Dean Graziosi’s Real Estate Investment Academy

Apartment buildings can make great investments if you choose the right ones. Before buying an entire building, make sure the property is sound and won’t need a lot of work. If you have the money to fix one up and are willing to do so, be sure this has been accomplished before taking on any tenants. Knowing the basics of how and what to purchase will help you when choosing the right building.

Buy a property that is affordable. Remember, you will be renting it out to others who may or may not take care of it. If they don’t, you may wind up having to make repairs. Also, by purchasing an affordable building, you will be minimizing your expenses in the long run and will be able to charge reasonable rent.

Buy in a good neighborhood. The better the neighborhood, the sooner the property will rent. As an investor, you want to choose a neighborhood that is safe and reputable. This will also help attract those tenants who are willing and able to pay more for rent each month to live in a good environment.

The surroundings of your apartment building should include the basic amenities one would expect to find near apartments: schools, parks, shopping malls and facilities, restaurants, hospitals, supermarkets, ETC. A property that is far from such amenities may not keep tenants. You will also be more likely to attract more tenants if modern conveniences can be found nearby which means renting the units more quickly.

Know the area. Visit to find out more about where your new building will be located. Do this at different times of day. This will help you get to know the people who also live in the area and you will be able to get a good idea of the types of crowds who reside there.

Talk to people in the area. Find out how long they’ve lived there, what they like about it, and what they would change if they could. This will help you to better understand whether or not you should buy the building and what types of tenants you are most likely to attract if you do.

Weigh all your options. Take a look at other buildings. If you like a specific area, find all the properties available in that area. Carefully consider each. Make a pros and cons list to help you decide. If a particular property is less expensive than all the rest, find out why. Just because it is less expensive, that doesn’t make it the best deal.

Decide what type of tenants you wish to attract. If you are planning to rent to college students, you’ll want to purchase a building near a college. In this case, your units can range from small to large to accommodate single dwellers and those who want roommates. If you want to attract families, you will need to choose a building in a somewhat residential neighborhood with surrounding amenities. Here your units might be larger to accommodate couples and children.

Know the deal you are signing before buying. Consider what you are getting into and how many tenants you wish to take on. That way you will be able to grow as a land lord and purchase more properties on down the line.

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Whether you are buying your first home, relocating your family, or investing in real estate for pleasure or business, now is the time to buy. There are many reasons why this is the case. However, they all relate to one major fact. Our economy is improving.

While the economy is far from being where it needs to be, it is starting to show improvement. This means that housing prices are starting to go up, and interest rates won’t be far behind. If you buy now you will be able to enjoy a substantial savings as housing prices are still lower than they have been in years. However, if you wait even six months from now you will likely pay more than you would today.

In addition, the rising housing prices can go in your favor if you buy now. If you buy your house now for two hundred thousand dollars and later it is valued at fifty to a hundred thousand more, you will have instant equity in your home. This can make it easier to get home loans for renovations or remodeling later on down the road.

Another reason it is a good idea to buy now is that many home owners are still desperate to sell. Real estate is still being sold more than it is being bought, which means you can drive a hard bargain. Not only can you get a heck of a deal on the overall price, but you can also get great terms. You might be able to get the closing costs covered by the seller, or even get repairs and certain features of the home thrown in at no additional cost. These deals are made for a fast sale, and they are especially prevalent with homes that have been on the market for some time.

If you wait to buy, you will have to pay more for your home. As the economy and housing market improve, you will find it harder to get these deals. You will also find it more difficult to get the terms you want, as sellers will be in less of a hurry to sell or will be getting better offers elsewhere. In addition, it is best to get in on the low interest rates of this time rather than waiting for them to go back up.

Overall, the decision to buy now is an easy one. If you are a real estate investor you are always looking for opportunities anyway. And, if you are looking into buying a home, you probably already have some money saved up and a plan in place. Don’t delay in your decision to purchase property now, and you will reap the benefits of the improving economy.

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If you have recently decided that you are ready to purchase a home one of the first things you should do is consult a lender to determine if you can be pre-approved. By becoming pre-approved you will know how much money a lender is willing to lend you and what your price range is. By narrowing down your choice of homes by price it will make the entire process much easier and less time consuming. This process may leave you curious as to how a lender determines the amount of money you can borrow.

The first thing that a potential lender will do is to review your credit score. Credit scores can range from 350 – 850. These numbers represent how much outstanding debt you have, how many open credit accounts you have and how well you have managed that outstanding debt over the years. In previous years lenders used to allow people who had a lower than average credit score to borrow money. This has all changed in recent times, now you will need at least a credit score of 640 in order to be approved for a home loan. The prime credit score range is between 740 and 760. Keep in mind that the lower your credit score is the higher your interest rate and points on your mortgage loan will be.

