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

What do you really want from your real estate purchase? It is a question many people fail to ask themselves.  There may be times when an opportunity presents itself out of the blue, but in most cases it is wise to know what you are looking for ahead of time. Home buying can be especially tricky. Ask yourself some basic questions to pave the way to a better home buying experience.

1. Is the home for your own personal use?

Know whether you are buying to live in, to rent or to sell the home. You will be a better judge of all the features if you know your target market – even if it is simply you.

2. How many bedrooms do you need?

If the home is for you, you already have a good idea of the number of bedrooms that is right for you. If you are buying to rent, you have consider how many bedrooms renters in your area generally need and will pay for. If you are buying to flip and sell, find the hottest market in the area. Three bedroom homes are usually very popular, but in some neighborhoods, the ideal size might be different.

3. Home many square feet do you need?

The obvious answer is: as many square feet as you can get for your money. However, there may be limits on either end of the scale that are not acceptable. For instance, you might find a home with too much space is costly at tax time. You have to decide how important that is to you. On the other hand, a home that is a great buy except for being too small is not really such a great buy after all.

4. How is the home decorated?

Many people are swayed by the styles of the ceiling fans, bathroom tiles or kitchen appliances. Sometimes, they are not even aware that these features have influenced their decision. Keep your head about you and do not make a decision on the basis of something that can be easily changed.

5. What is the parking situation?

In most parts of the country, people drive cars. They need places to park them, and it is usually not satisfactory to have to park far from home and walk in. The number of cars that will fit in the garage should make sense for the number of cars that will probably be owned in a household. Another parking factor is whether you have to park straight in and then back up into heavy traffic to get out. That would be a pain for you, and it will scare away many renters or buyers.

These are but a few of the questions to ask yourself when shopping for a home. If you are going to buy a home, or any real estate for that matter, take a day to brainstorm about all the factors that are important to you in your purchase. You should think about the day-to-day life in the home, whether it is for you or someone else. Consider the types of costs that will be involved in running the home. When you have finished, you will have a checklist to bring on your real estate shopping trip.

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With the real estate market the lowest it’s been in years and the market being flooded daily with foreclosed properties, now may be the perfect time to pick up a home at a large discount.  Although, many foreclosed homes come with their own set of issues, there are some diamonds in the rough that can be found for a fraction of what they are really worth.

Foreclosed homes sell significantly lower than their actual value.  This is due to the fact that the properties are now owned by the bank.  Because banks tend not to have a need for vacant homes that are costing them money to insure and keep in decent shape, they are looking to get rid of them as fast as they can.  What this means for you, is that you may be able to find a home that needs minimal work to make it look like new again. 

There are two ways in which you can purchase a foreclosed home from the bank.  One is dealing directly with the bank and submitting your offer to them, the other is to purchase homes at a bank held auction where bidders determine the selling cost.  If you choose to deal directly with the bank, you may be able to negotiate a better deal than if you were to involve a third party.  The benefit of purchasing a home at auction is that you may be the only person interested in the property and be able to purchase for a lower price than the bank was initially asking.

There are some challenges with purchasing a foreclosed property as well as benefits.  Once all the paperwork has been signed and you are in possession of the property you may discover problems that you weren’t aware of before the purchase was finalized.  To avoid finding yourself in this situation, you may want to have an inspection done on the property so that you are aware of any problems before you close on the property.  An inspection is relatively inexpensive compared to what you may have to pay in order to make the property livable.

You may have heard horror stories about the problems that come from buying foreclosed properties, while some are in dire need of repair there are some out there that are in nearly perfect shape.  One of the most important things you need to do before purchasing a foreclosed property is to do a bit of homework.  By doing some research into any problems the neighbors may have had with plumbing or flooding issues, you will get more information from a friendly neighbor than the bank might offer.  Research is the key to finding a foreclosed property that will need minimal work to become your dream home.

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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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When the real estate market is down, finding foreclosed properties is simple. You can just drive around various communities and look for signs hanging from doors.When the real estate market is bad, foreclosed properties are advertised in the paper, on street signs and sometimes the news about foreclosed properties is even spread by word of mouth. However, what happens when the real estate market turns around? Where do you look to find foreclosures then?  The rest of this article explores ways to find foreclosed properties in any market. Weak Markets Usually weak markets have more foreclosures than strong markets. In a weak market, many homes once offered as short sales end up on the foreclosure listings and eventually deeded to the banks. Sometimes it is a good idea to wait until a property has hit foreclosure status. One reason is that your initial outlay of money could be lower with a foreclosed property. Yes, there is quite a difference in the amount of money you will spend on a home that is still being short sold versus one that has already been repossessed by the bank and is now up for sale. Finding foreclosures is as easy as looking through the classifieds. Most of the time, real estate agents specialize in one type of housing.  Another way to find foreclosures in a weak market is to drive around. Many banks or real estate agents will advertise a home that is in foreclosure openly. These signs along with droves of cars are good signs that a property is in foreclosure. Strong Markets Strong markets are different animals. When there are few foreclosures, it can be a little more difficult to seek them out, but it is not impossible. The trick with strong markets is to get an upper hand on other foreclosure investors. This can be done by calling a listed foreclosure agent and asking about other foreclosures that are not listed yet in the MLS (Multiple Listing Service) database. Many real estate agents will wait a couple of weeks before officially listing a foreclosure. This is so they can verify with the bank, the exact listing price they want on the property. By asking ahead of time, your agent can point out other foreclosed homes in your price range. Bank websites are another place to look in a strong market. Many of the national banks, such as Countrywide, Bank of America, and Chase list all of their current foreclosures on their website. While these are hit or miss, because they are on a national scale, it is a good place to start. 

