Having problems in california

In some areas in Southern California homes have lost their value more than 60% in the last year or two making this a very attractive market for investors and/or other home buyers, however some Real Estate Agents list their homes below appraisal or listing price. The attractive low price gets everybody's attention, suddenly you have twenty or more offers for the same home and the bidding starts, just like in an auction, until they get the highest offer.

I've Even tired in las vegas but its the very same thing.

We have the same situation here in central cal - 30 or more offers on some properties. And the ones that have been on the market forever are still waiting for who knows what ...

I just got off the phone with a realtor. I am thinking of doing this program and this is EXACTLY what he told me.

Now I am wondering if I should even get involved at this point.

Don't be discouraged. Use this as part of your education. I have experienced the exact situation. I'm in Southen California. I put in 9k over list price and didn't get the property. Over 20 cash offers were made and they were higher than my bid we were told.

So if that doesn't work, find out what will.

The problem: Too much competition
The solution: Go where there isn't so much competition

This could be probate sales, pre-foreclosures, joining up with other investors to get in on the buying of multiple properties, short sales, finding private funding for the REOs, and many more.

If you wanted to bake a cake what would you need? Many would say: flour, eggs, a spatula... Well I say it takes a kitchen first.

Don't give up before you start. Start gathering everything you need to have a successful real estate business. Everyday you will have more of what you need. You can make a lot of money in this business. But you can also loose money if you are not making informed decisions. The support from the advisors in Dean's program is priceless. If you decide to go with a program, this is the one. I've done some research and decided this was the best.

This is also the most active and supportive website I've seen. My hats off to all of you who participate.

I have my kitchen. And the oven is preheating!

Wendy

Hi I read your comment and I think it's great that you can encourage those of us who are having a hard time in California, I am up north in San Jose and the pricing are still quite high so I'm pretty much having a hard time getting started. Maybe you could brief me on what action you took to get your kitchen ready. I am just stating today to consult with the advisory team

Gia

It's all about having a goal and constantly moving toward it. I find every opportunity to learn about this business. Today I read an 83 page report on getting offers accepted on REOs. The night before last I had my dinner picnic style on the floor in my office while I watched/listened to a three hour webinar on marketing. It is important to have a team of people you will work with. I have a mortgage broker, 30 accountants I work with at my day job, realtors, title agent, contractors, other investors, etc. I make myself check in with them. I don't want them to forget me! I also research software that will help me. If you haven't already, check out zillow.com, trulia.com, redfin.com, google earth. I have found real estate investment calculators that are free and have bookmarked them for when I need to run some numbers. I created our stationary, fax cover sheets. You can find free business cards at vistaprint.com. Don't know if they still offer it but banditsigns.com had a deal where you could order 25 signs free and only pay about $12 for the shipping. Could you make friends with the guy who works at Home Depo's pro desk? I bet he meets contractors and investors who are rehabbing properties every day! Talk to everybody! Tell them what you are doing. The girl at the check out counter may know someone who needs your services. Tell the local skateboarders that you will give them $100 if they find you an abandonded house that you close on. Gosh I could go on and on.

Great post on getting your kitchen ready. You also need to always keep it stocked. Everyday do something towards the goals of REI. Keep educated. It's a numbers game. Just go on to the next one. Sometimes the offers other put in and fall through - it could be months down the road when your offer is accepted.

Darn, I feel like my nice cake just fell flat. The lenders are now saying that my HELOC is to be used in the calculation of my debt to income ratio and I don't qualify for much anymore. HELP! I need private funding. I've seen the hard money lenders and the back to back lenders. I have a couple of leads. Anyone have any suggestions on how to approach private money lenders?

Wendy

im in tulare county and i just started REI i was just wondering if any one lives close or around me? maybe we can meet up some where and pick up some pointers on the business

Hey CA Buddies!

