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

Have you considered investing in real estate? If so, how do you know you would make a good real estate investor? The fact of the matter is that most people jump into this type of investing without having any clue whether or not they will be good at it. They just think that it is an easy way to make an investment, and that they will learn as they go. This is the largest mistake made by new real estate investors. Here are three ways you can know you are going to be good at real estate investing.

1.      You have good credit and a strong financial well being. This is the most important thing for investing in real estate. You will have to be able to get a mortgage on the property you are investing in, and you will have to have the money necessary to keep up on the mortgage while you are waiting to flip the property or get tenants moved in. If you don’t have good credit or you don’t have any breathing room in your budget, then real estate investments are not for you.

2.      You are a good judge of character and have a sense of urgency when it comes to money. You should be able to judge your potential tenants fairly but accurately in order to make a wise decision on who to rent to. In addition, you need to have a sense of urgency when it comes to money. This means that when a tenant is behind on their rent one month you take action, not wait several months for the problem to correct itself. You have to be proactive and protect your investment. After all, if you are not getting rent anyway it profits you nothing to have tenants. And, if you get rid of non paying tenants, you are making room for ones that might pay on time.

If you are going to be investing in property to flip it, you still need to be a good judge of character in order to get a decent deal on repairs and home improvements that need to be made before you sell the property. In addition, you will need to have that same sense of urgency about money. The sooner you flip a property, the better off you will be financially.

3.      You have knowledge and resources for making repairs or upgrades on properties. Whether you are going to be flipping properties for a profit or renting out properties, you will save a ton of money if you know how to make repairs yourself. Alternatively, you could have resources at your fingertips for these repairs and home improvements, such as friends or family in the business of construction or HVAC. Having these resources and knowledge will go a long way toward saving you money and keeping your profits from a real estate investment high.

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There is a growing trend for Realtors to specialize in one type of home or business real estate. The biggest disadvantage of working with a specialist is that you might not be able to see a variety of properties. Yet, there are many advantages of working with specialist Realtors.

Foreclosure Real Estate Specialists

A Realtor specializing in foreclosure real estate is a good person to work with if you want to invest. A foreclosure specialist will know all the places to find foreclosed properties. She will understand the pitfalls of buying properties through foreclosure auctions and the best ways to avoid them. She may have connections with banks so that she can list foreclosed homes very quickly.

Another type of foreclosure real estate is REO properties that banks hold on their books. The Realtor who specializes in REO deals will know how to find the best houses, how to evaluate the properties, and how to negotiate with the banks. You can work with an REO specialist and you will have all the benefits of her knowledge and experience.

Rental Property Real Estate Specialists

You may want to buy an apartment complex or a group of duplexes to add to your investment portfolio. Some Realtors specialize in just such properties. These specialists can help you find the best areas of the city to have a rental business. They can help assure that you get everything inspected and repaired to your satisfaction before you take possession.

Senior Housing Specialist

A senior housing specialist is a Realtor who works with older adults to find homes that suit their needs. If you are a senior looking for a good home for your retirement, you might seek out such a Realtor. The advantage of using a specialist in this case is that someone familiar with the needs of older adults will be quick to spot problem areas like steep steps, low toilets, and difficult maintenance requirements. She can help you find a solution or steer you to a home that is more suited to your age and condition. If you are in good shape physically and mentally, she can help you find a home that will accommodate your active lifestyle now yet still be suitable for you once you slow down.

Green Building Specialist

A Realtor who specializes in ecologically sound homes can help you tremendously if that is your priority. she should know all the features to look for in a green home such as good insulation, solar panels, and water conservation. Also, she should know green contractors who can be contracted to fix up the home before or just after you purchase it.

No matter what your needs, you can probably find a Realtor who specializes in that area.  It may be very helpful in many cases to have a general Realtor to show you a variety of properties and work with you on a number of different types of purchases. If you want someone with deep experience in a specific real estate transaction you want to make, though, you might want to work with a specialist.

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It can be tempting to buy a home with little or no help. You are already looking to make a big investment by purchasing a property in the first place, and you do not want to incur any additional costs that are not absolutely necessary. However, realtors can help buyers in many ways.

1.      Realtors have the knowledge and experience in the real estate industry to help you understand the home buying process. They can put you in touch with reputable lenders, help you get approved for a mortgage, and walk you through the steps of buying a home. This makes the entire process much easier and gives you less headaches.

