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

For a few years now real estate agents have been feeling the pinch in the housing market. Many have left the field entirely. Those who have stayed have only been able to do so my reevaluating their techniques and passion for real estate.

The drop in home prices has affected real estate agents in probably a more direct way than any other segment of the population. It is not a pleasant fact that this affect has been negative. What does this drop in home prices mean for real estate agents.

First, it means that real estate agents need to work harder. They are going to have to be more aggressive in finding homes to sell and connecting buyers with those homes. It is a tough market but this is an opportunity to take advantage of agents who are leaving the business. By cultivating good relationships with their peers, real estate agents will be in a better position to take over any accounts in the event someone does leave to search for a new career.

Working harder is not going to be enough though. Real estate agents need to learn to work smarter. This will look different for everyone. For some it will mean investing in technology to reduce the time it takes to complete certain tasks. Yes, invest. It might seem counter intuitive to spend more money than is absolutely necessary right now, but one has to spend money to make money. A smart phone can help agents get to where they need to be faster. Even better, an iPad can act as a real estate portfolio for agents to show off to clients as they consider which home to visit next. Real estate is one of the fields best suited to using the newest tech gadgets to improve ROI (return on investment).

With a slower economy, now is an excellent time for real estate agents to consider additional education. There are many, many different areas of real estate that can be explored and the more one knows, the further their career can go. Specializing in foreclosures or short sales is especially germane for 2012 because the number of homes coming back onto the market after a lengthy foreclosure season will jump dramatically as courts clear up back logs of cases.

The economy might also be a chance to branch out of traditional real estate roles. If an agent has extensive experience in a growing, relevant topic, then they might be able to make additional money by teaching classes to younger or less experienced agents. Sharing knowledge is a great way to strengthen one’s knowledge.

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As more and more people acquire iPhone 4s and wait for the new iPad 3 to be released, app usage is only going to rise. And sharply to be sure. The number of free and purchased apps increases every day. And with good reason. There are some excellent apps available for just about any need anyone could have.

And the real estate market is no exception. Apps abound and some that might not seem like they’d be helpful in the real estate market really are. Here are some of the top free real estate apps for iPhones and iPads.

Zillow: Launched after the popularity of the website kept going up, Zillow allows users to search homes for sale, rentals, and more, making this one of the handiest real estate iPhone apps available. This app also makes use of the GPS capability of your device. (Cost: Free)

LoopNet Commercial Real Estate Search: When it comes to searching for commercial properties, it is wise to choose an app that focuses on what is really needed. LoopNet has only one drawback – full access isn’t free. But it is a good place to start the search, so it is still a top app. (Cost: Free)

eTask Project for iPad: The process of buying a house is gargantuan. While eTask wasn’t designed for the real estate buyer, it can be incredibly helpful in managing the many tasks that must be accomplished to make the dream a reality. Use it to track paperwork deadlines and create a packing schedule so moving day doesn’t come as a surprise. (Cost: Free)

Zip Realty Real Estate: If someone looking for a home wants data, then this is the app for them. It provides a complete listing of all homes available within the top 25 major housing markets in the United States. The fun factor for this features comes when users get to draw their radius on the map, making limiting searches easier. (Cost: Free)

Tweet Deck: This one belongs on the list because everyone needs something to do while they try to take a mental break from the house hunt. Make sure you find lots of funny people to follow, as well as some local real estate agents. (Cost: Free)

CraigsPhone – It’s Craig’s List for your iPhone or iPad! Everyone knows that some homes do not get listed with realtors. People are looking to reduce their fees so they turn to free sites like Craig’s List. This is a handy app to check regularly so one can see if there are any houses for sale nearby. (Cost: Free)

There are several others that can be found by searching ‘real estate’ in the iTunes search bar. Happy hunting!

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Buying a home is an exciting time. It can also be extremely stressful. Buyers can easily find themselves lost in the jungle as they try to find the perfect home, get financing, and close the deal. It is very easy for a buyer to make a serious mistake and end up paying for it for years. While you may expect a first time buyer to make mistakes when they buy their first house, you have to keep in mind that many times a buyer only purchases one home. This means that mistakes can be extremely serious and costly. Here are three common mistakes that new buyers often make.

