We know how much the California real estate market has cooled off over the last couple of years.  In fact, the best way to describe the ongoing cooling in appropriate terms would probably be “frigid” or “iced.”

But just because the real estate market has totally tanked in California, doesn’t necessarily mean that opportunities for investors in the market have met the same frigid fate.  In fact, for the investment-wise, especially those who can afford to buy and hold on for awhile, there will continue to be plenty of bright spots, not limited to only these avenues…

Focus On Foreclosures.

Yes, good old fashioned investing in foreclosures.  As the interest rates continue to go up and the California market continues to show signs of distress with foreclosure rates well above the national average, more and more homeowners are unable to make their monthly payments.  They must either sell the house and retain any equity they might already have or risk having the bank foreclosing and selling for them.  Either way, as the market floods with foreclosure trouble, already excellent bargains are bound to get even better.

Find Failed Flips.

Look for flippers that got in over their heads.  There should be plenty, as flipping practically dominated the California market for quite some time.  Unfortunate would-be-flippers are still holding on to their failed ventures in droves.  Try finding these distressed properties and make an offer.  After all, many failed flippers will sell for well under their cost just to be rid of their problems.

Rent For Rewards.

What happens to all of the unfortunate folks that are forced from their homes due to their financial woes?  Well, they have to live somewhere.  Just because they couldn’t pay the over inflated payments on too expensive homes doesn’t mean that they can’t afford reasonable rent payments.  Try buying these homes at ultra-reduced prices and turning around and renting them back to those that already live there.  They’ll be grateful to stay in their homes even if they can’t afford to own them by themselves.

Those with plenty of financial liquidity do face plenty of opportunity to dominate in the California real estate market.  But remember, a good part of today’s problems were created by those with the thought property values would only increase.  In all reality, corrections are part of healthy growth.  Be prepared to weather the worst years and you’ll be rewarded in the end!