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Investing in Real Estate, 7th Edition

Book Description

The bestselling guide to real estate, newly revised for today's investors

More than ever, investing in property today will set you on track to conquer financial uncertainty and build your long-term net worth. Investing in Real Estate, Seventh Edition offers dozens of experience- proven methods to convert these challenging times into the best of times.

Whether you want to fix and sell or buy, improve, and hold, 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:

  • 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

  • Successfully navigate and meet today's loan underwriting standards

  • How to obtain discounted property prices from banks, underwater owners, and government agencies

  • How to value properties accurately—and, when necessary, intelligently challenge poorly prepared lender appraisals

  • Effective techniques to acquire REOs and short sales on favorable terms within reasonable time frames

  • How to market and manage your properties to outperform other investors

  • And much more!

Join the pros who are profiting from today's market. All you need is the knowledge edge provided by Investing in Real Estate, Seventh Edition—the most favored and reliable guide to gaining the rewards that real estate offers.

"This is the best how-to-invest-in-real-estate book available."

Robert Bruss

INVEST NOW for Large Future Gains

INVEST NOW for Increasing Cash Flows

INVEST NOW for Lifetime Security

Table of Contents

  1. Cover Page
  2. Title Page
  3. Copyright
  4. Contents
  5. ACKNOWLEDGMENTS
  6. Prologue: INVEST IN PROPERTY NOW
    1. TODAY'S ODDS POINT DIRECTLY TOWARD PRESENT AND FUTURE GAINS
    2. DEVELOP YOUR INVESTMENT PLAN
  7. 1: ACHIEVE A PROSPEROUS FUTURE: 22 WAYS YOU CAN EARN PROFITS WITH PROPERTY
    1. 22 SOURCES OF PROFIT FROM INVESTMENT PROPERTY
    2. IS PROPERTY YOUR BEST INVESTMENT CHOICE?
  8. 2: OPM: BORROW SMART, RAISE CASH, BUILD EQUITY
    1. THE BIRTH OF “NOTHING DOWN”
    2. SHOULD YOU INVEST WITH LITTLE OR NO CASH OR CREDIT?
    3. MAXIMIZE LEVERAGE WITH OWNER-OCCUPANCY FINANCING
    4. WHAT ARE THE LOAN LIMITS?
    5. HIGH LEVERAGE FOR INVESTOR-OWNER FINANCING
    6. BUILD CONFIDENCE WITH LENDERS, INVESTORS, SELLERS, AND SALES AGENTS
  9. 3: APPRAISAL: INS AND OUTS OF MARKET VALUE
    1. WHAT IS MARKET VALUE?
    2. HOW TO ESTIMATE MARKET VALUE
    3. PROPERTY DESCRIPTION
    4. THE COST APPROACH
    5. THE COMPARABLE SALES APPROACH
    6. THE GRM INCOME APPROACH
    7. INCOME CAPITALIZATION
    8. Relative Prices: The Paradox of Risk and Appreciation (Depreciation)
    9. VALUATION METHODS: SUMMING UP
  10. 4: MAXIMIZE CASH FLOWS AND GROW YOUR EQUITY
    1. WILL THE PROPERTY YIELD GOOD CASH FLOWS?
    2. WILL THE PROPERTY YIELD PROFITABLE INCREASES IN PRICE?
    3. SUMMING UP
  11. 5: PAY LESS THAN MARKET VALUE
    1. WHY PROPERTIES SELL FOR LESS (OR MORE) THAN MARKET VALUE
    2. PREPARE SCREENING CRITERIA