2.      While many people think that realtors choose prices and terms for the buyer, but this is not true. The realtor will help you make these decisions by providing you with valuable information that you might not be able to come up with on your own. This might include market trends such as the average cost per square foot of similar homes in the area and average sale prices of homes in the neighborhood, both of which should impact how much you pay for your next home.

3.      Realtors are great networkers, and have access to lists of reputable companies that deal in things you will need in order to complete the home buying process and enjoy your new home. For example, if your new home will need a roof, the realtor can likely provide you with a list of reputable roofing companies that you can contact for estimates.

4.      Successful realtors are great negotiators. They can remove themselves from the situation and negotiate the best price for the home. They can work on your behalf, giving you advice on what to offer and what counter offers are reasonable. They have the knowledge and experience to know what factors should be considered in making the offer, and what factors are reasonable in the counter offer. They can work between you and the seller or their realtor to come up with the best deal possible.

5.      There are a lot of issues that can arise when you are buying a house, some of which may not manifest until after the transaction has already gone through. A good realtor will be able to foresee these issues and resolve them quickly and effectively. If issues do arise directly after the purchase of a sale, such as tax assessments, you can contact your realtor for assistance in clearing up these issues.

As you can see, realtors help buyers in many ways. It is nonsense to try to buy a home without the aid of a good realtor. The best way to find a realtor is through referrals. A good realtor will always be referred by their previous clients, so ask around to friends, family members and coworkers to find the best realtor for your needs.

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Choosing a lender is a very important part of the process of re-financing a home. Understanding the different re-financing options and knowing how each of these options work is very important but none of this matters at all if the homeowner is unable to find a lender who is willing to offer them the rates and terms they are seeking. Choosing a lender can be a long and difficult process but there are some ways to make it easier. One simple way to make it easier is to ask for advice from friends or family members who recently re-financed. Additionally, homeowners can do their own research to determine which lenders are able to offer them the best rate. Finally the homeowner should determine whether or not the finances should be the governing factor in choosing a lender. Surprisingly enough, in most cases it is not.

Ask for Advice from Friends and Family Members

Friends and family members who recently refinanced can be a homeowner’s most valuable resource in the process of selecting a lender. These friends and family members are so valuable because they will most likely be willing to offer you a quite candid opinion of the lender they used. This opinion may be either positive or negative but in either case it is useful to the homeowner. If the opinion is negative the homeowner can remove this lender from their list of lenders to consider. Conversely if the lender comes highly recommended, the homeowner may consider this lender more carefully.

Comparison Shop

Homeowners who want to know which lender is offering them the best interest rate and financial terms should do a great deal of comparison shopping. The homeowner may even consider requesting quotes from each and every lender. This should make it perfectly clear which lenders are willing to offer the homeowner more favorable rates. When comparing these quotes all of the factors should be considered to ensure the quotes are being compared fairly. For example each quote should be broken down to determine the monthly savings, total savings, etc. All of this statistical data will make it much easier for the homeowner to make a wise decision when the time comes.

Consider More than Finances

Finally, while interest rates, loan terms and other financial matters are all certainly important none of these are more important than being treated fairly by the lender. For this reason, the homeowner should carefully consider all of their lenders and should determine whether or not they feel as though the lender is responsive to his needs. For example, a lender who does not return calls in a timely fashion or answer questions truthfully and accurately may not be the ideal lender for a homeowner even if he is the lender who is offering the most favorable rates.

Additionally, homeowners should trust their instincts regarding their trust in the lender. Some lenders simply do not appear to know what they are talking about. Homeowners might be inclined to avoid these individuals because they may end up doing more harm than good during the re-financing process. Conversely some homeowners may be immediately impressed by the honesty and intelligence of another lender. In most cases, the homeowner would likely choose the second lender as long as the rates offered by each lender were comparable.

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REO real estate opportunities can be very smart deals for real estate investors. REO stands for Real Estate Owned. REO refers to properties that banks and other lenders have come into possession of through the course of foreclosure processes and other means. When REO properties are put up for sale, it gives investors a chance to make a profit. Here is a look at the basics of REO.

Foreclosure Processes

There are different processes that result in the lender having an REO for sale. One is a simple foreclosure. The lender takes possession of the property when the borrower defaults on the loan. Another possibility is that the borrower may sometimes give up the title of the property in exchange for the ability to avoid the actual foreclosure process. In either case, the lender comes to own the property and puts it up for sale.

