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

With the end of the year approaching, here are some ‘forecasts’ for the real estate market for the upcoming year. Of course, like the weather, unpredictability is the key and it’s important to remember that.

According to Lawrence Yun from the National Association of Realtors, he expects that home prices will rise about 2.8% in the coming year. But then again, the NAR is very optimistic in their prediction.

Currently, housing prices continue to drop and this is great news for those looking to invest in the real estate market. The longer a house sits on the market and the more eager the owners are to sell, the higher the probability will be that they will continue to reduce the selling prices. So if you have your eye on a piece of property, patience and persistence are the keys.

Areas to consider when looking for a real estate investment are Phoenix, Arizona; San Diego, California and the District of Columbia where good homes are known to sit on the market for up to half a year or more.

It’s a great idea to begin your search in the real estate market for homes that have been listed for at least three months. The longer they sit, the more anxious the home owners are to sell and the better the selling price will be.

According to CNNmoney.com, home prices are down almost twenty percent from the peak of the real estate market in July of 2006. They also report that there are approximately 18.6 million homes in the United States that are sitting vacant—the most since the Census Bureau began to track this figure in the mid-1960s.

So the forecast for investors in the real estate industry is one of optimism and hope. Good bargains are out there and with interest rates continuing to remain low, the opportunity to buy a beautiful real estate investment property is better than ever. 

Just remember that being patient when looking to buy a real estate investment is a good quality.

Happy Home Hunting for 2009!

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Whether you are a new investor or a professional like Dean Graziosi, protecting your real estate investment is a top priority, and that means you must make smart business decisions.  When it comes to purchasing investment properties, there is no room to cut corners.  This holds true no matter if you are buying a rehab or flip property, or if you are buying a long-term rental property.

One of the biggest mistakes newbie investors make is overlooking the need for an inspection prior to a purchase.  This one mistake alone can sink you before you even get started.  The problem here is that new investors easily get caught up in the moment and they forget that there are good deals in every city and state.  Just because a home is cheap, does not mean you should buy it.  Don’t be too quick to jump if you have not done your research. 

If you are purchasing a property that needs work, not only should you get a proper inspection, but in the case that you still go ahead and purchase the property, it is best to hire a maintenance professional and get things fixed correctly the first time around.  Getting things repaired properly the first time will not only save you headaches, but thousands upon thousands of dollars in the long-term. 

Now let’s say you find a great deal on a multi-unit building and you purchase it without getting it properly inspected.  While it may seem like you have a sound investment, what happens when within a matter of months you find yourself with a leaky roof, air conditioning units that will not work and plumbing problems?  Not only will you find yourself with unhappy tenants, or no tenants at all, but you will be left with huge bills that may cost you everything.   

New investors should never take maintenance and upkeep lightly.  Likewise, if you are renting out your property, make certain you are screening your tenants.  Not only do you want them to pay their bills, but you want to make sure that they respect your property.  If you have repairs that need to be done and you are not certain you can do them correctly yourself, find a reputable company to do it for you.  The bottom line is that mismanagement will put you out of business. Managing your property correctly is the only way to protect your real estate investment.   

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If you have ever considered making money in the real estate market, one name you’ve probably become very familiar with is Dean Graziosi. Dean Graziosi is a real estate expert and he teaches others how to turn real estate into investment opportunities; he has taught many investors how to buy real estate, improve the property, rent it out or sell it at amazing profits, creating a win-win situation for all parties involved. In this scenario, the buyer or renter gets an amazing refurbished home and the investor’s hard work pays off. Through learning and utilizing a variety of investment techniques, Dean Graziosi has helped himself, and many others like him, become multi-millionaires.

Although Dean Graziosi has done very well for himself through investing in real estate, he had a difficult childhood that may have motivated him to work hard to live a better life. He was raised by his single mother and usually had to wear secondhand clothes. When he was still a teenager, Graziosi purchased his first piece of real estate, a run-down apartment building in the town where he grew up. At that time, he bought the building with no money down. That was the beginning of an era for Dean Graziosi, and he has since helped many thousands of people realize their potential in investing real estate.

Graziosi has several books and courses available today to help the novice investor fulfill their dreams. His newest book is called Be A Real Estate Millionaire: Secret Strategies For Lifetime Wealth Today which is available alongside his real estate investing course, Think a Little Different in Real Estate. These informational resources teach new investors a variety of ways to make a profit by buying and selling real estate. Dean Graziosi also offers advice to investors in his real estate training program. While he has achieved his financial dreams, he believes that anyone can accomplish financial independence with just a little knowledge and action.

