When buying a home in California, it’s wise to be aware of the state’s legal and regulatory issues. For example, two types of land are for sale in the Palm Springs area— lease land and fee land.
If you’re buying in another state, be sure to do your research on that state’s laws. One place to start is the State’s Web site, and then search for real-estate regulations or laws.
1031 Exchanges
You might want to consider a “1031 Exchange” of homes for tax purposes. If that interests you, here’s how to get more information about this type of transaction: visit www.apiexchange.com.
Finding Financing
Real-estate investors have several financing options: obtaining a traditional mortgage or a seller-financed mortgage; approaching a commercial lending bank; or starting out through an investment club. Another way to begin is to direct an IRA or other retirement plan to invest in real estate for you.
You might also want to consider a house that has been repossessed.
The bottom line is—do your research and find a deal that makes sense for you. And, remember to check with trusted professionals—an accountant and an attorney—before you finalize any agreements.
For books about real estate investing, go to Stacy’s recommended Book List.
Escrow Process in California
If you’re buying an investment property in California for the first time, be aware that the escrow process is different from other states. Review information about the escrow process in California.
