Dean Graziosi | Dean Graziosi Real Estate | Dean Graziosi Investment

Every now and then an investor comes up with a novel idea.  The Mack Companies are a real estate investment company located in Chicago and specializing in the city’s south and west sides.  The company has come up with a nice package, which they call home-redevelopment.

The home-redevelopment concept is designed for the small to medium investor who has a small appetite for risk.  The company has put together an interesting formula with controlled exposure and a steady yield with long-term potential.

The new product is called RECAP, which stands for Real Estate Cash-flow and Appreciation Program.  The Mack Companies promote the product as the simplest way to be in the real estate investment business with minimal risk.

Rather than purchase short sales or go through the foreclosure process, investors purchase one or more of Mack’s tenanted, professionally managed completely redeveloped homes at discounted prices.  All properties in this offering are located in secure, stable areas of the city.

The homes are in “pristine” condition, are guaranteed to be structurally sound, including all the structural systems, and have all appliances that appeal to tenants.  All tenants in the RECAP homes have been qualified by the company.

As the real estate market improves, investors can anticipate long-term growth.  Meanwhile, investors have a steady stream of income.  The Mack Company says investors receive one check for each property each month.  From the proceeds the investor must pay property taxes, the mortgage, management fees and insurance fees.  Typically the investor nets between $200 and $300 per month.

Mack says most tenants stay in the properties for five years. Obviously there are questions to be asked, but it is refreshing to see developers start to untangle the effects of the recession.  

Though most of the news is gloomy in the real estate market, some are still benefiting and there is a brighter side. On one side of the coin are the increased defaults, delinquencies and foreclosures, which have been spurned by the increasing rate of unemployment in the country.

There is an air of skepticism and disbelief of what the situation will be in the coming months or year. Though there is government help and tax credit, most are not interested in investing right now, at least in the new properties. The interest rates and the actual prices of homes have reduced, but this has not helped the underlying sentiment of the market.

The other side is the fact that this is a buyer’s market; someone with the money in hand and a settled future financial flow is bound to have a good deal. The interest rates have dropped further from last month’s 5.3 percent to 5.0 percent for a 30-year fixed-term mortgage loan. This rate is much better compared to 6.4 percent, which existed last year during the same period, making it conducive for any loan seeker.

The first time home seekers also now have a good array of choices in the new constructions and the resale properties. There are many good properties, which are now available not only in the fair price range, but many in the lower bracket. This makes the situation exciting for the buyers who have been waiting for the prices to turn favorable.

Mortgage Bankers Association reveals that there has been a significant rise in the application for loans in this year. Since the federal government cut in the prime lending rates, the mortgage loans have seen a significant reduction in the interest rates. Homeowners who are facing financial difficulties can also look at refinancing their loans and survive the harsh winter.

In this market, there are some happy people as well, such as the brokers who may have reduced earnings from the sellers and are now getting a good commission from the buyer’s end. Sometimes the sellers are also willing to shell out attractive incentives to push their property at the best prices and get it done quickly. This sure is good news for brokers in these deflated market conditions.

With one of every seven residential mortgages in delinquency and with one in every 350 homes already in the foreclosure process, the REO marketplace will provide investment opportunities for years to come.  CNBC reported that as of September 2009, more than 7 million homes were in the “shadow market” soon to be coming on the market.

Unlike the short sale or sale at auction, the REO allows the investor direct access to decision makers.  These decision makers want action and quick resolution.  In fact, the qualified buyer who can move quickly solves a myriad of problems for the REO.  Investors can increase profits by being professional and submitting professionally prepared documents that provide solutions to the REO seller.

This means verified financing, quick contingency dates, clean offers and a streamlined approach.  For the most part, REO transactions follow a “let the buyer beware” approach.  The buyer who is aware stands to do well, but that does not mean every REO is a winner.  The investor should build a team of professionals that accumulate information and assist in the decision making process.

·                     Real estate agent – assemble a comparative market analysis, help draft an offer to purchase the REO, perform a background check including all historical information about the property and help negotiate the contract.

