Real Estate Millions in Any Market

Real Estate Millions in Any Market......Page 3
Contents......Page 5
ACKNOWLEDGMENTS......Page 13
INTRODUCTION......Page 15
PART I AN OVERVIEW OF YOUR WEALTH-BUILDING PROCESS......Page 21
Turning Dreams into Reality......Page 23
You Decide What You Will Achieve......Page 24
Goals—The Most Valuable Building Blocks......Page 27
Long-Term Success Goals......Page 30
Time—Your Most Valuable Asset......Page 31
Preparation......Page 32
Actions......Page 33
Where Is Your Starting Line?......Page 35
The Basic Action Plan......Page 36
Believe You Can Before You Do It......Page 37
You Can Make Deals with What You Have—or Don’t Have......Page 39
It Does Not Take Your Money to Make Money......Page 41
There are Professionals Available to Help You—Use Them!......Page 42
Putting Your Investment Team Together......Page 43
Real Estate Brokers and Agents......Page 44
Banking Relationships......Page 45
Attorneys......Page 46
Insurance Agents......Page 47
Professional Management Companies......Page 48
The Other Professionals......Page 49
It All Seems So Complicated......Page 51
Real Estate—Quick and Easy......Page 52
Technology—The New World of Information Availability......Page 53
Outsmarting the So-Called Experts......Page 54
The Most Important Component......Page 56
Identifying and Qualifying Sellers......Page 57
Basic Real Estate Terminology......Page 60
PART II THE COMPONENTS NECESSARY FOR IMMEDIATE AND LONG-TERM REAL ESTATE WEALTH......Page 77
The Benefits You Will Achieve Through Real Estate Investment......Page 79
Is There Risk Involved?......Page 80
Can You Save Your Way to Wealth?......Page 84
What It Takes to Be Successful in Today’s Market......Page 86
Getting Organized......Page 89
A Place to Work and Make Calls......Page 90
Telephone......Page 91
Computer and the Internet......Page 92
How You Will Represent Yourself?......Page 94
Business Cards......Page 95
Flyers and Brochures......Page 97
It Is a Numbers Game......Page 99
What Is the Process?......Page 101
Finding the Best Areas, Neighborhoods, and Properties......Page 104
What Are the Most Common Mistakes?......Page 106
Making the Right Choices......Page 107
Your Property Search Binder—The Layout and What Is Included......Page 108
Finding the Areas......Page 111
Do You Have Adequate Internet Service?......Page 112
How You Search Is Up to You......Page 113
Sterling’s Best Places......Page 114
Chambers of Commerce and City Sites......Page 115
Some Other Great Sources for Information......Page 119
The Internet Site That Has Changed the Real Estate World......Page 120
What About the Schools or Other Demographics?......Page 122
Making Personal First-Time Contacts......Page 132
What About Unique Properties?......Page 134
What is Most Important?......Page 137
The Factors of Comparable Values and Comparable Sale Pricing......Page 138
Common Fallacies of Comparable Pricing......Page 140
Real Estate Brokers and Agents and Title Companies......Page 141
Understanding the Nuances of Pricing......Page 143
What About Using Appraisals?......Page 146
Your Pricing Will Be Based on Inspections and Comps......Page 149
Get Rid of the Emotion—Now!......Page 151
Valuation Methods Used by Appraisers......Page 152
Comparable Sales Analysis—Multi-unit......Page 153
Net Income Analysis Approach......Page 154
Income......Page 156
Expenses......Page 158
Cash Flow......Page 161
Getting Caught Up in Analysis......Page 163
CHAPTER 9 Finding Great Bargain Properties Using Traditional Methods......Page 165
What Success Levels to Expect......Page 166
Classified Buyer’s Newspaper Advertising......Page 167
The Words of the Flexible, Accommodating Seller......Page 169
Real Estate Brokers and Agents......Page 171
Go with the Broker—You Want to Do What?......Page 173
Buyer’s Brokers and Agents......Page 174
Referrals from Friends, Relatives, and Associates......Page 176
For-Sale-by-Owner Signs......Page 177
Bird-Dog Referrals......Page 179
Other Partner Investors......Page 180
Saving Time Every Way Possible......Page 181
Search Engines......Page 187
Finding Listed Properties......Page 188
An Example Search......Page 189
Yahoo.com......Page 204
Individual Broker Web Sites......Page 208
Example Broker Sites......Page 209
Finding For-Sale-by-Owner Properties......Page 212
For-Sale-by-Owner Sites......Page 213
Foreclosures......Page 215
