Details

Investing in Real Estate


Investing in Real Estate


7. Aufl.

von: Gary W. Eldred

15,99 €

Verlag: Wiley
Format: PDF
Veröffentl.: 24.02.2012
ISBN/EAN: 9781118226964
Sprache: englisch
Anzahl Seiten: 384

DRM-geschütztes eBook, Sie benötigen z.B. Adobe Digital Editions und eine Adobe ID zum Lesen.

Beschreibungen

<p><b>The bestselling guide to real estate, newly revised for today’s investors</b></p> <p>More than ever, investing in property today will set you on track to conquer financial uncertainty and build your long-term net worth. <i>Investing in Real Estate, Seventh Edition</i> offers dozens of experience- proven methods to convert these challenging times into the best of times. <p>Whether you want to <b>fix and sell or buy, improve, and hold,</b> market savvy real estate investor Gary W. Eldred shows you how to achieve your goals. He provides time-tested ways to grow a profitable portfolio and shows you how property investing can deliver twenty-two sources of financial return. You’ll learn how to negotiate like a pro, read market trends, and choose from multiple possibilities to finance your properties. This timely new edition also includes: <ul><li>Historical context to emphasize how bargain prices and near record low interest rates now combine to offer unprecedented potential for short- and long-term profits</li> <li> Successfully navigate and meet today’s loan underwriting standards <li> How to obtain discounted property prices from banks, underwater owners, and government agencies </li> <li> How to value properties accurately—and, when necessary, intelligently challenge poorly prepared lender appraisals </li> <li>Effective techniques to acquire REOs and short sales on favorable terms within reasonable time frames </li> <li> How to market and manage your properties to outperform other investors</li> <li> And much more!</li></ul> <p>Join the pros who are profiting from today’s market. All you need is the knowledge edge provided by <i>Investing in Real Estate, Seventh Edition</i>—the most favored and reliable guide to gaining the rewards that real estate offers.
<p>Acknowledgments xix</p> <p>Prologue: Invest in Property Now xxi</p> <p><b>1 Achieve a Prosperous Future: 22 Ways You Can Earn Profits with Property 1</b></p> <p>22 Sources of Profit from Investment Property 2</p> <p>Will the Property Experience Price Gains from Appreciation? 2</p> <p>Will You Gain Price Increases from Inflation? 4</p> <p>Earn Good Returns from Cash Flows 5</p> <p>Magnify Your Equity Gains with Leverage 5</p> <p>Magnify Returns from Cash Flows with Leverage 6</p> <p>Build Wealth through Mortgage Payoff 7</p> <p>Over Time, Returns from Rents Go Up 7</p> <p>Refinance to Lift Your Cash Flows 9</p> <p>Refinance to Pocket Cash 10</p> <p>Buy at a Below-Market Price 11</p> <p>Sell at an Above-Market-Value Price 11</p> <p>Create Property Value through Smarter Management 12</p> <p>Create Value with a Savvy Market Strategy 12</p> <p>Create Value: Improve the Location 13</p> <p>Convert from Unit Rentals to Unit Ownership 13</p> <p>Subdivide Your Bundle of Property Rights 14</p> <p>Subdivide the Physical Property (or Space within a Property) 15</p> <p>Create Plottage (or Assemblage) Value 16</p> <p>Obtain Development or Redevelopment Rights 16</p> <p>Diversify Away from Financial Assets 18</p> <p>Is Property Your Best Investment Choice? 18</p> <p><b>2 Opm: Borrow Smart, Raise Cash, Build Equity 21</b></p> <p>The Birth of “Nothing Down” 22</p> <p>Should You Invest with Little or No Cash or Credit? 