·                     Qualified home inspector – while many REO owners will not entertain repairs, the purchaser can strengthen their case and protect their investment with information form a qualified contractor or inspector.  This expert should prepare a written report describing the property’s systems, structural strengths and weaknesses, perform a radon test and pest inspections and furnish estimates for repair to the buyer. 

·                     Attorney – to serve as consultant and review all offers and contracts prior to issuance.

·                     Lender – REO sellers must see support for the purchase offer.  The REO investor should forge a relationship with a reliable lender who will provide pre-qualification letters and be prepared to move rapidly upon acceptance.  The buyer should get a general overview of the lender’s policies and closing costs as relates to REO purchases.

The REO marketplace is competitive.  Purchasers should assemble their team and be ready to act.  Opportunities are out there are ready for profit making.  Get your REO investment team on the same page with a plan to either sell or rent the property upon taking title.  The REO purchaser who is prepared will most likely come across the same seller on other occasions.  Build an REO acquisition team and be ready for action.

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.

There are very few givens in life, but the one thing that is always certain is that everything changes.  People change, circumstances change and the economy changes.  Your goal as a successful real estate investor is not only to understand those changes, but profit from them as well.

The generalized viewpoint that we are constantly bombarded with today is that the economy is at its lowest point since the great depression.  While this may be true as a “whole”, what you don’t hear is that there are many communities throughout the United States that continue to thrive regardless of the poor economy.  If you want real estate millions to become a reality for you, you must look at the economy from a microeconomic viewpoint. 

In order to get and stay ahead, you analyze the smaller real estate markets within large metro areas.  Moreover, you must also analyze economic outlook for the type of real estate you are after.  Commercial real estate and residential real estate do not necessarily have the same economic forecast, even within the same city.  Furthermore, what is true in one area of a city may be totally different in another.  It’s all about supply and demand. 

One thing that real estate gurus such as Dean Grasiozi and many others have in common, is that they have become very good at forecasting supply and demand.  Cash flow depends on supply and demand and in a sluggish market; you have to know where to invest.  It’s no longer good enough to predict the hustle and bustle of large metropolitan areas, because the real growth is happening in much smaller communities.  Remember the saying, “what goes up, must come down.”  Your job as a real estate investor is to stay on the upside as much as possible!

You were watching T.V. one night and came across one of Dean Graziosi’s infomercials.  It was interesting, exciting and it made you want to go out and BUY THAT REAL ESATE!  However, you’re a smart consumer; you know most infomercials are full of a lot of fantastic talk, but the products are normally a fantastic flop.

So now, you’re wavering on the idea of the whole “real estate investment thing”.  You think it might be possible, but it also might be a scam.  So what’s the real deal?  Is it possible to make money – a LOT of money – with short sales, foreclosures, abandoned houses and the like?  Would you be throwing your money down the toilet like that time you bought the special towel that was supposed to suck up a gallon of water, when it really barely sucked up a drop?  Most importantly – is it worth it?

Well, if you do a search on the Internet for Dean Graziosi, you’ll get a lot of sites that have reviews, testimonials and yes – complaints.  If you read through the sites, however, you’ll find out some fairly exciting, interesting and flabbergasting information.

Now, keep in mind that any time someone is at the top of the food chain – as Dean is at the top of the real estate chain -, there will always be someone willing to complain about them.  However, consumer advocacy sites such as Rip-off Report.com, Infomercialscams.com and Programcritique.com not only give him kudos for his continued 100% customer guarantee, but for his programs as well.

Whether the product is a book he’s written or a program created to help people become better investors, the reviews and kudos always outweigh the complaints.  In addition, as soon as he realizes there’s a problem, he investigates to find a solution.

So, is it real?  Yes.  Can it make you money?  Yes.  Is it worth it?  Yes.  The one thing to remember, however, is that real estate investment is just like any other moneymaking venture, including a job.  You have to put in the time if you want results!

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.

