Dean Graziosi

There will be countless forms, people, and problems to confront and deal with for every real estate investor. For the beginner, these problems and concerns may become overwhelming to the point that it destroys the incentive to continue in the real estate industry. To avoid this disaster, here is 10 tips for the new real estate investor.

 

1. Get informed, learn the lingo. Do you know the difference between a foreclosure and a short sale? If you don’t, it’s okay, don’t flustered. There are many websites, including unofficial sites like wikipedia, that can give you the definitions of such terms. Specifically, http://www.thinkalittledifferent.com a real estate education website, has a list of need to know glossary terms for all real estate investors.

 

2.Visit book stores. There are few subjects in this country that have the availability that real estate books do. You can learn a lot simply by taking a few hours of your day to dive into the world of investigative learning, the old fashioned way.

 

3.Learn how to identify risk. No matter what anyone says, or how they sugar coat it, investing always carries risk. Learning what most would call the essentials, would include never investing money you can’t afford to lose. The best plan it is to understand your financial limits now, so no rude awakenings occur later.

 

4. Endurance, and concentration, that is key. Long term real estate investing can be compared to a triathlon. Several events must take place for a successful sale to be finalized, and a sale is not finalized until the cash is in your pocket. Keep the goal insight, concentrate on the now, and the later. What happens next is just as important as what’s happening now.

 

5. Go to a seminar, online or not. A serious investor will find all the information he or she can before settling on a decision. A popular seminar for beginners, and the experienced alike, can be found at http://www.deangraziosi.com/dean-graziosi/real-estate-millionaire.

 

6. Use the National Realtors Association for useful charts and tables that can tell you what the best markets in the country are from quarter to quarter. This information is a little used secret, but it can be extremely useful for markets in metropolitan areas.

 

7. Discover, follow and maintain a well known system. There are many systems available for real estate starters. Some reliable systems for your quick reference can be found at, http://www.deangraziosi.com/, just click the products link and you’ll be on your way.

 

8. Partners are the path to fortunes. Buying real estate properties worth millions isn’t something everyday investors can afford to do. By grouping together other real estate investors, the pulling power you may need to take you performance and income levels to the next stage could become available.

 

9.  Have patience. Commercial real estate deals, in general, take longer to complete than sales on private homes. Don’t get frustrated at your self, or others. Push without shoving, and learn the difference. Some properties take longer to purchase, renovate and sell, that is just the nature of real estate. If you become impatient, you may rush into a decision. One bad decision in real estate, when considering the sizable amounts of cash that is exchanged, may be the writing  in the sand that spells out the end of your business.

 

10. Inspect the property personally. When starting out in the real estate field never send a third party to inspect the property in question. Getting a reputation for providing work to the local professionals and maintaining a good relationship can be key to getting a thorough initial inspection. be present at the inspection with the hired professional so that nothing is forgotten or missed by an extra pair of eyes.

 

Use these top 10 real estate tips to get the basic know how and knowledge required to succeed down the career path you’ve chosen.

 

The southern borders of the United States, namely New Mexico and Arizona, real estate markets have been declining in what seems like a slow free fall. Colorado, hasn’t been the picture of real estate health, either. Colorado has suffered since the bursting of the housing bubble, below you will get a contrast of each state, and which state a real estate investor should throw themselves into.

 

New Mexico’s Residential Real Estate

The percentage of New Mexico residents who are currently home owners is an high  60.78 percent. Renters in New Mexico, reached 26.08 percent, leaving just over 10 percent of the New Mexico homes vacant. The most common type of real estate in New Mexico, is the single family detached homes, with 60.96 percent of the real estate falling into that category. Apartment complexes, otherwise known as high rise apartments, are the next best bet for the real estate investor in New Mexico, consuming 9.87 percent of the total real estate owned in the state.

 

New Mexico’s apartment real estate markets are at a loss, the high rise apartment properties are a tiny chunk of New Mexico’s real estate industry. That becomes more apparent, with the next revelation of the state’s real estate numbers. The amount of real estate being consumed by small apartment buildings in New Mexico is only half of the high rise apartments. Mobile homes sales in the state, also,  makes an impact on the real estate markets and economy of New Mexico. The amount of real estate being owned by mobile home owners and sellers rests at a rather large 18.59 percent.

