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

Many people will attest to the fact that a new investor can learn a lot from a good mentor.  Let me repeat that, a good mentor.  Not all mentors are created equal and not all of them practice what they preach.  There are many companies out there offering training and mentoring programs for new investors.  If you are considering taking one of them, make sure you do your research.  Failing to do so can cause you to lose thousands of dollars, and that money is much better off invested in a piece of property. 

The key to getting off to a good start in real estate investing is finding someone who is truly successful and following their lead.  If you can find a local professional that will take you under their wing, you will learn the most in the shortest amount of time.  A good mentor will not simply bombard you with books and videos and then leave you on your own.  If you want to make money in real estate now, you must know how, where and when to strike while the deal is hot, and this means getting out there and watching deals go down. 

The most common place you will run across real estate scams is online at sites such as Craigslist.  People from all over the globe can market on Craigslist and you will often run across scams from people located overseas.  A good rule of thumb if you are just getting into real estate is to deal locally, with people you can actually meet in person.  If you are looking for a mentor to get you started, you can always post an ad on your local Craigslist site and then meet with that person to go over their credentials.  You will also want to find out what their charges will be and what their “training” will entail before you make a decision.  Keep in mind that being prepared and practicing due diligence will get you far in this business.   

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No matter what niche of the real estate market you find yourself in, there is nothing more important than understanding your local market.  First and foremost, you must understand the real estate trends in your local community.  This is crucial for several reasons.  Neighborhoods within a community vary greatly in respect to value.  If you do not keep up with which areas are appreciating in value and which ones are depreciating, you can easily find yourself making risky investments.  Regardless of the national headlines and the poor economic outlook, there are always isolated communities that do not follow the trends.  Your job is to find them.

Secondly, the value of properties is constantly changing, especially in today’s market.  Keeping abreast of the local property values in your market is the key to turning a good profit.  Home values fluctuate by the thousands, even tens of thousands of dollars in a given month and if you are trying to sell a property, timing the sale during the “up” times is imperative.

Creating positive cash flow is the bottom line in real estate investing.  Let’s say you want to rent one of your properties for $800 per month with a $200 positive cash flow.  Now, let’s say that you haven’t done your research and do not know with any certainty that you can rent it for $800.  When all is said and done, your local market will only bear $600 per month.  Now you are flat even with no positive cash flow and potentially could be in the whole if your expenses ever increase, and eventually they will.  This is not the situation you want to be in.  If you want to be a real estate millionaire and profit from real estate right now, you will have to educate yourself so that you can think like one.

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The words scam and fraud are very familiar words in the world of real estate investing.  No matter if you are a man woman, seasoned professional or beginner, risky real estate transactions abound.  Your job as a savvy real estate investor is to avoid them at all costs. 

While all real estate transactions have some associated risk, there are things you can do to minimize major financial loss.  First and foremost, it is wise to assume the worst and hope for the best.  Unfortunately, this world is full of people willing to do whatever it takes to make a buck, and lying, cheating and stealing are just some of the tools they use to get ahead.  Expect the unexpected in every situation and you will be prepared for whatever gets thrown your way. 

When it comes to protecting yourself as a woman look at your assets in the world of real estate investing there is nothing more important than exercising due diligence. While your word may be as good as gold, you should never trust what someone simply tells you as truth.  You already know as a woman you have to go the extra step to compete in a man’s world. You should always consider yourself to be an investigator.  You should research and verify all real estate documents and paperwork.  In fact, as far as real estate appraisals go, you should never accept an appraisal that you did not personally order.  This will dramatically lessen the chances of you having to go back and fix a mess created by using a false appraisal. 

Women Real estate investors can never eliminate risk 100%.  The best thing you can do to protect yourself is to fully understand and take responsibility for all aspects of the real estate transaction that you can control.  

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Every real estate investor is in the business to make a profit. As in any business, the larger the profit margin, the better. However, real estate has so many different facets involved in the investment that it can be difficult for a new investor to determine the exact dollar amount of their profit after they make the sale. Because of the cost in not only materials, but time and labor expertise it can be easy to overlook assets that have been invested in the property.

First, calculate every penny invested in the property. This can be closing costs, interest payments, and the price of any improvements done to the property. Account for every expense down to the last .10 screw. These are your out-of-pocket business expenses. Your sale price minus this number is not your profit on the property.

Don’t undervalue the work you do on the property. For every bit of work you do yourself, determine a fair wage for a professional to come do the work. Spend five hours deep-cleaning the house or shampooing the carpets? Call a couple of local businesses to find out how much they would have charged to come do the job, and calculate that amount as your expense.

Did you spend time taking sale pictures or visiting with your real estate agent? Time is money, so be sure to calculate in a fair wage for that time spent as well. This can be either your wage at your current job that you have to take time from to do this work, or a fair wage for a receptionist or personal assistant.

While that sale price minus the dollar expense may look like a nice number, it doesn’t tell the whole story on the profit scale. If you spend any kind of time, money or effort on this piece of property, make sure it’s accounted for and figured in. If the numbers don’t pan out with this figured in, you’re not getting your money’s worth out of this investment.

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It only seems to stop for a small period of time, before a few unscrupulous competitors start a new round of attacks on the Internet to attempt to take Dean Graziosi back down to their level. We have a new that has been gaining traction… Dean Graziosi a scam…? Nope, been there, done that. Dean Graziosi is not a real estate investor…? No, that one didn’t stick either. The latest attack aimed to discredit him is the most outlandish yet, and it goes to show the desperation.

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While foreclosure auctions have long been a favorite place for investors to scope out new opportunities, the downturn in the economy and the accompanying high foreclosure rates mean the pickings are better than ever.  That is, the pickings are excellent for anyone who happens to have money to spare.

With foreclosures flooding the market and everyone staying on a tight budget, prices are staying quite low at auction and a large number of houses aren’t selling.  For those who have the capital to put into a real estate venture and have a bit of expertise to help in determining which are potentially good investments, this is an opportunity that won’t likely be equaled. The big question on many people’s minds is, how do I buy these foreclosed properties at auction?

The first thing to understand is that many properties never make it to the auction block, because an auction just about guarantees higher prices and smaller profits.  However, if you’ve made up your mind that you want to wait for foreclosure auctions, find a listing of foreclosures and pre-foreclosures in your area.  These can be obtained from several online sources, or the notices of foreclosure can be found at your local courthouse. Many times, realtors and real estate agents also keep lists of area foreclosures.

Research all properties of interest ahead of time. Request a viewing, if possible, or at least drive by the property to see what it looks like from the outside. Run checks through the courthouse to determine what liens are on the property and if there are any back taxes owed on it. Finally, write down all the details on each of the properties of interest and determine how much you’d be willing to pay for a given property, then find out the date of the auction and make sure you’re there to bid on your chosen property.

Buying at auction carries a number of risks. Namely, there is a lot of time and effort involved in researching properties, and there’s always the possibility that you will be bid over. Alternatively, the property may never make it to auction either because of a pre-foreclosure sale or because the owner came up with the means to stop the foreclosure process on their property.

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