DEAN GRAZIOSI: DEAN GRAZIOSI REAL ESTATE

If you thought you weren’t going to hear the term ‘flip’ in relation to a real estate deal anymore—you thought wrong.  Flipping is still not only a viable real estate investment deal it is stronger than ever.  Why?  Available properties at a reduced price are even more common now than ever before.  What does make flipping different now than it was in decades past is the need for making wise choices in properties.
There has always been a delicate balance between a property that needs some construction and redecorating and one that needs a complete overhaul.  Certainly one of the riskier parts of flipping is finding a property that looks like an orange but is really a lemon—hidden problems have always been the bane of the house flipper.  Now, more than ever, nasty surprises can truly ruin a deal.  Those will always be the risks of flipping; successful flippers realize that, account for it, and move on.
Successful flippers know, though, that the true key to success, even when those lemons appear, is having purchased the property at such a great price that even lemons can make lemonade.  The strategies that wealthy investors such as Dean Graziosi have developed on how to buy houses in foreclosure, develop a short sale, spot pre-foreclosures and distressed homes makes real estate flipping possible and profitable no matter what the economic market is doing at the time.
Understanding successful marketing strategies and how to buy houses that sell are important points to learn.  Finding out how others do it is a good step forward and good investors are never shy about asking questions.  Use the real estate investment forums on Dean Graziosi’s website to gain valuable insight on how others are doing what you want to do.  Read all you can on how to present your properties to their best advantage and evaluate each piece of property’s resale value.  There aren’t any ’secrets’ to successful real estate flipping that investors can’t learn if they take the time to learn from the masters.

Bookmark With

The variable-rate mortgage became very popular during the 1990s and remains the most popular mortgage choice today. Variable-rate mortgages are also the most misunderstood.  Variable-rate home loans have an interest rate that fluctuates depending on the current state of the market.  These loans are also known as adjustable rate mortgages (ARM) and floating-rate mortgages.

When considering using a variable-rate mortgage, check for caps — or limits — to how much the rate may increase. There are certain benefits to using ARM loans. Benefits include extremely low initial interest rates, sometimes as low as two or three percent! This is an ideal loan for someone who needs financing for a short period of time, before the heavy interest rates kick in. Sometimes these rates remain fixed for initial periods of one, three, five, or seven years.

These loans are ideal for people who are going to sell their home before the initial fixed rate increase, or will be refinancing into a fixed-rate mortgage before the rate increase. However, after the initial period of very low interest rates there is often a large rate increase. Many homeowners facing foreclosure ran into problems when the interest rate went up on their fixed-rate loans.

ARM loans are not designed to be a long-term financing option. If you are considering using an ARM loan, there are several questions you must ask yourself first. Are you financially stable enough to be able to afford a large, sudden payment increase? Is the housing market strong enough to allow you to sell before your rate adjusts? Is your credit good enough that you would be able to refinance into an affordable fixed rate loan once the rate on your  ARM loan begins to vary? Would you be able to afford a sizable down payment?

Variable-rate mortgages were designed for a specific purpose and, if used the way they were designed to be used, are very effective and profitable. Caution should be exercised whenever considering an ARM loan – know what you’re getting into and make sure your situation makes it feasible to use an adjustable-rate loan.

Bookmark With

Shopping for an Ideal Location

When looking for a new home, it’s essential to decide on certain priorities for the new house. These priorities do not only include the house itself, but also the neighborhood, the community, various nearby amenities, schools and shopping locations in the area. In addition, you’ll want to bear in mind any other features that can make you love or hate the home you purchase.

One way to positively narrow down your search is only looking at homes in the kind of good neighborhood where you would want to live.  Although a home can be remodeled to your liking, the neighborhood around you can’t be so easily transformed. When looking at purchasing a particular home, keep the surrounding areas in mind.

What is the crime rate in the area? What are the schools like and how do they rank on a state or national level? Is there a grocery store, mall, gym facilities or any other business you’d like located nearby? How close is the house from your job or other places you frequent? It is located on a busy street? Consider whether you’d mind being caught in traffic as soon as you get out of your driveway or would prefer a quieter area. It’s a good idea to find a neighborhood that meets your criteria before you invest your time and interest in an inconveniently located home.

Once you’ve found a home in a safe, convenient and peaceful area, it’s wise to decide on your priorities for the house itself. Would you prefer an older home, or would you like to buy a new house? Keep in mind, older homes may be majestic and less expensive to purchase, but may cost more to heat, repair and maintain. A new home may initially cost more, but you should be able to save in the winter with well-insulated walls and windows that don’t let in cold air.

If your family is growing, try to find a home large enough for your eventual needs. Are your kids growing up and leaving for college or a career? While a five-bedroom would be perfect for a family of six, empty nesters may feel the need to downsize from a large home. How much space does the new home allow? Do you require a lot of storage? How important is parking, noise level and privacy to you? These are all important factors when deciding on priorities in a new home.

Bookmark With