23</p> <p>What’s Wrong with “No Cash, No Credit, No Problem”? 23</p> <p>Leverage: Pros and Cons 26</p> <p>What Are Your Risk-Return Objectives? 32</p> <p>Maximize Leverage with Owner-Occupancy Financing 33</p> <p>Owner-Occupied Buying Strategies 34</p> <p>Current Homeowners, Too, Can Use This Method 34</p> <p>Why One Year? 34</p> <p>Where Can You Find High-LTV Owner-Occupied Mortgages? 35</p> <p>What Are the Loan Limits? 35</p> <p>High Leverage for Investor-Owner Financing 37</p> <p>High Leverage versus Low (or No) Down Payment 37</p> <p>Creative Finance Revisited 37</p> <p>Are High-Leverage Creative-Finance Purchases Readily Available? 45</p> <p>Build Confi dence with Lenders, Investors, Sellers, and Sales Agents 46</p> <p>Credit Scores and Credit Record 48</p> <p>Capacity (Monthly Income) 48</p> <p>Cash Reserves and Source of Down Payment 50</p> <p>Collateral 51</p> <p>Loan-to-Value Ratios 51</p> <p>Recourse to Other Assets or Income 52</p> <p>Character 53</p> <p>Competence and Experience 54</p> <p>Compensating Factors 54</p> <p>Automated Underwriting (AUS) 55</p> <p><b>3 Appraisal: Ins And Outs Of Market Value 57</b></p> <p>What Is Market Value? 58</p> <p>Sales Price Doesn’t Necessarily Equal Market Value 59</p> <p>Underwriting Rules Determine the Value in LTV 59</p> <p>How to Estimate Market Value 60</p> <p>Property Description 61</p> <p>Identify the Subject Property 68</p> <p>Neighborhood 68</p> <p>Site (Lot) Characteristics 69</p> <p>Improvements 70</p> <p>The Cost Approach 71</p> <p>Calculate Cost to Build New 71</p> <p>Deduct Depreciation 72</p> <p>Lot Value 73</p> <p>Estimate Market Value (Cost Approach) 73</p> <p>The Comparable Sales Approach 75</p> <p>Select Comparable Properties 75</p> <p>Approximate Value Range—Subject Property 76</p> <p>Adjust for Differences 76</p> <p>Explain the Adjustments 77</p> <p>The GRM Income Approach 78</p> <p>Income Capitalization 80</p> <p>Net Operating Income 80</p> <p>Estimate Capitalization Rates (R) 83</p> <p>Compare Cap Rates 84</p> <p>Relative Prices: The Paradox of Risk and Appreciation (Depreciation) 85</p> <p>Valuation Methods: Summing Up 86</p> <p>Appraisal Limiting Conditions 87</p> <p>Valuation versus Investment Analysis 87</p> <p><b>4 Maximize Cash Flows and Grow Your Equity 89</b></p> <p>Will the Property Yield Good Cash Flows? 89</p> <p>Arrange Alternative Terms of Financing 91</p> <p>Decrease (or Increase) Your Down Payment 92</p> <p>Buy at a Bargain Price 94</p> <p>Should You Ever Pay More than Market Value for a Property? 95</p> <p>The Debt Coverage Ratio 97</p> <p>Numbers Change, Principles Remain 97</p> <p>Will the Property Yield Profi table Increases in Price? 98</p> <p>Low-Involvement versus High-Involvement Investing 99</p> <p>Compare Relative Prices of Neighborhoods (Cities) 100</p> <p>Undervalued Neighborhoods and Cities 101</p> <p>Beverly Hills versus Watts (South Central Los Angeles) 101</p> <p>Demographics 103</p> <p>Accessibility (Convenience) 103</p> <p>Improved (Increased) Transportation Routes 104</p> <p>Jobs and Economic Base 104</p> <p>Taxes, Services, and Fiscal Solvency 105</p> <p>New Construction, Renovation, and Remodeling 106</p> <p>Land-Use Laws 106</p> <p>Pride of Place 107</p> <p>Sales and Rental Trends 107</p> <p>Summing Up 109</p> <p><b>5 Pay Less Than Market Value 111</b></p> <p>Why Properties Sell for Less (or More) than Market Value 112</p> <p>Owners in Distress 113</p> <p>The Grass-Is-Greener Sellers 114</p> <p>Stage-of-Life Sellers 115</p> <p>Seller Ignorance 116</p> <p>Prepare Screening Criteria 