The commercial real estate market in California can be best thought of in terms of the southern coastal communities like Los Angeles, where most of the money is.  Indeed, due to the influx of Chinese money during the 1990s, whole communities have been transformed from sleepy backwaters to ethnic enclaves of entrepreneurial daring-do.  High finance this is not, but in the aggregate it all translates into serious money with far-reaching consequences.  Due to the Chinese appetite for the American Dream, many from Taiwan purchased homes in these suburban communities, and soon enough business evolved to cater to them, transforming the local scene forever.

Indeed, nne of the most interesting stories concerning residential real estate in California has been the proliferation of Chinese homeowners, typically from Taiwan.  These aggressive buyers have been driving up prices, almost single-handedly reviving many a depressed local economy.  Concentrated mostly in the southern suburbs relatively near the coast in places like Anaheim, Adelanto, and Rosamond, they have transformed their towns and cities from sleepy backwaters into little dynamos of economic activity as businesses have developed to cater to their unique needs, usually operated by fellow immigrants.  And the current economic crisis shows no signs of abating such trends, which is welcome news to all the local chambers of commerce which hope to count on every available resource in their attempts at a recovery.

Locally, particularly in these suburban communities in the southern part of the state, often by the coast, new construction has been financed by Chinese money, often from Taiwan.  This phenomenon, first registering on the economic radar screen during the ’90s, has had profound ramifications for the local real estate markets involved.  One oft-repeated complaint among many from old-time residents has been that prices are driven up frenetically as a result of such new construction, though naturally the local business chambers involved have welcomed such developments.  Once sleepy bedroom and retirement communities are now bustling ethnic enclaves with a much-increased urban feeling to them, and the trend is only likely to continue, no matter the state of the economy.

The content of this article has been posted strictly for informational and human interest purposes only, not for advisory purposes, and should not be relied upon in any way by any person or institution.  The reader should not rely on the validity of any of the information contained herein.  The reader is urged to consult a variety of professionals when making business or any other significant decision, including accountants, lawyers, investment advisors, insurance companies and the like.  Again, this article has been posted merely for human interest and informational purposes, not for advisory purposes.

1. Is this a hobby or a business?
Ask yourself why you want to invest in real estate.
-Do you want another income stream
-Do you want to build equity in a house
-How many sellers and buyers do you want to speak with each day/week/month
-How much time do you have to invest in real estate
-Are you working a full time job
-Are you retired looking for additional income
-What do you want to do with your time?
If you want to build a real estate investing business, then you need to treat it like a business.

Are you going to be a landlord? Then you need to determine how much time you want to spend collecting rent, maintaining the property, making repairs, answering tenant calls late at night, etc.

Or have a property management company handle the tenants and maintenance? Then you need to determine who you will hire to manage your property and how much you will pay them. Typically a property management company will charge one months rent to locate a tenant and then charge 8%-10% of the monthly rent for collecting the rent and answering all calls from the tenant. You still need to set aside a reserve fund for maintenance.

Maybe you don’t want to be a landlord and you want to wholesale property. Then you need to develop a buyer’s list of buyers who have the cash to purchase the house. You will still need to work with sellers to locate properties, get it under contract. You then need to get your wholesale buyer to sign the assignment of contract. And you have to make sure you follow up with the closing agent to make sure the deal is funded by the wholesale buyer and the deal closes. You will get your assignment fee once the deal closes.

Here are the questions you need to ask yourself.
-Do you want to be a landlord
-How much time do you want to put into real estate investing
-Do you want to build a business or just make some extra money once in a while

2. Do you want to work directly with sellers?
There are many investors who want to get into the real estate investing business who don’ t have prior sales experience. Yes, you can call homeowners directly and negotiate the purchase of their home, it is possible. It’s even easier when you are speaking with a motivated seller. I mean a seller that is really motivated to sell, not someone who wants to sell, wants full price for their home and just doesn’t want to wait for the all cash buyer that will pay retail price.

Are you someone that wants to help these motivated sellers? Do you have it in you to hear their stories over and over? Some of these sellers will break your heart and you will want to help them. You have to make sure that you only work with those that you can help and make a profit for yourself. Just because someone is willing to deed you their house does not mean it is a good deal.