As-Is

REO properties are normally offered in an as-is condition. The lender makes no claims about what kind of shape the property is in, mainly because they are not likely to know. What is more, it is not in their best interests to spend the time, money and effort to try to find out what is wrong with an REO property. Instead, they simply sell it as-is. This is an accepted practice and is perfectly legal in most cases.

Buyer Beware

Since there are no warranties or promises to repair the property, it is that much more important for the investor to investigate the condition of the REO property thoroughly. The lender will not do nor pay for any inspections, so it is up to the investor to cover all that. That is not to say that an REO cannot be a great deal; it certainly can. It just means that you need to know what you are getting into before you make the leap into ownership.

Price vs. Value

Ordinarily, the lender will let an REO go for a fairly inexpensive price compared to the potential value it might have if it were left on the market long enough. The lender would usually rather get the property off its books than hold onto it for months or years on end trying to attract that perfect buyer. They also do not want to put money and time into rehabbing it for a quicker sale. Therefore, an investor can often come in and pick up an REO at a fraction of its eventual value.

Closing Costs

The lender selling the property does not tend to pay for closing costs in an REO transaction. They have already taken a loss on the property in most cases, and they are not willing to let go of any more money than they have to in settling the deal. Expect to pay for the survey, the escrow fee and most other fees that are a part of closing.

Many investors make REO a specialty. Once you learn how to investigate properties and work with the lenders, you can make a great profit. It is well worth considering adding this investing tool to your overall investment strategy.

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Social media seems to be a part of everything these days, and real estate investing is no different. There are actually networking sites devoted especially to real estate investors. The nice thing about these sites is that they allow beginners and experienced investors to come together in a forum where both can benefit. It is easy to get started.

1. Find social networking sites for real estate investors.

The best way to start with social networking is to choose just one site at first. Look for the different real estate investing social networking sites and investigate each one. It helps to read their help menu and terms of service. That will make it easier for you to get a feel for how the site works. If you do start with one site and do not like the way it is going, you can always change to a different site.

2. Share your story.

Your story starts with the background information you include in your profile. You do not have to advertise your negative qualities, but try to share enough about yourself that people will think of you as a real person. Talk about what you are doing in your real estate investing ventures.

3. Ask questions.

If you ever come across questions about buying properties, short sales, foreclosures, lending practices, the state of the market, closing a deal or any other  investment-related topic, ask the question on the social networking site. In fact, if you do not have any immediate questions, think some up. It never hurts to start an intelligent conversation with a person who might prove to be an invaluable contact in the future.

4. Offer your services.

If you are just starting out in real estate investing, the best way to learn is by doing. You will certainly have deals of your own to do, but it is a good idea to help others as well. Build relationships with other investors by offering to help them with the little tasks necessary to get a deal through. You will learn from the experience, and you might make a friend in the business.

5. Use the resources available.

Most real estate social networking sites have other services and resources available besides forums and other forms of contact with investors. Some have informative articles, investment property listings, and file-sharing capabilities. Use all the tools at your disposal to get the most out of the website.

7. Find a mentor.

One of the best things you can do on a social networking site is to find a mentor to help you along the way in real estate investing. Be alert to the people you interact with. Watch for people who seem knowledgeable and show success levels you would like to achieve. If you find someone you would like to emulate, let them know and ask them if they have any advice for you. Work on that relationship to gain wisdom and experience as you interact on the real estate social networking site.

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In today’s unfortunate descent of real estate prices, credit approvals, and clients every real estate investor, or potential home owner, worth their weight needs to know the best ways, methods, realtors and realty agencies that specialize in their type of property. This list will cover the best residential real estate selling methods agents, and agencies for quick turnovers across the heart of the Midwest. When I say the heart of the Midwest I, specifically, mean Iowa, Wisconsin, and Illinois. In those states, sales have not been so severely affected by the national slump. There was a drastic affect, no doubt, but no where near the same nightmare that much of rest of the country is going through.

Here is a list of the top 5 ways every real estate investor should be aware of Iowa, Illinois and Wisconsin.

Top 5 Ways for selling Real Estate Properties in Iowa, Illinois, and Wisconsin

5. Free ads are always on the list. Free mass communication is never something you should turn down, no matter your level of success. Two examples of free and available advertising spaces are:

      a. City Data

http://www.city-data.com/forum/charlotte/299279-free-places-advertise-your-stuff.html

      b. Craigslist

https://post.craigslist.org/mli

Just click on one of the links, and you’ll be on your way to expanding your real estate property’s exposure, and consequently, your profit margin.