Not Finding the Right Agent

Your real estate agent is one of the most important people that you can possibly deal with when you are purchasing a home. Your agent is on your team and you should consider them as being your biggest ally. After all, your agent not only wants to help you find your dream home but they also are being paid to do it. Research each agent carefully and make sure that you work with one who knows exactly what you need and has the experience to help you. Avoid working with an agent who is overly pushy or who doesn’t listen to you.

Falling in Love Too Fast

Just like with people, if you fall in love with a house too fast you are in for heartbreak. A lot of buyers will fall in love with the very first home they see. Sometimes they have yet to find out how large a mortgage they can get. They are heartbroken when they discover that they cannot purchase the home that they want. Always make sure that you look at several homes so you can get an idea of not only what the housing market of the area is like but also what you really need. Imagine what your own furniture will look like in a house and how you would decorate it. You might find that the fifth or sixth house you look at is really your dream home.

Being Too Desperate

So you have found a home that you love and you are ready to buy. No matter how much you love a home make sure that you are not so desperate to own it that you neglect certain key things. Check the prices of similar homes to make sure that you are not being overcharged and do not be afraid to offer a low price to start the negotiations. Never offer the seller more than you can really afford to pay. Make sure the home has been inspected by a licensed inspector and walk through to check the pipes, outlets, and anything else you can think of. You may uncover a hidden problem that you weren’t told about. If you do lose the home, there will be another one right around the corner.

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With realty prices the lowest they have been in years, some buyers are seeing this as a prime opportunity to invest in the real estate market. But there are some key mistakes that many newbies tend to make when they venture into the real estate investment game.

The first mistake that many beginners tend to make is to ignore the advice that many seasoned investors have to pass on. Walking into the real estate investment thinking you know everything there is to know about investing, you are wrong. Experienced investors have been doing this a lot longer than you have and they know which areas will offer the best return on their money. They have been through all of the ups and downs in the market and are well versed in how to handle them. Many seasoned investors will be glad to offer you some advice and tell you where they went wrong, take the time to listen and you will not make any costly mistakes right out of the gate.

There are many ways to increase the amount of success you experience in real estate investments. Listening to the advice of others is one of the keys, but there are also others that will make your investment successful. The second important thing to know about investing is to know exactly where all of your money is going and what it is being used for. Do not rely on a partner or someone who says they can invest your money for you. Always stay in charge of your own accounting, this will keep you from losing money that others are mishandling. There are many ways that investing in real estate can eat up your finances, knowing what you have coming in and going out will help you stay in control of your investment and not let it get the best of you.

The final mistake that beginners tend to make is to lose sight of their primary goals. If your key area of interest is properties that will sell quickly and have been proven to sell do not get sidetracked into buying properties that do not meet that criteria. Making money investing in properties that have been successful for you in the past is something that you should not forget. Many beginners make their money and jump into another area of realty that they know little or nothing about. Sticking with what is working is important for your success in realty investing. If you would like to move onto other types of investment properties it is important that you do some research first and find out if that move is right for you.

Investing in realty can be very profitable when done the right way. Keep in mind the mistakes that others have made and do your best to avoid them. Doing this will help you choose properties that will likely show you a profit.

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Banks sometimes have REOs, otherwise known as Real Estate Owned, which come to them as a result of failed foreclosure auctions. The banks want to get the most out of these properties that they can, but they will also work with investors to complete sales as soon as possible. There are a few breaks that the bank will give you on REOs that you might or might not get otherwise.

Cleaning Up the Past

The first thing the bank will do with an REO property is to clear up all the obligations related to it. The bank will pay off Home Association dues, get tax liens removed by working with the IRS, and erase the mortgage. All these are just preliminary steps. They would usually have to be done anyway by any seller, but since the bank is doing them they are usually done rather quickly.

Repairs and Inspections

The bank may make repairs, at their discretion, if they feel that they will get better offers that way. It might not cost you a lot more to buy the home or property after repairs are completed, though. If the bank does not have other reasonable offers when you arrive, you will often still get the property at nearly the same price. The bonus is that you will have to do less work on it.

As far as inspections go, banks are not going to give you a great number of inspections on the property. However, you will be allowed to conduct your own inspections before buying an REO property if you pay for them yourself. However, the bank will nearly always agree to provide a pest certificate if you request it as a part of the deal.

Title Insurance

REOs generally come with a title insurance policy that is issued to you without extra charge. This is one way the bank cuts closing costs.