No matter what market you are in at the present, finding foreclosures is not as difficult as you might think. With a little deductive reasoning and a bit of super sleuth work, you will be able to find the perfect house or project for your budget. Use those detective skills you practice while watching Law & Order to help you find foreclosure properties during a strong market. Just pay attention and you’ll find foreclosures in droves in a weak one.

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Many times real estate investors think of their properties as just that properties. However, that line of thinking is not helpful when it comes time to sell the property. The person you are selling the property to is usually thinking in terms of a home.

A home is not just shelter from bad weather or a place to live. A home also represents the image of the people that live in it. A home is also an investment. People invest large amounts of money in their home. They invest huge amounts of money in their home. If you want your home to be the property they invest in, you have to do some work first. You have to get your house ready to sell. Here are some things you have to think about before you put your house on the market.

You have to present your home in a way that makes it most attractive to people that are interested in buying your home. First you should list the positives and negatives of your old house. Ask some friends to make suggestions. It is always beneficial to have a third party help you with your plan for selling your home. If you have taken the effort to make your home energy efficient, be sure to include that in the listing. Also be sure to consider the size of your house when trying to come up with an attractive description for your property. Is it a one story home or two story home? How many rooms does the house have? How many bathrooms? Think of other amenities that might make the house appealing to a buyer. Is there extra storage space? Walk in closets? Include anything in the description that would make a potential buyer jump up and buy this property.

Something else to consider when writing a marketable description is the location. That is the big thing in real estate after all. Location, location, location. Are you near malls, universities, and night life? Include that in your description. Does your neighborhood have community events regularly? Include that in the description. Are you near major transportation outlets (think airports, bus stations, etc.) You want to paint as desirable a picture of your house as possible.

It is very easy nowadays to create a plan to sell your home. You can look at current listings to get ideas. You can even consult with a real estate professional to get ideas. No matter how you decide  to come up with your plan,be sure that you create a description that puts your home in the most favorable light possible so you can sell your home quickly and move on with your life.

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The Green Realtor might sound like a super hero fighting real estate crime wherever he finds it. Actually he is more of a simple and conscientious citizen protecting the planet. The good news for the Green Realtor is that he saves money in the meantime. Here is how he works.

1. He unplugs appliances when they are not being used.

The prospective homeowner will be treated to an uncluttered view of the kitchen and other rooms if the cords are unplugged and tucked out of view. At the same time, the Green Realtor saves energy because cords that are left plugged in drain away electricity constantly. They may not consume as much energy as if the appliances were in use, but with all of them disconnected the savings can be substantial. By the way, the savings in dollars is impressive too.

2. He turns off fountains when they are not in use.

Fountains and other water features eat up water resources. Even if the water is recycled through the system, some water is always lost to evaporation and wind spray. Also, depending on the type of pump that moves the water, there might be a great energy savings there too. The Green Realtor will turn the fountain on while showing the home, and then turn it back off when the prospective homeowners leave.

3. He uses earth-friendly cleaning products for housekeeping in the property between showings.

Prospective homeowners might not be aware of how much housekeeping is needed between showings in a home for sale. People who come in sometimes have mud on their shoes, leave fingerprints on the glass, and may even use the toilet if the water is still turned on. Whether the Realtor himself or someone else cleans the home, cleaning products will need to be used. The Green Realtor will use natural products that do not harm the environment.

4. He suggests hiring contractors specializing in green construction for necessary repairs.

There are some instances when repair work needs to be done after the house goes on the market. Vandalism can be a problem for an empty house, and any damage that is done must be fixed. Sometimes, a certain defect of the property is noticed over and over during showings. The Realtor would be remiss if he did not mention repair issues to the homeowner. The Green Realtor would also mention a green contractor for the work.

The Green Realtor may not be able to change the world on his own, but he can surely make a difference. By paying attention to energy and water consumption through the duration of the sales process, he can help both the environment and save money. By using green cleaning products and encouraging the use of environmentally conscious contractors, he can have an impact on the environment as well. All the while, he can make a name for himself as a modern, ethical Realtor.

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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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