How to Profit In Any Market By Learning to Read The Real Estate Cycles

Dean Graziosi writes in his book, “Be A Real Estate Millionaire: Secret Strategies for Lifetime Wealth Today” the same strategies Dean has been using for over 20 years, and teaching to novice real estate investors all across the United States. That book quickly became the fastest selling real estate investing book in the country and a NY Times Best seller. It is a simple, straight forward real estate investing guide for people who want to know how they can useGraziosi says the big TV real estate gurus are cheating honest, hard-working people who are trying to make money in real estate. They do it two different ways. First of all, they sell us millions and millions of dollars worth of real estate methods that are worthless in today's market. Sure, what they're teaching may have worked in the 80's; but, you'll get slaughtered if you try these methods today.The second way they cheat us is, they try to keep us from finding out the best ways to make money...especially in todays vicious down market. (Since they make the majority of their money selling out-dated programs, they don't need their strategies to work.)But, for the past 20 years Dean Graziosi has been an active real estate investor. In fact, he’s made many millions of dollars and now lives what most would consider a "dream" lifestyle. Not bad for a guy who used to be...Flat Broke and Deep in Debt! That just goes to show that this isn't rocket science. It's actually surprisingly simple when you figure it out. No, in fact, in twenty years of doing real estate, he predicts (using these methods) that he will make more in the next three years than the previous twenty years combined. And yet, this fairly simple formula is probably something you (1) never heard anything about, or (2) have never given much consideration to the opportunity...yet...it is helping those who use it make breathtaking profits, even if they have no experience with real estate. Picture the real estate cycle as a roller coaster ride. In the beginning, you gradually climb upwards. Then you reach the top. This is where you stop going up, but you haven't started to go down yet. Suddenly, you plummet downward—the higher you are, the faster you go down. Finally, the roller coaster levels off, only to go back up and then down again.Keeping that in mind, let's do a quick review of the different real estate cycles:Up Cycle: In an up cycle, the demand for houses is greater than the supply. You can tell if the real estate market is in an up-cycle by how fast (or slow) properties are selling. In a really hot market, homes can sell the same day they're listed. A great strategy in an up cycle is fixing and flipping. That's where you buy a house, fix it up, and then sell it later for greater profits as prices continue to climb.Top Cycle: At the top or peak, supply is close or equal to the demand. Because of this, prices start stabilizing. Often, when properties start taking longer to sell that indicates a market is at the peak stage. A peak cycle can be a perfect time to find motivated or desperate sellers and get a great deal on property.3. Down Cycle: During a down cycle, supply far outstrips demand. Prices can fall quickly, but more often than not, prices just stop increasing or fall slightly. A down cycle can last for years. A little-known fact is that during this cycle condition, you can often pick up unsold new construction units at "fire sale" prices.4. Bottom Cycle: At the bottom of the cycle, supply is very close to demand. Prices stabilize and buyers start coming back into the market, starting the cycle all over again. Usually in this situation, prices have fallen as far as they are going to and will start to rise within a few years.If a bottom market continues for years it can turn into a prolonged bottom stage (a rare, but 5th cycle). This usually happens in small towns or cities when a large factory or big employer goes belly-up. A smart strategy in this market condition is to purchase property with no money down (because you can get them so cheap) and make money by renting them out for positive cash flow.Basically, it's not difficult to be extremely successful doing this. You just have to understand what cycle the market is in and then use the right strategy to make money. That's why...the purpose of Dean’s books and study programs is to teach you how to read market cycles with the precision of a Swiss watch and then, use the right strategy to make staggering profits.To see an exclusive online deal on Dean Graziosi’s best seller click here: 

Realtors

I am scheduled to look at 2 properties with 2 different Realtor's I have been totally upfront with both and how this happened.
They want me to sign a buyer's contract with them I am not sure that I am sold on either one yet.
I don't know if they understan all that I am doing.
But I do not want to start out with a couple of realitors ****ed off at me right away.
Both properties are multi units that look like they will carry the finacing after purchase and I don't have enough for all of the down payments.
I might pushing it one just one.
I am think about trying to tie one up with a lease purchase or a lease option.
Any suggestions?

Contract Not Needed

Your situations and/or locale may make your experiences different from mine, but I have always just called the listing agent, told them I want to see the house and I am prequalified. They will solicit me to act as my buyers agent, but I just tell them I don't want one, but I do want them to show me the house they are representing.

I don't think they can require a buyers contract as a condition to view the home, assuming you are a qualified buyer, just because you don't have a realtor. If they do, call the owner directly. They probably won't appreciate that the agents main concern is getting the buyer agent commission locked in, instead of selling the house.

Also, without having a realtor you can negotiate a lower price because the owner won't have to pay the (typical) 3% on the buyer's agent commission. That's a savings of $7,500 on a $250k home.

On the other hand, if you want a realtor to go out and find deals for you, then it is reasonable for them to want a contact signed.

Your comment re: Calling the owner directly

How can you do that and not get the listing agent peeved as the Owner can't work around their listing agent? I would love to go direct....live in Washington (don't know if that matters )but can't see how to do it.

Any advise will be greatly appreciated.

Agents work for the owner,

Agents work for the owner, not the other way around. Agents are obligated to show the home to qualified buyers to get it sold. Just tell the realtor you have no use for a agent, you found it on your own, and if they won't show it you then you'll ask the owners to show it to you. You can find a way to put that in very polite manner not to offend. If the realtor is a total jerk then you might have to let the owners know either way that the realtor wants to get both sides of the commission or he wouldn't show you the home. I would be really mad if I were the owner.

The only way to truly get

The only way to truly get around the agent fee's is looking for FSBO's. If an owner already has a listing agent, it's already in the deal that upon sale the agent typically gets 3-8%, depending on your area.

It's best to have a great working relationship with both a lender and a realtor you TRUST before starting out. Talk to a few to get a feel. When setting up my contracts, i have the realtor(s) i work with side with me, but they split the commission with the selling agent. I don't pay anything to them, however, if i'm turning around a property, especially in an area that i'm not actively living in, it works out great cause the realtor that i list with is also the realtor that is my agent when looking for houses. It helps establish a great relationship.

how do you get phone numbers...

canderson's picture

Some people have unlisted phone numbers, how do you go about getting them if you are not a real estate agent?
Clint

Use snail mail

Anitarny's picture

If you have an address and no phone number write a letter

Real Estate Cycles

Indiana-Joe's picture

I found this information to be extremely useful. Sometimes you do not think of real estate as a cycle opprotunity. However, Dean's insight to this has really made me a better investor to understand market cycles and understand a strategy tp profit from it. Thanks for sharing such great information. Believe and Achieve! Smiling

bump

reinvestor42's picture

it

match strategies

reinvestor42's picture

with cycles

NOW

reinvestor42's picture

DO IT

Real estate investment

Well real estate investment is full of risk but still who are landlords they can go for a choice. In one word we must select the right term and condition for tenants that they can feel home type care in your property.