There is little debate that the role of women in real estate is changing.  Real estate investing used to be a field dominated by men, but single female homebuyers are taking the market by storm. According to some studies, single women now account for over 20% of home sales in the U.S.  Moreover, this is not limited to primary residences, but rental and rehab properties as well.     

If you want to get started in real estate, but don’t know where to start, there are many strategies you can use to get started with minimal risk.  If you are concerned about having money down, and most people are in today’s economy, the most effective strategy you can use is the lease-option purchase.  This option will allow you to get into a home without the upfront capital required in traditional real estate transactions.   It also allows you to see firsthand if the investment will be a solid one before you buy it. 

If the lease-option is not appealing to you, you may consider investing in pre-foreclosures.  Not only do pre-foreclosures require less cash than foreclosures, they also allow women to do what they do best.  While men are wired to solve problems, women are wired to sympathize.  Women have the unique ability to help home owners in ways that men cannot, by gaining their trust through empathy and compassion.  Sellers that are facing foreclosure are in a place where they want nothing more than to be understood during their hard times.  Yes, they want their problem solved, but they are not looking for help from someone who is just out to make money off their misfortune.  So, if you are a woman and you are serious about real estate investing opportunities, why not do what you do best?  You just may stumble on real estate millions.

With Twitter, Myspace and numerous other social networking sites all the rage, and the economic downturn forcing creative marketing methods, it is just a matter of time before online real estate sites like TweetLister and Zillow become the norm.   

Take Zillow for example, this site is a one-stop shop for everything real estate.  This site boasts over 3 million real estate listings, and combines the success of Craigslist, Wikipedia and MySpace all into one.   Shopping for real estate online has become as easy as 1-2-3 and successful real estate investors are using it to their advantage.  Are you?

Another example of a site that really works for many people is Craigslist.  You can find properties for sale, rent, swap and more.  You can even search for people looking for homes with their “wanted” ads.  Keep in mind however, that because Craigslist is free, it is also widely used by scam artists so practicing due diligence is a must.  If you know how to use it wisely, you can find some great deals to make money right away.

If you are just starting out investing in real estate but have not yet purchased your first property, you should at the very least, take advantage of MySpace, Twitter, Facebook and every other online network marketing site out there.  Make friends, network with other investors and get the inside scoop from people already in the business.  The more contacts you make early in the game, the more opportunities you will have later on. 

Rain gutters are an extremely important part of your home. Especially in areas of heavy rainfall, sound rain gutters can prevent all kinds of moisture damage to your home. Specifically, properly-placed gutters can prevent rot or mildew on the siding, flooding in the basement, and water-related damage to the foundation. Because of its many important functions, it is imperative to keep the gutters in proper working order and fix any issues as quickly as possible. Unfortunately, this essential feature is easily overlooked and neglected.

In order to locate any damage to your metal gutters, first do a visual inspection. Walk around the periphery of the house, closely examining the underside and side of the gutter that you can see. Look for any spots that are rusted and any holes in the metal. If the gutters haven’t been kept clean, punctures may be visible by dirty areas or gunk on the underside of the metal.

Next, step back so that you can see how the gutters sit against the house. Are there any areas that seem loose? Do you see any places where the gutter bows or bulges, possibly from the weight of buildup? These are potential issues as they can eventually cause the metal to bend and break.

Take a sturdy ladder and, with someone at the bottom to steady the ladder, climb up to check the interior of the gutter. If needed, thoroughly clean the gutter so that the entire interior surface may be visually inspected. Investigate any creases, spots, bends or other potential damage. Check the slant of the gutter by pouring water into the gutter and observing whether it flows directly to a spout. If it does not, the gutters will need to be adjusted to the appropriate slant. Allow plenty of water to flow through the entire gutter system while you watch closely for any leaks.

This kind of inspection can be done in about an hour, depending on how much cleaning must be done and how much gutter you have to check. Ideally, gutters should be inspected at least twice a year during routine cleanings. These are best done right after heavy leaf fall in the autumn, then again before heavy spring rains. Functioning gutters are necessary to safeguard your home’s siding and foundation from water damage. This is one part of home maintenance you can’t afford to neglect.