Legacy Education Alliance

341 Pages·2010·4.55 MB·English

Guide To
REAL ESTATE
TM
INVESTING
GGuuiiddee
TToo
RReeaall eessTTaaTTee
iinnvveessTTiinnGG
disClosuRe
This publication and the accompanying materials are designed to provide accurate and authoritative information in
regard to the subject matter covered in it. it is provided with the understanding that the publisher is not engaged in
rendering legal, accounting, or other professional opinions. if legal advice or other expert assistance is required, the
service of a competent professional should be sought. Reproduction or translation of any part of the information contained
herein, in any form or by any means, without the written permission of the owner is unlawful. The educational training
program provided hereunder is not designed or intended to qualify students for employment. it is intended solely for the
avocation, personal enrichment, and enjoyment of students.
all forms contained herein are provided for educational purposes only. The provider does not assert any warranty,
express or implied, as to the legal effect and/or completeness of the forms. The provider hereby disclaims any and
all liability with respect to these forms. The provider suggests that you contact an attorney to ensure that the forms are
modified to meet the laws of your state.
The sample list of website resources contained herein are provided solely for educational purposes and as a convenience,
and does not imply our sponsorship, endorsement or approval of any website or company, its sponsors, products and/
or services offered on its website or otherwise, or any of its advertisers. The publisher does not maintain the website(s)
or assume any responsibility for the accuracy, content and current status of any information provided. Please also note
that the locations on the site(s) can change without notice.
disClosuRe foR foReClosuRe and equiTy shaRinG TeChniques
The foreclosure Training course or foreclosure content presented in Company trainings, products and services are
intended to provide generalized broad-based experiential real estate foreclosure and pre-foreclosure training techniques.
This information is not intended to provide legal advice or detailed guidance on how to properly conduct foreclosure
and/or pre-foreclosure activity in your state. as with any regulated activity, we strongly recommend that you consult with
an attorney.
There are currently a growing number of states that have enacted legislation that could impact how you participate
in foreclosure and/or pre-foreclosure activities in those states. violations of these laws may result in civil and criminal
penalties, including damages, fines and terms of imprisonment. for more information about these laws, please refer to
the additional information located at the following website: http://richdadeducation.com
RiCh dad™ eduCaTion
1612 e. Cape Coral Parkway Cape Coral, florida 33904
© 2006-2010 Rich dad education all Rights Reserved.
The Rich dad word mark and logos are owned by Rich dad operating Company, llC. and
any use of such marks by Rich dad education is under license.
10Rde0100 v1 7-10
important note:
Be sure you contact your local real estate professional or real estate lawyer to research the appropriate documents
that are required for all real estate transactions in your state.
Guide To Real esTaTe invesTinG
Table of Contents
Guide To Real esTaTe invesTinG
introduction:
investing in your future .........................................................1
The Major Benefits of Real estate ..........................................2
a Market full of opportunities .............................................5
chapter 1:
The Circle Of Wealth .....................................................................11
Many Property Types and Business strategies .........................12
The Circle of Wealth and Multiple income streams ................13
Types of earned streams of income ....................................14
Types of Passive streams of income ....................................14
Types of Portfolio streams of income in Real estate ................16
an introduction To some Key areas of Real estate investment ...17
Making The Right income stream Choices .............................18
Wholesale Buying ............................................................20
lease options ..................................................................22
foreclosures ....................................................................23
it’s a learning Process .......................................................24
chapter 2:
Understanding Market Analysis & Evaluation ............................27
history is a Great Teacher - and Predictor of The future ..........27
how does That Relate To Today’s Markets .............................30
if educated investors don’t Buy emotionally, how do They Buy? 30
you’ve Got to Know When to hold—and When to fold!.........32
What This Means To you ..................................................33
chapter 3:
Getting To Know Your Market.............................................37
True Market value .............................................................38
defining The area you Will invest in .....................................38
segmenting your area .......................................................39
deciding What area you Want To focus on .........................41
determining Property values using Comps .............................41
What The Comparables Will Tell you ...................................42
chapter 4:
Selecting A Power Team.....................................................47
finding The Right Real estate Professional ..............................47
Choosing The Right Real estate Professional ...........................48
not Too Big, not Too small, Just Right!!! ..............................49
Real estate Professional interview script ................................50
finding The Right Mortgage Broker ......................................52
Mortgage Broker interview ................................................53
Community Banker ..........................................................54
Contractor handyman .......................................................55
Tax Professional ................................................................56
appraiser ........................................................................56
lawyer ...........................................................................56
Title Company .................................................................56
home inspection Professional ..............................................57
surveyor .........................................................................57
Termite inspectors .............................................................57
insurance agent ...............................................................57
Property Manager ............................................................58
Mentor ...........................................................................58