4. Iowa Realty, with 61 offices and 1,100 agents. This is one of Iowa’s largest realtors and maybe one of your best bets for selling or buying a real estate property. They have homes available all across the eastern Iowa, making buying and selling a little more main stream. They can be reached at the following link, http://www.iowarealty.com/.

3.  In Chicago, Illinois, the best agency or advertiser in the area is Platinum Realty. It’s ranked number 1 in sales volume, for the entire state of Illinois. Owned by Vicki Watzlawick, the agency may be your best bet, not only in Chicago but for all of Illinois. You can reach her by e-mail at, http://activerain.com/blogs/realtorv.

2. For one-on-one advice in real estate selling, buying, and advertising in Wisconsin, especially the Madison area, the best contact to know may be Susi Haviland. She has held the Sales Associate of the Year in residential sales from 1992-2010. She is available at, http://www.susihaviland.com/.

1. For the absolute highest in sells, mentoring, and skill in every area of the real estate market, non-other than self made real estate millionaire Dean Graziosi would be the man you want. You can reach him at his blog, or work with him directly at http://thinkalittledifferent.com/. Either way, with Dean Grazioas mentoring you can’t go wrong.

A great measure of a real estate agent is gauging the competence of their mentor, so when choosing your agent or advertising method make sure you do your homework.

national http://www.fsboadvertisingservice.com/

http://www.leadingre.com/

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Do you know what your home is actually worth? Are you thinking about selling your home? If this is you, it sounds like you’re in need of an appraisal. The first step in selling your home is determining what the property, in whole, is actually worth on the open market. To do this you’ll need a licensed appraiser. There are several reasons why an appraisal is a good idea, depending on what your intentions are. A real estate appraisal can be handy in getting a proper refinance done, not to mention a proper selling price.

Below I’ve given some tips on how to make your appraisal be as profitable as possible. Keep in mind, if your home is falling apart, tips aren’t what you need, a contractor is.

1. Make the yard and exterior property as orderly and nice to be in as possible. Cut the grass, trim the hedges, even hedge the edges of the lawn. While you’re at it, get rid of any clutter, if it doesn’t grow, it goes with the exception of a grill. Do what it takes to get the yard, front and back, as inviting as you can. If the yard is a disaster, it only stands to reason that the inside is as well.

2. Renovate the kitchen and bathroom. This will take some money, but the conditions of those two rooms are most often what the final decision is based on. This doesn’t mean rip everything out of those two rooms. If the cabinets are old and out of shape, get new ones, even cheaper ones as long as they’re in good condition. If the bathtub it old and cracked, or stained and ugly, replace it. If the tiles are missing, or broken, fix them. It’s not always necessary to gut a room.

3. Clean the house thoroughly. You’ve done the outside, now get busy inside. Make sure the floors have  been sweeped and mopped, and if necessary a new layer of finish onto the hardwood floors. Vacuum and shampoo the carpets, wash the walls of any stains or crayon, and pick up all the clutter, if needed. An appraiser should be treated like a potential buyer, don’t let him see the home in any form that you wouldn’t want a buyer to see it in.

4. Repairs. If there any holes in the walls, ceiling, or floors make sure they are repaired completely the day before the appraiser comes, and that’s cutting it close. Check for plumbing problems and if there’s an electrical outlet not working, get it fixed! Damage to the building and property will only decrease the value of the appraisal.

5. Do not tell the appraiser about things that are wrong with the property that he or she did not find on their own. If they didn’t notice a crack in the floor, don’t point it out.

6. Hide personal property you don’t want seen. It can be a very embarrassing appraisal, if the first thing the appraiser sees are personal items laying around the bedrooms, living-room, or basement.

7. If you live in a hurricane zone, make sure you take off the hurricane tarps and windows boardings to show the house properly, otherwise it will all have to be done with the appraiser waiting. Usually, if this is the case, they’ll leave and make you reschedule.

8. If the appraisal is happening in the winter months, make sure the side walks and driveway, if there is any, are shoveled.

9. Some decoration around the house will help the appraisal. The decor itself is not being judged, but if the appraiser sees the house is well decorated and clean, they might become comfortable and he or she will want to give you a good appraisal.

10. Get out of the way. Follow the appraiser, yes, but pester them, no. Try no to speak or talk constantly when they’re working. This tends to annoy an appraiser, many see it as the owner trying to distract them, so they look harder.

Use these 10 tips and the appraisal on your home has a 10 fold chance of getting an excellent appraisal. Good luck and happy house hunting!

