How to Buy Foreclosures in San Diego

San Diego foreclosures can provide bargain deals if handled skillfully.Some foreclosure properties in San Diego County are listed at 50%+ below their market value. However, purchasing bank owned properties is not meant for inexperienced buyers. Below are a few bullet points to review before you give it a shot.

How do I buy San Diego Foreclosures:
1) Hire a Realtor® with Foreclosure Experience! A Realtor® won’t cost you a dime. Their commission is paid by the bank or seller that owns the property.
2) Visit any one of the multiple websites and bid online (not recommended) Often times the websites will require you pay a hefty membership fee and deposit $5,000 into their trust account for a good faith deposit.
3) Bid at the Courthouse Steps. Although this can be VERY lucrative, I don’t recommend this for any amateur. For one, you will need a cashier’s check for the amount of which you’re purchasing on the SPOT. They will not hold the property for you to run to the bank. Secondly, the investors down on the steps have a team of 4+ people back at their office and in the field surveying the property condition, title reports, ect. For more information on our San Diego Court House Steps success stories, be sure to email me direct.

Things to expect when buying a San Diego Foreclosure
1) The condition of the house may be not what you expect. I have walked into some homes that would be perfect candidates for a CSI Episode. It is recommended to view foreclosures during the daytime with another person.
2) Larger down payments. Most foreclosed homes in poor condition will not permit conventional financing. All Cash or Hard Money Loans are often required. The FHA does have a program that allows for financing some fixer-uppers. To learn more about this, email me and I’ll be happy to share some educational materials and knowledge.
3) Limited Disclosure & Warranty. When you buy an REO or Foreclosure, you will always be waived any rights to request for repairs or warranties. The property will be sold as-is in its current condition. You will of course have a brief amount of time to schedule for a professional inspector to inspect the property. This is yet another reason why hiring a Realtor is important. They WILL protect you against many pitfalls of purchasing and save you thousands.
4) Homes need work! This is sometimes obvious, but it is not to be overlooked HOW much work a home will need. It is always recommended to hire a general contractor to provide an estimate off work before you get too far into the Escrow process.

Ways to benefit from buying San Diego Foreclosures
1) Buy and Occupy. Currently, San Diego Real Estate is 38% off its peak prices. Savvy buyers that are willing to put in a little work on repair can find GREAT deals.
2) Buy and Flip. In 2011, Gold Coast Properties began specializing in Investment Flip Properties. We have had great success with our projects and often will see annualized returns that exceed 40% ROI. (try getting that in the Stock Market) This type of investing is not for the amateur however. It takes great skill to locate, negotiate, repair and sell the property for highest and best resale. One slip-up can mean the difference of making a cool profit, to barely breaking even. If you have interest in learning more about our Flipping Strategies and Investment Opportunities, feel free to contact us anytime.
3) Buy and Rent. This can be a great way to secure your financial future for years to come. Many properties (especially condos) will provide a positive cash flow for investors. In addition, the properties are acquired at 30-40% below what their true value is. We have successfully represented the purchase of multiple rental homes for our investors and plan to continue this strategy. With the possibility of Social Security disappearing, pensions going extinct and 401k matching becoming a thing of the past; creating a real estate investment portfolio is a smart strategy to build wealth. Some properties in San Diego are selling for under $100,000 and are rent positive in excess of $400 a month.

In Summary: Foreclosures can be an excellent way to make quick profits, create a strategic retirement portfolio, or simply find a great home to live in. there can be many pitfalls with buying a bank owned property and it is always advised to contact a local Realtor to discuss your options, benefits and risks.