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

As in any market, the investor must stay on top of market conditions and know the industry trends.  Real estate market investors follow local and national mortgage trends, commercial and residential real estate trends and must stay abreast of all government Federal Reserve and Treasury department initiatives.  For the informed investor, the residential and commercial real estate markets are loaded with opportunity.

In a recent report from Trulia.com, one of every four homeowners with a property listed as of August 1, 2009 have reduced their asking price at least once since putting the property on the market.  24.4% of homes currently for sale reduced their price in July.  This marked an increase from the 23.6% of homeowner reductions in June.

The average discount was 10% of the asking price or $40,173 of a median priced home.  Trulia co-founder, Pete Flint, said, “Competition heats up in the summer as more inventory comes onto the market. Sales are increasing but prices are still falling.”

For new real estate investors these are encouraging signs.  As markets continue to trim supply, demand begins to mount.  There is still time to get in on the low end but as the National Association of Realtors affordability index indicates, the time is right.

With low purchase prices, reasonable interest rates and government incentives all in place, investors are poised to add real value to real estate portfolios.  Trulia estimated that housing asking prices for current listings have declined by $27.8 billion since the homes came on the market.  $700 million of those reductions occurred in July.

The states with the biggest price reductions are California, Florida, Nevada and Arizona and Illinois.  These states have been hardest hit by the recession but may provide the best opportunity for short and low cost investments with steep upsides.

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One of the biggest mistakes new real estate investors make has absolutely nothing to do with technique.  No, believe it or not it’s all about the mindset.  A mindset is nothing more than the habitual mental attitude that determines how you think and respond to a given situation.  The truth of the matter is that most new investors have failed before they even start because they have mentally set themselves up to fail. 

The most common contributor to a negative mindset amongst real estate investors is a lack of confidence.  This can be for many reasons including a lack of funds, the inability to find great deals, an investment gone badly, or simply a lack of education.  One of the best things you can do to get yourself out of the pit is to set realistic short-term goals.  Even small accomplishments will help boost your confidence and will set you up to achieve your long-term goals.  Celebrate your small successes, no matter how trivial they may seem.  In the grand scheme of things, each success is a huge step toward your final goal. 

Another key to creating an investors state of mind is education.  An educated investor is a prepared investor.  The more you self-educate, the more prepared you will be in any situation, and that creates confidence.  Moreover, if you have experience with an investment that didn’t quite work out as you hoped you must learn what you may have done wrong or you are doomed to repeat it. 

Whatever you do, never forget that there is always more to learn.  When you fail, pick yourself up, find out where you went wrong, and go try it again.  If you want real estate millions to be a reality for you, you must play to win. 

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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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