117</p> <p>Bargain Sellers 118</p> <p>Networking/Get the Word Out/Social Media 118</p> <p>Newspapers and Other Publications 119</p> <p>Cold Call Owners 119</p> <p>Agent Services 121</p> <p>Internet Listings 124</p> <p>Seller Disclosures 124</p> <p>The Disclosure Revolution 125</p> <p>Income Properties 126</p> <p>Summary 126</p> <p><b>6 Profit with Foreclosures 127</b></p> <p>The Foreclosure Process 128</p> <p>Lender Tries to Resolve Problem 128</p> <p>Filing Legal Notice 128</p> <p>The Foreclosure Sale 129</p> <p>REOs 129</p> <p>Buy Preforeclosures from Distressed Owners 130</p> <p>Approach Owners with Empathy 131</p> <p>The Difficulties of Dealing Profitably with Owners in Default 131</p> <p>Prequalify Homeowners and Properties 134</p> <p>Finding Homeowners in Default (Prefiling) 135</p> <p>Networking 135</p> <p>Mortgage Collections Personnel 135</p> <p>Drive Neighborhoods 136</p> <p>Find Homeowners (Postfiling) 136</p> <p>Cultivate a Relationship with Property Owners 137</p> <p>Two More Issues 137</p> <p>Vacant Houses 139</p> <p>Satisfy Lenders and Lien Holders 140</p> <p>All Parties Are Better Off 141</p> <p>Win by Losing Less 142</p> <p>Profi t from the Foreclosure Auction 142</p> <p>Why Foreclosures Sell for Less than Market Value 143</p> <p>Make the Adverse Sales Efforts Work for You 144</p> <p>How to Arrange Financing 145</p> <p>The Foreclosure Sale: Summing Up 146</p> <p><b>7 Profit from Reos and other Bargain Sales 147</b></p> <p>Sad for Sellers and Builders, Bargains for You 147</p> <p>How to Find REOs 148</p> <p>Follow Up with Lenders after Foreclosure Sales 148</p> <p>Locate Specialty Realtors 149</p> <p>HUD Homes and Other HUD Properties 150</p> <p>Homeowners versus Investors 151</p> <p>As-Is Condition 151</p> <p>Potential Conflict of Interest 152</p> <p>Buyer Incentives 153</p> <p>The Bid Package 153</p> <p>Department of Veterans Affairs (REOs) 153</p> <p>Big Advantages for Investors 154</p> <p>Fannie Mae and Freddie Mac REOs 155</p> <p>Agent Listings 156</p> <p>Investors Invited 156</p> <p>Federal Government Auctions 157</p> <p>Buy from Foreclosure Speculators 157</p> <p>Probate and Estate Sales 158</p> <p>Probate 158</p> <p>Estate Sales 158</p> <p>Private Auctions 159</p> <p>How to Find Auctions 160</p> <p><b>8 Profit by Creating Value 163</b></p> <p>Fix, Sell, Profit! 163</p> <p>Your Fixer-Upper Search 164</p> <p>The Browns Create Value in a Down Market 165</p> <p>Research, Research, Research 166</p> <p>Improvement Possibilities 167</p> <p>Deep Clean the Property 167</p> <p>Add Pizzazz with Color Schemes, Decorating Patterns, and Fixtures 168</p> <p>Create Usable Space 168</p> <p>Create a View 169</p> <p>Capitalize on Owner Nearsightedness 170</p> <p>Eliminate a Negative View 170</p> <p>Enhance the Unit’s Natural Light 171</p> <p>Reduce Noise 171</p> <p>Required Repairs and Improvements 172</p> <p>Plumbing 172</p> <p>Electrical System 172</p> <p>Heating and Air Conditioning 173</p> <p>Windows 173</p> <p>Appliances 173</p> <p>Walls and Ceilings 173</p> <p>Doors and Locks 174</p> <p>Landscaping 174</p> <p>Storage Areas 174</p> <p>Clean Well 174</p> <p>Safety and Health 175</p> <p>Roofs 175</p> <p>Improvements and Alterations 175</p> <p>You Can Improve Everything about a Property—Including Its Location 175</p> <p>South Beach: From Derelicts to Fashion Models 176</p> <p>Community Action and Community Spirit Make a Difference 177</p> <p>Neighborhoods Offer Potential 177</p> <p>What Types of Improvements Pay the Greatest Returns? 178</p> <p>How Much Should You Budget for Improvements? 