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.

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.

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.

1) Probably the most important tip Dean Graziosi can give perspective home buyers is before you start shopping for a home/investment, make sure you know what’s on your credit report. Most people don’t realize that your credit report can contain an array of errors. And it’s your responsibility to clean them up. You’re entitled to one FREE credit report per year. It’s worth the time to request your credit report and make sure it’s in perfect order.

2) After you’ve checked your credit report, it’s important to become pre-approved so you can shop with no worries. Your pre-approval will give you the amount the bank is willing to loan you and you can shop for a piece of property in your price range.

3) Once you start looking, make sure you’re patient. Finding the home that’s just right for you can take some time. You don’t need to buy a home for the amount you’re approved for especially with today’s real estate market becoming more of a buyer’s market. It’s important to be able to afford the house you buy.

4) Dean Graziosi suggests that you don’t use all of your savings to make that home buy. Seek out a strong mortgage professional who can find the right program for your budget and make sure you don’t use all the money you’ve saved. When you move into your new home, you’ll want some cash in case you need to do repairs or upgrades.

5) If you’re a first time home buyer or haven’t owned a place in several years, you can qualify for programs that are geared for first time home buyers. Once again, make sure your mortgage professional has provided you with all of your buying options including those first time home owner programs.

1.         Put on Paper. Whether you find an architect or do it yourself, put your ideas for your property on paper. Draw the changes you want and it will help you see how your place will look when the remodeling is finished.

2.         Don’t reinvent the wheel. Seek out others who have done remodeling so you can learn from their mistakes. Check online, watch some of the tv networks that are dedicated to remodeling and even peruse magazines and other publications.

3.         Check your wallet. Though good planning can certainly give you an idea of how much your remodeling will cost, it’s always good to have something extra for those unexpected over-budget emergencies.

4.         Don’t do it alone. You might be handy but it’s best to make sure you’ve hired the right set of players for your remodeling project. Even though your designer might have some people in mind, take the time, to find workers who you are comfortable with at a price you’re willing to pay.

5.         Get it in writing. No matter who you’ve hired to work for you, make sure the terms of what they’re responsibilities are, how much they’re to be paid and how long it will take to do the work are carefully spelled out in writing.

6.         Permits. It’s important before work begins, to arrange for all permits you might need. From your county to your home owners association, don’t start working until you have all the documents you need giving you permission to make the repairs you intend to make.

7.         Have a plan B. The best laid plans of mice and men means that you need to plan for unexpected problems. Whether it’s broken equipment, inclement weather or illness, try to schedule an alternative plan to keep your remodeling project on deadline.

A. Make sure you broaden your horizons with your investments. In other words, you don’t want only stocks or only real estate; rather you want a little bit of everything.

B. Research. Though you might have someone taking care of your investment portfolio, if you want to get the most out of your investments, it’s important to spend some time researching and analyzing as much information as you can.

C. Plan a strategy. Meet with your investment counselor and indicate what your high price or low price might be to initiate a sell order.

D. Think years down the road. While it’s always nice to invest in something that will pay immediate returns, it’s important to think ten, twenty even thirty years into the future.

E. Greed is bad. To paraphrase from the movie, Wall Street, it pays not to be greedy. You’re most likely not going to find an investment that will double its value in a short period of time, so sit back and let your investments grow.

F. Be Patient. Quick decisions often lead to problems. Since you’ve set up a plan with your investment counselor, don’t stray from it because of some ‘hot tip.’

G. Ask a Professional. Whether it’s stocks, bonds, T-Notes, Real Estate or another investment, find a investment professional you’re comfortable with and can afford.

The article goes on to state that with weak housing sales, falling home values, tighter mortgage lending criteria and a slowing United State’s economy has forced homeowners to lost their homes through foreclosure.

All but 10 states showed an increase in foreclosure filings with Nevada, California, Arizona, Florida and Michigan with the highest foreclosure rates.

AP also reported that in some neighborhoods, lenders are dropping prices so much in an effort to get rid of their foreclosed properties.

It’s clear that homeowners have overextended themselves and though this might be bad news for some, it’s good news for those who are looking to find bargains in the real estate market.

Dean Graziosi has spent much of his adult life passing along his secrets to obtaining wealth through real estate to thousands of everyday people.

His books and lectures are filled with information to help you be a success at buying and selling property.

You don’t even have to reside in the state where you want to buy property.

The trend appears to be for continue slow housing starts and falling housing prices—the perfect recipe for investors looking for a bargain in real estate.

In real estate, your niche market can be a region or neighborhood in your town, a clientele group (such as vacation renters from Europe), or a property type (like renovating historical homes). When you target a specific area in real estate investment, you become an expert in that area. The more you know about your niche, the easier it will be for you to find the right properties and market them to buyers so you can make the most money from them.

Having a focus will help you find the right kinds of properties and not waste time on something that won’t work for you. Niche marketing also gives you a built-in target market. You know who is most likely to purchase or rent from you; if your niche is British vacationers, you won’t spend money advertising vacation homes in Japan.

So how do you choose a real estate niche? Think about your talents and skills. Are you a capable carpenter? Do you know how to wire a room for electricity? You can put these abilities to use by focusing on properties that need serious repairs. Not every investor has the ability to take on these large projects. Perhaps your interests lie in providing housing for public employees in your area. In that case, you might prefer to buy duplexes and triplexes and offer them for a controlled rent for this group of people.

When you work within your own strengths and interests, your investing will be more than just a job. It becomes an enjoyable part of your life. Develop a plan to develop your business, and simplify your life with niche marketing.

Not content to keep the secrets to his success hidden, Dean was driven to teach others the techniques that worked so well for him. He wrote and produced his first infomercial in 1998. His program, “Motor Millions”, shared with viewers how to buy and sell cars for profit and helped people across America make money with cars. This program was wildly successful, and Graziosi later created his real estate investing infomercial, “Think a Little Different”. This program is filled with practical investing advice based on his 20 years of real estate investing experience and is still seen nationwide.

Dean’s first book, “Totally Fulfilled”, was released in 2006 and reached the best-seller list. This book detailed his strategy for finding success and fulfillment in life. “Be a Real Estate Millionaire”, his second book, is already selling thousands of copies per week and is sure to be another best seller. In addition to his managing his investing programs, Dean creates successful infomercials for clients and serves as a consult to top professionals.