LA investors looking at San Antonio Texas for Short Sales

Sometimes in the Los Angeles, CA real estate market, we run into to houses which are offered really low, low prices for a certain period of time. This makes us wonder why the price is that low. These are what we call as short sale. When a house is available for sale in a prices lower than what the house must be. There are emerging home owners in such situation as this, there are many factors that have brought about this.

One must also know that a short sale is entirely different from foreclosures. Short sales are when a certain lender already owns the title of a property and sold it directly. This is a better picture than having the property in a foreclosure status, which the homeowners dislike. But for buyers, there would be many pitfalls, that is why it is required that buyers of short sales must be wise in the contract. It is that list of risks that you need to know before you pursue this endeavor of buying short-sale properties.

Short sale and foreclosures are two different things. Short sale is when a seller’s lender has taken the title of the property and has it sold directly. Here is a list of what candidates that short-sales must have:

PATIENCE:
The process will seem to be a long and winding road, especially in the LA area, where it seems that everything can move as slow as the traffic on interstate 110, so one needs to bring a bag full of patience to deal with this kind of transactions. This is the first what to bring for one interested buyer.

REAL ESTATE LEGAL ATTORNEY
A lawyer will be the one to negotiate on your behalf; he or she will represent you in negotiating with the lenders and all the other particular negotiations that needs a legal advice. Out of every five proposal of short sales, there will only be two that are given approval by lenders. Even so, if you have the best attorney available, he or she will increase if not assures the chances of getting the contract approved.

GOOD FINANCES:
Of course, lenders will always prefer cash offers, who wouldn’t? It’s imperative that one must prove his capability of the business, even if you can’t pay all cash for a short-sale property. Once you’re pre-approved, give a large down payment then you may seal the deal once you are ready. Such offer is viewed more favorable compared to those buyers with less secure finances. But if you still need to sell another home to be able to purchase the home in short sale, this may not be a good timing. The lenders will not be agreeable with contingency offers and even so with closing terms that are flexible. They play the game with accuracy all the time.

In the event that you find yourself really into it and you are also capable of the demands the offers needs then you should hire the services of the following: In the selection process, you need to be extra careful.

REAL ESTATE PROFESSIONAL:
Los Angeles real estate investors are using real estate professionals so that they can do business long distance. They would prefer to use a local real estate agent in San Antonio, TX. You need to find your perfect match in this work. Hiring a professional real estate contractor can be the best option that you could to get close to working with the best people around. You have to consider doing a few background checks. A recommendation from a friend or even a family member cannot suffice your own little research about the one you are planning to hire. When we buy houses in San Antonio, we work directly with San Antonio investors who had experienced working in short sales & with motivated sellers, if the one you hired does not have an experience, you may both get difficult time. Interview some practitioners and asked them the number of short sales have they successfully closed. Get those with the best working experience.

TITLE OFFICER
An initial title check on properties on short-sales which includes the entire lien attached to the property can be a good job by the title officer. If there are many lien holders that are also applying with you, it is quite tough to get through the short-sale. But finding a good & reliable title officer in the San Antonio area is absolutely crucial for any investor in Los Angeles looking to do business in Texas.

Los Angeles Investors should invest in Austin TX instead of a Second Home

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It is a common mistake among Los Angeles Investors to interchange the usage of “second home” and “investment property”. We usually refer the two with a real property which is not their residence primarily. Yet in the strict rules of the real estate market, these two terms differ.


INVESTMENT PROPERTY

This is a type of real estate property that you purchased in order to generate income and not considering this as your primary home. This could gain such through renting, appreciation profit and even in certain tax benefits. This could either be a property for residential rental, commercial property and a property used to flip.
Properties for residential rental are those property that one purchases in order to make it available for rent. Such properties may be a house, a condominium, an apartment, and even a dormitory. Commercial properties are those that are strategically located in places to convey a good marketing atmosphere. Such properties could be an empty lot, a vacant building and even furnished buildings for offices and other commercial usage. The properties used to flip are such properties that are bought with a plan to resell it in the far future. Since these properties generate income to the owner, this has different sets of taxes and responsibilities. We buy houses in Austin Tx, because we know that we will generate a significant more amount of cash flow and tax savings by creating the cash flow, versus just living in the house. In this light, the loans for investment properties are generally higher interests than those with other loans and they need a larger amount of money for down payment in addition.

SECOND HOME

A second home is a house that you consider as your second home. Literally this is the owner’s second home. In Los Angeles, California, these houses are occupied secondarily with another main house which is the primary residence of the owner. Usually second homes are used as vacation homes in LA or for your retirement home. Such properties may be regularly visited or not. This house can be maintained regularly or you could just leave it as is. That is the decision of the owner.
Most often, for a person to be qualified for a loan application for the second home, the target property needs to be situated in vacation areas, this includes nearby beaches, mountains and other places close to nature. The second home should also be in places that are quite distant from the creditor’s primary home.
Since the property is not an income generating one, these are given with lower interest rates as compared with the investment properties. Additionally, this will also have a second home rider together with the mortgage. The said rider usually states the following:

  • The lender will only occupy and use the property as his or her second home
  • The property will only be exclusively used by the borrower at all times
  • The property will not be used as an income generating property
  • The said property as the second home cannot be utilized by other people under rental
  • The property will not be under any agreements that will require the lender to rent the property
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    Second-Home Loan versus Investment Property Loan

    A lot of lenders in California & Texas will not be offering a loan for second-home if there is an intention from the borrowers to have the property for rent in any period of time. As an example, one may qualify for the loan, if they plan to live there during vacation, summer and holidays, given that they will not rent it out at any time.
    On the other side of the story, the investment property loan will be appropriate once you have plans to reside on this property on breaks and plans to have in for rent at any time of the year.
    Once you are considering this options, make sure that you have properly decided as to what will be your investment, should it be just a second home or an investment property?