If a lender feels that your credit score is acceptable the next thing they will look at is your capacity. Capacity is a term that is used to determine based on the lender’s allowed maximum percentage debt to your gross income, minus all of your other debt payments. This will leave them with an amount that will be used to determine if you are financially capable of regularly making a mortgage payment. It is also important that your income is regular and consistent. This will help show that you are a responsible individual who does move from job to job.

Once it has been determined that you have an acceptable credit score and the capacity to maintain a monthly mortgage payment your final step in the process is to show the lender that you have some type of collateral. To determine your amount of collateral you will need to pay the bank to hire an independent appraiser who will determine the market value of the property. Once the lender receives this information they will determine the amount of money they are willing to lend you. No matter how much you have been pre-approved for, a lender will only loan you an amount based on the loan to value percentage for the home you are interested in.

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Whether you are buying your first home, relocating your family, or investing in real estate for pleasure or business, now is the time to buy. There are many reasons why this is the case. However, they all relate to one major fact. Our economy is improving.

While the economy is far from being where it needs to be, it is starting to show improvement. This means that housing prices are starting to go up, and interest rates won’t be far behind. If you buy now you will be able to enjoy a substantial savings as housing prices are still lower than they have been in years. However, if you wait even six months from now you will likely pay more than you would today.

In addition, the rising housing prices can go in your favor if you buy now. If you buy your house now for two hundred thousand dollars and later it is valued at fifty to a hundred thousand more, you will have instant equity in your home. This can make it easier to get home loans for renovations or remodeling later on down the road.

Another reason it is a good idea to buy now is that many home owners are still desperate to sell. Real estate is still being sold more than it is being bought, which means you can drive a hard bargain. Not only can you get a heck of a deal on the overall price, but you can also get great terms. You might be able to get the closing costs covered by the seller, or even get repairs and certain features of the home thrown in at no additional cost. These deals are made for a fast sale, and they are especially prevalent with homes that have been on the market for some time.

If you wait to buy, you will have to pay more for your home. As the economy and housing market improve, you will find it harder to get these deals. You will also find it more difficult to get the terms you want, as sellers will be in less of a hurry to sell or will be getting better offers elsewhere. In addition, it is best to get in on the low interest rates of this time rather than waiting for them to go back up.

Overall, the decision to buy now is an easy one. If you are a real estate investor you are always looking for opportunities anyway. And, if you are looking into buying a home, you probably already have some money saved up and a plan in place. Don’t delay in your decision to purchase property now, and you will reap the benefits of the improving economy.

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The truth is that it is very difficult to make money by remodeling a home in order to sell it. Many people would rather do the work for themselves. Even if you do remodel, these people may tear out all you have done and do it the way they want it anyway. It takes careful evaluation to determine whether you are gaining anything at all.

If you are preparing to sell your home, do some research in your neighborhood. Find out where your home’s value falls within the range of values in your area. If you are already at the top, it is very unlikely that you will gain much from remodeling.

Also, try to get some information about the renovations that have been done in nearby homes. You might be able to get this information from the residents themselves. Most people enjoy talking about their projects, whether it is to brag or to complain. Try to get a feel for the cost of the renovations and the difference they made to the appearance and functionality of the home.

Remember that what might look great to you might not look good at all to someone else. If you do remodel, it is usually best to keep the changes as low-key and refined as possible. Upscale is good, flashy may be undesirable.

The best idea of all may be to remodel soon enough to enjoy the renovations yourself. Then, when you have had some pleasant time enjoying your newly remodeled rooms, you can sell the home in better shape than it was in before.

Be prepared that you might not receive a major increase in the sale price. The good news is that you can recoup a large portion of select renovations. That is quite a good deal if you have gotten a lot of pleasure out of them before you pass the home on to someone else.

The Remodeling Cost/Value Report for 2011-2012 has complete information about which remodeling projects net the biggest returns. It has separate pdf files containing the information for different areas of the country, as well as a list of general trends for the country.

For example, if you created an attic bedroom, you would recoup on average about 72.5% of the price it cost you for the renovation. By occupying the bedroom for awhile, you could get your money’s worth by adding up your use and the resale value. Furthermore, if your home needed another bedroom to be saleable, the attic bedroom would indeed be a considerable asset.

Remodeling to sell is not a sure thing. If you want to consider doing it, research the subject. Think about whether you will use the feature of the home before you sell. Understand whether the home will even sell without the renovation being done. When you have answered all these questions, you will have a better idea of whether you can get your money’s worth out of remodeling for a home sale.

