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Real Estate Investing For Dummies, 3rd Edition

Book Description

Everything you need to confidently make real estate part of your investing plan

Do you want to get involved in real estate investing, but aren't quite sure where to start? Real Estate Investing For Dummies is your go-to resource for making sense of the subject, offering plain-English, step-by-step explanations of everything you need to know to keep yourself one step ahead of the competition. Inside, you'll discover how to overcome the challenges of the market, take advantage of the opportunities in any real estate environment—including a down market—and so much more.

Written by industry experts Eric Tyson and Robert Griswold, this new edition of Real Estate Investing For Dummies offers proven, practical, and actionable advice for anyone who wants to invest in income-producing properties. With the help of this straightforward and time-tested information, you'll get the know-how to wisely and confidently make smart, sound, and informed real estate investing decisions that will reap big rewards.

  • Shows you how to make real estate part of your long-term investment plan

  • Provides tips on getting the best deals on financing

  • Offers trusted guidance on mastering the art of property valuation

  • Gives you access to unprecedented information on how to build wealth in any market

  • If you want to jump into the real estate market as a first-time investor or just want to brush up on recent changes that have occurred in the field, Real Estate Investing For Dummies is an essential resource you'll turn to again and again.

    Table of Contents

      1. Cover
      2. Title Page
      3. Introduction
        1. About This Book
        2. Foolish Assumptions
        3. Icons Used in This Book
        4. Beyond This Book
        5. Where to Go from Here
      4. Part I: Getting Started with Real Estate Investing
        1. Chapter 1: Evaluating Real Estate as an Investment
          1. Understanding Real Estate’s Income- and Wealth-Producing Potential
          2. Recognizing the Caveats of Real-Estate Investing
          3. Comparing Real Estate to Other Investments
          4. Determining Whether You Should Invest in Real Estate
          5. Fitting Real Estate into Your Plans
        2. Chapter 2: Covering Common Real Estate Investments
          1. Identifying the Various Ways to Invest in Residential Income Property
          2. Surveying the Types of Residential Properties You Can Buy
          3. Considering Commercial Real Estate
          4. Buying Undeveloped Land
        3. Chapter 3: Considering Foreclosures, REOs, Probate Sales, and More
          1. Finding Foreclosures and REOs
          2. Getting a Jump On Foreclosure and REO Competition with Short Sales
          3. Contemplating Lease Options
          4. Probing Probate Sales and Auctions
        4. Chapter 4: Taking the Passive Approach
          1. Using Real Estate Investment Trusts
          2. Understanding Tenants in Common
          3. Comprehending Triple Net Properties
          4. Eyeing Notes and Trust Deeds
          5. Looking At Tax Lien Certificate Sales
          6. Considering Limited Partnerships
        5. Chapter 5: Fast Money: Small Down Payments and Property Flips
          1. Purchasing with No Money Down
          2. Buying, Fixing, and Flipping or Refinancing
        6. Chapter 6: Building Your Team
          1. Knowing When to Establish Your Team
          2. Adding a Tax Advisor
          3. Finding a Financial Advisor
          4. Lining Up a Lender or Mortgage Broker
          5. Working with Brokers and Agents
          6. Considering an Appraiser
          7. Finding an Attorney
      5. Part II: How to Get the Money: Raising Capital and Financing
        1. Chapter 7: Identifying Sources of Capital
          1. Calculating the Costs of Admission
          2. Rounding Up the Required Cash by Saving
          3. Overcoming Down Payment Limitations
        2. Chapter 8: Financing Your Property Purchases
          1. Taking a Look at Mortgage Options
          2. Reviewing Other Common Fees
          3. Making Some Mortgage Decisions
          4. Borrowing Against Home Equity
          5. Getting a Seller-Financed Loan
          6. Mortgages That Should Make You Think Twice
        3. Chapter 9: Securing the Best Mortgage Terms
          1. Shopping for Mortgages
          2. Solving Potential Loan Predicaments
      6. Part III: Finding and Evaluating Properties
        1. Chapter 10: Location, Location, Value
          1. Deciding Where to Invest
          2. Finding Properties to Add Value
          3. Evaluating a Region: The Big Picture
          4. Investigating Your Local Market
          5. Evaluating Neighborhoods
          6. Mastering Seller’s and Buyer’s Markets
        2. Chapter 11: Understanding Leases and Property Valuation
          1. The Importance of Evaluating a Lease
          2. Reviewing a Lease: What to Look For
          3. Understanding the Economic Principles of Property Valuation
          4. Reviewing the Sources of Property-Valuing Information
          5. Establishing Value Benchmarks
        3. Chapter 12: Valuing Property through Number Crunching
          1. Understanding the Importance of Return on Investment
          2. Figuring Net Operating Income
          3. Calculating Cash Flow
          4. Surveying Lease Options
          5. The Three Basic Approaches to Value
          6. Reconciling the Three Results to Arrive at a Single Value
          7. Putting It All Together: Deciding How Much to Pay
        4. Chapter 13: Preparing and Making an Offer
          1. Negotiating 101
          2. Preparing to Make Your Offer: Understanding Contract Basics
          3. Addressing Key Provisions in the Purchase Agreement
          4. Presenting the Purchase Agreement
        5. Chapter 14: Due Diligence, Property Inspections, and Closing
          1. Opening Escrow
          2. Conducting Formal Due Diligence
          3. Negotiating Credits in Escrow
          4. Determining How to Hold Title
          5. Closing the Transaction
      7. Part IV: Operating the Property
        1. Chapter 15: Landlording 101
          1. Hiring Management Help: Yes or No?
          2. Finding and Hiring Pros
          3. Testing for Environmental Issues
          4. Deciding on Rental Policies
          5. Working with Existing Tenants Upon Property Acquisition
          6. Finding Stable, Trustworthy Tenants
          7. Renovating and Upgrading to Add Value
        2. Chapter 16: Protecting Your Investment: Insurance and Risk Management
          1. Developing a Risk Management Plan
          2. Getting the Insurance You Need
        3. Chapter 17: Recordkeeping and Accounting
          1. Organizing Your Records
          2. Knowing What to Account For
          3. Doing Your Accounting Manually
          4. Using Software
        4. Chapter 18: Looking at Tax Considerations and Exit Strategies
          1. Understanding the Tax Angles
          2. Considering Exit Strategies
      8. Part V: The Part of Tens
        1. Chapter 19: Ten Ways to Increase a Property’s Value
          1. Raise Rents
          2. Reduce Turnover
          3. Consider Lease Options
          4. Develop a Market Niche
          5. Maintain and Renovate
          6. Cut Back Operating Expenses
          7. Scrutinize Property Tax Assessments
          8. Refinance and Build Equity Quicker
          9. Take Advantage of Tax Benefits
          10. Be Prepared to Move On
          11. Improve Management
        2. Chapter 20: Ten Steps to Real Estate Investing Success
          1. Build up Savings and Clean up Credit
          2. Buy Property in the Path of Progress
          3. Buy the Right Property at the Best Price Possible
          4. Renovate Property the Right Way
          5. Keep Abreast of Market Rents
          6. Recover Renovation Dollars through Refinancing
          7. Reposition Property with Better Tenants
          8. Become or Hire a Superior Property Manager
          9. Refinance or Sell and Defer Again
          10. Consolidate Holdings into Larger Properties
      9. About the Authors
      10. Authors’ Acknowledgments
      11. Cheat Sheet
      12. Advertisement Page
      13. Connect with Dummies
      14. End User License Agreement