 

The median home value in the state averages out to be just over, $184,000. The price paid by most homeowners, 33.42 percent, paid between $195,000 and $389,000. The majority of the rest of the real estate sold in the state of New Mexico, 31.13 percent, are homes selling in the $98,000 to $195,000 range. The average rental rate for a  New Mexico apartment, crunches out to be $731.00, per month. After reflecting on these numbers, any agent can see that the largest real estate market in New Mexico is, easily, the single family residential markets.

 

Arizona Real Estate

 Since 1990, the appreciation rate of Arizona real estate has risen 8.45 percent, and in the last 12 months, it has fallen 13.63 percent. Residential real estate prices in Arizona shoot from the bottom rung, all the way up to the top shelf.

Arizona’s median income is $40,558, which is needed by the citizens of Arizona just to maintain the mortgage on median income home of over $223,000. One could expect Arizona’s foreclosure starts to sky-rocket in the coming quarters.

 

Colorado Real Estate

Colorado has been doing a bit better in this respect, than Arizona, but not nearly as strong as. Colorado’s appreciation rates have climbed over the past 10 years , 10.05 percent, and across the last 12 months, the residential real estate in Colorado has been driven up 10.05 percent, including a gain of 0.37, during the last quarter. In 2010, the all important median value of a residential piece of real estate, namely a single family home, lists at just above $263,000. The median income of Colorado home owners was $47,203, but per capita, the state averages a poultry 24,049, making that mortgage or rent payment a little harder to manage.

 

The Summary

After researching and reading all the real estate facts for New Mexico, Arizona and Colorado, the only conclusion that can be reached is, the most commonly bought and sold pieces of real estate in the entire south eastern U.S. is residential homes and apartments, specifically single family homes from the $150,000 to 265,000 range. For in more information on these states and others go to… http://www.neighborhoodscout.com.

 

 

 

A short sale occurs, when the proceeds from the sale of real estate falls short of the balance owed on the property in question. A short sale is the result of a borrower not making the payments on their mortgage loan. Instead of foreclosing the property, the lender decides that selling the property at a slight loss will be more productive than trying to get the funds out of the original borrower. Both parties must consent to the short sale for it be legal. The borrower is usually in the circumstances to strongly agree on the short sale, rather than have a foreclosure on his or her credit.

 

A Short Sale Kit

Short sale kits are available all over the web. Just  search it, and thousands will pop up. The cheapest tricks are never the best, if you decide to buy one of these kits, keep that in mind.

 

Short sales and the “Lucky”

Most banks and mortgage companies have a department called loss mitigation. This is the department responsible for tracking figures  for the companies short sales. On a normal everyday circumstance, banks will refuse a short sale offer until the borrower has attained notice of default status. Luckily, or not so luckily, due to the massive real estate losses nation wide banks have become more willing to accept short sale offers.

For the lucky borrowers, if you can consider up-side down mortgage holders such a thing, they can offer a short sale before the official notice of default is applied. For those unfortunate borrowers, it is a much needed answer to a desperate question.

For the unlucky, the lenders and mortgage companies who are actually getting the short end of the stick all around, they are stuck losing money on their investment in the borrower. Believe it or not, the bank is invested in you, just as much as you are invested in you property.

 

The Credit Impact of a Short Sale

A short sale does have a negative impact on the individuals credit, though not as bad as a foreclosure. The reason behind this, is that short sales are considered a type of settlement, not a legal seizure of property. The borrowers credit is, usually, back within borrowing standards within five years. For a foreclosure, the proper repair to his or her credit standing can take closer to a decade.

 

Buying A Short Sale

A short sale purchase can get very complicated. Every mortgage company carries their own rules, short sale kits, and mitigation techniques. Don’t be caught off guard  when buying a short sale, there will probably be multiple levels and layers of paper work and approvals to deal with, depending on the mortgage company you choose.

 

So, as a realtor, what’s the bottom line in dealing with short sales? Get familiar with one mortgage company. Going from company to company will only complicate your life and business. Getting good at short sales is a lot like becoming a good swimmer. You have to jump in and start kicking.

 

 

 

 

 

 

 

 

 

 

 

 

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