Government Grant and loan specialists................................58
networking Contacts ........................................................58
Guide To Real esTaTe invesTinG
Table of Contents
chapter 5:
Finding Motivated Sellers...................................................63
What is a Motivated seller? ...............................................63
how do We find Them? ...................................................64
niche Marketing ..............................................................77
networking Resources .......................................................81
chapter 6:
Making Quick Cash: Wholesales.........................................91
Where To find Wholesale deals .........................................92
driving for dollars ............................................................93
assignment of Contract and double Closing .........................96
Contingencies ..................................................................97
Title Companies or Closing attorneys ...................................99
Building a database of Buyers .........................................100
advertise To find your Buyer .............................................104
What To offer ...............................................................105
negotiating With The seller .............................................107
Contracts ......................................................................108
Why Wholesaling? ........................................................110
exit strategies ................................................................112
chapter 7:
Securing The Financing....................................................117
Getting Creative.............................................................117
Working With Mortgage Brokers ......................................118
Calling Mortgage Brokers ................................................119
Pre-qualified vs. Pre-approved..........................................120
questions To ask Mortgage Brokers ...................................121
seller financing .............................................................126
other low or no Money down Techniques ........................130
chapter 8:
Profiting By Controlling Property: Lease Options................149
elements of a standard option Contract ............................150
What is a lease option ..................................................151
Benefits of a lease option ..............................................152
Buying and selling With a lease option ............................155
Who and What We are looking for? ...............................157
Working With The Motivated seller ...................................162
Things To agree on With The seller ..................................168
sample Contracts and documents To use as The Buyer .........169
Bulletproof your option With The seller ..............................171
Bulletproof your option With your Tenant/Buyer ..................173
finding Tenant/Buyers for The deal ...................................175
Meeting With your Potential Tenant/Buyer ..........................178
how do i qualify Them? .................................................179
sample Contracts and documents used by The seller ...........180
13 steps To Being successful in lease options ....................188
how To do a lease option..............................................191
Points To Consider ..........................................................193
sample Car Magnet ads .................................................194
sample newspaper ads .................................................195
sample signs and flyers ..................................................197
sample Postcards ...........................................................198
sample Property information sheet .....................................199
sample authorization To Release information form ................200
sample letter of instructions To lender ................................201
sample Residential lease With option ...............................202
Guide To Real esTaTe invesTinG
Table of Contents
chapter 9:
Becoming A Problem Solver: Foreclosures..........................207
What is foreclosure? ......................................................208
The Three Phases of foreclosure .......................................211
The system for Buying Pre-foreclosures ...............................216
sample authorization To Release information .......................259
sample Bill of sale ........................................................260
sample affadavit and Memorandum of agreement ..............261
sample Car Magnet ad ..................................................262
sample newspaper ad ...................................................262
sample letter and flyer ...................................................263
chapter 10:
Negotiating With Confidence...........................................269
Practice Talking To Get over fears ....................................269
listen To The seller ..........................................................270
Communication and salesmanship ....................................270
The anatomy of a Presentation .........................................272
chapter 11:
Making An Offer: The Contract.........................................279
The offer vs. The Contract ...............................................280
Basic Requirements of a Contract .....................................281
sample Contract for Purchase and sale .............................283
Glossary: ..................................................................309
G

Guide To Real esTaTe invesTinG
introduction
inTRoduCTion
investing in
your future
T
hrough real estate investing, demand for real estate in most areas is
many individuals just like you constant although there are economic
have been able to increase their net factors that influence the market and
worth substantially, obtain the things its demands. The good news is that
they always wanted to have, reached when the economy is in a slump,
their financial goals faster than they there are tremendous opportunities for
thought possible, and preserved their good real estate deals because the
wealth for their retirement and/or their number of buyers decreases along
families. and many have done so with tougher economic times. now
without much money to start with, or is just such a time and that makes
without any money to start with at all. investing in real estate more lucrative
The fact is, real estate investing is than ever. The key to building wealth
a powerful tool for building and through real estate is having the
preserving wealth no matter where you knowledge to understand the market
live and no matter who you are. and swings and pressures and then being
unlike some investment opportunities, able to capitalize on the opportunities
real estate investing has “staying as you find them. There will always
power.” be a never-ending supply of buyers
11