‘s obvious that the real estate market is suffering. But whether it has hit rock bottom is a subject of debate. Is the worst behind us? Or is it yet to come?
According to real estate investment guru Dean Graziosi, debating whether the market is at its lowest right now will cost you the opportunity of a lifetime.
Warren Buffett said it best: Be greedy when others are scared, and be scared when others are greedy.
When it comes to investing in real estate, the country is scared silly. So, you know what that means.
Anything new in someone’s life always seems difficult and scary, Graziosi says. Right now fear is the No. 1 deterrent in real estate investing. What takes away the fear is proper education. Once you understand something, the fear is gone and you’re ready to take action.
Graziosi’s actions speak louder than his words. During a 60-day period in August and September, he purchased more than 250 homes around the country “ the most he’s ever bought in such a short period.
The Power of Stabilization
According to Graziosi, one of the best indicators of the market’s position is the stability of days on market (DOM) statistics.
If the DOM, or how long a property takes to sell, is increasing, it means the market is dropping. If it’s decreasing, it means the market is growing, he says. The DOM has stabilized in pretty much every market across the country.
Even if the market drops a few percent more, the education Graziosi offers about how to implement smart strategies allows people to buy significantly below the bottom “ wherever the bottom is.
That’s where people gain their confidence, he says.
Team Work is Free Work
Another worry holding investors back from seizing the day is the worry of unforeseen start-up costs.
Unlike any other profession, in real estate you can have a team of experts that will work for you for free. Graziosi says.
Real estate agents looking for great deals, contractors and handymen giving free quotes, even title companies work for free until you close deals “ they make money when you make money. All this allows investors to tap into expert knowledge without up-front costs.
Graziosi says one of the reasons he is actively investing more than ever is he’s partnering with his students more than ever.
The real estate market changes month to month, he says. Working with other people who are out there on the ground helps you see things you couldn’t see on your own.
Matt Larson, one of Graziosi’s students and a former machine shop worker, has now become one of the guru’s most trusted partners.
More than 100 of the last 250 deals I bought were through Matt, Graziosi says. Developing a support team of other people helps you find out about what strategies are working out on the ground right now.
The Greatest Time in the History of Profit
While knowing the latest, greatest strategies is important, it isn’t necessarily required to be successful right now. This is truly the greatest time in the history of profit, Graziosi says. By accident you could make money in this market.
Graziosi first got involved during the real estate market crash in the early 1980s and found unbelievable success.
If I put my money in stocks and bonds, I have no control, he says. But if I put my money in real estate, I can have tenants paying down my debt or paying back my loss while the market grows.
And attracting tenants is in your control, especially because you can choose to buy in smart locations and invest in properties in high demand. You can buy below their already rock-bottom market value.
And the best part Graziosi teaches his students daily, is the details of how to make smart real estate decisions. He also educated people looking to make money as the middle man, matching cash investors who are wary of stock market investments with motivated sellers on the market.
We teach them to sift, sort and screen to find deals among the motivated sellers, he says. When they match the two up, they find a fee in the middle.
Middlemen like these can make between $2,500 to $10,000 per deal with no money down, further evidence that the versatile real estate market can make money for any set of needs and interests.
To those thinking about entering the real estate market right now because they’re a little desperate, Graziosi says, Stay desperate. People who are desperate take action.
He’s careful to make sure his students know real estate investing isn’t easy “ it requires focus and hard work. But a little hard work doesn’t scare most people. For most, it’s past mistakes that are paralyzing.
When you fail, when things go wrong in your life, when you’re disappointed, how fast do you bounce back? he says. If it takes you a long time, success will also take a long time.
And in a market opportunity this good, there’s no time to waste.
The real estate market changes month to month. Working with other people who are out there on the ground helps you see things you couldn’t see on your own. Dean Graziosi, Real Estate Expert.
[Editor’s Note: Come and hear Real Estate Expert, Lynn Alder speak on this topic at the AOA Trade Show and Educational Conference on Thursday, May 17th at the Long Beach Convention Center at 4:30 pm.]