Real Estate Investing for the Utterly Confused

239 Pages·2006·1.28 MB·English

by  Lisa Moren Bromma

Real Estate Investing for
the Utterly Confused
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Real Estate Investing for
the Utterly Confused
Lisa Moren
McGraw-Hill
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DOI: 10.1036/0071472347
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Contents
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Preface ix
Chapter 1: Why Real Estate? 1
Investing in Real Estate 2
Developing Your Investment Strategy 4
Chapter 2: The Right Property Type at the Right Time 5
Choosing Properties 6
Vacant Land 12
A Final Word on Selecting Properties 16
Chapter 3: Flipping Properties 19
Property Flipping 20
Rules for Making Money on Investment Properties 22
Chapter 4: Different Purchasing Choices Explained 25
Purchasing Property 26
Foreclosures 31
Short Sales 33
Bargains in Government Repos 34
Tax Lien Certificates 36
Tax Deeds vs. Tax Lien Certificates 37
Buying to Hold 38
Do’s and Don’ts When Buying Real Estate 38
Chapter 5: How to Find the Right Property 41
Finding Property 42
Mold: Be Aware 42
Ways to Find Property 43
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v
vi Contents
Working with Realtors 48
Private Auctions 49
Partnership Disputes 49
Property Financing Problems 49
Other Sources for Finding Property 49
Buying from Relocator Companies 51
Marketing 51
Marketing Methods 53
Chapter 6: How to Negotiate the Best Deals 57
Negotiating the Deal 58
The Negotiating Process 60
Seller Financing 62
Chapter 7: Finding Money for Your Deals 65
Financing 66
Mortgages 66
Loans 71
Dealing Successfully with Institutional Leaders 73
Unconventional Financing 73
Private Investors 77
Hard Money Loans 80
Equity Sharing 80
Retirement Funds 81
Managing the Risks 82
Developing Relationships with Bankers 84
Preparations for Closing 84
Chapter 8: How to Manage Your Properties 87
Property Management 88
Landlord vs. Property Management 89
Rent Control 92
Finding Tenants 92
Screening Tenants for Rentals 94
Signing the Lease 95
Property Inspection and Walk-Through 97
Other Property Management Issues 98
Chapter 9: Capturing Profit from Your Investments 103
Selling Your Proerty 104
Preparing Your Property for Viewing 105
1031 Exchanges 106
Contents vii
Chapter 10: Writing a Business Plan for Real Estate Investors 109
The Importance of Business Plans 110
Planning Your Plan 110
Business Plan Outline 111
Chapter 11: A Working Marketing Plan for Your Real Estate Business 115
Why a Plan Is Necessary 116
Marketing Plan Outline 116
Details of the Plan 118
Evaluation 120
Chapter 12: Steps for Succeeding in Real Estate 123
Week 1: Get Organized 127
Week 2: Check Out the Market 127
Week 3: Go Shopping! 128
Week 4: Let the Negotiations Begin 128
Week 5: You’re Off and Running 129
Appendix A: Sample Business Plan 131
Appendix B: Sample Marketing Plan 137
Appendix C: Real Estate Investing for Women 141
Appendix D: Sample Documents 143
1. Property Inspection Sheet 144
2. Assignment of Rents 147
3. Classified Ad Letter 150
4. Credit Application 151
5. Credit Report Authorizations
Simple Form 153
Form for Someone Out of State 154
6. Deeds of Trust
When Buying 155
When Selling 165
7. Warranty Deeds
When Buying 175
When Selling 178
8. Contracts for Deed
When Buying 181
When Selling 186
9. Foreclosure Marketing Letter 191
10. Open House Sample Marketing Sheets
Home for Sale 192
Home for Rent 193
viii Contents
11. Base Option Agreements
For Buying Property 194
For Selling a Lease 198
12. Power of Attorney 203
13. Rental Application 204
14. Satisfactions of Debt
When Paying Off a Debt 206
When Being Paid a Debt 209
15. Testimony Letter 212
16. Miscellaneous Clauses 213
Index 217