California is famous for being one of the most expensive and competitive real estate markets. This reputation might understandably scare away aspiring investors, but there are still ways that you can buy a property and turn a profit in the Golden State. One of these ways is investing in one of the many distressed properties for sale in Southern California. Whether you’re looking in Los Angeles or San Diego, the following tips can help you understand how to find off-market properties that are distressed in California.
What Is an Off-market Distressed Property?
An off-market distressed property is unique because it combines two features that often scare away buyers – distressed condition and unlisted status. If you’re an investor in California looking for a great deal, these two features may have the opposite effect. You might even be on the search for off-market properties in distressed condition. Off-market properties are usually available for sale but unlisted on the MLS and other public platforms. The term “distressed” can vary widely in its meaning, but it is generally used to describe any property that requires significant rehabilitation.
Where Do You Find Them in California?
If you’re wondering how to find distressed properties in California, don’t worry. Finding off-market properties is easy when you have the right tools and data at your disposal. One of the essential tools every investor should know about is a lead generation platform for residential properties. This tool can gather data from various sources to help you find distressed off-market properties for sale, even if they aren’t listed on the market. Finding unlisted property enables you to gain the advantage of reaching out to the seller first, too, so that you can be in a better bargaining position.
Benefits of Buying in California
Out of all 50 states, why would you choose to buy in Southern California – one of the most challenging investment markets? Investors in the area know that prices are higher, but so are profits. You may pay a much higher price for a property on the coast, but you’ll likely yield multitudes more than a property in the Midwest or any other moderate market. Buying in California thus offers one primary benefit – opportunity. Investors willing to put in the elbow grease to rehabilitate a distressed property can see their work pay off monumentally.
Benefits of Selling in California
Selling in California can be just as lucrative as buying. If you’d rather flip and sell an investment property than hold it as a rental, California is a great place to do so. There’s always a great demand for housing throughout the state, and flipping can be an incredibly lucrative opportunity to take advantage of this demand. You should decide whether you want to list on the MLS or keep your property unlisted if you’re selling. In most cases, listing a renovated property publicly will drive up demand and result in a higher closing price.
Key Takeaways
California is a challenging market for investors, but an off-market property that’s distressed may be the right opportunity. These properties allow investors to get properties at a bargain price and rehabilitate it to rent or resell. To achieve this, you need to have information readily available that informs your investments and provides confidence when you call leads. A lead generation program that focuses on residential properties can provide the data you need to pursue a sale. Use data to find the best-unlisted properties and take advantage of the opportunities found in California real estate.
