Start Small, Profit Big in Real Estate: Fixer Jay's 2-Year Plan for Building Wealth - Starting from Scratch Fixer Jay's 2-Year Plan for Building Wealth - Starting from Scratch

by DeCima, Jay

• ISBN13: 9780071443807
• ISBN10: 0071443800
• Edition: 1st
• Format: Paperback
• Copyright: 2004-12-28
• Publisher: McGraw Hill

Summary

From theBusinessWeekbestselling author ofInvesting in Fixer-Uppers--a plan for building a real estate empire with little or no money down"Fixer Jay" DeCima, the acknowledged king of fixer-uppers, delivers a much-anticipated guide to realizing financial independence through real estate investing. Written in DeCima's trademark folksy style,Start Small, Profit Big in Real Estateprovides a complete two-year plan for making it big in real estate starting with little or no money of your own. You'll learn how to: Scout out properties with the highest return Calculate the payoff versus the effort involved in any real estate investment Find motivated sellers who will finance your properties Use leveraging and compounding to utmost advantage Negotiate with sellers and win every time Make big bucks with rental properties

Author Biography

Jay P. DeCima is a former phone company lineman and the acknowledged king of fixer-uppers, with 200 rental properties in Northern California. He teaches his proven strategies to thousands each year at his wildly popular seminars and fixer camps.