Think about a situation where the seller has two mortgages, judgments, and liens on the property. Yes, you can work this as a short sale and get the liens removed and negotiate with the lender to get a smaller settlement for the payoff of the mortgage. You need to decide if you want to put in the time and effort it takes to negotiate the short sale and get the liens removed. I have seen investors in the short sale negotiation process with the lender for anywhere from 2 months to 18 months. Do you want wait months to close the deal?

You need to decide if you want to work directly with homeowners or have someone handle this for you.

3. Do you want to work directly with buyers?
Once you have a house under contract, it is time for you to find your buyer. The best thing you can do is to build a buyers list before you have a property. Find out where the buyers want to live, and then go find a house in that area. It is much easier to find a house for a buyer than it is to find a buyer for a house.

Do you want to take calls from the buyers? They call at all hours, while you are having dinner, before you wake up in the morning, when you are driving to work, etc. Are you willing to drop everything you are doing to take a call from a buyer?

4. Where are you going to get the money?
This is one of the biggest concerns of all real estate investors, where to get the money.

Yes, you can buy a house with little of your own money. Some of the techniques to do this are:
-Buy the house subject-to the existing mortgage
-Have the seller carryback the financing in the form of a note
-Lease/Option the house

You can also build relationships with other people who have money, such as
-Private lenders
-Hard Money Lenders
-Mortgage Brokers

The biggest money concern that you never hear about is where to get the money to market your business. You can buy a house subject-to the existing mortgage. But how do you find that house? You have to continue to MARKET, MARKET, MARKET.

Marketing costs money. That is what most of the gurus forget to tell you. You hear all about how you can buy a house with no money down or little money down. What they don’t tell you is that you have to spend money on marketing to find the house, and money on marketing to find the buyer.

Before you get started, put together a marketing plan so you know how much money you need to get started.

5. Do you want chunks of cash or cash flow?
What is the reason you want to invest in real estate? Are you interested in getting chunks of cash? Cash Flow? Or Both?

What you want out of real estate investing will help you determine what type of real estate investing you want to get into.

If you are looking for chunks of cash, you have a couple of choices. Consider wholesaling or rehabbing (fix and flip).

If you are looking for cash flow, consider landlording, selling a home with seller financing, or be a private lender.

6. Where do you want to invest?
Many investors will start out in their local market because they are familiar with it and they already have some relationships in the area. It’s easiest to start local since you are familiar with house values and have access to local experts to answer your questions.

7. What is your plan to learn more about RE investing?
The most successful real estate investors are those who keep up with the changes in the industry and are constantly learning new techniques.

One of the best things you can do is find a local mentor, someone who is making money investing in your local market. Ideally they should be investing in the area that you are interested in. If you want to wholesale properties, find a local investor who is wholesaling properties. Not only will you ask them to mentor you, but they may buy some of your properties from you.

If you are interested in commercial real estate, then you shouldn’t spend your time with an investor who deals only with single family homes.

Always continue to learn about Real estate investing. There are many gurus that travel the country teaching real estate investing. Ask the people at your REIA whose products they have purchased and whether or not it helped them in their business.

First determine the niche you want to work to get started. Learn everything you can about that specific niche and create income in that niche before you move on to the next niche. Don’t get distracted by the “shiny ball” syndrome.

Real Estate investing can be very lucrative. You need to create a plan, continue to educate yourself, and continue to market for sellers and buyers.

Get your Free Report “How to Buy your Dream Home at Rock Bottom Prices” at http://www.Buy-Discount-Homes.com.

As a real estate foreclosure investor, now is the time to take advantage of the growing opportunities and profits in the real estate foreclose market due to rising foreclosure risk. However, without accurate foreclosure investment advice you also face the inevitable challenge of avoiding foreclosure risk; the double-edged sword.

Investment opportunities in the real estate foreclosure market have never been brighter. We have all read the past headlines: “85,000 Homes in Foreclosure”, “Foreclosures Hit the Highest Level in 30 years”, “U.S. Foreclosure Inventory Levels on the Rise”…, brought about by hard economic times and subprime loans. Now we are seeing a new trend: “What’s up? Foreclosures rise in record year”…, while new single-family home starts are breaking records, foreclosures are growing. Rising home prices has led anxious first time buyers to purchase homes with little or no equity, combined with other rising costs, such as property taxes, they run the risk of mortgage foreclosures. A recent study by SMR research indicates a future increase in real estate foreclosures due to the rise of foreclosure risk will continue. Don’t miss out on these growing real estate foreclosure investment opportunities, for more advice check out Foreclosure-Blogger.

