This article was posted on Monday, Jul 30, 2012

There’s No Time Like the Present: When
Prices Hit Rock Bottom, The Smart Get Investing
By Samantha Murphey

‘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
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.

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Moving Forward
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
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.

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