Table of Contents

Introduction	xiii
A Stable and Predictable Future If You Stay Focused	xv
A Wealth-Building Plan for the Whole Family	xvi
Profits in a Short Period of Time and Personal Freedom	xvii
An Expert's View of the Future	xviii
Part 1. Planning to Make Money	1	(78)
Achieving Financial Independence	3	(12)
Jay Earns 17 Times More Than a Real Estate Agent	4	(1)
Selecting the Right Property	5	(2)
How to Double the Value in 24 Months	7	(1)
How Long Will It Take, and How Much Can I Make?	8	(1)
Investing in Real Estate Is Like Kissing Frogs	9	(1)
A Business with Real Estate Assets	10	(2)
Ways to Earn Cash When You Start	12	(1)
Achieve Any Financial Goal You Set	12	(3)
Early Planning Pays	15	(13)
Choose Your Teachers Carefully	17	(1)
Never Try to Milk a Steer	18	(1)
Know Your Destination and Vehicle	19	(2)
A Simple Plan---Reasonable and Profitable	21	(2)
How Much Risk Is Too Much?	23	(1)
Always Invest Where Demand Is Highest	24	(1)
The Best Odds for Your Success	25	(1)
When You're Ready to Buy	25	(1)
A Good Plan Requires Action	26	(2)
Building Success One Brick at a Time	28	(14)
Beware Future Value, High Potential, and Pride of Ownership	30	(1)
Don't Let Big Mortgage Payments Rob Your Profits	30	(1)
Become an Expert to Stay on Top	31	(4)
There Is No Substitute for Cash Flow	35	(1)
Four Sources of Real Estate Profits	36	(6)
Magic Ingredients for a Moneymaking Plan	42	(9)
No Cash Down Means No Profits	43	(1)
The Poor Investor's Plan for Profits	44	(3)
Ruth B: A Case for Buying Rental Units and Keeping Them	47	(1)
Real Estate Requires Your Total Concentration	48	(1)
Keep It Simple	48	(1)
Biggest Profits Come from Small, Affordable, Multi-Unit Properties	49	(2)
12 Benefits to Being a Housing Entrepreneur	51	(11)
1. Monthly Cash Flow	52	(1)
2. You Can Work at Home	53	(1)
3. Maximum Tax Savings	54	(1)
4. Low Start-Up Costs	55	(1)
5. Forced Savings Plan	55	(1)
6. No Expensive Tools	56	(1)
7. Use of Leverage	57	(1)
8. Limited Personal Risk	57	(1)
9. No License Required	58	(1)
10. Creating Long-Term Annuities	59	(1)
11. Rents Never Stop	59	(1)
12. Automatic Retirement Nest Egg	60	(2)
You Can't Hit a Bird with a Buffalo Gun: Common Mistakes First-Timers Make	62	(5)
Jack-of-All-Trades, Master of None	63	(1)
Forget Sellers Who Can't Make You a Good Deal	63	(2)
Don't Fiddle with Sellers Who Have No Equity	65	(1)
An Opportunity You Shouldn't Pass Up: Taking Over Existing Mortgages	65	(2)
Planning Your Profits at the Kitchen Table	67	(12)
The Advantage of Being Your Own Boss	68	(2)
Three Ways to Bring Home Dollars	70	(1)
Steady Cash Flow Pays the Bills	71	(1)
Selling Cycles: Catching the Perfect Wave	72	(1)
Property Sales: Lump-Sum Cash vs. Monthly Payments	72	(1)
All Borrowing Is Not the Same	73	(2)
How to Get Paid When You Buy the Property	75	(1)
Trading Soggy Paper for Hard Dollars	76	(3)
Part 2. Buying Your First Investment Houses	79	(62)
Properties with All the Right Things Wrong	81	(7)
Getting Started	82	(1)
What Kind of Property Might You Expect to Purchase Without a Cash Down Payment?	82	(1)
What Kinds of Sellers Are Likely to Own the Types of Property Described?	83	(1)
Leper Properties Make the Most Money	84	(2)
Underperforming Properties Are Best Value	86	(1)
Keep a Clear View of the Big Picture	86	(2)
Property Selection Determines Your Profits	88	(10)
Know Who Your Customer Will Be Before You Buy	89	(1)
Smart People Often Do the Stupidest Things	90	(2)
Seminars Provide an Opportunity to Learn	92	(1)
My Hillcrest Cottages: How Solving Problems Pays Well	92	(3)
Understanding Where Discounts Come From	95	(1)
Positioning Counts for Everything	96	(1)
A Method for Extracting the Profits	96	(1)
Pencils and Yellow-Pad Accounting	97	(1)
The Soap Factory Houses: A Virtual Gold Mine	98	(5)
High Rent-to-Value Ratio Produces Gold	99	(1)
Profits Come from Monthly Cash Flow	100	(1)
Houses Are the Vehicle to an End	101	(1)
Well-Financed Houses Are Very Low Risk	102	(1)
The Riley Street Houses: How to Earn $429,000 in Nine Years, Moonlighting	103	(15)
I Always Read the Classifieds	104	(1)
Big Benefits of Seller Financing	105	(1)
Making a Telephone Contact	106	(1)
Draw a Sketch Showing Apartments and/or Houses	107	(1)
Structuring Your Written Offer to Purchase	108	(1)
Finalization of the Offer	109	(1)
Rent-to-Value Factor of the Riley Street Houses	110	(1)
