The Beginner's Guide to Real Estate Investing

by Gary W. Eldred ( )

• ISBN13: 9780471647119
• ISBN10: 047164711X
• Format: Paperback
• Copyright: 2004-04-01
• Publisher: WILEY

Summary

Everything you need to know to begin acquiring properties--now!No matter what obstacles you think you face, real estate still offers you multiple money making opportunities. In The Beginner's Guide to Real Estate Investing, successful investor and author Gary Eldred presents the tools and knowledge new investors need to get started. This no-hype guide presents case studies of people just like you-regular people who used these simple, smart strategies to earn big returns. You'll not only gain the basics of real estate investing, but also a vault full of specialized techniques that the pros rely on to grow their long-term wealth. Concise yet comprehensive, this practical guide shows you how to: Find below-market deals Invest using little or none of your own cash Use low or no down payment seller financing Find creative ways to finance your investments Make money with foreclosures and REOs Increase the value of an investment property Negotiate a winning purchase offer Manage rentals hassle free Flip properties for fast profit In addition, Eldred shows you how to tailor your investment strategy to make money in any place in any type of market. With proven techniques and timeless principles, The Beginner's Guide to Real Estate Investing is the prime resource you need to start building a prosperous future-today.

Author Biography

GARY W. ELDRED, PhD, began acquiring investment real estate while still an undergraduate college student. Since then he has been involved in more than one hundred deals. He has been invited to teach his proven techniques at top-ranked colleges–including Stanford University, the University of Virginia, and the University of Illinois–and at investment seminars throughout the U.S. and Canada. He is also the author of Wiley’s Make Money series and the coauthor of the long-standing bestseller Investing in Real Estate.

