Fire Sale : How to Buy US Foreclosures

by McKernan, Philip

• ISBN13: 9780470964125
• ISBN10: 047096412X
• Edition: 1st
• Format: Hardcover
• Copyright: 2010-10-11
• Publisher: Wiley

Summary

The ads are everywhere. US real estate at rock-bottom prices. Posh homes in gated communities devalued 50% from a year ago. US real estate agents with nowhere to go in their own backyard are targeting Canada and other countries to attract buyers to the land of the foreclosed and the home of the bushwhacked.As the US housing market remains in crisis and foreign currencies increase in strength relative to the US dollar, foreign investment into real estate in America is reaching new highs, particularly in the sunbelt states. The opportunity to invest in these properties, either as an investment property or a vacation home, is made even more attractive in light of the record number of distressed properties (AKA foreclosures) on the market or in the pipeline due to high levels of unemployment in the US, high consumer debt, and ongoing fallout from the subprime crisis.But what does "opportunity" really look like? What due diligence must an investor do to buy with confidence? What are the pitfalls? The legal and tax considerations? While the property and price may look good on paper, how can you ensure that your investment is a sound one? Philip McKernan and his crack team of experts teach you everything you need to know about investing in distressed properties in the United States, including sourcing distressed properties; building the right team of real estate agent, finance expert, lawyer, and accountant; understanding the tax and legal issues; and having an exit strategy.Make sure you're getting the best deals possible and avoiding any nasty surprises. Be prepared and aware, with Fire Sale: How to Buy US Foreclosures.

Table of Contents

Acknowledgments

Introduction

What Distressed Property Is And How To Buy It

Learn to Properly Identify a "Distressed Property."

Understand the Fundamentals of the US Foreclosure Process

Commit to the No. 1 Rule

Look for Local Market Data

Avoid the Snake-Oil Salesman

Recognize That a Bad Area in the US Is Very Different From a Bad Area Elsewhere

Look for the Stability of a Good Neighborhood

Choose Your Exit Strategy Before You Make the Deal

Know Your Financing Options

Become Knowledgeable About the Real Estate Cycle

Find the People Who Can Help You Find Foreclosures

Benefit From the 5 Profit Centers of Real Estate

Be Wary of What a Full-Service Real Estate Investment Group Offers

The Real World: Performing Due Diligence

Checklist for Entering US Real Estate Markets

Renovations And Management

Work Smartly With Contractors and Subcontractors

Weigh Reno Needs Versus Nice-to-Haves

Dial Up the Intellect (Dial Down the Emotions)

Do the Big 4 Renos on a Rental Property—Now

Get Everything in Writing

Make Curb Appeal Count

Run If You Spot Any of the Top 3 Reno Red Flags

Hire the Right Property Manager

Make Money by Delegating to Your Property Manager

Communicate With Your Property Manager

Be Smart About Rent Collection

The Real World: Mitigating Your Risks and Going Behind the "Foreclosed" Sign

Tax Planning

Understand How US Tax Laws Can Work to Your Benefit

Choose the Right Entity to Structure Your US Business

Use Your C Corp to Win the War on Double Tax

Increase the Depreciation Deduction and Benefit From Depreciation Recapture

Use the Like-Kind Exchange to Boost Your Tax Strategy

Boost Your Cash Flow by Using Your Tax Losses

Obtain Tax Benefits From Your Worst-Performing Property

The Real World: Limiting Your US Taxation If YouâÇÖre a Canadian Snowbird

Legal Planning

Cover Your Ass(ets)

Develop an Asset Protection Plan and Be Prepared to Avoid Lawsuits

Counter Threats to Your Wealth With Foresight

Draw Up a Blueprint for Your Estate Plan

Expect That Every State Will Want a Piece of Your Pie

Steer Clear of Asset Protection Fakes, Scams and Planning Errors

Be Extremely Wary of the "Best" Plans

The Real World: Putting Someone ElseâÇÖs Legal Experience to Work

General Information About Investing In The United States

Understand Cross-Border Issues

Insure Your Investment

Carry Insurance Beyond the Property Line

Familiarize Yourself With US Mortgage Financing

Buy US Real Estate Property With Other PeopleâÇÖs Money

Arrange Pest Inspections for Your Real Estate Purchases

Decide Whether YouâÇÖre Buying a Lifestyle or an Investment

The Real World: Looking for Investments in a Foreign Location

How To Make Investing Work For You: What You Really Need To Know

Apply the Right Mind-Set to Foreign Investments

Be Clear About Why You Want to Buy US Real Estate

Learn to Believe Big

Choose Your Mentors Wisely

The Real World: Going From Fast Track to Right Track

Contributors Resource Page

More Support for You!

Mindset for Success

Stay Connected

About the Author

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