Have faith my CA friends because the moratorium lifts next month and once again we will have a surplus of foreclosures. Your offers will get accepted. I just posted a thread on knowing your market. Check it out. Hopefully it helps.

http://www.deangraziosi.com/real-estate-forums/market-trends-and-conditi...

KimmyJ

Never become so much of an expert that you stop gaining expertise. View life as a continuous learning experience. – Denis Waitley

I just want to thank you all for the encouraging words and for the recommended websites by Wendy and KimmyJ. I am a newbie in Real Estate investing and being in the bay area where most are expensive makes it difficult. An agent just told me today that home prices are starting to go up and gets multiple offers.

I am continuing to read Dean's books and materials and wants so much to begin but I feel I have to finish everything first.

I come here often to gain confidence, get strength and more knowledge. It helps me shake my fear. This is my refuge. Thank you everyone.

Ingrid G

Just think positive that foreclosures are coming to CA again after September 15th. Besides Obama putting a moratorium on housing, CA did as well. CA's moratorium had even stricter guidelines. In another month, prices will go down a bit. I'm thinking a 5-10% drop. You won't have all the multiple offers like now because there will more inventory. There will be room to negotiate again. Keep the faith...

KimmyJ
Press On...

I will be waiting on that for the mean time
I'm focusing on fsbo

Man..Like other hot areas anything listed cheaper that's in a decent area of town
gets all these offers OVER the asking price & CASH offers also! I would love to talk to someone else in central valley here!I want a HOUSE for me LOL

Thank you, KimmyJ.

I hope everyone knew that.

Any luck? And which areas you in?

rick12, at least you are trying to be reasonable in your offers. Some of the new investors think that the prices are dirt low and can get properties at 0.50 on the dollar--reality check--that does not happen very often, particularly in REO--REO prices are already discounted. If you want 0.50 on the dollar, try buying bulk real estate.

Also, some investors are trying to outsmart each other and their agents to get a bigger cut, it's a shame. An agent, now I'm putting on my agent cap, works for you, especially a loyal and experienced one has the duty to represent you and take care of you and you as the client should be grateful. Agents still work on a commission and many of them have family and children who depend on them.

Sorry, not trying to vent here, but it really annoys me when I see investors trying to cut out an agent's compensation after the buyer's agent has done a lot to help the investor even though the investor believes he had all the godsend knowledge prior to meeting his real estate agent--another reality check--don't forget how you got to where you are and where you will be without someone on your side. The buyer's agent's compensation is built into the transaction by the seller and should not even be a factor to your making offers. So if you, as the buyer thinks that it's your agent's compensation eating away at your profits, rethink that. The compensation is paid out either way, to one or two brokerages, so why not have someone who's already worked with you get paid?

Perhaps this isn't the best site for you. On this site we stay positive and encourage each other. No one is trying to rip off the agents nor does anyone condone that type of business strategy on this site!

KimmyJ
Press on...

What's going on over there in Modesto? I was just over there today - nearby.
Maybe we can talk RE and kick some ideas around. I live up here in northern CA too, but I'm in Alameda about an hour and a half away.

If you're interested PM me or give me a call at (510) 522-2274. (522-CASH)
By the way, I love pinball and we have MORE pinball machines in Alameda than any other city in California!

Hey Rick12, I live here in Las Vegas and have been for twenty years. However, I am new to this and just finishing up Deans book. I wrote my first message today even. So, I am curious, are you located here in Vegas ?

If you are, would love to pick your brain.

Thanks, Jimmy

Does anybody on here have any interest in the Sacramento area of Ca. I have been submitting a lot of offers on REOs,Short Sales, anything that moves. Its a lot of competition out here. As soon as I get an email for a listing, it already has about 10 offers on it, some even higher than asking. I am really starting to get heart broken here. I've been laid off, no income, I might lose my apartment, my wife. I really need something to happen.

more lead sources than just the MLS. CA is a hot market. You should be going after pre-foreclosure leads, FSBO, etc.

KimmyJ
Press on...

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