Dean Graziosi

Buying real estate for investment in many ways mirrors buying real estate for a family home, and at the same time, it is an entirely different animal.  What makes an investment house different from a home?  On the outside, not a thing.  An investment property will look much like a home you view for a living space.  You want it to be presentable, in decent shape (unless you are buying at a severely depreciated rate with the thought of rehabilitation and selling in a ‘flip’ manner).  You also want your purchase to be as affordable as possible.
The difference actually is more of an attitude than a physical attribute.  The difference is in how you, as an investor, view the property for potential resale.  You will have to be sure the cost is in line with what you can afford to invest, and that there is reasonable assumption of sale value over that.  When people purchase a house to live in, they are concerned with its livable qualities the same as you would be - because resale value is better if it is a desirable home-, but they aren’t as typically concerned at that point in time with the value being low enough to resell it for a profit.
That is the reason it makes sense to use specific real estate strategies to obtain homes at the lowest possible price.  Using foreclosures, short sales and loan modifications the way the pros like Dean Graziosi do is the way to make sure you end up with a valuable property that will be a top performing asset for you.
You can use these techniques for any type of real estate investment, even those you aren’t looking to turn over, such as rentals.  The less you pay, the more you pocket and that’s the bottom line.  Unlike other investment markets that are abstract, when you own real estate you own something ‘real’ that you can put your hands on.  Real estate investment is and always will be one of the most solid investment purchases you can own.

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Investing in real estate can be a very lucrative business, as Dean Graziosi has shown us time and time again.  However, it can also turn into a deep, dark money pit, sucking your bank account dry.  What’s the difference?

One of the largest reasons that real estate turns from an investment into a sink hole is that the investor is unaware of issues that can arise before buying a piece of property.  Many of these issues revolve around the overall upkeep for the investment property.  While you don’t have to be a contractor to invest well, it does help to know some of the warning signs.

·    Land sloping toward the building – This may not seem like a big thing, unless you consider water drainage.  If the land around the property slopes towards the house, chances are good that the ground around the building will get saturated in areas of high rain or snowfall.  Ground saturation can cause mild to severe settling of the building.

·    Cracks in the walls – You may look at small cracks and think, “That’s not so bad”, but those cracks can mean bigger problems.  Cracks in basement walls and foundations, generally caused by settling, can also mean sticking doors and windows, as well as a history of leaks.

·    Discoloration or recently painted walls – Areas of discoloration along the tops or bottoms of walls can mean mild to severe plumbing problems.  Many property owners “clean up” the discoloration by painting over them.  If you suspect this might have been done, check the closets; most people don’t think of painting in there, and the discolorations will show clearly.

·    Bouncing floors – In older houses, the floors are sure to have at least a small amount of give when you walk across them.  However, too much give can mean sagging or unstable supports.  Generally, it’s a good idea to look at the supports no matter how small the amount of give is.

By following these pointers alone, you’ll have a better chance of picking up good real estate investment property rather than a money pit.

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Have you ever found real estate you were interested in that was obviously abandoned?  No “Property for Sale” sign stood in the yard of grass ten feet tall, and you had no idea how to figure out who owned the place.  Did you give up what your instincts knew would be a great deal because of it?

Well, you’re instincts were right.  Abandoned properties are one of the most common sources of leads for real estate investors interested in quick turnovers.  Owners generally aren’t interested in abandoned real estate properties; this makes the property easier to buy, and there is less competition than with a property that’s been taken care of.

The next time you come across abandoned real estate just screaming to be bought, don’t give up.  The following tips can help you hunt down that elusive property owner:

·    Search county appraisal offices – The first thing you’ll have to find out is who owns the property, and county appraisal offices are a great place to start.  It should be relatively easy to find the owner using only the address of the abandoned real estate.

·    Printed notices – If time isn’t a factor, you can leave printed notices at the properties on a regular basis, with your contact details.  The drawback here is that, if the property is truly abandoned, the owner may never visit it – which means they’ll never see the notice.

·    Private detective – If you’re short on time but have the money, a private eye may be the way to go.  Experts at hunting down people and information gathering, private detectives can be an excellent source for contact owners of abandoned real estate.

Now, there may be other ways to go about this – using a paid service, for instance – but these three are a great start.

Keep in mind, however, that there are drawbacks with abandoned real estate.  The top drawback, as you may be aware, is that abandoned properties are usually not well taken care of, and may have a lot that needs to be done before they can be sold.

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