Forecasting for Real Estate Wealth Strategies for Outperforming Any Housing Market

by Ross, Ed

• ISBN13: 9780470275368
• ISBN10: 0470275367
• Edition: 1st
• Format: Paperback
• Copyright: 2008-06-23
• Publisher: Wiley

Summary

Understanding the real estate cycle helps investors outperform any local market When the market was booming it was easy to guess which way property values would go, up. In today's market it's not so easy, especially with some markets stuttering and others chugging along nicely. Forecasting for Real Estate Wealth gives investors a reliable and accurate method for forecasting property values over the next one to seven years. Armed with a good forecast, investors can use the author's strategies for making money in a down market, and produce superb investment results in an up market. Packed with real-world examples and tools for analyzing and comparing properties, this investment resource eliminates the need to guess how much money any property is likely to return for the investor. With Forecasting for Real Estate Wealth, first-time and seasoned investors will be able to use high-powered professional-level tools to achieve excellent financial results, regardless of their local market condition. Ed Ross (Dana Point, CA) is a leading real estate expert who shares his wisdom with thousands of people through seminars and public speaking engagements. He serves on the boards of five real estate companies and has owned and managed more than 200 investment properties over the years.

Author Biography

Ed Ross is a leading real estate expert and an investor. He currently serves on five real estate company boards, and shares with thousands each month the strategies and techniques that helped him achieve financial freedom at an early age. He has managed and owned over 200 properties and has custom-built, renovated, and personally rented over 100 houses, apartment buildings, and commercial buildings. He still owns and manages a substantial portfolio consisting of single-family residences, residential rentals, and commercial buildings.

Table of Contents

Preface	p. xi
Four Biggest Questions
What Should I Know about Market Cycles?	p. 3
How Millionaires Make Their Fortunes from Forecast Appreciation	p. 4
Make Money from a Slowdown	p. 5
Why Using a Forecast Is a Good Idea	p. 8
Why Not Using a Forecast Is a Bad Idea	p. 9
Integrating a Forecast into a Real Estate Strategy	p. 10
What Should I Do over the Next Five Years	p. 15
When to Buy, Sell, or Hold	p. 15
Seasonal Forecasting Strategy	p. 20
Selling at the Peak and Buying at the Low	p. 26
What Is the Best Strategy for Investing Today?	p. 28
Which Investment Strategy Is Easiest and Most Lucrative?	p. 29
Should I Wait a Year or Two before Investing in the Market?	p. 29
How Do I Look Up My Forecast for Property Appreciation in a Specific Neighborhood?	p. 33
Capitalize on a Slow Real Estate Cycle	p. 34
Use Forecasts to Be Competitive in Property Investing	p. 35
Primary Forecast Variables and Resulting Values	p. 36
Calculate the Next Seven Years	p. 40
How Can I Identify the Property That Will Make Me the Most Money?	p. 47
Homeownership versus Renting	p. 48
Earn Back a Down Payment Quickly	p. 52
Select the Property with the Greatest Appreciation and Lowest Vacancy	p. 54
Amenities in Investment Properties	p. 61
Combining Successful Purchase Negotiation with Appreciation	p. 62
Why the Real Estate Cycle Influences Each Property Differently	p. 63
Matching Buying Strategy to Metro Location	p. 66
Methods and Systems for Buying, Selling, and Financing
Four Methods to Sell in a Declining Forecast Cycle	p. 71
Challenges of Selling in a Slow Cycle	p. 72
Prevent Seller's Remorse by Using a Forecast	p. 72
Four Selling Methods to Beat Any Cycle	p. 73
Four Financing Resources When Lenders Are Reluctant to Lend	p. 85
How Do Traditional Lenders Evaluate?	p. 86
Alternative Financing Methods	p. 91
Seller Financing	p. 93
Realtor Contribution	p. 100
Renter Contribution	p. 100
Investor Financing	p. 100
Six Ways to Maximize Wealth Accumulation	p. 105
Buying Expensive or Well-Known Is Not Always Better	p. 105
Buying Local versus Buying Cross-Country	p. 106
Select the Best Property Management Firm	p. 107
Partial Property Management Outsourcing	p. 108
Select the Best Investment Area	p. 111
Understand Remote Property Valuations	p. 114
Key Financial Wealth Evaluators	p. 117
Calculate Your True Rate of Return	p. 117
Always Measure Your Cash-on-Cash Return	p. 121
View Your Capitalization Rate with Caution	p. 122
Critical Financial Evaluators for the Next Five Years	p. 123
Strategies for Investiment and Wealth
The Best Investing Strategy for Wealth in a Difficult Market	p. 127
Secret Preventers of Real Estate Wealth	p. 128
Things to Know about Real Estate Investing that Others Do Not Tell You	p. 129
The Most Productive Wealth Accumulation Strategy for the Next Five Years	p. 131
Investing Strategies for Wealth in a Robust Market	p. 135
Build Your Financial Statements in Advance of Acceleration	p. 135
Exiting Short-Term Investments before Seasonal Change	p. 136
Using a Short-Term Investment Strategy	p. 137
Using a Long-Term Passive Cash Flow Investing Strategy	p. 138
Leveraging Assets for Liquidity	p. 138
Starting from Zero: Techniques for Buying Preforeclosure and Other Strategies	p. 141
Active versus Passive Investing	p. 141
"Subject-To" Active Investing	p. 145
Tactics and Procedures	p. 146
Building A Business
Legal Entity Protection	p. 151
Formation of a Layered Plan	p. 152
Administration of the Land Trust and Limited Liability Company	p. 154
Additional Layers	p. 156
Financial Calculations Paramount to Success	p. 157
Annual Property Operating Data Sheet	p. 157
Annual Property Standard Variables	p. 158
APOD Indicators	p. 160
Five-Year Proforma	p. 162
The Ultimate Wealth System: Three Years to a Million	p. 167
Determine Financial Position	p. 168
Define Acquisition Guidelines	p. 175
Choose Buying Strategies	p. 175
Create a Plan	p. 176
Buying Area Analysis	p. 179
Profitable Buying Plan	p. 182
Resources
Top 10 Recommended Cities in the United States with Appreciation	p. 187
Top 10 U.S. Cities	p. 188
Metro Forecast 15-Year History by State	p. 197
Metro Alphabetical Forecast	p. 211
Free Edsforecast.com Membership	p. 229
Index	p. 231
Table of Contents provided by Ingram. All Rights Reserved.