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

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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According to the Associate Press, foreclosure filings were up almost 50 percent for the month of May. Across the nation, 261,255 homes received at least one foreclosure related filing.

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.

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The day before the final edition of my book went to the press I decided to create an additional section. Why? I was online and saw a quote from Dale Carnegie that was so inspiring and so confirming to the way I think that I had to investigate. I did some research on him that led me down an inspirational path. I gathered as many quotes as I could find from Mr. Carnegie that sum up what he was all about. While searching, I also ran across quotes from Benjamin Franklin that I wanted to share with you. The more I searched, the more I was touched by the empowering quotes, short stories and poems that I found. They touched me for one simple reason. You can see that no matter what era they come from, successful people have similar core attributes and beliefs that allow them to excel at higher levels than nearly everyone else.

These messages confirm what I know to be true. That is if you create and adopt these core attributes, any level of success that you want to achieve is possible. Do as they do, say what they say, act as they act and achieve what they have achieved.

So I took what I found, compiled them in no particular order and got them to the printer at the last minute so I could share them with you.

Remember that technology may change and the world may change, but people don’t change. The ones that soar at different levels, the ones we admire in the end, and the ones who make a difference and leave a legacy of greatness took action. They modeled what was already working and went for it. I urge you to do the same. Go for it!

Today I am going to share with you a list of Dale Carnegie Quotes that I found. I hope they inspire you as they do me. Then from this point I will list stories, poems and/or quotes that I hope affect you as they do me.

Dale Carnegie Quotes

“The successful man will profit from his mistakes and try again in a different way.”

“Don’t be afraid to give your best to what seemingly are small jobs. Every time you conquer one it makes you that much stronger. If you do the little jobs well, the big ones will tend to take care of themselves.”

“When fate hands us a lemon, let’s try to make lemonade.”

“If you want to gather honey, don’t kick over the beehive. If only the people who worry about their liabilities would think about the riches they do possess, they would stop worrying.”

“You can make more friends in two months by becoming interested in other people than you can in two years by trying to get other people interested in you.”

“If you can’t sleep, then get up and do something instead of lying there worrying. It’s the worry that gets you, not the lack of sleep.”

“The person who goes farthest is generally the one who is willing to do and dare. The sure-thing boat never gets far from shore.”

“First ask yourself:
What is the worst that can happen?
Then prepare to accept it.
Then proceed to improve on the worst.”

“Be more concerned with your character than with your reputation. Your character is what you really are while your reputation is merely what others think you are.”

“Would you sell both your eyes for a million dollars…or your two legs…or your hands…or your hearing? Add up what you do have, and you’ll find you won’t sell them for all the gold in the world. The best things in life are yours, if you can appreciate them.”

“You have it easily in your power to increase the sum total of this world’s happiness now. How? By giving a few words of sincere appreciation to someone who is lonely or discouraged. Perhaps you will forget tomorrow the kind words you say today, but the recipient may cherish them over a lifetime.”

“Inaction breeds doubt and fear. Action breeds confidence and courage. If you want to conquer fear, do not sit home and think about it. Go out and get busy.”

“Most of the important things in the world have been accomplished by people who have kept on trying when there seemed to be no help at all.”

“Do the thing you fear to do and keep on doing it… that is the quickest and surest way ever yet discovered to conquer fear.”

“I deal with the obvious. I present, reiterate and glorify the obvious — because the obvious is what people need to be told.”

“If you want to win friends, make it a point to remember them. If you remember my name, you pay me a subtle compliment; you indicate that I have made an impression on you. Remember my name and you add to my feeling of importance.”

“All the king’s horses and all the king’s men can’t put the past together again. So let’s remember: Don’t try to saw sawdust.”

“Are you bored with life? Then throw yourself into some work you believe in with all your heart, live for it, die for it, and you will find happiness that you had thought could never be yours.”

“Pay less attention to what men say. Just watch what they do.”

“If we think happy thoughts, we will be happy. If we think miserable thoughts, we will be miserable.”

“Any fool can criticize, condemn, and complain but it takes character and self-control to be understanding and forgiving.”

“Remember happiness doesn’t depend upon who you are or what you have; it depends solely on what you think.”

“One of the most tragic things I know about human nature is that all of us tend to put off living. We are all dreaming of some magical rose garden over the horizon-instead of enjoying the roses blooming outside our windows today.”

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