As a possible predictor of coming events, considering how California foreclosures may affect California commercial real estate markets is probably a mandatory activity to undertake for any investor looking to keep a hand in the Golden State’s economy. Whether or not that’s the best of ideas at present remains to be seen, but there are pearls in the saddle bag for those willing to try.

Currently, the Golden State has seen a 15% increase in the rate of CA foreclosures and it may not be the best of times to jump into the California market, especially if it hasn’t hit bottom. Many experts, though, think that it might have, though many others also think these foreclosure rates are portents of issues to come with the commercial real estate markets that an investor should learn about.

What may be going on, at least in commercial real estate, is that many banks and holders of commercial loans have been extremely reluctant to begin the process of reclaiming the property backing those loans. With many residential foreclosures already on their plates, these banks are looking for any way to get these properties into more stable situations, even if it means taking some loss on them.

Of course, what the meaning of “loss” might mean to a lender varies. However, many lenders have begun to look at any acceptable offer is better than a complete loss which is what commercial properties may end up forcing a bank or other lender to confront if it allows the current situation to remain unchanged. Therefore, well-financed investors may be able to step in and make something of the current situation.

Investors of these kinds are sometimes known pejoratively as “vultures” but that’s not exactly a fair description of either their value or what they do. Any market will require investors willing to come in and take distressed goods, services or properties and they’re often needed as much as so-called prime investors, especially when a market depends on investment to bounce back from a down cycle.

It’s an open question whether this exact moment in time is the best time to get into the acquisition of distressed properties, though, because other experts believe the rate of CA foreclosures — both in residential and commercial properties — is going to go through what’s called a “double-dip, ” in terms of prices these properties will fetch.

What this means is that investors should be wary because while it might look as if prices have bottomed out and are now beginning to increase, there may be another bottoming before a final and sustained increase in property values will occur. This leaves an investor with two options; a very long-term “purchase and hold” strategy or a sideline wait until the second dip and bottoming out occurs.

This is where guts and a flavor for real risk can stand an investor in good stead when it comes to considering CA foreclosures and what they may portend for the state’s commercial real estate markets. At present, there’s a lot of square footage chasing very few lessees or renters, for a fact. This creates a supply and demand scenario favorable to a buyer, though it should be a buyer who’s very savvy.

Ca foreclosures can be found on the Internet all day. The list of Ca foreclosure homes will be updated every day to show you the newest for sale.