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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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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Residential real estate investors are in for happy days ahead.  In fact, investors will soon enter heretofore impossible territory.  Conservative estimates drawn from the U.S. Treasury Department, Zillow and Radar Logic clearly illustrate that the government will soon have more than 3.1 million Real Estate Owned Properties to manage and sell.

As usual, the nation’s taxpayers will be paying for damages incurred by the country’s lax and irresponsible lending practices.  Remarkably, the proponents of these practices have tarnished the public confidence in financial institutions but have created millions of multi-millionaires along the way. 

The employees who developed the high-risk, low-doc loan packages worked for such companies as Goldman Sachs, Lehman Brothers and Bank of America, among others.  The typical Goldman Sachs employee earned a resounding $630,000 last year. 

Of course were it not for the American taxpayer which gave the company $10 billion in a direct loan and another $10 billion through an AIG loan repayment, the company would have closed the doors.  It is good to know that companies like AIG, which has cost the American taxpayer more than $180 billion so far, can afford to repay Goldman Sachs for what was clearly a poor investment while Goldman cannot help out any of the homeowners the company duped.  It is the classic example of American greed.

Now the federal government will be forced to come to the rescue again.  Other than the financial companies that packaged those dreaded low-doc loans and then sold them over and over again, the next group of winners stands to be residential investors.  The new-age investors who can learn to deal with the government’s cumbersome paper trails and slow decision making abilities stand to make big returns on relatively small investments.

The reason is that the U.S. government cannot afford to maintain these properties.  Frankly, investors may soon see favorable financing terms that will exceed their wildest expectations.  If you are an investor, get your REO presentation kit together.  If you have never invested in real estate before, this is the best chance you will ever have.

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