179</p> <p>Beware of Overimprovement 179</p> <p>Other Benefits 180</p> <p>No-No Improvements? 180</p> <p>Budgeting for Resale Profits 181</p> <p>Estimate the Sales Price First 181</p> <p>Estimate Costs 181</p> <p>Future Sales Price – (Costs + Profi t) = Maximum Acquisition Price 182</p> <p>Comply with Laws and Regulations 183</p> <p>Should You Buy a Fixer-Upper? 184</p> <p>Too Little Time? 184</p> <p>Put Your Creativity to Work 185</p> <p><b>9 More Techniques to Profit With Property 187</b></p> <p>Lease Options 187</p> <p>Here’s How Lease Options Work 188</p> <p>Benefits to Tenant-Buyers (an Eager Market) 188</p> <p>Benefits to Investor-Sellers 190</p> <p>The Lease Option Sandwich 191</p> <p>How to Find Lease Option Buyers and Sellers 192</p> <p>A Creative Beginning with Lease Options (for Investors) 192</p> <p>Lease Purchase Agreements 193</p> <p><i>Seems</i> More Defi nite 193</p> <p>Amount of the Earnest Money (Option) Deposit 194</p> <p>Contingency Clauses 194</p> <p>Conversions 194</p> <p>Condominium Conversion 195</p> <p>Convert Apartments to Office Space 196</p> <p>Tenants in Common 197</p> <p>Master Leases 198</p> <p>Assignments: Flipping Purchase Contracts 200</p> <p>Summary 202</p> <p><b>10 Negotiate a Win-Win Purchase Agreement 203</b></p> <p>Win-Win Principles 204</p> <p>The Purchase Contract 207</p> <p>Names of the Parties 208</p> <p>Site Description 208</p> <p>Building Description 208</p> <p>Personal Property 209</p> <p>Price and Financing 210</p> <p>Earnest Money Deposit 210</p> <p>Quality of Title 211</p> <p>Property Condition 212</p> <p>Preclosing Property Damage (Casualty Clause) 212</p> <p>Closing (Settlement) Costs 213</p> <p>Closing and Possession Dates 214</p> <p>Leases 214</p> <p>Contingency Clauses 216</p> <p>Assignment and Inspection 217</p> <p>Public Records 217</p> <p>Systems and Appliances 218</p> <p>Environmental Hazards 218</p> <p>No Representations 218</p> <p>Default Clause 219</p> <p>Summary 221</p> <p><b>11 Strategic Management Builds Equity 225</b></p> <p>The 10:1 Rule (More or Less) 225</p> <p>Think First 226</p> <p>Know Yourself 227</p> <p>Know Your Finances 228</p> <p>Know Your Capabilities 228</p> <p>Smart Strategic Decisions 229</p> <p>Tailor Strategy to Local Markets 229</p> <p>Craig Wilson’s Profi t-Boosting Market Strategy 229</p> <p>How Craig Wilson Used Market Information to Enhance Profitability 232</p> <p>Results 236</p> <p>Cut Operating Expenses 236</p> <p>Energy Audits 237</p> <p>Property Insurance 237</p> <p>Maintenance and Repair Costs 240</p> <p>Property Taxes and Income Taxes 241</p> <p>Add Value: Closing Words 241</p> <p><b>12 Develop the Best Lease 243</b></p> <p>The Mythical Standard Lease 243</p> <p>Your Market Strategy 243</p> <p>Search for Competitive Advantage 245</p> <p>Craft Your Rental Agreement 246</p> <p>Names and Signatures 246</p> <p>Joint and Several Liability 247</p> <p>Guests 247</p> <p>Length of Tenancy 247</p> <p>Holdover Tenants (Mutual Agreement) 248</p> <p>Holdover Tenants (without Permission) 248</p> <p>Property Description 248</p> <p>Inventory and Describe Personal Property 249</p> <p>Rental Amounts 249</p> <p>Late Fees and Discounts 250</p> <p>Multiple Late Payments 250</p> <p>Bounced Check Fees and Termination 250</p> <p>Tenant “Improvements” 251</p> <p>Owner Access 251</p> <p>Quiet Enjoyment 251</p> <p>Noxious Odors 252</p> <p>Disturbing External Influences 252</p> <p>Tenant Insurance 253</p> <p>Sublet and Assignment 253</p> <p>Pets 253</p> <p>Security Deposits 254</p> <p>Yard Care 