The No-Nonsense Real Estate Investor's Kit How You Can Double Your Income By Investing in Real Estate on a Part-Time Basis

by Lucier, Thomas

• ISBN13: 9780471756538
• ISBN10: 0471756539
• Format: Paperback
• Copyright: 2006-04-28
• Publisher: Wiley

Summary

In The No-Nonsense Real Estate Investor's Kit, noted author and real estate expert, Thomas J. Lucier provides detailed information, step-by-step instructions and practical advice for both beginning and experienced investors, who want to join the ranks of America's real estate millionaires! You get Tom Lucier's lifetime of real estate investing expertise and experience in twenty-three meaty chapters. You also get all of the nitty-gritty details on five proven strategies for making money in real estate today. You'll learn all of the fundamentals of successful investing and get the guidance that you need on these and many more vital topics: Choosing the right investment strategies Financing your deals Limiting your risk and liability Earning tax-free income from the sale of real estate Setting up and operating your own real estate business Investing in undervalued properties Following state and federal real estate related statutes Negotiating the best possible deal for yourself Buying properties at below-market prices Performing due diligence, inspections, and estimating property values Preparing purchase and sale agreements The No-Nonsense Real Estate Investor's Kit is as close as you can get to a graduate degree in real estate investing without ever going to college. It arms you with the specialized knowledge that you need to compete successfully against the seasoned real estate professionals in your local real estate market. And this book comes complete with FREE downloadable and customizable forms to help you get started on the fast track.

Author Biography

Thomas J. Lucier is the President and CEO of Home Equities Corp., a company that specializes in the purchase, turnaround, and resale of small residential and commercial rental properties in the Tampa Bay area. He is the author of two other Wiley books, The Pre-Foreclosure Property Investor's Kit and How to Make Money with Real Estate Options.

