Dean Graziosi | Dean Graziosi Real Estate | Dean Graziosi Investment

The real estate investor’s ability to bring the pieces of the short sale puzzle together can create big profits and windfalls for real estate balance sheets.  What investors are finding out is that short sales work.  In the midst of the world’s deepest recession and with more than 1,000,000 American homeowners suffering foreclosure in 2008, mortgage holders have changed their stance on previously unwelcome short sales.

The new climate is wide open for short sale acquisitions.  Banks have come to realize that foreclosure is the resolution of last resort.  The cost of maintaining foreclosed properties in a down market loaded with excessive supply and dwindling demand has led banks to negotiate with qualified investors.

These investors can reap big profits by buying low and turning properties over in a relatively short time or by renting the properties until market conditions improve.  The possibilities for profit are many.

The key to a successful short sale is to bring the vested parties together.  With more and more homeowners with secured debt exceeding the value of the property and with rising unemployment placing more and more Americans in default, short sale opportunities are abundant.

Banks are allowing these “underwater” homeowners more flexibility than ever before.  Today, banks are allowing short sales, often accepting less than they are owed in order to avoid ongoing maintenance.  The investor who works with the mortgage holder will usually find a ready, willing and able lender.

Meanwhile, the owner avoids foreclosure and is generally forgiven for the remaining indebtedness.  The homeowner’s credit may suffer but the damage is less than would result from foreclosure.  With the unemployment uncertainty plaguing the nation, short sales are often the lesser of necessary problems and can often provide win-win-win scenarios.

One of the terms I didn’t understand when I first started learning about real estate investing, and a term which Dean Graziosi cleared up for me was “Turn Key.” But its not just understanding the term that is important when you want to make a profit from real estate now, it is also understanding the full meaning of the concept that is important.

All good real estate investors try to find a great value “Turn Key” investment, as these are the properties that are going to give you that profit from real estate you need now. These are homes, projects, or properties, are  in “ready to live in” condition.  There is no need to put any money into maintenance or repairs, or at least very little money is needed.  In this case the seller has usually done all the work to make the home livable. If they are older homes then they have been remodeled, renovated or rehabbed and are ready for someone to call this property home.

Through Dean Graziosi I learned that these are the ideal real estate investment properties, and it is even better when these are already tenant occupied and sometimes even have property management in place.  This is for the investor who wants to profit from real estate now and not have to worry too much about the property.

Today, a lot of  “Turn Key” property has an added advantage in that it can be found at about a 25% discount from market value, and this means real estate investors get a nice profit for their original investment dollar.

When I first started in real estate investing, I believed I could make the most money by staying away from this type of real estate, and focusing more on the “fixer upper,” but thanks to Dean Graziosi, and the information I learned from reading his wikis, blogs, and books, I learned that this often isn’t the case. You can find good “Turn Key” real estate at a wholesale price.