255</p> <p>Parking, Number, and Type of Vehicles 256</p> <p>Repairs 256</p> <p>Roaches, Fleas, Ants 257</p> <p>Neat and Clean 257</p> <p>Rules and Regulations 257</p> <p>Wear and Tear 257</p> <p>Lawful Use of Premises 258</p> <p>Notice 258</p> <p>Failure to Deliver 258</p> <p>Utilities, Property Taxes, Association Fees 259</p> <p>Liquid-Filled Furniture 259</p> <p>Abandonment of Property 260</p> <p>Nonwaivers 260</p> <p>Breach of Lease (or House Rules) 260</p> <p>No Representations (Full Agreement) 261</p> <p>Arbitration 261</p> <p>Attorney Fees (Who Pays?) 261</p> <p>Written Notice to Remedy 263</p> <p>Tenants’ Rights Laws 263</p> <p>Tenant Selection 263</p> <p>Property Operations 265</p> <p>Evictions 265</p> <p>Landlording: Pros and Cons 266</p> <p>Possibilities, Not Probabilities 266</p> <p>Professional Property Managers 266</p> <p><b>13 Create Promotions That Sell 269</b></p> <p>Design a Winning Value Proposition 269</p> <p>Yet Generic Prevails 269</p> <p>USP versus WVP 270</p> <p>Craft Your Selling Message 272</p> <p>Use a Grabber Headline or Lead 273</p> <p>Reinforce and Elaborate 273</p> <p>Add Hot Buttons 273</p> <p>Establish Credibility 274</p> <p>Compare to Substitutes 274</p> <p>Evoke Emotional Appeal 274</p> <p>Reduce Perceived Risks 274</p> <p>Make It Easy for Prospects to Respond 275</p> <p>Follow Up with Your Prospects 276</p> <p>Reach Potential Buyers 277</p> <p>For Sale Signs 277</p> <p>Flyers and Brochures 277</p> <p>Networking (Word of Mouth) 278</p> <p>Websites and Links 279</p> <p>Sales Agents 279</p> <p>Should You Employ a Realty Agent? 279</p> <p>Services to Sellers 279</p> <p>Services to Buyers 280</p> <p>Co-Op Sales 282</p> <p>Listing Contracts 282</p> <p><b>14 Pay Less Tax 285</b></p> <p>The Risks of Change and Complexity 285</p> <p>Homeowner Tax Savings 286</p> <p>Capital Gains without Taxes 286</p> <p>Rules for Vacation Homes 287</p> <p>Mortgage Interest Deductions 288</p> <p>Credit Card Interest 288</p> <p>Rules for Your Home Offi ce 289</p> <p>Depreciation Expense 289</p> <p>Land Value Is Not Depreciable 289</p> <p>Land Values Vary Widely 290</p> <p>After-Tax Cash Flows 290</p> <p>Passive Loss Rules 292</p> <p>Taxpayers in the Real Property Business (No Passive Loss Rules) 292</p> <p>Alternative Minimum Tax 293</p> <p>Capital Gains 293</p> <p>A Simplified Example 293</p> <p>The Installment Sale 294</p> <p>What’s the Bottom Line for Sellers? 295</p> <p>Implications for Buyers 295</p> <p>Tax-Free Exchanges 296</p> <p>Exchanges Don’t Necessarily Involve Two-Way Trades 296</p> <p>The Three-Party Exchange 296</p> <p>Exchanges Are Complex but Easy 297</p> <p>Are Tax-Free Exchanges Really Tax Free? 298</p> <p>Section 1031 Exchange Rules 299</p> <p>Reporting Rental Income and Deductions 300</p> <p>Tax Credits 301</p> <p>Complexity, Tax Returns, and Audits 303</p> <p>Use a Tax Pro 305</p> <p>Property Taxes 306</p> <p>Summary 308</p> <p><b>15 More Ideas for Profitable Investing 311</b></p> <p>Out-of-Area Investing 312</p> <p>Reasons to Invest Elsewhere 312</p> <p>What about Property Management? 313</p> <p>Tenant-Assisted Management 314</p> <p>Property Management Companies 314</p> <p>Emerging Growth Areas 314</p> <p>The Creative Class 314</p> <p>Implications for Investing in Real Estate 315</p> <p>Right Place, Right Time 315</p> <p>Emerging Retirement and Second-Home Areas 316</p> <p>Which Cities and Areas? 