Buying a run down distressed property in Los Angeles, fixing it up and then selling it for a tidy profit is more popular than ever.

This popularity creates an extremely competitive market and investors need any advantage they can get for that slight edge over the competition.

Below, we have detailed 5 strategies you can implement in your search to find your next bargain property in the Los Angeles market.

Find an Agent

If you are unfamiliar with the local Los Angeles market and know what type of property you want to buy, the fastest way to find a good fixer upper is to hire a real estate agent.

An experienced local agent will always have the inside track on the real estate market and may even know hot deals not listed on an MLS or digital platform.

There are even specialized agents operating in this domain called REO agents.

REO stands for “real estate owned” and is a property owned by a bank or other financial lender that was in default, financial distress or disrepair.

Lenders generally don’t like to hold onto properties like this because real estate is not really their area of expertise.

Loaning make believe digital money is.

So this would be the first place to look if you were trying to find someone who was trying to offload a property at a discount.

The Los Angeles market has many private money lenders and loan servicers that specialize in fix and flips and might even be able to help you find an REO agent.

Talk to Wholesalers

Real estate wholesalers get properties under contract without the intention of purchasing the properties themselves.

Instead, wholesalers sell these contracts to end buyers for a slightly higher price than they agreed to purchase them for and pocket the difference.

Wholesalers generally have lists of homeowner’s phones numbers who are behind on there mortgages, property taxes and other bills.

This allows wholesalers to target homeowners who are underwater on their mortgages or are in debt for one reason or another and looking for quick cash.

Since wholesalers generally specialize in certain areas, it is best to create strong relationships with wholesalers in your local market in order to get first crack at deals in your desired area.

Court House Auctions

When a property goes into default it will sometimes go to a Court House auction.

This is called a judicial foreclosure and because of California real estate law it is more rare than a non-judicial foreclosure, but it does happen.

When a distressed property goes through the judicial foreclosure process, the property is auctioned off and buyers can bid on it.

You can find websites that specialize in this kind of auction,

As a matter of fact, LA County even has an upcoming auction in the last week of February 2021.

Search Online Websites for Government and Bank Owned Properties

While banks usually have properties they own listed on their website, there are numerous other websites to find government and bank owned properties.

We won’t go into the full list here, but here are 3 popular ones:

Realtytrac.com

Realtytrac.com costs roughly $50 per month and boasts over 20 million commercial and residential active listings.

This site is dedicated to servicing bargain property buyers by giving its’ investors valuable neighborhood data and in-depth reports on market data.

HomePath.com

These are homes owned by Freddie Mae which have gone into foreclosure.

These homes can be purchased with as little as 3% down (keep in mind with FHA loans the buyer must plan on moving into the property themselves).

HomeSales.gov

Homesales.gov is a site which lists homes for sale by the U.S. Federal Government.

These homes are for sale via public auction and anyone can purchase a home as long as they work with a certified real estate agent or broker.

Search The MLS

MLS stands for “multiple listing service” and is a database, (nowadays usually a website) that allows cooperating real estate brokers to provide data about properties for sale with the goal of connecting home buyers to properties.

There are many sites like RedFin and Zillow that connect buyers to MLS listings.

There are also many smaller sites that are more local or run by smaller real estate companies that don’t publish on these bigger platforms.

More data is available than ever before in this ”instagram-world” we live in, so it pays to explore the full online jungle of platforms.

Even if you don’t find the most amazing deal in the world, you will develop a deep understanding of Los Angeles real estate market trends which will definitely help you down the line.

The COVID-19 Foreclosure Crisis?

Currently, with the moratorium on foreclosures and evictions in California, the Los Angeles market has not seen a large spike in foreclosures.

At least not yet.

This has allowed the real estate market to be a sellers market and prices to be at all-time highs in some areas.

Don’t expect these COVID-19 moratoriums to last forever.

With a vaccine already being rolled out, expect to see a number of foreclosures in 2021.

Wise investors will be ready to jump into the market to capitalize on these distressed properties and will be positioned well to make a nice profit once things stabilize.

KHTS FM 98.1 and AM 1220 is Santa Clarita’s only local radio station. KHTS mixes in a combination of news, traffic, sports, and features along with your favorite adult contemporary hits. Santa Clarita news and features are delivered throughout the day over our airwaves, on our website and through a variety of social media platforms. Our KHTS national award-winning daily news briefs are now read daily by 34,000+ residents. A vibrant member of the Santa Clarita community, the KHTS broadcast signal reaches all of the Santa Clarita Valley and parts of the high desert communities located in the Antelope Valley. The station streams its talk shows over the web, reaching a potentially worldwide audience. Follow @KHTSRadio on Facebook, Twitter, and Instagram.