Financing

Banks will not always provide financing for an REO home. However, if you are looking for a home that needs quite a bit of work, the bank might be more willing to accommodate you in order to get the property off their books. If they do agree to finance you, they will often give you a lower rate of interest on an REO than they would on most other types of properties.

The Big Deal

The biggest reason to buy REO homes is that they are usually such a great deal. Banks do not want to give them away, but they do want to get them off their books as soon as possible. As long as these homes stay in their inventory, they are a liability rather than an asset. You can offer the bank a way to turn that negative into a positive.

If you make a bid on an REO home, you may not be alone. Sometimes as many as 20 or more bids come in for a single REO in a short time. Do not let this dissuade you. Someone has to get the bid. With the right research and a reasonable attitude, you may get the REO home and all the benefits the bank has to offer you.

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In today’s market there are plenty of available homes for prospective buyers.  That combined with the low interest rates has many prospective buyers considering purchasing the home of their dreams.  But, there may be potential danger to their dream of home ownership down the road.  Along with worrying about their credit rating and income level, there are also five potential reasons that prospective lenders may decline your application for a home loan. 

The first red flag for potential lenders is if you are currently in the middle of a divorce.  Many lenders refuse to approve a loan for couples who are in the process of getting divorced.  The primary reason that lenders tend to deny these applications is that they are worried that a one person income would affect the potential buyer’s ability to make payments.  It is also important that any person who is applying for a home loan and is in the process of becoming divorced not hide the fact from prospective lenders.  The truth will come out when the lender performs a background check on the individual; if the fact that you’re getting a divorce comes out after a background check is performed, you can kiss your loan goodbye.  The prospective buyer could also face charges of mortgage fraud for lying in their mortgage application.

Another area where lenders may have a problem with a potential buyer is if they have recently switched careers.  A potential buyer who has had a change of careers within the last two years prior to applying for a mortgage may find it difficult to be approved for a mortgage.  Lenders tend to be wary when approving buyers who are not established in their careers, even if their income has increased with the new position.  If you are considering changing careers you should probably wait until after you have secured your home loan. 

If you are involved in a lawsuit at the time of your mortgage application, you may find it difficult to secure a loan.  This is true whether you are a defendant or a plaintiff.  If you are a defendant lenders may feel that you may be hit with a large settlement that may affect your ability to make payments on a loan.  If you happen to be a plaintiff in a lawsuit, lenders may fear that if you happen to lose your case you will be burdened with high attorney fees that need to be paid.  If that is the case, lenders may feel that on top of the attorney fees you will have a difficult time repaying your loan.

Making repairs on your current residence is also something that lenders look at when deciding whether to approve your loan.  Lenders feel that repairs being made on a home should be completed before the application process has been started.  Lenders would prefer that any home repairs be completed prior to buyers applying for a new mortgage.

New debt can be a mortgage approval problem.  Lenders look at the borrower’s debt to income ratio and do not like borrower’s ratios at more than 43 percent of their monthly income.  Acquiring new debt, such as a car loan or high balance on a new credit card may put many borrowers over that 43 percent limit.  It is recommended that borrowers not acquire any new debt until after a mortgage has been secured.

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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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It only seems to stop for a small period of time, before a few unscrupulous competitors start a new round of attacks on the Internet to attempt to take Dean Graziosi back down to their level. We have a new that has been gaining traction… Dean Graziosi a scam…? Nope, been there, done that. Dean Graziosi is not a real estate investor…? No, that one didn’t stick either. The latest attack aimed to discredit him is the most outlandish yet, and it goes to show the desperation.

(more…)

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Successful business people know that focusing your business in one direction usually works better than trying to do too much. This is also true of real estate investing. The real estate industry covers so many different property types, regions, and clients that it can be overwhelming without any sort of focus. Niche marketing directs your time and effort to one specific area so you can maximize your potential.

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.

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Best selling author and real estate investing expert, Dean Graziosi, started his investing career at the age of 16. He purchased a car, renovated it, and sold it for a profit. Shortly after this early success, Graziosi set his sights on residential real estate. Still a teenager, he purchased a run-down apartment building that he renovated and turned into a profitable venture. This purchase was a forerunner to Dean’s future and he went on to earn millions of dollars through real estate investing.

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.

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