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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Today with the real estate market being in such a slump, you want to do anything you can to make your real estate property more appealing. Actually there is a great way to make your property stand out against all others. The most popular houses on the market today are those that are energy efficient. An existing house can be retrofitted to both save and produce energy. This new type of energy efficient home is becoming very popular and houses that are environmentally friendly sell more quickly and produce more profits than comparable houses that are not environmentally friendly.If you pay attention to the news, you will know that energy costs are rising and people are becoming more aware of alternative fuels, and want to save whatever existing energy we do use. There are some things you can do to make a traditional home more energy friendly and according to Dean Graziosi more appealing to buyers.

1.      Create high performance insulation of the entire home using both air barriers and insulation. Use form fitting doors and windows that don’t allow air to escape.

2.      In stall energy efficient lighting and appliances. These are extremely attractive to potential buyers.

3.      Use solar panel cooling and heating systems. These have come way down in costs and are extremely helpful when saving energy. Dean Graziosi believes that the use of solar panels even if it’s just for water heating will improve the attractiveness of your home.

4.      If you can find someone to install a photovoltaic system to offset electrical costs, this is another great addition to a home.

Whatever you can do to make your home more energy efficient will help improve its marketability, your investment, and the price you get for it. Some of these remodeling projects are not that expensive, and others cost a bit more, but are still well worth it.

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There are a great number of bond investors out there who are experiencing reduced returns due to economic factors.  Interest rates are very low, thus bond yields, though steady and safer than holding stocks, are quite small as well.  Hundreds of billions of dollars in retirement assets are invested in government and corporate bonds in this country.

·         Government bonds, frequently backed by the “full faith and security” of the U.S. or state government, are considered quite safe.  After all, they can just raise taxes to generate revenue.

·         Corporate bonds are a bit more risky, but they almost always pay higher yields for that reason alone.  You’re betting on the continued operation and financial health of a corporation.

Perhaps you’re a bond investor with substantial holdings in either or both of these bond types.  After all, most financial planners will advise you to diversify.  They’ll also point out that bonds are safer investments, and that makes their lower yields acceptable if you are near or in retirement.  All of this is very true, and we wouldn’t advise anyone to liquidate bond holdings to re-allocate money to real estate investing…unless they do their homework at least.

If you have considered moving money from bonds to direct real estate investment, here are some characteristics of these investment types that may help to you make a decision.  Remember, we’re talking about active investing, though you may hire others to manage your properties.

·         Historically, real estate has provided appreciation and rental yields at multiples of the yield rates of bonds.

·         The history of real estate in this country has proven the safety of the investment if done properly with due diligence and intelligent purchasing.

·         While bond yields suffer with inflation, the rental property investor usually profits from it.  The cost to build goes up, so their properties appreciate, and usually rents increase with inflation as well.  All the while, your fixed mortgage payments stay the same.

·         Bonds have a fixed value, with the only return on investment coming from the interest or dividend yield.  Real estate will often produce an equal or higher rental yield, while appreciating in value as well.

·         When home buying becomes unaffordable for many, or mortgage avenues dry up, there are more tenants because they cannot afford to buy a home.

·         Our population continues to grow, with the normal first home for younger people being a rental of some kind.

Examine your life goals and your investment objectives.  If you have the time and ability to invest in real estate, particularly rental property, then you may find that a partial re-allocation of your investments from bonds to real estate is for you.

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That’s a question Dean Grasiozi is often asked and the answer is simple, the time is always now, especially since the market has slowed and homes are being listed for longer periods of time—meaning the price continues to drop.

In April of this year, inventory of homes on the market rose by 10.5% with about 4.5 million homes listed as for sale compared to the same time frame in 2007. So there are bargains to be bought.

There are a number of niche markets that prospective real estate investors should consider looking into:
a) For Sale by Owner Market.

b) Condominium market.

c) Foreclosure market.

d) Resort and Vacation home market.

If you’re looking to buy something in a geographical area you don’t currently live, Dean Grasiozi suggests you use the World Wide Web to find articles and information about the area you’re interested in. There are a number of websites that keep up to the minute information about trends in real estate and the perfect place to look.

You might also consider making sure you have other professionals on your team to help you with questions that come up when buying investment real estate properties.

