California residents who find themselves with a large sum of money may want to consider investing in real estate. There are several real estate strategies that a person interested in moving into the industry may want to use. One of those strategies, trophy hunting, is looking for a high-profile property.
In contrast, diamond seeking means looking for a property that has potential but is not polished like a trophy property would be. This can be risky because the diamond seeker might overestimate a property’s worth, and with the economy recovering, these types of properties can be harder to come by. This can also be complex if it involves the buyer taking over a loan that is included in a commercial mortgage-backed security, which has its own set of provisions and procedures.
Another strategy involves investing in a real estate investment trust and is less risky than trophy hunting because a person’s money is not focused on just one building. Such an investment might involve several multi-family residences or shopping malls.
The complexities of real estate do not end with purchasing property. An owner might also have to contend with real estate litigation at some point. This might happen at the very beginning of the process or it may occur later on if the owner has trouble with contractors, residents or other parties. For example, a person might purchase a property with the hope of developing it. However, the owner might then run into problems related to zoning or contract disputes with contractors hired to work on the property. In these types of cases, an attorney might be helpful in explaining the rights and alternatives that the owner has.
