in California at the Best Price
Here’s an answer that worked for me. It will also work for you, and it works across the United States.
The best place to buy investment property in California is the subject of our lesson. 30-years ago I discovered a little-known, but highly lucrative, business within the traditional real estate market. I was shocked that the business had been practiced by others for hundreds of years.
This business is available for profit-making in every county in California and all 3,000+ counties across the United States. It’s a subset of the traditional real estate business, and there’s enough for everyone who wants to be involved. I’m referring to tax defaulted real estate.
What is going on here? All property owners are required to pay property taxes. The state legislature requires that the county treasurer levy taxes and attempt to collect taxes. If the property taxes are uncollectible, the treasurer will confiscate the property, remove the owner, and sell the property at a public auction, also called a tax sale.
Cheap Investment Property at California Tax Sales
The auctions are publicized on the county website and in the local newspaper. All California counties will auction at least once each year, and anyone can attend the auction.
The county does not want these properties! To accelerate the sales process, the county will announce the auction pricing at very close to the back delinquent taxes, which could be 60%, 70%, or 80% below the tax assessed value. As part of the auction process, the county will delete the mortgage or deed of trust loan.
Small population counties will auction dozens of properties, and large population counties will have hundreds, and in some instances, thousands of properties to sell at auction.
For example, Los Angeles County may have as many as 2,000 tax-defaulted properties, which will be sold to the highest bidder with no mortgage or trustee loan and with starting bids of the back delinquent taxes.
This process has been actively practiced in all California counties since the inception of the state.
We hope you enjoyed Ted’s lesson, “Best Place to Buy Investment Property in California”
If you’re looking for the best place to buy investment property in California at affordable prices, tax defaulted property auctions held by counties offer amazing discounts of 60%, 70%, 80% or even more off the tax assessed value of the property.
If you’d like to know more about tax delinquent real estate investing, Ted Thomas provides full support and complete training with home study courses, Q&A webinars, live tutorials, workshops, web classes, and personal coaching with certified coaches.
You can learn how to reap the huge rewards from tax lien and tax defaulted property investing! Get started today by taking advantage of Ted’s Free Master Class! Act now, it costs you nothing and will give you a big head start!
Ted Thomas is America’s Leading Authority on Tax Lien Certificates and Tax Deed Auctions, as well as a publisher and author of more than 30 books. His guidebooks on Real Estate have sold in four corners of the world. He has been teaching people just like you for over 30 years how to buy houses in good neighborhoods for pennies on the dollar. He teaches how to create wealth with minimum risk and easy-to-learn methods.