316</p> <p>Income Investing 317</p> <p>Out-of-Area Caveats 317</p> <p>Commercial Properties 318</p> <p>Low Effort Management 319</p> <p>The Upside and Downside 319</p> <p>Opportunity for High Reward 320</p> <p>Commercial Leases Create (or Destroy) Value 320</p> <p>Triple Net (NNN) 322</p> <p>Self-Storage 323</p> <p>Mobile Home Parks 325</p> <p>Profitable Possibilities with Zoning 327</p> <p>Tax Liens and Tax Deeds 327</p> <p>Localities Differ 328</p> <p>Are Tax Liens and Tax Deeds an Easy Way to Make Big Profits? 328</p> <p>Discounted Paper 328</p> <p>What Is Discounted Paper? 329</p> <p>Here’s How the Loan Sale Works 329</p> <p>Sell the Note at a Premium 330</p> <p>Delinquent and Nonperforming Loans 330</p> <p>Due Diligence Issues 331</p> <p>Should You Form an LLC? 332</p> <p>Different Strokes for Different Folks 332</p> <p>Court Rulings 332</p> <p>One Size Doesn’t Fit All 332</p> <p><b>16 Opportunity</b> <b><i>For</i></b> <b>A Lifetime 335</b></p> <p>USA: Right Time, Right Price, Right Place 335</p> <p>Personal Opportunity 336</p> <p>Index 339</p>
<p><b>GARY W. ELDRED, PhD</b> is the bestselling author of <i>The Beginner’s Guide to Real Estate Investing, The 106 Common Mistakes Homebuyers Make (and How to Avoid Them), Trump University Real Estate 101,</i> and many others. He is a leading real estate authority whose Fortune 500 clients have included Wells Fargo, Georgia- Pacific, and Century 21. He frequently speaks at national investment conferences and has served on the graduate business faculty at Stanford University, the University of Illinois, and the University of Virginia.</p>
<p><b>The bestselling guide to real estate, newly revised for today’s investors</b></p> <p>More than ever, investing in property today will set you on track to conquer financial uncertainty and build your long-term net worth. <i>Investing in Real Estate, Seventh Edition</i> offers dozens of experience- proven methods to convert these challenging times into the best of times. <p>Whether you want to <b>fix and sell or buy, improve, and hold,</b> market savvy real estate investor Gary W. Eldred shows you how to achieve your goals. He provides time-tested ways to grow a profitable portfolio and shows you how property investing can deliver twenty-two sources of financial return. You’ll learn how to negotiate like a pro, read market trends, and choose from multiple possibilities to finance your properties. This timely new edition also includes: <ul><li>Historical context to emphasize how bargain prices and near record low interest rates now combine to offer unprecedented potential for short- and long-term profits</li> <li> Successfully navigate and meet today’s loan underwriting standards <li> How to obtain discounted property prices from banks, underwater owners, and government agencies </li> <li> How to value properties accurately—and, when necessary, intelligently challenge poorly prepared lender appraisals </li> <li>Effective techniques to acquire REOs and short sales on favorable terms within reasonable time frames </li> <li> How to market and manage your properties to outperform other investors</li> <li> And much more!</li></ul> <p>Join the pros who are profiting from today’s market. All you need is the knowledge edge provided by <i>Investing in Real Estate, Seventh Edition</i>—the most favored and reliable guide to gaining the rewards that real estate offers.

Diese Produkte könnten Sie auch interessieren:

Agile Project Management
Agile Project Management
von: Project Management Journal
EPUB ebook
23,99 €
Make Change Work
Make Change Work
von: Randy Pennington
PDF ebook
14,99 €
Nonprofit Law Made Easy
Nonprofit Law Made Easy
von: Bruce R. Hopkins
EPUB ebook
53,99 €