Fix-Up Costs Itemized Estimate	111	(2)
Always Determine How You'll Make a Profit	113	(2)
Selling Out After Nine Years	115	(1)
Riley Houses Are Good but Not Exceptional	116	(1)
10 Key Ingredients That Make the Riley Street Houses a Good Deal	117	(1)
How to Negotiate with Great Results	118	(9)
Develop the Right Skills	119	(1)
Columbo's Techniques Are Very Persuasive	120	(2)
The Three Most Important Items You'll Ever Negotiate	122	(1)
Negotiating Is Much Easier with Facts	123	(1)
Always Allow the Seller to Participate	123	(1)
Verify the Actual Expenses	124	(1)
No One Reports Too Much Income to the IRS	125	(1)
No One Manages and Repairs for Free	125	(2)
Turning Motivated Sellers into Bankers	127	(14)
Seller Financing: It's the Best Your Money Can Buy	128	(1)
Customize to Fit the Deal	128	(1)
Five Reasons Seller Financing Is Best	129	(7)
Buying Properties with Multiple Loans	136	(3)
The Many Faces of Profit-Making	139	(2)
Part 3. Becoming Wealthy---Staying Wealthy	141	(76)
Silent Wealth-Builders: Compounding, Leverage, and Control	143	(8)
Appreciation---It's the Icing on the Cake	144	(1)
Playing the Appreciation Game	145	(1)
Tax Shelter Benefits Add to Annual Compounding	146	(1)
Leverage Is How the Rich Get Richer	146	(1)
Full Control Builds Wealth Faster	147	(2)
Danger of All-in-One-Basket Investing	149	(2)
Oliver Street: Jay's Fast-Track Investment Model	151	(21)
Jay's Top 10 Moneymaker Benefits	152	(1)
Oliver Street---a Near Perfect Model	153	(1)
Oliver Street Required Fast Action	154	(1)
Benefit 1: Buying for Substantial Discounts	155	(1)
Benefit 2: Adding Value for Quick Income	156	(1)
Benefit 3: Seller Carryback Financing	157	(2)
Benefit 4: Lemonade Down Payments	159	(1)
Benefit 5: Buying Back Mortgage Debt	160	(2)
Benefit 6: Leasing Houses with Option to Purchase	162	(3)
Benefit 7: Increasing the Cash Flow with Half Sales	165	(1)
Benefit 8: Cash Flow from City Hall	166	(1)
Benefit 9: Aggressive Tax Sheltering	167	(2)
Benefit 10: Selling for Top Price and Interest Income	169	(1)
Earn Big Dollars with Carryback Financing	170	(2)
When You Need a Helping Hand	172	(16)
Different Strokes for Different Folks	173	(1)
Handyman--Jack- or Jill-of-All-Trades	173	(1)
Finding Good Help	174	(2)
Keeping Good Help Once You've Found It	176	(1)
Paydays and Record Keeping--a Simple Task	176	(1)
Hiring Is Easy--the Rules Are Complicated	177	(1)
Independent Contractors: Who Is and Who Isn't	178	(1)
Learning to Tell Ducks from Swans	179	(1)
Knowing the Difference Can Save Your Bacon	179	(1)
Who Needs a License Anyway?	180	(1)
The Separate Entity Test	181	(1)
The Common Legal Factors	182	(6)
Managing Your Property and Your Tenants	188	(20)
Educate Yourself Before Jumping In	189	(2)
It's the Tenants Who Make You Rich	191	(1)
Acquiring the Deeds and Keeping the Benefits	192	(2)
My Top Wealth-Building Skill: Landlording	194	(1)
A Good Plan Prevents Vacancies and Avoids Risk	195	(1)
Common Pitfalls of Management	196	(1)
Rent Collection Should Never Be a Game	197	(2)
Know the Law	199	(1)
The Application Form: What to Ask	200	(1)
Qualify Your Tenants Before Showing Them Your Property	201	(1)
Use Memos to Enforce Rules	202	(2)
Repairs and Service	204	(1)
Comply with Habitability Laws	205	(1)
Develop Good Paperwork	205	(1)
Split Payments for Struggling Tenants	205	(1)
Interim Tenants Maintain Cash Flow	206	(1)
Treat Tenants Fairly	206	(1)
Landlording Is a Business	207	(1)
Selling Your Property: Your ``Pajama Money'' Retirement Plan	208	(9)
Cash Sales Don't Bring Highest Profits	209	(1)
Seller Financing Seldom Involves an Appraiser	210	(1)
How I Sell for Top Dollar and a Bit Extra	211	(1)
Installment Sales Stall Taxes	212	(1)
Wraparounds Provide Safety and Profits	213	(2)
Tailoring Your Carryback Note to Your Buyer	215	(2)
Appendix A. Rental and Contractor's Agreements	217	(9)
Rental Agreement	218	(5)
Independent Contractor's Agreement	223	(3)
Appendix B. Oliver Street Property Documents	226	(5)
Jay's 7-Unit Property on Oliver Street	227	(1)
Income Property Analysis Form	228	(2)
Typical Gross Rent Multiplier (GRM) Chart	230	(1)
Appendix C. Resources for Real Estate Investors	231	(4)
Newsletters	231	(2)
Books for Real Estate Investors	233	(1)
Real Estate Seminars and Workshops	234	(1)
Index	235	(13)
About the Author	248