Eddie asks about Foreclosures in No CA - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on February 26, 2002 at 21:56:27:
I received the following e-mail question. Not seeing any problem with privacy, I post here for edification and possible contribution of others.
Date: Mon, 25 Feb 2002 09:12:33 -0800 (PST)
From: “Eddie” | Block Address | Add to Address Book
Subject: NorCal FC Investing
Since you are the resident expert on the Northern California Foreclosure scene I was wondering what your
thoughts are on the current foreclosure investing environment in NorCal. I know you wrote before that
you don’t buy FC’s for yourself…only for another
pro FC buyer.
I thought Sacramento County was the last bastion of
foreclosure deals where I could survive and perhaps
prosper. After attending several Trustee Sales in
SacTown it looks like it is mirroring the immediate
Bay Area sales with 10-15 people showing up at every
sale and the prices getting bid up. I can see why
most potential FC investors drop out after a few
I think some of the investor saturation has to do with
the McGee’s 3-day foreclosure.com boot camp sessions
held here in the Sacramento area. Sometimes I believe
they are the only people profiting from the
Anyways, since “You the Man!”, thought I’d get your
perspective on this crazy FC market up here in NorCal.
BTW, I remember reading somewhere of a successful Bay
Area/Central Valley FC guy, Paul Thompson, I
believe…Is he still in the FC business?
Thanks for all your wisdom and generosity.
Well, there are professional foreclosure investors who still make good and great deals from time to time. But, when the foreclosure market is as competitive as it is, you will have to work very hard and smart to make more than a modest living from foreclosures.
DATAQUICK recently released some information about notices of default being down about 1/3 in 2001 from what they were in 2000. When we have a good economy, it is easy for people in financial trouble to sell their properties through real estate brokers. When the real estate market is hot or warm, that is a good time for foreclosure investors to move into buying fixer-upper properties in more conventional ways and reselling when they are fixed up.
I have never taken in the McGee’s class, although I have heard a tape set she did on REOs. REOs would probably not be very good these days, either, due to the market being strong. The lenders probably get pretty much market value these days, I would guess. Guess, because I am not trying to buy in No CA these days, so don’t have my fingers on the pulse of real estate locally.
It seems to me that you have two choices. Take your foreclosure investing approach to some other locale where it works better or else switch to some other investment approach that works better where you are. Sorry about that, but nobody guarantees you wealth with real estate.
You might try moving to the midwest or the southeast, you might do better there.
Paul Thompson died last April. He was only about 60-65 years old, I think. Jack Reed had an obituary about him in his newsletter about four or five months ago.
Good Investing*Ron Starr