Chesni’s Blog

Buy low, sell high is what they always say in the stock market. The same holds true in real estate as well. The real estate market is cyclical and after such a quick rise in home sales and median price over the past few years, we’re now seeing a buyer’s market out there. I get asked about how the market is doing and if there are any transactions taking place and my answer is a quick “Yes!” This is actually an opportune time for real estate investors to update their portfolios. A few years ago, the flipping strategy was a quick and fast way for investors to make immediate cash flow. Now, the savvy investor is picking up below-market property to hold on to and creating passive income by renting out the property in the short term and anticipating larger returns years later as the property appreciation builds up again.

There are a lot of foreclosure properties out there and the biggest pool of foreclosures is just a two hour drive from the South Bay area. A recent CNN.com article, citing a report from First American Core Logic, lists Bakersfield, CA as the highest risk market in the U.S. for foreclosures and an expected annualized home price appreciation of -16.9%. I’m actually quite familiar with the Bakersfield area and there are some really good areas worthy of a second home and some that are great rental property areas.

If you’re interested in taking a look at what is available in Bakersfield or in Los Angeles, I’m always available through my Chesni.com website. In fact, I have a new form that you can use to provide me some specifics to what you are looking for and I can follow up with specific properties that match what you are looking for. If you would like to be put on my weekly Chesni’s Investment Picks list, let me know and I will add you.

Many people that I talk to ask me about short sales. What are they?…

A short sale in real estate occurs when the outstanding obligations (loans) against a property are greater than what the property can be sold for. It can help in many cases to avoid and stop the foreclosure process and prevent serious damage to your credit record. Recently, banks have seen short sales as a benefit to not only the homeowner, but to them as well since banks are not in the business to own property. In most cases, it costs the bank much more to continue the foreclosure process than to get out quick, when a homeowner is interested in selling the home they can no longer afford. A short sale can only be considered during the pre-foreclosure period when you have:

A. Stopped making payments on your mortgage
B. The home is still in your possession and
C. You are experiencing a financial hardship

Thank you for visiting Chesni.com. Periodically I will be blogging to provide general information to potential clients as well as existing clients about various topics such as the real estate market, property investments, areas to watch, real estate market trends, and other related topics. I am positive you will find this blog informative whether you are new to the real estate market or are a seasoned investor. Keep checking back periodically or subscribe to the RSS feed. See you soon.