    3. BARGAIN SELLERS
    4. SELLER DISCLOSURES
    5. SUMMARY
  12. 6: PROFIT WITH FORECLOSURES
    1. THE FORECLOSURE PROCESS
    2. REOs
    3. BUY PREFORECLOSURES FROM DISTRESSED OWNERS
    4. PREQUALIFY HOMEOWNERS AND PROPERTIES
    5. FINDING HOMEOWNERS IN DEFAULT (PREFILING)
    6. FIND HOMEOWNERS (POSTFILING)
    7. SATISFY LENDERS AND LIEN HOLDERS
    8. PROFIT FROM THE FORECLOSURE AUCTION
    9. THE FORECLOSURE SALE: SUMMING UP
  13. 7: PROFIT FROM REOs AND OTHER BARGAIN SALES
    1. SAD FOR SELLERS AND BUILDERS, BARGAINS FOR YOU
    2. HOW TO FIND REOS
    3. HUD HOMES AND OTHER HUD PROPERTIES
    4. DEPARTMENT OF VETERANS AFFAIRS (REOs)
    5. FANNIE MAE AND FREDDIE MAC REOs
    6. FEDERAL GOVERNMENT AUCTIONS
    7. BUY FROM FORECLOSURE SPECULATORS
    8. PROBATE AND ESTATE SALES
    9. PRIVATE AUCTIONS
  14. 8: PROFIT BY CREATING VALUE
    1. FIX, SELL, PROFIT!
    2. YOUR FIXER-UPPER SEARCH
    3. IMPROVEMENT POSSIBILITIES
    4. REQUIRED REPAIRS AND IMPROVEMENTS
    5. YOU CAN IMPROVE EVERYTHING ABOUT A PROPERTY—INCLUDING ITS LOCATION
    6. WHAT TYPES OF IMPROVEMENTS PAY THE GREATEST RETURNS?
    7. BUDGETING FOR RESALE PROFITS
    8. COMPLY WITH LAWS AND REGULATIONS
    9. SHOULD YOU BUY A FIXER-UPPER?
  15. 9: MORE TECHNIQUES TO PROFIT WITH PROPERTY
    1. LEASE OPTIONS
    2. LEASE PURCHASE AGREEMENTS
    3. CONVERSIONS
    4. TENANTS IN COMMON
    5. MASTER LEASES
    6. ASSIGNMENTS: FLIPPING PURCHASE CONTRACTS
    7. SUMMARY
  16. 10: NEGOTIATE A WIN-WIN PURCHASE AGREEMENT
    1. WIN-WIN PRINCIPLES
    2. THE PURCHASE CONTRACT
    3. SUMMARY
  17. 11: STRATEGIC MANAGEMENT BUILDS EQUITY
    1. THE 10:1 RULE (MORE OR LESS)
    2. SMART STRATEGIC DECISIONS
    3. CUT OPERATING EXPENSES
    4. ADD VALUE: CLOSING WORDS
  18. 12: DEVELOP THE BEST LEASE
    1. THE MYTHICAL STANDARD LEASE
    2. CRAFT YOUR RENTAL AGREEMENT
    3. Arbitration
    4. TENANTS' RIGHTS LAWS
    5. LANDLORDING: PROS AND CONS
  19. 13: CREATE PROMOTIONS THAT SELL
    1. DESIGN A WINNING VALUE PROPOSITION
    2. CRAFT YOUR SELLING MESSAGE
    3. Reinforce and Elaborate
    4. REACH POTENTIAL BUYERS
    5. SHOULD YOU EMPLOY A REALTY AGENT?
  20. 14: PAY LESS TAX
    1. THE RISKS OF CHANGE AND COMPLEXITY
    2. HOMEOWNER TAX SAVINGS
    3. ALTERNATIVE MINIMUM TAX
    4. CAPITAL GAINS
    5. TAX-FREE EXCHANGES
    6. REPORTING RENTAL INCOME AND DEDUCTIONS
    7. TAX CREDITS
    8. PROPERTY TAXES
    9. SUMMARY
  21. 15: MORE IDEAS FOR PROFITABLE INVESTING
    1. OUT-OF-AREA INVESTING
    2. EMERGING GROWTH AREAS
    3. EMERGING RETIREMENT AND SECOND-HOME AREAS
    4. OUT-OF-AREA CAVEATS
    5. COMMERCIAL PROPERTIES
    6. Opportunity for High Reward
    7. TRIPLE NET (NNN)
    8. SELF-STORAGE
    9. MOBILE HOME PARKS
    10. PROFITABLE POSSIBILITIES WITH ZONING
    11. TAX LIENS AND TAX DEEDS
    12. DISCOUNTED PAPER
    13. SHOULD YOU FORM AN LLC?
  22. 16: OPPORTUNITY FOR A LIFETIME
    1. USA: RIGHT TIME, RIGHT PRICE, RIGHT PLACE
    2. PERSONAL OPPORTUNITY
  23. INDEX