Real estate foreclosure investors can take advantage of the investment opportunities and profits available while minimizing their real estate foreclosure risk. A sharp investor should do some simple homework and get accurate real estate foreclosure information. Avoid risk and mistakes concerning a potential property’s fair market value as housing prices escalate. Know the true equity available in the home including liens from property taxes, utility bills and even pending IRS liens. Understand hidden title issues, legal safeguards and more. Don’t miss out on lost opportunities because of unnecessary risk due to lack of real estate foreclosure advice.

Diane Bulmer is a freelance business writer who enjoys applying her creativity and expertise in providing readers with invaluable decision making information. With degrees from the University of Michigan and Eastern Michigan University, she has spent over 20 years conducting research, analyzing and reporting information for private industry and nonprofit organizations. For more information visit: http://www.foreclosure-blogger.com.

In real estate, there are two categories of property, real and personal. Real property is defined as the land and whatever is attached to it, known as improvements. Personal property is everything that is not attached to land or buildings. This is often known as chattel.

A fixture is an item of personal property that has been converted to real property by permanently attaching it. Two examples include chandeliers and cabinets. When they were at the store, they were personal property. Once they are attached to the property, they become real property.

A listing agreement and an agreement of sale specify what is considered as a fixture. If you are purchasing a property, you should carefully inspect this clause to see what you are getting and what you are not getting.

When you purchase real property, you get what are known as a “bundle of rights”. These are the rights of ownership. They include the right to occupy, to use, to allow others to use, to rent, to restrict, to construct buildings, to keep others off, to leave and abandon, to convey ownership and to encumber.

A freehold estate refers to an ownership interest in property for an undetermined period of time. It is a form of ownership that you get when you purchase a property. There are various types of freehold estates, with the most preferred type being called fee simple. It is the highest and most complete form of ownership possible. It gives you the full bundle of rights, including the right to pass your ownership interest on to your heirs when you die.

There are different forms of taking ownership to a property, and it is a good idea to understand each one and what it means. They are severalty, tenancy by the entirety, joint tenancy and tenancy in common.

Ownership of real property can also be held in a trust. A trust is a legal instrument that is used to protect family ownership interests. A trust has three parties, a trustor, a trustee and a beneficiary. The trustor conveys ownership of the property into the trust, which is then held by the trustee. Based on some event according to the terms of the trust the property is eventually conveyed to the beneficiary.

Title is the right of ownership of property. There are five basic kinds of title – naked possession, color of title, right of possession, good title and complete good title. The purchase of title insurance will insure a “good” title. A title company, or abstract company, will do a complete title search to discover if there are any “clouds on the title”.

A deed is a written document that conveys title of real property to an owner. The person who gives or grants the deed is called the grantor. The person who receives the deed is the grantee.

There is a difference between title and deed. Title is the right of ownership of property. A deed is a written document that conveys title to the property. Title is a right. A deed is a document. The two most basic types of deeds are the quitclaim deed and the warranty deed.

A general warranty deed provides a guarantee of good title not only by the seller, but back through the chain of title through all the previous owners of the property. It provides the strongest title protection to the grantee, or buyer.

It is important that every Real Estate Owner and Investor understands these basic principles before purchasing Real Estate.

Chris Parks is an Entrepreneur & Real Estate Investor who created Real Estate Investing for Newbies to teach and assist new Real Estate Investors in a step-by-step and easy-to-understand manner. Get Your Free 7-Day E-Course Here: http://www.REIforNewbies.com (c)Copyright http://www.REIforNewbies.com.

Understanding Mortgage Lending

Traditionally, mortgages were financed by banks. This meant that a bank was limited in its lending based on the deposits they received from their customers.

Recent changes to this model, however, paved the way for the current situation to arise. Banks moved to a new lending model in which the mortgages they held were sold to the bond markets. This freed banks from lending based solely on their customer deposits.

The boon to this new model was that more money was available to help people buy homes. The downside, unfortunately, was that banks no longer had as much pressure to verify that the mortgages they issued were solid. Knowing that the mortgages they created would eventually be sold, banks took on riskier loans than would have been prudent in the more traditional lending era.

The Mortgage Bond Market

Until recently, the mortgage bond market was heavily dominated by government-sponsored agencies such as Freddie Mac. Since 2002, however, the private sector asserted itself in this market with a vengeance.