Remodeling Cost/Value Report for 2011-2012

http://www.remodeling.hw.net/2011/costvsvalue/national.aspx

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Today’s real estate market has many people considering what it would take to become a successful investor. With more available homes than ever before people are starting to think that now would be the perfect time to purchase a property and either flip it or use it as a rental property. While this may sound like a good idea on paper, there are some things that you should consider before attempting to invest in properties.

Smart real estate investments are determined more by choosing the proper time than anything else. Many people in the country are beginning to feel that now is the perfect time to begin their career as an investor. What makes now the perfect time are the low property prices, low mortgage rates and tax benefits. All of these factors combined make this the perfect time to consider investing in property. It is unrealistic that real estate prices will continue to drop, some parts of the nation are reporting that real estate values appear to be stabilized and some areas are even reporting small price increases. In the near future prices are more than likely to stabilize and remain stable for a short time before increasing.

If you are a beginner you should find real estate agent who has experience in finding investment properties. Experienced real estate agents know what to look for and can help you locate a property that will be perfect for a beginning investor. They are more familiar with which areas are the best to invest in and they can help you negotiate the best price for the property that you are interested in. When collaborating with a real estate agent you should share what type of property you are interested in investing in. This will help them locate the best property for the price that you are willing to pay.

When purchasing an investment property one of the most important things for you to consider is the location. You should choose a location that is in a high-rent of highly populated area. This will help you fill the property faster and start bringing in the money faster. If you choose a location that isn’t very popular among renters, your property may remain vacant for a longer amount of time. Just as you have always heard, real estate is all about location.

While real estate investment is a great idea, you should first obtain your financing before you even begin looking at properties. During the planning stages it is important that you speak with many different lenders to determine if you have enough assets and that you can handle the ups and downs that accompany real estate investing. You need to remember, that while your property sits empty you are responsible for making those payments. This is also true if you are planning on flipping the property; as long as it sits on the market you are responsible for making the payments. Real estate investing is a great way to supplement your income, but be prepared for the times when you are responsible for making the payments.

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Purchasing an older home is something that many people enjoy doing because of the charm and structure of the home. What they often fail to take into consideration is that many older homes often hide any problems well. It is quite common that serious problems tend not to show any signs until the damage has become rather extensive. There are often clues to these problems but most of the time the signs go unnoticed until the damage is so severe that it can be easily noticed by the naked eye. However, if you know what to look for you may be able to spot these problems before you purchase the home.

Water is the primary cause of damage to older homes. When walking through a home you should look for any missing or damaged shingles, rotted or loose trim boards and gutters that may be in poor condition. Bad gutters and downspouts are the biggest cause of water damage in older homes. The condition of the gutters and downspouts can give you valuable insight into any water damage that may be present inside the home. It is also natural that the ground around older homes tends to settle over time. When the ground settles it often slopes towards the home which can cause water to flow towards the home rather than away. Because of the foundations that older homes have, water may easily penetrate the foundation and cause damage.

The electrical system is the next area that commonly causes problems in older homes. Many older homes listed today have electrical systems that were designed to meet the electrical needs when the home was built. These systems often cannot handle the high demand that our modern technology places on them. Any home that is over 40 years old is more common to have an outdated electrical system which can overheat, spark or fail when faced with meeting the demands that our electronic devices place on the system. When inspecting an older home you should check the electrical panel and locate the amperage rating, newer home require at least 100 amps and up; older homes may have fuse boxes that are only rated for 60 amps and below. You should also check any wiring that you are able to see to determine if it is aluminum. Aluminum wiring is considered to be a fire hazard. Also look for an extensive amount of extension cords; this can be a sign that aren’t enough outlets available. Another thing to look for is any scorched areas around any of the switches and outlets.

Buying an older home is something that many buyers set out to do, but to ensure that the older home you are buying is in the best condition look for these telltale signs that trouble may be looming. Doing that, will help you spot problems before you close the deal and start moving in.

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If you are interested in acquiring a mortgage you will soon discover how important your credit score is. Many lenders require loan applicants to have a credit score that meets their requirements. Your credit score is used to determine if you are a good risk for a lender and it can also influence the mortgage rate you receive. If you are like many of us and have had some type of credit problem at some point in your life you will need to improve your current score in order to be approved for a home loan.

To increase your credit score you will need to pay all of your bills on time. Your bill payment history accounts for approximately 35% of your credit score. Your bill payment history includes any and all payments you make on credit cards, auto loans, mortgages and utilities. Any late payments you have made recently tend to have a greater impact on your credit score. To increase your credit score you will need to create a budget that will allow you to make all of your outstanding payments when they are due. If you are having problems making a payment on the due date you may want to consider contacting that creditor to see if the due date can be changed to accommodate your pay schedule.