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In today’s real estate markets the threat of foreclosure can be very real. Learn what to do to keep foreclosure at bay, and what to do to fend it off once that realty nightmare has become a waking reality. Below is list of the top 10 tips to get you safely from the long reach of foreclosure:

10. Sell your home. This is the last resort for the homeowner or real estate investor before their property gets seized by the lender.

9. The short sale is always an option, for the desperately in need. If the borrower chooses this avenue, a lawyer may be needed to deal with a possible deficiency judgement.

8. Alter the contract of the loan. If the real estate property being foreclosed has an adjustable rate, then the lender may pass a break and freeze the interest rate before it increases. The lender might, also, simply change the interest rate to something that is more manageable for the borrower.

7. The property owner may have the credit to have the back payments added to the balance of the loan. If the borrower has been in good condition and status before the problems started, then the lender may be inclined to refinance the loan.

6. For those more drastically concerned, there is the loan modification process through a lawyer. This is what’s happening more often across the country, than almost every other method mentioned.

For any investor or home buyer facing foreclosure, patience and understanding is needed. The circumstances the borrower finds themselves in is the sole responsibility of the borrower, as far as the bank is concerned. Patience is most important, the reason being is that many techniques for stopping foreclosure takes time, maybe weeks. Being verbally intrusive to the mortgage company and its officers will only hurt your cause.

5. A borrower in desperate need of relief, with no choices other than foreclosure, could consider the deed in lieu of foreclosure, as an option. This is when the borrower deeds the house back to the lender. This method is rarely used and it can be just as harmful to the individuals credit as a foreclosure.

4. President Barack Obama’s loan modification. Many of the clients taken on by the program have tried to settle their own foreclosure problems, only to hit dead end, after dead end. If you are currently facing imminent foreclosure click the link provided to determine if you qualify.  http://www.avoidingmortgageforeclosure.com/help.php

3. Communication. Communicate with the mortgage company holding the loan. Lenders might agree to forestall legal action and work out a payment plan to get the property back into proper financial standing. The mortgage lender in question may even forgive a payment. If the mortgage company and the borrower can come to a mutual agreement on how the borrower will become current, after missing a payment or two, the lender might be inclined through persuasion to waive your responsibility to the payments missed.

2.  Get a private loan covering the delinquent amount to the mortgage lender. If that means going to the another lender for a private loan, going to family, or applying for federal foreclosure help, then that is what must be done.

The number one option for avoiding foreclosure is to not over spend. Only invest the amount of money you can afford to lose. Make the home payments only after food, and before everything else. Spending money you don’t have can be the highest form of insanity for any home owner or real estate investor.

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Whether a real estate investor has one single family rental home, several homes, or an apartment or other multi-family project, there is management involved In maintaining these profit centers.  As a real estate investor grows their business, they frequently move from self-managed properties to hiring property management specialists, or hiring staff in the case of larger multi-family projects.  Whether self-managed, hired staff, or a management company, here’s what’s involved:

Facilities Maintenance & Repairs

Stuff breaks, and there’s also the general day-to-day maintenance of landscaping, exteriors, cleanliness and more.  With one single family rental home, a real estate investor owner may leave most of the yard work and minor stuff up to the tenant.  However, the owner investor will get the call when the water heater or air conditioner malfunctions.

Rent Collection

While systems can be set up to allow tenants to easily pay their rent, they still need to be monitored.  When rents are late, someone must make that phone call or leave that notice.  Prompt collection efforts are important to set a tone with tenants, and to follow legal requirements if more drastic action is required.  The more units under management, the more often rents will be late or worse.

Accounting

Just like the other items mentioned, the bookkeeping and accounting functions can be pretty simple for a single rental home, but become a lot more demanding with larger multi-family projects.  This is one activity that can return dividends, as accurate record-keeping of expenses will reduce tax liability.  A knowledge of basic accounting practices, or hiring a professional is best.  An accountant is a partner in your business in a sense.

Marketing & Turnover

Like it or not, tenants will move out.  When they do, the faster a unit is readied for a new renter and the sooner it’s re-leased, the better.  A marketing plan should be in place which can be ramped up when notice of a move-out is received.  Getting the advertising out there earlier will make it more likely that a new tenant will be waiting to move in the first few days the unit is ready for them.

Property management need not be a headache.  Growing your management abilities or staff with growth of your real estate investment business will assure profitable and hassle-free ownership.

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