With new mortgage vehicles such as jumbo loans, and sub-prime loans to borrowers with poor credit histories and/or weak documentation of income who were rejected by prime lenders like Freddie Mac, the private sector significantly increased its role in the mortgage bond market.

The rise of private sector participation catapulted the mortgage bond market to a worth of $6 trillion, making it the largest part of the $27 trillion bond market. The mortgage bond market is now even bigger than the Treasury bond market.

Foreclosures Emerge

Many homeowners were lured by brokers selling subprime mortgages who explained that the equity in homes could be turned into cash by refinancing. What brokers failed to explain in many cases was that the mortgage interest rates would double after 2 years.

A wave of foreclosures began appearing, first in inner-city areas, then across the entire country, starting in 2005.

By that point, 20% of all mortgages were subprime. They were especially popular among recent immigrants in the competitive housing markets in New York City, Arizona, Nevada, Washington, D.C. suburbs, and Southern California.

Consequences

Foreclosures are predicted to rise over the next two years as many sub-prime mortgages fall outside of their initial 2-year period, causing interest rates to become variable and, in many cases, double. It is estimated that as many as 2.4 million homeowners are in danger of foreclosure because of subprime loans.

The dramatic rise in foreclosures has had such a strong impact on the price of homes that we now see the first national decline in housing prices since the 1930s. A glut of 4 million unsold homes is depressing prices, forcing builders to lower prices to rid themselves of remaining inventory.

The building industry, comprising 15% of the economy, is expected to halve its output, causing a loss of over one million jobs. Related industries such as manufacturers of durable goods, e.g. washing machines, home improvement stores, furniture makers, may also take a hit.

Banks and the bond market are also feeling the crunch. Banks have already lost $60 billion, and bondholders (such as pension funds) who have bought subprime mortgage bonds have seen a sharp fall in value of those instruments. Estimates of the total financial loss for these institutions run as high as $450 billion.

Since lenders have suffered badly, they are more stringent with any new loans they make, resulting in a tightening credit supply for consumers. Mortgages, especially non-traditional ones such as subprime and jumbo loans, are now more difficult to obtain.

Buying and Selling Real Estate During the Crisis

The crisis has reached historic levels. President Bush signed The Mortgage Forgiveness Debt Relief Act of 2007, Congress has pushed through tax rebates, and the Fed has lowered interest rates sharply all in response to the weakening of the economy caused in large part by the subprime mortgage crisis.

In these unsure economic times, acquiring the services of a qualified real estate professional to navigate your local real estate market is more important than ever. Regardless of whether foreclosures have increased in your neighborhood, the psychological effects of the subprime debacle have been felt everywhere. With the help of a realtor, however, you can determine the best strategy for buying or selling a property so that you not only survive the current real estate market situation but perhaps even profit in spite of it.

Lucio Bernal helps you navigate the increasingly complex Southern California real estate markets of Beverly Hills, Glendale, and Hollywood. Visit http://www.BernalAndBurt.com to search for homes and join his list for REO notices.

Concentrated efforts have been made in the preservation of precious Victorian homes. The beautiful results can be seen in downtown Oakland’s Preservation Park, as well as throughout the city and in the picturesque Oakland Hills.

The city’s homes follow different architectural styles, but two are dominant—the Victorian, and the Craftsman. See fine examples of both in Rockridge,a pedestrian friendly Oakland neighborhood well-served by public transportation. A BART commuter train station is here, flanked by a European-style public market, ethnic restaurants, and boutiques. Another neighborhood is Elmwood—to the North—and borders the University of California. Homes in both neighborhoods are in high demand.

Oakland properties pool is 150,787 residential properties including Oakland new homes. Median age of real estate in Oakland is 1950. Its average household size is 3.38 people. 10% are one bedroom homes, 34% are 2 bedroom homes, 36% are 3 bedroom homes, 14% are 4 bedroom homes, and 4% are 5+ bedroom homes.

Homes With No Mortgage 23%
Homes With Mortgage 77%
First Mortgage Only 58%
First & Second Mortgage or HELOC 19%

Oakland Real estate Tax: Median Real Estate Taxes (2000) were $1,762 comparing to 1999 Median Family income $ 44,384. Compare to USA median yearly Real Estate Tax $1,300 and USA median Family Income $42,000 (1999).

Oakland School District: Children make up 25% of Oakland population. Oakland has 99,759 under 18 years old residents, or 0.59 kids per one worker, or 0.66 kids per one household. There are also many private schools, including the new addition of a Spanish bilingual school for preschool to the elementary levels.