• A Real Estate attorney is great to have especially one who is experienced in handling all types of purchases.
• A Contractor is useful when you’re looking to buy a property that needs fixing up.
• A certified public account that knows real estate and preferably has already purchased several properties.
• Of course it is quite possible to become a successful real estate investor without any of those aforementioned professionals.

So there’s no time like the present to start buying your own real estate investment properties and add to your investment portfolio.

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When you are in the market for a home then sooner or later you have to deal with a mortgage and understanding the way mortgages work, especially in the current market is a HUGE issue for many buyers. I cant tell you the number of times we here at Dean Graziosi have been asked about mortgages and how they work. We estimate that about 75%  of new home buyers have a difficult time understanding the real estate market and how mortgages work. In fact many people just don’t buy a home or invest in property because they don’t understand the mortgage process and find the whole thing very scary when buying real estate.

The Answer

The answer for people that are in the real estate industry and who want to increase sales, is to help the consumer understand the mortgage process, address their fears, and do whatever we can to help them with their purchase. You need to address financing, interest rates, monthly payments and especially down payments.

Down Payments

The sizable amounts that are now required for down payments have also become a huge issue for many home buyers.  It is estimated that almost 30% of possible home buyers are not in the market to buy a home because of a lack of a down payments, that’s even more people than those that have poor credit.

If People in the real estate business could help people address these fears and issues then more people would be in the market for homes. They would cut expenses in other areas such as personal luxuries, clothing expenses, and would stay home more often, if there were a way to lower their down payments.

This type of survey done by Harris Interactive, is not alone, other surveys within the real estate industry have come up with similar conclusions. So, the answer for those of us in the real estate market is to address the issues of home buyers and help them get into the home of their choice even if the real estate market is on a down turn.

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The primary reason is because real estate produces money in more ways than one. So when you are looking for real estate for investment purposes you are probably thinking about how the property can make money for you in the future and you need to keep that in mind before making your purchase.

Dean Graziosi, a prominent real estate investor, says that you need to think about the future value of the property, but also its rentability. Income generated from rentals can be quite good when it is administered correctly. You need to purchase the property at the right price, keep maintenance and expenses down. If you keep the building, apartment, condo or house well maintained then you will usually make money on the investment.

There are a few things you should be aware of when thinking about buying real estate as an investment. 

First you need to consider the neighborhood. If you choose a neighborhood that will go down in the future, then this will affect your investment negatively. You will have a harder time renting the property.

Carefully consider the city’s infrastructure. You don’t want to buy a property where factories will soon go up or where there will be an airport. The good thing is that this type of construction is usually announced well in advance giving you time to sell the property.

Appliances and equipment should be in good repair. Nothing devalues a property more than old water heaters, roofing, appliances, etc. This means you will also need to invest in maintenance of the property, so your buying price should reflect that.

Even with all of these factors that need to be watched for buying real estate in a downward turned real estate market can be a blessing in disguise for a Savvy real estate investor. There are many motivated sellers who are willing to reduce the price of a property, and offer other great incentives for the right buyers. The point is that you hone your negotiating skills and realize that the buyer needs to sell, and will at a great price.

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Everyone knows that the housing market has dropped in the last year but most homeowners, real estate developers, agents and investors believe that the real estate market will get better once the new president comes to office in 2009. This belief is based on a survey taken by Harris Interactive.
The surveys findings, state that almost 50% of women and a little over 40% of men believe that the housing market will get better once the new president has taken office. It also found that 80% of current home buyers are a little nervous about the current market. The reasons for this nervousness varies a little but mainly because of high down payments, loss of faith in the economy, lower annual income levels, and higher prices in real estate.
Even so! Even though news seems to be negative in the real estate market, the survey also indicated an up side. Demand for new homes is still healthy, and many current homeowners intend to buy another home sometime in the future, and many of those plan on buying within the next five years.
Another interesting fact the survey came up with, is that almost 80% of home buyers are willing to change their spending habits so they can save money for that higher down payment. They are also willing to cut out certain neighborhood features and amenities, in order to buy a home in today’s market.
Dean Graziosi, a renown real estate investor,  believes these findings are both good news for both the homebuyer and the seller. The idea is to be aware of the current real estate market, but don’t be to scared either to put your house on the market, or to go out and find that great home you have been looking for.  It is still possible to find the real estate deal, and selling your home may take a little longer, but there are buyers out there.

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