Secure Your Financial Future Investing in Real Estate

by Stone, Martin

• ISBN13: 9780793161294
• ISBN10: 0793161290
• Format: Paperback
• Copyright: 2003-05-01
• Publisher: Kaplan

Summary

Investors are seeking alternate ways to earn a return on their money. In the last year more investors have turned to real estate as a safe(r) alternate to stocks and mutual funds. This new book by proven real estate authors Spencer Strauss and Martin Stone is distinct because it will focus on building a retirement scenario through real estate. The authors are real estate investors and the book outlines the steps they implement with their clients to help them build financial success through real estate.

Author Biography

Martin Stone has been a successful real estate investor and broker for over 30 years. In his capacity as owner/broker of Buckingham Investments in El Segundo, California, Martin has written and lectured on all aspects of real estate investing Spencer Strauss is an associate real estate broker at Buckingham Investments in El Segundo, California

Table of Contents

Preface	p. ix
Acknowledgments	p. xv
Retirement Realities	p. 1
Time Costs Money	p. 2
The Stats Don't Lie	p. 3
Inflation: Friend or Foe?	p. 4
Inflation and the Fixed Income	p. 6
The Tax Man Cometh	p. 9
Social Security	p. 10
401(k)s	p. 12
Health Insurance and Related Needs	p. 13
Life Expectancy	p. 15
Great Expectations	p. 17
Focus Up	p. 18
Finding Balance	p. 19
Three Steps	p. 20
Determining Net Worth	p. 22
Assets versus Liabilities	p. 23
Spending Habits	p. 24
Back to the Future	p. 27
Dream a Little Dream	p. 30
Retirement Strategies	p. 33
Striking It Rich	p. 33
Three Groups of Investors	p. 34
"Got Plenty of Time"	p. 35
"Too Busy Just Hangin' On"	p. 39
"Worried It May Be Too Late"	p. 42
The Appreciation Game	p. 51
Real-Life Example Property in 2002	p. 52
Real-Life Comparable Property Sale from 1977	p. 52
Proof in the Pudding	p. 58
Your Yellow Brick Road	p. 61
The Five-Point Plan	p. 62
Learn	p. 63
Research	p. 64
Plan	p. 65
Invest	p. 66
Manage	p. 67
Components of Return	p. 69
Cash Flow	p. 70
The Income	p. 70
The Expenses	p. 71
Loan Reduction	p. 73
Appreciation	p. 74
Tax Benefits	p. 77
Modified Accelerated Cost Recovery System (MACRS)	p. 78
Putting It All Together	p. 82
Your Winning Lotto Ticket	p. 85
Your Winning Numbers	p. 85
Sharing the Secrets	p. 86
Components of Your Plan	p. 90
Goals	p. 90
Cash-Flow Requirements	p. 91
Your Future Net Worth	p. 92
Tax Benefits	p. 92
Cash Withdrawal	p. 93
Other Goals	p. 94
The General Plan	p. 94
The Detailed Plan	p. 98
Follow-Up and Goal Review	p. 102
Tax Planning	p. 105
Deductions as an Owner	p. 106
Operating Expenses	p. 107
Capital Expenses	p. 108
The Depreciation Allowance	p. 109
Capital Gains	p. 110
The 1031 Tax-Deferred Exchange	p. 112
Types of 1031 Exchanges	p. 113
The Installment Sale	p. 117
Refinancing	p. 121
Appraising Value	p. 123
Methods of Valuing Property	p. 124
Comparative Market Analysis	p. 125
Reproduction Cost Approach	p. 128
Capitalization of Income	p. 129
The Gross Scheduled Income	p. 131
Expenses	p. 132
The Cap Rate	p. 133
To Sum Up	p. 134
The Gross Rent Multiplier	p. 135
Finding Hidden Value	p. 136
The Highest and Best Use	p. 138
Financing Real Estate	p. 141
Costs of Borrowing	p. 142
Three Sources of Money	p. 143
Government Lending	p. 144
VA Loans and First-Time Buyer Programs	p. 146
Conventional Loans	p. 146
Residential Loans: One to Four Units	p. 147
Commercial Loans: Five Units and Up	p. 148
Fixed Loans	p. 149
Private-Party Financing	p. 154
To Sum Up	p. 155
Minding the Farm	p. 157
Open for Business	p. 158
HUD Housing	p. 161
Discrimination	p. 163
Utilities and Insurance	p. 164
The Apartment Owners Association	p. 165
Who's Doing What?	p. 165
Determining Vacancy Rates	p. 166
Determining Rental Rates	p. 167
Filling a Vacancy	p. 168
A Policy on Pets	p. 170
Happy Tenants	p. 171
Raising the Rent	p. 172
Conclusion	p. 175
Appendix	p. 179
Glossary	p. 193
Recommended Reading	p. 199
Index	p. 201
About the Authors	p. 205
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