Oakland Real Estate & Oakland Homeownership

There are 48251.84 or 32% one person households, 42220.36 or 28% two person households, and 22618.05 or 15% three person households in Oakland, California. Median residents age is 33.3, Senior citizens (65+) make up 41,788 or 10.5%% of Oakland population.

There are 170,503 workers (over 16 years of age) in Oakland. Of these, 71.98% drive to work. Approximately 17.44% of workers in Oakland take public transportation. An estimated 3.73% walk to work. Public transportation consists of the bus, as well as the Bay Area Rapid Transport trains, which is headquartered in Oakland.

Median Oakland homeowner’s housing expenses are 22.5%

Crime in Oakland (2003), crimes per 10,000 residents per year
Violent Crimes 140.51
Robberies 61.93
Aggravated Assaults 69.14
Property Crimes 566.48
Burglaries 114.35
Larceny-Thefts 314.18
Motor Vehicle Thefts 137.95

Oakland is an ethnically diverse city in a region that offers temperate climate most of the year. Civic life thrives here, with many museums and educational institutions that call Oakland their home. Many beautiful highlights include Lake Merritt, Oakland’s own Chinatown, and the Oakland Hills with its stunning views of the San Francisco skyline and the bay.

When making a decision about buying real estate in Oakland California area, you should consider the following statistical data:

Near Medium City
Near Large City San Francisco, California
Oakland Zip Codes 94601, 94602, 94603, 94605, 94606, 94607, 94608, 94609, 94610, 94611, 94612, 94615, 94617, 94618, 94619, 94621
Oakland Area Codes 510
White population 31.29%
African-American population 35.66%
Asian 15.23%
American Indian & Alaskan
Hispanic (of any race) 21.89%
Median Family Income (1999) $ 44,384%
Population Below Poverty Level 19.15%

Jennifer Hershey has more than twenty years of experience in the Mortgage Industry as a loan officer. She is the owner of http://www.explainingmortgages.com/, a real estate and mortgage resource site devoted to making mortgage terms and products easy to understand.

While there are a variety of methods to appraise to condition of a real estate market, one technique is to compare the median price of properties at two points in time. The median price is the point at which half the properties are above a price point, and half the properties are below a price point.

The information below summarizes the median price of townhomes and condominiums in July 2006 for communities located within Central San Diego County, California. Information is also provided regarding the percent change in the median price since June 2005, which provides one measure of how the market is doing in a particular area. Communities with the largest magnitude of percent change are present first.

The following communities in Central San Diego County had increases in the median price from July 2005 to July 2006. The name of the community is presented first, followed by the median price as of July 2006, and ending with the percent increase since July 2005.

City Heights: $299,000; 27.5% increase
Coronado: $1,372,500; 26.2% increase
Paradise Hills: $405,000; 11.6% increase
La Jolla: $587,950; 9.9% increase
Normal Heights: $309,000; 9.6% increase
College Grove: $297,750; 4.2% increase
Mission Valley: $343,700; 0.4% increase

The following communities in Central San Diego County had decreases in the median price from July 2005 to July 2006. The name of the community is presented first, followed by the median price as of July 2006, and ending with the percent decline since July 2005.

University City: $316,000; -36.5% decrease
Linda Vista: $319,900; -26.3% decrease
Ocean Beach: $342,450; -25.5% decrease
Mission Hills: $392,500; -21.1% decrease
Tierrasanta: $415,000; -16.8% decrease
North Park: $297,500; -15.0% decrease
San Carlos: $292,000; -13.4% decrease
Old Town: $402,000; -10.7% decrease
Scripps Ranch: $437,500; -8.9% decrease
Pacific Beach: $576,000; -8.9% decrease
Downtown: $545,000; -7.5% decrease
Mira Mesa: $319,900; -5.9% decrease
Del Cerro: $351,000; -3.8% decrease
Golden Hill: $337,450; -2.9% decrease
Clairemont: $347,900; -2.3% decrease

The median price is just one measure to evaluate the status of a market. A full evaluation requires the use of multiple metrics (e.g., change is average price, how long homes are staying on the market, sales to list price ratio, etc.) applied over a longer period of time. Moreover, any conclusions you form based on the data above may or may not be supported in subsequent months or by other measures.

Be sure to consult a qualified Realtor before buying or selling real estate in San Diego.