Making the Web Your First Stop......Page 216
Important Factors to Remember When Negotiating......Page 217
The First Impression Is the Most Important......Page 219
Identifying the Most Important Topics of Negotiation......Page 220
Educate the Seller......Page 221
The 12 Rules for Proper Negotiation—Memorize Them......Page 222
Other Important Factors Pertaining to Negotiation......Page 234
Using a Negotiation Checklist......Page 235
Making the Offer—The Climax of the Negotiation Process......Page 236
The Sections of the Purchase Agreement in Detail......Page 238
Where Do You Start?......Page 241
Let’s Look at Location......Page 242
Overall Condition of the Property and Structures......Page 243
Inspecting Potential Investment Properties......Page 244
Step 1—Cursory View......Page 245
Step 2—Investment Inspection......Page 246
Step 3—Your Own Professional Inspection......Page 247
Getting Down to the Nitty-Gritty......Page 248
Floors and Baseboards......Page 249
Window Coverings......Page 250
Lighting and Electrical System......Page 251
Going Through the Individual Rooms......Page 252
Kitchen......Page 253
Bathrooms......Page 254
Closets......Page 255
Staircases......Page 256
Shelves, Bookcases, and Drawers......Page 257
Basements and Attics......Page 258
Odor......Page 259
Porches, Decks, Patios, and Exterior Entryways......Page 260
Pools and Spas......Page 261
Structure Exteriors......Page 262
Roof......Page 263
What Repairs Must Be Made?......Page 264
Understanding Seller Disclosure......Page 265
Proper Inspections Can Save You a Bundle......Page 267
Learning to Think Creatively......Page 269
Misunderstandings and Fallacies about No-Down or Low-Down Investing......Page 270
The Most Important Rule in Creative Investment! Learn It! Never Break It!......Page 272
Four Favorite Low-Down, No-Down Techniques......Page 273
Favorite No. 1: The Quick Fix: to Rent, Own, or Sell......Page 274
Favorite No. 2: Buying Properties with Multiple Parcels......Page 278
Favorite No. 3: Subject-to Transactions or Assumptions—In and Out in a Hurry......Page 281
Favorite No. 4: Broker/Agent Participation......Page 286
Second-Nature Creativity......Page 291
Every Day Is Different—But Every Deal Is the Same......Page 293
Favorite No. 5: Short-Term Seller Desiring High, Above-Market Interest......Page 294
Favorite No. 6: Seller-Carry Note Sold for Cash......Page 297
Favorite No. 7: Low Price, High Appraisal, and Refinance......Page 302
What Made This Deal Work?......Page 305
Favorite No. 8: Equity Participation with Seller......Page 306
Favorite No. 9: The Wraparound—Seller Receives Interest on Bank’s Money......Page 310
Favorite No. 10: Generating Ongoing Income and Long-Term Wealth......Page 318
Working the Properties and Types of Deals That Suit You......Page 322
You Have the Deal—Now Get It Closed......Page 323
Some Considerations During the Closing Process......Page 325
Transfer of Funds......Page 328
After the Closing......Page 329
Closing Is an Art—Become a Proficient Artist......Page 330
Keep It Plain and Simple......Page 331
Finding Renters or Lessors......Page 333
Working with Credit Reporting Agencies......Page 334
Preparing Rental Agreements and Leases......Page 336
The 10 Commandments of Property Management......Page 337
Management Is Simple and Easy If You Stay On Top of It......Page 343
CHAPTER 17 Institutional Lending—General Information......Page 345
What Lenders Are Looking For in a Borrower......Page 346
Fixed-Rate versus Adjustable-Rate Mortgages......Page 347
Contact Letters......Page 351
Letter 2......Page 352
Letter 3......Page 353
Seller Dialog Checklist—Phone or in Person......Page 354
It Is a Numbers Game......Page 356
PART III CREATING YOUR OWN PLAN FOR SUCCESS......Page 357
CHAPTER 18 Structuring a Personal Strategy......Page 359
More Income—Longer-Term Wealth Building......Page 363
Quick Wealth Building—I Don’t Need the Income......Page 365
Planning Your Future Success......Page 368
APPENDIX......Page 369
APPENDIX A Real Estate Purchase Agreement......Page 371
APPENDIX B Addendums to Real Estate Purchase Agreement......Page 375
APPENDIX C Counteroffer......Page 381
APPENDIX D Property Inspection Form......Page 383
APPENDIX E Seller Disclosure Statement......Page 389
APPENDIX F Cost Analysis of Property Reconditioning......Page 399
INDEX......Page 401