Table of Contents

List of Downloadable Forms	xv
PART I HOW TO GET STARTED TODAY AS A PROFITABLE REAL ESTATE INVESTOR
How You Can Double Your Annual Income by Investing in Real Estate on a Part-Time Basis	3	(14)
What you need to know about the real estate bubble babble in the media
Why this may turn out to be the Golden Age of real estate investing in America
Why you shouldn't start out in the real estate investment business as a full-time investor
How you can double your annual income by investing in real estate on a part-time basis
How you can use my nine-step process for buying and selling real estate
How to contact the most accessible real estate author in America right now
What It Takes to Be a Successful Real Estate Investor in Today's Competitive Market	17	(17)
What every investor must possess to succeed in the real estate investment business today
Why you must obtain your real estate knowledge from reliable sources
How to avoid doing business with incompetent real estate service providers
What you need to know about real estate investment clubs
What you need to know about your perceived competition
How to use this book to become your own real estate investment expert
How to Reduce Your Risk and Limit Your Liability as a Real Estate Investor	34	(21)
Why it's always best for real estate investors to maintain a low profile
The four types of insurance coverage that all real estate investors should carry
Sixteen ways that you can reduce your annual insurance premium payments
Why you must carry adequate general liability insurance coverage
Why it's best to use the services of an independent insurance agent who represent many insurers
How to form a business entity in your state
How to Set Up and Operate Your Real Estate Investment Business for Maximum Efficiency and Profitability	55	(17)
How to obtain the maximum return on each hour that you invest in your real estate investment business
How to operate your real estate investment business on a bare-bones budget
How to set up a home office for your real estate business that you can deduct for tax purposes
What you'll need to set up shop as a real estate investor
What it takes to run a real estate investment business at maximum efficiency
How to maintain accurate records for your real estate business
How to Choose Real Estate Investment Strategies That Will Work for You	72	(13)
Why you should have more than one investment strategy in your repertoire
The four main ways that investors can profit from owning property
Why your investment strategies must be goal oriented
Why you must prepare a written plan of action for achieving your investment goals
How to know what type of real estate market you're investing in
How to maintain a balance between your family and your real estate investment business
PART II FIVE REALISTIC INVESTMENT STRATEGIES THAT YOU CAN USE TO MAKE MONEY FROM REAL ESTATE TODAY
Why Most of the Creative Real Estate Investment Strategies Being Taught Today Seldom Work Well	85	(9)
The five creative real estate investment strategies that very seldom work well
Why creative investment strategies involve high-risk, low-profit type deals
Why it's next to impossible for inexperienced wannabe investors, who are broke and have lousy credit, to successfully use creative investment strategies
How the so-called cash back at closing strategy requires investors to commit loan fraud
What creative real estate hucksters don't tell seminar attendees about the strategies they teach
Why creative real estate transactions are so closely scrutinized by closing agents and lenders
How to Make Money from Vacant Properties That Aren't Advertised as Being for Sale	94	(11)
Why vacant properties can be a bonanza for savvy real estate investors
How I made a $30,000 profit from a vacant building full of pigeon droppings
How to quickly find the owners of vacant properties
The 10 telltale signs that a property is probably vacant
What to check for when looking over a vacant property
How to make an unsolicited offer to purchase a vacant piece of property
Vacant property checklist
Letter to vacant property owners
How to Profit from Properties That Have Been Condemned for Code Violations	105	(9)
The three most common types of code violations
How the code enforcement process works in most jurisdictions
Where to find your local code enforcement regulations online
How to get the addresses of all the condemned properties in your city or county
How to effectively deal with local code enforcement bureaucrats
How to contact the owners of condemned properties
Letter to condemned property owners
How You Can Earn Tax-Free Income for the Rest of Your Life as a Serial Home Buyer	114	(9)
Why being a serial home buyer may be the ideal real estate investment strategy
Five types of properties that qualify as a principal residence
Six factors the IRS considers to determine a home owner's principal residence
How married couples can earn up to $500,000 tax-free every two years
How single and joint home owners can earn up to $250,000 every two years
How to use real estate options to keep houses in the pipeline for future purchase
How to Profit from Problem Properties That Scare Off Most Investors	123	(12)
The four most profitable types of problem properties to buy
Why you must know the difference between correctable and non-correctable property problems
The four most efficient ways to find problem properties
How to find solutions to property problems
How to contact problem property owners
Letter to problem property owners
How You Can Make Money by Providing Residential Rental Housing to Underserved Tenants	135	(14)
The three largest groups of underserved tenants in America today
How to profit by providing rental housing to tenants with physical disabilities
How to make money renting to responsible pet owners
What you need to know about the Housing for Older Persons Act
Pet application
Pet agreement
PART III THE FUNDAMENTALS OF REAL ESTATE INVESTING
What You Must Know about Your State's Statutes and Other Laws Pertaining to Real Estate Investing	149	(8)
Where to find your state's civil statutes online
What you need to know about practicing real estate without a license
The 13 federal statutes that pertain to real estate investing
Where you can find federal statutes and regulations online
Why there's nothing illegal, unethical, or immoral about flipping property
Everything You Must Know about Real Estate Loans, Assumption Rules, Buying Subject to, and Loan Fraud	157	(12)
The two types of security instruments that are used to secure real estate loans
The three types of residential real estate loans
The difference between assuming a loan and buying subject to
What you need to know about the due-on-sale clause that's contained in residential loans
What you need to know about the assumption rules for FHA and DVA loans
How to take title to property subject to existing loans
What you need to know about equity skimming and other forms of loan fraud
What You Must Know about the Real Estate Settlement Procedures Act, Closing Agents, Title Insurance, and Closing Costs When Buying and Selling Property	169	(14)
What you must know about the Real Estate Settlement Procedures Act (RESPA)
Why it's best to hire a board-certified real estate attorney to close your transaction
Finding a board-certified real estate attorney in your area
What you need to know about title insurance
How an owner's title insurance policy protects property owners
How title insurance rates are calculated
Everything you need to know about HUD 1 Settlement Statements
Closing checklist
PART IV NINE-STEP PROCESS FOR BUYING AND SELLING REAL ESTATE
How to Find Owners Who Are Willing to Sell Their Property below Market Value	183	(15)
Four effective ways to find owners, who are willing to sell you their property below market value
Why you must look for owners, who are experiencing problems, situations, and circumstances that they can't handle
Why owners are willing to sell their property below market value
Where to find the names of all of the property owners in your county
How to determine an owner's level of motivation during your initial telephone conversation
Letter to small residential rental property owners
Property tracking worksheet
How to Perform Preliminary Due Diligence When Buying Property	198	(12)
Where to obtain property information from the public records
Where to search for property records online
What to do when your county's property records aren't available online
Sixteen types of liens to check for when searching property titles
What to search for when performing preliminary due diligence
Area selection checklist
How to Conduct a Thorough Pre-Buy Property Inspection So You Know What You're Buying	210	(19)
How to locate a competent building inspector
When to have the property inspected
Why you must be on the lookout for any nonpermitted work that's been done on a building
Eleven potential problems to check for when inspecting a property
Phase one environmental audit checklist
Twelve property inspection checklists
How to Accurately Estimate a Property's Market Value So You Don't Pay More Than What It's Worth	229	(13)
The difference between tax-assessed value and appraised value
The three common methods used by appraisers to estimate property values
How to use capitalization rates and gross rent multipliers to estimate an income property's market value
Everything you need to know about property appraisal reports
Property appraisal report checklist
Monthly income and expense statement
How to Prepare Purchase and Sale Agreements So Your Position Is Protected during the Transaction	242	(9)
Why you should never use the same agreements that real estate licensees use in your state
Why you should hire a board-certified real estate attorney to prepare your purchase and sale agreements
Fourteen key provisions that must be included in your purchase agreements
Why all real estate agreements must be properly witnessed
Four key provisions that must be included in your sale agreements
Real estate purchase agreement
How to Negotiate So You Get the Best Possible Deal for Yourself	251	(9)
Why knowing the other party's true needs is the key to getting the best possible deal for yourself
Why you should negotiate with the other party and not against them
How to get a feel for the mind-set of the person you're negotiating with
Why negotiations should always be conducted between the principal parties
Where to hold negotiations
Sixteen rules to follow to negotiate the best possible deal for yourself
How to Finance Your Real Estate Deals Even When You Don't Have a High Income, Huge Bank Account, and Perfect Credit Score	260	(21)
Why cash is king in the real estate investment business
The four types of lenders who make real estate loans
Why you shouldn't obtain loans through mortgage brokers
How the loan approval process works with institutional lenders
Why you must be on the lookout for lenders charging exorbitant fees
What you need to know about loan-to-value ratios
Everything that you need to know about low and no documentation loans
How to use low-interest lines of unsecured credit to finance the purchase of properties
How to Fix Up Your Property So You Maximize Its Curb Appeal and Resale Value	281	(9)
Why you must have a budget and work schedule when fixing up properties
How you can avoid being ripped off by unscrupulous tradesmen and contractors
Why you should hire retired tradesmen and contractors
What you need to know about your state's construction lien law
How you can reduce your fix-up costs
Why you must keep track of your expenses on a daily basis
How to Package and Market Your Property So You Can Sell It for Maximum Profit	290	(9)
Four methods to market your property to prospective buyers
How the resale value of a property is calculated
What to include on your property's information sheet
How to advertise your properties for sale online
Where to advertise your property for sale online
How to avoid wasting your time with nonqualified prospective buyers
Resources: Real Estate Investor Resources Online	299	(8)
About the Author	307	(2)
Index	309