Distressed Property In Pasadena | Pasadena & South Pasadena Real Estate

Attending A Real Estate Investment Seminar

Last week, I told you about a Pasadena real estate investment seminar I attended at the local library. The meeting which was two hours was really a precursor to get you to pony up for the more expensive full day seminar. Real estate is a great career; however it’s dependent upon the individual to chart their own strategy for career growth and development. There is a world of educational opportunities out there, but most of them are fee based, and your attendance is predicated upon you writing the check, not your company. If I am going to invest a full day and miss my daughter’s soccer game, I need to be impressed.

This seminar was held on Saturday from 9-6 and the topic centered on buying property in foreclosure. Any property, including property where the Notice of Default has been filed, short sale properties, or REO’s, this course provided information and strategy to acquire these distressed properties with as little money as possible from your pocket.

Usually when you hear “Buy Property with No Money Down” or “I was able to buy this house that appraised for $350,000 for $5000″ you are skeptical. And rightly so, since we all have been conditioned to hear “If it’s too good to be true, it probably is”. However this seminar presented several different options for addressing several current market opportunities.

Real Estate Market Conditions

The underlying premise that makes this strategy successful can be attributed to a couple of things:

There is a tremendous inventory of distressed property on the market and all indications are there is more to come
Banks do not want to be in the position of taking property back and having to hold on to it.

Given those circumstances, it’s not necessarily the day after Christmas sale at Macy’s, but you can see the banks do have an interest in disposing of their non-performing assets, as these only serve to weigh heavily on their balance sheets.

Finding Distressed Properties

The seminar provided all of the steps involved in foreclosure and the time line. It was also reported that banks are taking up to 5 months to actually file a “Notice of Default” Once it’s filed, it provides the property owner with 3 month notification of an upcoming “Trustee Sale”, unless the debt and increasing expenses are cured. If not, then a “Notice of Trustee Sale” is filed giving the owner another 21 days until the sale takes place at public auction.

As they say in life, “timing is everything”, and it is during this window the optimum opportunity takes place. Okay, now that you know the process, how do you go about finding these properties? The instructor covered several scenarios and tactics for prospecting and speaking with owners. Homeowners many times do not know what to do or how to react to these types of situations. They need someone to help guide them and offer solutions to a troubling situation. This presents an opportunity for a win/win solution.

From a personal standpoint, I like to know all of the ins and outs before I venture into something and while this course offered many rosy scenarios and makes it sound very easy, there are potential pitfalls. That’s why I would recommend you seek expert advice on any deal you attempt to put together and have someone on your side who can offer professional assistance. There may be a reason the instructor is also an attorney. The real estate transaction offers the opportunity to be very litigious, and the law does provide certain benefits to a homeowner in foreclosure. Appearing in court is probably not the best use of your time.

Pasadena Real Estate, A Returning Sellers Market?

It wasn’t that long ago when houses were staying on the market for 21 days and receiving multiple offers. The stock market was reaching historical highs. Home prices were climbing faster than our national debt. You did not hear the words foreclosure and short sale. The skies were blue and the birds were singing.

About 40 years ago the Clampett’s loaded up the truck and moved to Beverly, Hills that is, swimming pools, movie stars. Jed knew that California afforded a unique opportunity he couldn’t find elsewhere. The same can be said of the opportunities available today in the Pasadena real estate market and surrounding cities. It is a Seller’s market characterized by multiple offers and homes being sold over their asking price. There is however only one problem, the sellers are not there.

As many home sellers still grapple with declining equity, bank owned homes and short sales are driving the market. In the October market report on sales of Pasadena homes, sale prices under $500,000 are having a negative impact on median prices, but also on surrounding home values as well. If you are a homeowner who still has equity in your property (congratulations by the way), the rising inventory of distressed properties may be forcing you to rethink your sale price. It’s very hard to compete when you have 20 – 30 properties in some stage of the foreclosure process, in a quarter mile radius of your home.

Buying a bank owned home or distressed property can offer the opportunity to buy the house under market value. Banks generally are concerned with only the selling price. No emotional attachment with the property. Strictly a business decision. In other words “mark it down and leave town”. Imagine having some instant equity on the day of closing.

Many investors and home buyers find themselves in a real estate market many thought we would never see again. Homes are becoming more affordable. If you need to invest your money, what are your options these days? People who have been forced to leave their homes need someplace to live. Paying rent is more easily done than paying property taxes on a declining asset along with the possibility of a mortgage reset and higher payments, down the road.

However, one needs to proceed cautiously. The feeding frenzy that develops may force you to pay higher than what you had anticipated, defeating your initial purpose. Know the market prices in the area and set parameters on what you are willing to offer. If you are in the market to purchase or just want to see what is available, we offer free foreclosure listings of property in California. Someone once said “you make money when you buy, not when you sell”.

Y’all come back now, hear!