You should also closely monitor your credit reports regularly to check for any errors that may be listed. If there is any inaccurate information listed on your credit report it can significantly lower your credit score. If you see any mistakes on your credit report you should contact the credit reporting agencies and file a dispute. This will allow your correct any information on your credit report that may wrong or not reflect an account that you have paid off recently. Your credit report contains valuable information when you are trying to get approved for a home loan.

Some experts recommend that you do not close any unused lines of credit that you may have. Approximately 30% of your credit score is based on how much available credit you have. If you have a large amount of available credit but only use a small amount of it you can increase your credit score. It is also recommended that you be a bit picky when it comes to opening new lines of credit. If you open several new lines of credit hoping to boost your credit score you may be accomplishing the opposite. Opening several new credit accounts in a short amount of time can have a negative effect on your credit score. New lines of credit should be chosen very carefully when you are trying to increase your credit score.

Establishing and maintaining a good credit score will not only help you when you are trying to be approved for a home loan but they can also be used to determine credit card rates and mortgage rates. A good credit score is something that should be well taken care of and monitored regularly.

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Buying a home in a struggling economy is much easier than selling a home in the same economy. In other words, it is a buyer’s market. This means that you can often drive a hard bargain, talk down the selling price, get better terms to close the deal, and get some extras thrown in. People are desperate to sell, and that makes it your opportunity to get something wonderful for much less than you might have expected to pay just a few years ago.

However, there are some things to keep in mind when buying a home in a struggling economy. The first thing to consider is that you must be able to get a loan for the home. This is generally harder to do in a struggling economy. Banks and lenders are less likely to provide the types of loans that used to be available to people with bad credit or lower incomes. You will now have to meet stringent income brackets and credit guidelines in order to qualify for a loan.

There are some things you can do to make it more likely that you will be able to buy a home in a struggling economy. The first thing you need to do is get your credit in order. You can do that by paying off old debts, and reviewing your credit report for any mistakes that can be corrected to increase your score.

Another thing you need to do is increase your income and decrease your expenses. If you can do that, you will be able to secure a loan fairly easily because you can show that you can repay it easily. However, be careful in how you do this. If you change jobs too soon before you plan on buying a house you probably won’t qualify for the loan. You will need job stability of at least a year to qualify for a good home loan in a struggling economy.

Finally, once you have qualified for the home loan, you want to drive a hard bargain when it comes to buying a house. You will find that there are many houses on the market that meet your needs and desires. Pick out the ones you love the most, and start haggling. Whoever gives you the better deal is the one who will sell you the house. Particularly, focus on more than just selling price. While you may be able to talk the price down, you can often get a better deal just by getting better terms. Sometimes you can get the seller to pay the closing costs, which is a huge benefit that is easy to get if someone is desperate to sell.

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There is a debate just beginning as to whether or not homeowners are taking advantage of the foreclosure process to live mortgage or rent free for several months at a time, even up to three years in some states. Are they? And if so, who’s problem is it? Lots of people have plenty to say about this issue and are ready to cast the blame on the enemy du jour.

According to a recent CNN Money article, almost 40% of homeowners facing foreclosure have not made any payment on their mortgages in about two years. For some, this is certainly a result of extended unemployment and a clogged up judicial process that has given them some extra room to wiggle when it comes to their monthly budget. Once a homeowner gets a few months behind on a mortgage it can be almost impossible to catch up and help is very hard to come by when it comes to a mortgage restructuring.

But, are there people who are still employed, yet make the choice to stop paying their mortgage because they know they can save hundreds of dollars a month by doing so? Maybe even thousands a month in some cases?

Certainly there are people who are taking advantage of the situation. Some claim that this is a protest to get back at the banks for their predatory lending practices. Others will affirm this and say the banks had it coming to them when they began using robotic signing agents to process the huge volumes of paperwork that crossed their desks during the housing boom. The lack of paper transfer of files is also another fact that homeowners use to delay the foreclosure process.

On the flip side, some people claim that these free riders are only hurting their fellow citizens. They argue that the banks respond by raising fees and rates on other customers to cover their loses on these almost foreclosed on homes. Their evidence is the constant news stream of institutions like Bank of American and their ill received $5 debit card fee. It is more likely though that those fees are a result of what banks are calling the Durbin Fee.

Bringing it back to the issue of so-called “free riders,” it probably doesn’t matter that so many of them are physically holding onto their property without making any payments. The market is full of houses that are ready to be sold. And if someone is living mortgage free that means they are either putting the mortgage money into the economy in other ways, or more likely, they no longer have the money due to loss of jobs or benefits.

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