    Why San Antonio and Austin TX are the new We Buy Houses markets for Los Angeles Investors

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    Though the Los Angeles real estate market is very hot at the current point in time, many investors have decided to look elsewhere to continue building their real property portfolios. Many California investors that have done quite well in flipping foreclosure properties over the past few years in LA, as the market has rebounded from historical lows, have recently started to re-create their business model in other cities across the nation.

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    Why California Investors have decided to invest in San Antonio & Austin

    When really digging into the hard numbers, one can easily begin to determine exactly what is driving savvy investors to other hot markets like Austin, Dallas, and San Antonio TX. The real question that one needs to ask is what is the main figure that an investor looks for when deciding to purchase investment property in Los Angeles? Is it price per square foot, after repair value, days on market? The answer is quite simple, neither. You see, investors are usually quite motivated by one number, and that’s ROI. They want a high ROI over all else. A good RIO is achieved by buying low and selling high, all the while keeping labor costs low. Home owners that need to sell a house fast in Austin, are some of the absolute best motivated sellers to buy houses from, because not only is property less expensive in Austin TX than Los Angeles, but a steeper discount can be had due to dealing directly with a home owner.

    The same is true in the San Antonio market, but better returns can be realized in San Antonio, than one can achieve in Austin, why? Because in San Antonio, foundation movement is ridiculous. It’s common for a house in San Antonio to need thousands upon thousands of dollars to repair a shifting foundation. What does this mean for the homeowner? Well, it means that they either shell out the cash to fix for re-sale, or they can sell it as-is to an investor at a discount. That’s where LA investors can come in with their fat wallets and know how, and pick up a low priced property in a hot market. Cash is still king, anywhere you decide to invest. The best returns can be achieved when a house is first purchased with cash, because the most favorable terms can be negotiated when financing isn’t needed, and Los Angeles investors that are cash rich know this all too well.

    An Interview with an Investor on the Ground (San Antonio, TX market)
    In fact, David, a local San Antonio real estate investor said “when we buy houses in San Antonio these days, we end up paying a little more for the house than we did a few years ago, and we know it’s due to other out of state players entering our market”. He’s right, and he knows that they’re coming from areas such as California, Las Vegas, and other high-end areas of the nation, because he networks with other big players.

    Investors know that California Home Owners Get More Bang for Their Buck in Texas
    It’s no secret that home owners in Los Angeles and other surrounding cities in California are sick of the high cost of living. Yeah, sure, the ocean and weather is second to none, but taxes are among the highest in the nation, and how can anyone take in the nice ocean breeze, when the they have the thought of paying more than 3 times the price for their residence there, than they would in a place like San Antonio & Austin TX?

    Is it worth sacrificing some good weather to enjoy some of the finer things in life more often, because you’re saving a literal boat load money month in and month out on your housing expense? I think so, and so do most home buyers that are relocating to Austin & San Antonio in droves. They want their dollar to stretch further, especially in retirement, and to do that, you must bring your expenses down. Moving to Texas accomplishes that need, while still being able to live a very plush lifestyle all at the same time. It’s a win win, and it’s the main reason why most retail home buyers as well as savvy investors are doing business in the Lone Start State.

    Los Angeles Luxury Condos The Solair

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    Solair was built to entice even the most picky High End Condo enthusiasts. Staff that are highly and specially trained to take care of high class clientele are at your beck and call, and it’s all part of the living experience when you live at the Solair Luxury Condos in Los Angeles, CA. It’s been touted that, by far, some of the absolute “Best in Class” luxury real estate in Los Angeles can be found inside this one of a kind building.

    Some of Solair’s Features in every unit that you should come to Expect in a Condominium:

    • large entry ways for moving your large items in and out of your condo
    • splendid views from your balcony that WILL take your breath away
    • Only the best in materials were used in construction, and only the most efficient types of fixtures were installed throughout.
    • With the Italian cabinets, stainless steel appliances, and solid surfaced stone counter tops that are hand crafted with care, you can see the perfection immediately.
    • Everything you need for data is already pre-wired…so no headaches when moving into your new living space.

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    Our High-End Condo Amenities:

    • Full Service Concierge & a fully staffed receptionist, ect…
    • Private cabana areas, a heated pool and a sky deck for your enjoyment year round.
    • Feel safe with our onsite security 24 hrs a day, and video surveillance.

    Stop your search for luxury homes for sale, you’ve arrived at the pinnacle of living..The Solair.

    Los Angeles Market Update – August 2014

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    The Los Angeles real estate market has shown it’s resilience over the last 2 years.  Year over year since 2012, the LA market has seen double-digit gains in home price increases.  That’s astounding considering the local real estate bust that occurred less than a decade ago.

    Making the nations top 100 largest housing markets, Los Angeles , has shown some slowing down in price increases month over month since early this year (2014).  Price “run-up’s” in 2012 & 2013 were due to the lack of inventory levels as real estate investors rushed to buy up condos, townhouses, single family forclosures , and any other types of real estate that they could get their hands on.

    Now that we are starting to see the market begin to slow down back to normal longer term gain levels, it’s thought that other macro and micro economic factors will begin to contribute more to the Los Angeles housing market prices in the near term.  Factors such as jobs, consumer price index, economic growth, unemployment, ect, will have a large impact for the next several years.  Good thing LA has seen solid job-grown over the last six months.  If this trend continues along with increasing income growth, the Los Angeles housing market should continue it’s upward price increase trend.

     

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