Time to start buying subprime dislocations

Submitted By Michael Krause
I'll post more on this in the coming months, but some areas of the San Diego property market are down as much as 65-70% from peak prices, well below 2000 price levels.

Considering where rents are going and inflation has gone, I suspect this next year may be prime picking season for investment properties. I never thought Southern California would have the "Sun-premium" ever disappear. The time is already here for lower end properties where predatory lending reigned supreme.

Until market balances return (where banks are not forced to dump properties to a market with too few buyers), there will be some prime opportunities for the long term investor.