Investing in Real Estate

GARY W. ELDRED, PhD, is the author of The Beginner's Guide to Real Estate Investing and 106 Mortgage Secrets All Homebuyers Must Learn-But Lenders Don't Tell, both from Wiley. A real estate investor, he speaks at major investment conferences and has served on the graduate business faculties at Stanford University and the University of Virginia.

Prologue: Invest in Real Estate Now! Acknowledgments. 1 WHY INVESTING IN REAL ESTATE PROVIDES YOU THE BEST ROUTE TO A PROSPEROUS FUTURE. 22 Sources of Returns from Investment Property. Is Property Always Best? 2 FINANCING: BORROW SMART, BUILD WEALTH. The Birth of "Nothing Down". Should You Invest with Little or No Cash or Credit? Maximize Leverage with Owner-Occupancy Financing. What Are the Loan Limits? High Leverage for Investor-Owner Financing. What Underwriting Standards Do Lenders Apply? 3 APPRAISAL: HOW TO DISCOVER GOOD VALUE. Make Money When You Buy, Not Just When You Sell. What Is Market Value? How to Estimate Market Value. Property Description. The Cost Approach. The Comparable Sales Approach. The Income Approach. Income Capitalization. Valuation Methods: Summing Up. 4 MAXIMIZE CASH FLOWS AND GROW YOUR EQUITY. Will the Property Yield Good Cash Flows? Will the Property Yield Profitable Increases in Price? Summing Up. 5 HOW TO FIND BARGAIN-PRICED PROPERTIES. Why Properties Sell for Less (or More) Than Market Value. Prepare Screening Criteria. Bargain Sellers. Seller Disclosures. Summary. 6 PROFIT WITH FORECLOSURES. The Foreclosure Process. Buy Preforeclosures from Distressed Owners. Prequalify Homeowners and Properties. Finding Homeowners in Default (Prefiling). Find Homeowners (Postfiling). Satisfy Lenders and Lien Holders. Profit from the Foreclosure Auction. The Foreclosure Sale: Summing Up. 7 PROFIT FROM REOs AND OTHER BARGAIN SALES. Bad News For Sellers/Builders, Good News For You. How to Find REOs. HUD Homes and Other HUD Properties. Department of Veterans Affairs (REOs). Fannie Mae and Freddie Mac REOs. Federal Government Auctions. Buy from Foreclosure Speculators. Probate and Estate Sales. Private Auctions. 8 QUICK PROFITS THROUGH FIX AND FLIP. Fix, Flip, Profit! Look for "Fixers". Improvement Possibilities. Required Repairs and Improvements. You Can Improve Everything about a Property-Including Its Location. What Types of Improvements Pay the Greatest Returns? Budgeting for Resale Profits. Comply with Laws and Regulations. Should You Buy a "Fixer"? 9 MORE TECHNIQUES FOR HIGH YIELDS AND QUICK PROFITS. Lease Options. Lease Purchase Agreements. Conversions. Master Leases. Assignments: Flipping Purchase Contracts. Summary. 10 NEGOTIATE A WIN-WIN AGREEMENT. Win-Win Principles. The Purchase Contract. Summary. 11 MANAGE YOUR PROPERTIES TO INCREASE THEIR VALUE. The 10:1 Rule (More or Less). Smart Strategic Decisions. Cut Operating Expenses. Increasing Value: Final Words. 12 DEVELOP THE BEST LEASE. The Mythical "Standard" Lease. Craft Your Rental Agreement. Tenants Rights Laws. Landlording: Pros and Cons. 13 CREATE SALES PROMOTIONS THAT REALLY SELL. Design a Winning Value Proposition. Craft Your Selling Message. Reach Potential Buyers. Should You Employ a Realty Agent? 14 PAY LESS TAX. The Risks of Change and Complexity. Homeowner Tax Savings. Alternative Minimum Tax. Capital Gains. Tax-Free Exchanges. Reporting Rental Income and Deductions. Tax Credits. Property Taxes. Summary. 15 MORE IDEAS FOR PROFITABLE INVESTING. Lower-Priced Areas. Emerging Growth Areas. Emerging Retirement/Second-Home Areas. Commercial Properties. Triple Net (NNN). Self-Storage. Mobile Home Parks. Profitable Possibilities with Zoning. Tax Liens/Tax Deeds. Discounted Paper. Should You Form an LLC? 16 AN INCOME FOR LIFE. Less Risk. Personal Opportunity. Index.