Kaye Thomas/ Real Estate West

There are investors who are trying to "flip" immediately most sav vy investors are using this time to stockpile property in good areas for the future. The smart investors know that there are bargains to be had now and the rental market is good in your more desirable areas. Interest rates are still low but will be going up in the future so investors are taking advantage of low rates for 5-7 year holding periods. They will then go in and rehab the properties and put them on the market a few at a time.

However.. these are people with the financial resources to back them in case they need to wait for a period of time. If you do not have the financial backing to hold properties for at least 5 years I would not recommend trying this avenue of real estate investment. Successful flipping takes financial backing. If you are trying to do it on a shoestring budget you will probably be in trouble. - Tue Jun 10 2008, 08:47

Culver City is nice and they have their own school district.. you might also consider the South Bay. and the Beach Cities.. The commute is short and most cities have their own school districts which rate very high on the school rankings list - Mon Jun 9 2008, 10:53

Mona,
The best foreclosure agent I know is Leo Nordine..and he is a good guy.. He has properties all over. However foreclosures are not always the bargain they may appear to be. You might want to check out the link below as it discusses buying foreclosures. - Mon Jun 9 2008, 10:47

Rachel,
It's LA ..so always go for top floor and view.. BTW..there are some fabulous floor coverings that can pizazz to a unit. - Mon Jun 9 2008, 10:43

Danielle,
The best time to buy is when you are need to buy. Real Estate is local.. especially in LA County.. some parts of LA County are seeing big price reductions while other areas ( South Bay Beach Cities) have seen significantly smaller price declines.

Interest rates should be of concern. A 1 % increase in the rate is equal to about a 10% increase in the price. There is a theory that waiting for bigger price reductions is more important then the interest rates as you can always refinance but that isn't always true. If rates go up you may not be able to refinance to a lower rate for a very long time.

Right now you might just get a pretty good deal with rates still fairly low and many motivated sellers ready to l negotiate price. California real estate in prime locations has always been a good investment over the long term. The key is long term.. so if you know your market, negotiate well and get a good rate there is no reason not to buy now.
Good luck.. - Mon Jun 9 2008, 10:37