DEAN GRAZIOSI: DEAN GRAZIOSI REVIEW – REAL ESTATE FEED BY DEAN GRAZIOSI

We have all heard of the saying about the glass that is either “half full” or “half empty.” In fact I remember my parents always bringing that “half glass” up every time my thoughts turned to the negative, but whether you see the glass as half full or half empty, really depends on who is looking at it. This quote about “the glass,” and the current real estate market seem to have a lot in common.  Like that half full glass, the real estate market trends really depend on your focus. If you look at job loss, the economy, the world financial crisis, mortgage availability, bankruptcies, and delinquencies, then you probably have a pretty negative view of the current market, and you may not even want to consider how to buy or sell houses in this market.

But if you look a bit closer, then you can also see some positive aspects, and trends in the current real estate market. Think about it! today houses are much more affordable than they were two years ago. The severe national crisis and the sheer number of foreclosures have caused the end of the housing boom. Houses are experiencing great price reductions, and mortgages are being offered at extremely low rates. Mortgages have dropped as low as 5 and a half percent, for a fixed rate mortgage, which means low monthly payments for the term of the loan. What about that! Isn’t that good news? It certainly sounds like it. To some this may mean that now is the time to buy or sell houses.

Now, add this to the government’s January plan to cut the fixed rate mortgage to as low as four and a half percent, and offer a 10% tax incentive. Then you have the formula for success in any home investing plans, no matter why the investment is made.

The  idea is to promote the housing market, thus stimulating the economy. This means that if you want a great investing opportunity, you want to start looking at homes now.

Even if you are not interested in real estate investing, but you do happen to be renting, then this is the perfect opportunity to invest in your own home. By purchasing a home at this point in time, you will probably save more monthly money by buying, instead of renting, and you are creating a nest egg for yourself.

When the housing market fell in the 1970´s a similar stimulus was created and this had very positive effects on home purchases, and on the whole of the economy. If this type of programming is put in place again, then there should be extreme advantages to buying real estate, for any reason.

So, whether you are looking for a safe place to put your savings, or want an inexpensive place to live, you really want to seriously consider the real estate market… and soon!

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Purchasing real estate simply because it is cheap, is not the smart thing to do.   While finding the hugely discounted properties is important in most cases, there are countless other things that should be considered before you jump in.  Real estate experts such as Dean Graziosi have been trained through education, research and above all, lots of experience.          

If you are in need of immediate cash from a real estate transaction, then cash flow should be one of the biggest factors in deciding whether or not a property is for you.  You need to ask yourself, will this property produce an income for me?  If you need cash now, but the property you are looking at is in no shape to rent, sell or flip without substantial work, you may want to pass on the opportunity.  In other words, if you don’t have the time to do a lot of repairs, don’t buy a fixer upper with the “hope” that it will work itself out. 

Leverage is another factor that you should consider before purchasing any property.  The more money you put down on the property, the less you can put down on another.  You want to make sure that the properties you are investing on are solid investments because the money you put down on them will ultimately determine whether you have a negative or positive cash flow.  The more debt you have in a property the greater your loss could be in the long run.  This is why it is important to invest in real estate markets that will appreciate in the long run.  If the value of the property goes up, so does your rate of return.  Choose your neighborhoods wisely and watch the market trends.  You may have to look a little further than your backyard to find a deal worth investing in.

Obviously, if you can buy a property with a large amount of equity, your chances of success just increased substantially.  Equity comes in many forms, from huge discounts and fixer uppers to foreclosures and properties that can be rezoned.  If you want to invest in a fixer upper, make sure that you are at least getting a discount equal to double of the amount you will have to invest in it to fix it. 

Lastly, never invest in any property without assessing your risk.  If you purchase a property that happens to depreciate in value, will you be able to rent it for a positive cash flow?  If you find that you can’t sell it as quickly as you wanted to, can you survive with less income or will you find yourself in dire straights?  All of these questions are worth asking before you make any real estate transaction. 

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We’ve all heard the startling news stories, the ones that provoke fear into the hearts of home owners and novice real estate investors alike.  Despite the fact that housing prices have fallen to the lowest values in decades and the credit crunch has made it difficult for consumers to get new loans, real estate experts such as Dean Graziosi, have taken the bad news and turned it into profit.  

While it is true that the vast majority of the United States is seeing astronomical foreclosure rates and low property values, there are still some housing markets that have seen appreciation of home values rather than depreciation.  Finding and purchasing homes in these areas is just one of the ways you can ensure your real estate investment success.  If you are looking to invest in the immediate future, make sure you take a close look at what the following cities have to offer.  These cities are considered to be the best housing markets in the United States in the year 2008.

Biloxi, Mississippi

Salem, Oregon

Bismarck, North Dakota

Spokane, Washington

Yakima, Washington

Austin, Texas

Grand Junction, Colorado

Fargo, North Dakota

Mobile, Alabama

Idaho Falls, Idaho

New York, New York

Glen Falls, New York

Salt Lake City, Utah

Grand Forks, North Dakota

Pascagoula, Mississippi

Hattiesburg, Mississippi

Albuquerque, New Mexico

Kellogg, Idaho

Boise, Idaho

Provo, Utah

Ogden, Utah

Edmond, Oklahoma

Oklahoma City, Oklahoma

Amarillo, Texas

Lubbock, Texas

In today’s market deals are everywhere.  The problem is that there are so many deals that for a novice investor, deciding which deals are good in the long run can be a nightmare.  While you may have to look a little further than your backyard when it comes to making a wise investment, there are definitely deals to be had if you know where to look for them.  Wise investors not only take the time to research the real estate markets they are considering, they also know when to pass up a deal.   Anyone that has any experience in real estate knows that location is one of the most important factors when deciding whether or not to invest in a particular property, and perhaps in today’s sluggish economy, it is the single most important factor. 

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Here is a little secret that Dean Graziosi has known for many years and has used to his advantage. ¨Most real estate agents don’t know very much about the market they work in.¨ Now this is an advantage to any real estate investor because it means that you as a real estate investor can become more successful just by learning. You can have an edge over real estate agents, investors, and other people in the market just by acquiring as much market knowledge as you can. It is so crucial that you research the market in which you plan on buying your real estate investment. This way you will ensure the profitability of any property you buy

Even today, when Dean Graziosi invests in real estate he learns everything he can about the market in the area, and then makes a decision on what to do as far as investments go.

Most real estate investors, agents, and anyone in the real estate market will tell you that it takes time to get that ¨sixth sense¨ which helps you understand the real estate market place for any area. But with all the technology we have available today, you don’t have to wait to get that experience through trial and error. You can begin at any time, and learn everything that will make you an expert investor. There are all sorts of places where you can pick up information. You can look online, read books, read local news. All of these sources will give you a great start at acquiring the market knowledge you need.

Here are a few rules that will get you started:

1.      The first rule of thumb is to remember that real estate is governed just as any other market by the law of supply and demand. So if the buying or selling of a home and the price will be influenced by the consumers buying and selling practices.

2.      Cause and effect also affect the real estate market, so when there are positive current events then there will be a positive effect in the real estate market.  A good economy will lead to a strong real estate market and  high appreciation of homes and when the economy hurts then the real estate market goes down, and prices go down which according to Dean Graziosi is the perfect time to buy.

3.      Look at history – It will always repeat itself. There are cycles in the Real estate market and prices will go up and down. There are periods of fast real estate appreciation and times when values neither move up nor down.

When you know what the market is doing, then you will know what you are doing and will be the expert you need to be. All you have to do is your research, and get an understanding of what is happening in both the financial and real estate world to be successful at what you do.

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