Here's another reason to dislike doing business in CA especially if you're a trustee sale buyer:
Unfortunately, this new bill regarding CA foreclosures will probably get signed into law. It adds 45 days post trustee sale to allow "eligible bidders," including tenant occupants to outbid the winning bidder. Terrible for investors that buy at trustee sales. Adds at least 45 days to timelines for foreclosing lenders.
So basically it is like a redemption period of sorts.
45 days isn't too bad. It doesn't help but at least it isn't like the 180-360 days redemption periods that other states have.
Consider that Arron Norris' Father, Bruce Norris who is VERY highly regarded in the Southern CA investment community, recently moved to FL in part because he's so concerned with overreaches by the CA legislature.
Marco, the rules can ALWAYS change midway thru. Those of us who are notes pride ourselves believing that the problems that landlords have could never really touch us. 2020 was kinda a way of reminding us "Hey.. Not so fast" with the moratoriums and such.
But with that said, Cali regs are one more reason to not do stuff here. But that is far behind the primary reason of cost.
Looks like SB 908 is a bit more significant.
I love and completely respect Aaron and Bruce, especially for their contributions to the real estate industry and willingness to help out others. When a man as wise as Bruce is willing to move out of state, it's something to seriously consider.
I, personally, would love to move out of state but my wife has a great job here and more opportunity that won't transfer to another geographic location. I can work anywhere but we are here for now. If things get worse in CA (like I expect it to) or things change with my wife's work, things may change.
In my mind, there are two issues and you don't have to do both:
1. Buying assets or doing business in CA
2. Living in CA
For #1, people are drawn to CA for a number of reasons and demand is still here. Yes, it's more difficult to do business here than elsewhere but once we raise larger and larger amounts of capital, I'll still be buying in CA markets where the numbers make sense all day long. IMO, CA is headed the way of IL, NJ, & NY. It's not as bad yet but it's headed there.
For #2, mentally, I'm already moved out but will stay until the timing is right to move. I'll still buy CA assets. For my rentals, my partner and I are still keeping those for now. My partner points out that the problems in NY cause problems that actually keep rents high and that's still profitable. As long as he continues to manage things for us so I don't have to deal with the headaches, it can work :)
@Andy Mirza Thankfully I can do both - but what i envision with this is other states will start to follow suit. Something to always consider and try and stay ahead of the game.
(Forgive me for reviving all these alder posts but I find it helpful to see the end results of previous discussions :) )
In another post, I mentioned a success with using an APO to get a sub performing CH 13 BK loan with a serial bad faith BK filer to foreclosure sale.
That trustee sale happened in CA and we had no delays or issues because of this law. Good for us this time but, hopefully, it won't negatively affect us for future foreclosure sales.