Table of Contents

Why This Book?	p. xi
Mindset + Knowledge = Wealth	p. 1
Get Started Now	p. 3
Just Say No to Excuses	p. 3
You Must Believe It to See It	p. 7
Set Goals Now	p. 12
Multiple Paths to Building Wealth	p. 19
Appreciation in Market Values	p. 19
Inflation	p. 21
Cash Flows	p. 23
Mortgage Payoff (Amortization)	p. 24
Buy Below Market Value	p. 25
Create Value with Property Improvements	p. 25
Improve the Neighbors and Neighborhood	p. 26
Convert the Use	p. 27
Manage and Market Your Properties More Profitably	p. 29
Protect Your Profits from the IRS (Tax Shelter)	p. 29
Discounted Notes, Tax Liens, Tax Deeds, and Realty Stocks	p. 32
How to Raise the Money	p. 35
Strengthen Your Credit Power	p. 37
Consistency: Fast Track or Flake	p. 37
Character Counts	p. 38
Credit Scores Count Most	p. 40
Summing Up	p. 49
How to Invest Using Little (or None) of Your Own Cash	p. 50
Why Low-Cash Deals Magnify Your Returns	p. 50
Minimize Your Down Payment with Owner-Occupant Financing	p. 54
Don't Overlook FHA	p. 57
Discover FHA's Best Kept Secret: The 203(k) Program	p. 59
Too Many Vets Pass Up VA Loans	p. 62
Even Fannie and Freddie Accept Little- or Nothing-Down Loans	p. 63
Summing Up	p. 64
Forget the Banks, Seek Out Seller Financing	p. 66
Sellers Can Nearly Always Beat the Banks at Their Own Game, But You Must Do More than Ask	p. 67
Mortgage (Trust Deed)	p. 70
Try a Contract-for-Deed	p. 73
Assume a Low-Interest-Rate Mortgage	p. 76
"Assume" a Nonassumable Mortgage	p. 79
Five More Techniques to Finance Your Investments	p. 83
Wraparounds Benefit Buyers and Sellers	p. 83
Lease Options	p. 84
The Lease-Option Sandwich	p. 90
Lease-Purchase Agreements	p. 91
Master-Lease an Apartment Building	p. 93
How to Come Up with the Money to Close	p. 96
Cash Out Some of Your Current Home's Equity	p. 96
Bring in Partners	p. 97
Second Mortgages	p. 99
Personal Savings	p. 100
Sell Unnecessary Assets	p. 100
Down-Payment Assistance	p. 101
Easy Money--Hard Terms	p. 101
Use Credit Cards	p. 105
Personal Loans	p. 106
Sweat Equity (Creating Value through Renovations)	p. 106
Eliminate Your Down Payment with Pledged Collateral	p. 106
Student Loans	p. 108
Use More Creative Finance	p. 108
Here's How to Qualify	p. 110
Be Wary of Prequalifying (and Preapproval)	p. 110
You Can Make Your Qualifying Ratios Look Better	p. 112
The Application Itself Contains Many Clues to Your Integrity	p. 122
No Rigid Borrowing Limits Apply to Commercial Properties	p. 123
How to Invest for Maximum Gain	p. 127
Twenty-Seven Ways to Find or Create Below-Market Deals	p. 129
Why Properties Sell for Less (or More) than Their Market Value	p. 129
Don't Dilly-Dally with Due Diligence	p. 135
How to Find Bargain Sellers	p. 137
Make Money with Foreclosures and REOs	p. 143
The Stages of Foreclosure	p. 143
Approach Owners with Empathy: Step One	p. 145
Some Investors Do Profit from the Foreclosure Auction: Step Two	p. 148
The Benefits of Buying REOs: Step Three	p. 151
More Sources of Bargains	p. 156
Federal Government Auctions	p. 156
Sheriff Sales	p. 157
Buy from Foreclosure Speculators	p. 157
Probate and Estate Sales	p. 157
Private Auctions	p. 159
Short Sale Bargains	p. 162
Run Numbers Like a Pro	p. 170
Follow the Construction Cycle	p. 171
How to Profit from the Construction Cycle	p. 171
Per-Unit Measures	p. 174
Gross Rent Multipliers (GRMs)	p. 176
Capitalized Value	p. 177
Cash Flow Returns	p. 182
Don't Settle for Market Rates of Appreciation: Create Value	p. 184
How You Can Greatly Increase the Value of Your Investment Property	p. 185
Search for Competitive Advantage	p. 186
First, Verify Actual Rent Collections, Not Merely Rental Rates	p. 187
Talk with Tenants	p. 188
Set Your Rents with Market Savvy	p. 189
Your Apartment Checklist	p. 190
Give the Interior a Martha Stewart Makeover	p. 192
Safety, Security, and Convenience	p. 194
Rightsize the Rooms	p. 195
Create More Storage	p. 196
Check Noise Levels	p. 198
Overall Livability	p. 199
Twenty-One More Ways to Boost the Value of Your Properties	p. 200
Create Strikingly Attractive Curb Appeal	p. 200
Collect More than Rent	p. 203
Convert a Garage, Attic, or Basement	p. 204
Create an Accessory Apartment	p. 206
Create a Special Purpose Use	p. 206
Change the Use of a Property	p. 207
Cut Operating Expenses	p. 209
Gentrification and Other Value Plays	p. 211
Onward and Upward to Building Wealth	p. 219
Win What You Want through Negotiation	p. 221
How to Define Win-Win	p. 221
Know Thyself	p. 224
Know the Property and Neighborhood	p. 224
Know the Sellers	p. 225
Establish Favorable Benchmarks	p. 227
Tit for Tat	p. 228
Get Seller Concessions Early	p. 228
Come Ready to Buy	p. 228
Ask for More than You Expect	p. 229
Establish Credibility	p. 230
Never Offer to Split the Difference	p. 231
List Your BATNAs	p. 232
Negotiate for Yourself	p. 233
Leave Something on the Table	p. 235
How to Write Your Purchase Offer	p. 236
No Single Contract Form	p. 236
Make Sure You Draft These Clauses with Care and Understanding	p. 237
Summing Up	p. 247
Craft Your Lease to Increase Profits	p. 248
Achieve Competitive Advantage	p. 248
Craft Your Rental Agreement	p. 249
Landlording: Pros and Cons	p. 261
The 12 Secrets of Successful Landlording	p. 263
The Good News	p. 263
Hired Management versus Self-Management	p. 265
Before You Buy, Verify, Verify, Verify	p. 269
Prepare the Property for Rental	p. 270
Craft a Winning Value Proposition	p. 271
Attract Topflight Tenants	p. 273
Create a Flawless Move-In	p. 276
Retain Topflight Residents	p. 277
When the Market Supports It, Raise Rents	p. 279
Anticipate and Prepare for Special Problems	p. 280
Maintain the Property	p. 282
Process Move-Outs Smoothly	p. 282
Persistently Find Ways to Increase Your Cash Flow	p. 283
Keep Trading Up	p. 284
Internet Appendix	p. 287
Index	p. 293
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