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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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In this time of unsettling economic news and talks of bailouts and stock losses, it’s time to focus on what new real estate trends are coming into play as we head into the final quarter of 2008. Here are a few for all you savvy investors:

·        The market is returning to the traditional decent price with a qualified, approved buyer who has a down payment to put towards the purchase.

·        Real Estate agents are spending more time developing quality leads in order to better sell the inventory they’re representing.

·        Agents are also putting a realistic price on a property rather than playing games with numbers and pricing real estate with an unrealistic “value range.”

·        Short sales are becoming a more common way for buyers to purchase a property.

·        The market is changing and for the better with an increase in real sellers and a decrease in buyers who are serious about purchasing a property.

·        No longer are real estate agents as concerned about what their commission is going to be and more concerned about truly representing their clients.

·        Real Estate offices are cutting staff in an effort to reduce their own overhead. Smaller staffs to manage provide real estate agents with more time to work on generating leads, following up on client calls, more time to show properties, etc.

·        The market is going from a fast market to a slower market which allows for more quality real estate deals getting done.

·        The real estate agent pool is slimming down. Gone are the agents who were only interested in making a ‘buck’ and with a smaller real estate agent market, the true real estate professional is now back in demand.

·        Strategy meetings in real estate offices are concentrating on getting back to the fundamentals of real estate where agents spend part of their day on lead generation, write tighter contracts and deal with fewer but more serious buyers.

These trends in the real estate industry are positive ones for buyers and sellers and should allow for stronger deals and quality transactions.

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As the real estate market once again becomes a viable opportunity for investment, Dean Graziosi wants to remind readers of some important tips to remember when trying to buy or sell a piece of real estate.

One of the most important first steps is to get a copy of your credit report and make sure your report does not contain any errors. If it does they should be corrected before you approach a bank to secure a mortgage loan. Check for errors such as charge-offs that were actually paid and department store credit card accounts that show late payments.

Take a look at your current living expenses budget and develop a plan for living within your means. This will certainly help you in securing a mortgage loan.

Carefully consider what real estate office/agent you want to have represent you. It’s important to weed out those agents who only got into the market when it was a strictly buyer’s market. Check the agents/offices track record before making your choice.

When you’re ready to start looking for investment properties it’s ok to think small, initially. You will be purchasing a property that in most cases you’re going to rent out and thus provide you with a steady income. Once you’re adept at being a landlord, you can move on to purchasing more properties.

Remember that the ‘perfect’ property only exists in fiction and fairy tales. So, purchasing a property that is new or fully renovated is a good opportunity and shouldn’t be passed up.

Make sure you consider location when looking for a property to purchase. Dean Graziosi believes that taking on a property in an up and coming area will pay off in the future as you’ll have a piece of real estate that others will be interested in renting.

Always try to find properties that are nearby your residence. It’s best to keep them within a two hour drive. You’ll have an easier time fixing problems and you’ll be able to keep an eye on the property.

Utilizing these tips by Dean Graziosi will help you become a stronger real estate investor and provide you with a steady income for years to come.

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The south has been hit hard by Hurricane Ike. And because of the damages to the housing industry the U.S. Housing and Urban Development Secretary announced that HUD will offer federal disaster assistance in a timely manner to several counties in Texas and Louisiana. According to Dean Graziosi this is good news! This means that homeowners in these areas will have the assistance they need through the Federal Housing Administration.

When Hurricane Ike hit Texas and Louisiana, it brought with it winds at 100 mph and a lot of rain. Many homes now either need to be rebuilt or repaired and HUD is offering the following assistance:

1.      They are making mortgage insurance available to disaster victims. Victims have the ability of rebuilding or buying another home and are eligible for 100% financing and that includes closing costs.

2.      They are offering Section 108 loan guarantee assistance. HUD will make available to these states federal guaranteed loans to help with housing rehabilitation, and economic development.

3.      HUD is offering the state and local communities the ability to use money set for other projects for disaster relief. This will include housing and services for the tornado victims.

If you have recently bough property, or own a home in any of these areas that were hit by the natural disaster, then be sure to check with your local authorities to get the funding you need to either repair your home of to find the right mortgage for the right new property. Remember the key to being successful is being able to handle whatever comes your way, and take advantage of the good things that can come from it.

Don’t wallow in despair, now is the time to start acting and getting the help you need to make those repairs, buy that home, or change something that was affected.

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