California is in the cross-hairs of super-rich investors, who have targeted the state as the next great real estate investment opportunity.  Wealthy investors have recently reinvigorated the London market, and have now turned their sights stateside, lured by the rebound that The Golden State has seen in their housing market of late

Wealthy investors from Europe and Asia have commanded the market for upscale properties in chic London neighborhoods and are now doing the same in California, according to real estate experts.  These wealthy foreigners are in fact often outbidding locals for prime real estate.  What's making this market even hotter is that banks are often cutting deals for these buyers, as they have grown weary of the volume of distressed property they own

These wealthy investors see an opportunity in places such as London and Los Angeles, where there are strong prospects to fill properties with renters.  Rental units have become the most prized asset for many of these international investors, who are anxious to see a return on their investments

Although Canadians have long led the pack as the largest group of foreign buyers of US properties, China is a close second.  Nearly eleven percent of sales in the last year have been to Chinese investors, up from nine percent the previous year.  Cash is king when it comes to international purchases, with 62 percent of foreign sales being paid in cash.  The average cost of a home purchased by international buyers is $400,000 - nearly twice the average cost purchased by Americans

US companies have reacted to this recent upswing by raising millions in funds that enable these wealthy foreigners to buy foreclosed homes from government run agencies and lenders

While many US lenders are hesitant to extend loans in order to quell foreclosures, they are in a better position now to sell distressed properties and absorb losses in order to free up the space on their books

Los Angeles is seeing the biggest surge of foreign capital, which is on the upswing after several years of lows.  Foreign investors see opportunity for bigger returns by buying luxury homes at low prices.  Home prices in Los Angeles are discounted up to 70 percent compared to those seen in Manhattan

Los Angeles already plays host to the largest community of foreign born billionaires and Fortune 500 company CEOs outside of New York City.  This, coupled with Los Angeles being the financial hub of the West Coast, makes California a very desirable location for real estate investments.  As an added bonus, foreign investors from Asia are drawn to Los Angeles because of reduced travel times and time zones that are better suited to business operations

Recently Uri Milner, a Russian billionaire and Facebook investor, paid $100 million for a home in Silicon Valley.  This makes it one of the most expensive homes ever sold in the US.  Milner expects to use the luxury property as his second home

Foreign investors, encouraged by the fundamental stability of the US, see the US as a safe haven, as opposed to the more volatile climate in the Euro zone