Homes in California for under $50K!

Today’s top stories…

• Uncover affordable homes under $50k in California's lesser-known regions

• 10 golden rules to become a real estate investing pro

• U.S. banks with the highest exposure to commercial real estate

• 🔥 Deal of the Day! 🔥: None today 😥

Today’s mortgage rate (30 Yr. Fixed): 7.11%

Bargain Hunting in the Golden State: Finding Homes for $50k in California

Are you dreaming of scoring a sweet deal on a California property for $50k? Well, buckle up because it's not going to be a smooth ride! 🎢

The harsh reality is that the average home value in the Golden State is a whopping $747,352, according to Zillow. But don't lose hope just yet! If you're willing to get creative and compromise on a few things, you might just find that diamond in the rough. 💎

Here are some tips to help you on your bargain-hunting journey:

Get friendly with online platforms like Realtor, Redfin, and Zillow. These websites are your best friends when it comes to finding cheap listings. 🔍

Don't be afraid to explore foreclosures, short sales, and bank-owned properties. Sure, they might come with some baggage, but that's where the deals are hiding!

Set your sights on regions like…

• Central Valley: Fresno, Stockton, Modesto, Visalia, or Merced

• Inland Empire: San Bernardino, Riverside, Moreno Valley, Hemet, or Victorville

• High Desert: Lancaster, Palmdale, Ridgecrest, Joshua Tree (Example), or Barstow

• North Coast: Eureka, Crescent City, Fort Bragg, or Ukiah (Example)

Be prepared to act fast when you find a potential winner. Have your financing ready and be willing to negotiate.

Remember, finding a cheap home in California is not for the faint of heart. You'll need to be flexible, proactive, and careful throughout the process. But with some persistence and a bit of luck, you just might find your dream home without emptying your bank account.

Happy hunting! (Source)

10 golden rules to real estate investing

Are you ready to become a real estate investing pro? Here are 10 golden rules to help you navigate the market like a boss!

📚 Educate yourself Knowledge is power! Dive into the world of real estate and become an expert. It's the key to making smart investment decisions. See our recent post on top real estate books.

🎯 Set investment goals Don't just wish for success - make it happen! Set clear, specific goals and create an action plan to achieve financial independence.

🙅‍♂️ Never speculate Play the long game. Don't chase after quick gains in a hot market. Stick to prudent value plays where the numbers make sense from the start.

💸 Invest for cash-flow Positive cash-flow is king! It covers your expenses and keeps your investment strong while your equity grows over time.

🌎 Be market agnostic The U.S. has hundreds of local markets. Invest where it makes sense, not just because it's familiar. Timing is everything!

🔍 Take a top-down approach Start with the best markets that align with your goals. Then narrow down to the top neighborhoods and hunt for the best deals.

🌴 Diversify across markets Don't put all your eggs in one basket. Accumulate 3-5 properties per market, then diversify into another state to spread your risk.

👥 Use professional property management Leave the headaches to the pros! Focus on your family, career, and finding more properties instead of dealing with tenant drama.

🎮 Maintain control Be a direct investor. Don't leave your investments in the hands of fund managers or corporations. Stay in the driver's seat!

💪 Leverage your investment capital Real estate lets you borrow money to buy income-producing property. Leverage magnifies your returns and accelerates your wealth creation. As long as you have positive cash-flow, borrow as much as possible to buy more!

Risky Business: U.S. Banks with the Highest Commercial Real Estate Exposure

According to UBS data, as of Q3 2023, the six largest U.S. banks saw their delinquent commercial property loans nearly triple to a staggering $9.3 billion. This surge can be attributed to high vacancy rates and rising borrowing costs.

Here are some key insights into the commercial real estate exposure of the top U.S. banks:

JPMorgan Chase, the nation's largest bank, has 12.6% of its loan portfolio in commercial real estate. Despite the sector's troubles, the bank's stock price increased by 27% in 2023.

Wells Fargo is building bigger cash reserves for potential commercial property credit losses, showcasing the cautious approach of big banks.

New York Community Bancorp is a cause for concern, with 57% of its total loans exposed to commercial property debt. The bank reported a $2.7 billion loss in Q4 2023 and had its credit rating downgraded to "junk" status by Moody's.

On average, about 11% of big banks' loan portfolios are concentrated in commercial real estate, compared to 21.6% for small banks.

While major banks are more insulated from commercial property shocks compared to their smaller counterparts, the sector faces increased scrutiny from regulators due to growing risks to bank stability.

See you tomorrow!

✍️ Brett