HOW TO INVEST IN REAL ESTATE WITH NO MONEY DOWN

HOW TO INVEST IN REAL ESTATE WITH NO MONEY DOWN … and minimum risk! By: Milt Tanzer Copyright 2002 by Milt Tanzer. All rights reserved The information contained herein has been compiled from sources believed to be reliable but is not warranted. Every effort has been made to present accurate and useful information based on real world investment practices. The author hereby grants you the right to reproduce this ebook, in its entirety, and distribute it in any manner you wish, provided: It is distributed in its entirety and not altered in any way. All information contained in this ebook, author name, website addresses, etc. must remain in the distribution copy. You are free to give the ebook away or sell it and retain 100% of the profits you collect. 0 HOW TO INVEST IN REAL ESTATE WITH (little or) NO MONEY DOWN …and Minimum Risk Introduction 6 Chapter 1. The Importance of Attitude, 8 Perseverance and Flexibility Chapter 2. What to Look For 12 Single Family Homes Condos Duplex Four Unit Complex …or Larger Strip stores, office buildings, warehouses, etc Slums (example) 12 Unit (example) What to Avoid Single purpose buildings Apts. – Furnished vs unfurnished Chapter 3. How to Locate a Suitable Property 20 Legwork, Time and Attitude Motivated Sellers Owner transferred Death Foreclosure Retiring Health Divorce Partnership disputes Talk to Banks and other Lenders Chapter 4. How to Analyze the Area 23 Drive around Check out condition of properties in area Check the area in general Chapter 5. How Analyze the Market 26 Chapter 6. How to Find a Motivated Seller 29 Get to know the seller Get the seller to know you What does seller intend to do with proceeds Deed in lieu of foreclosure 1 Chapter 7. How Analyze the Property 33 Gathering Information Analysis Program (IPP) Chapter 8. Ways to Finance the Property 39 Understanding how a mortgage works Seller financing (#1 choice) No closing costs on mortgage More flexible on terms and rates More motivated to negotiate Talk to Banks and other Lender Understanding how lenders work Be prepared for rejection Have your presentation ready Property Details Your Financial Statement Property Financial statement Intended improvements and costs Market details Photos of property Your track record (if you have one) Bank discounting their mortgage Interest moratorium Payment moratorium Extend term of mortgage to reduce monthly pmts Financing Alternatives Normal Amortized loan Interest only mortgage Adjustable rate mortgage Graduated payment mortgage Balloon mortgages Wraparound mortgage or (all inclusive deed of trust) Land leases Combine financing approaches with multiple mortgages Sale/Leaseback Assume seller obligations Cautions on Financing Term of loan and balloons Graduated interest rate Pre-payment penalties Non-assumable loans Loans assumable at a revised interest rate or terms No pre-payment allowed Verifying present mortgage balance and terms 2 Chapter 9. The Importance of Using Leverage 51 How much leverage is advisable When should you pay off a mortgage Multiple mortgages Chapter 10. Where to Locate Cash 58 Family and Friends Banks Private Lenders Mortgage Brokers Mortgage Bankers Credit Cards Sell off part of the property Refinance another property Borrow against life insurance Borrow against stocks Personal Loans from bank Home equity loan (use caution) Add closing costs into mortgage Give something in lieu of cash (car, boat, stock) Escrow, advance rents, etc. as part of down payment (caution) Trade equity in another property you own for down payment Trade for anything you have that they want Sell a mortgage at a discount Chapter 11. How to walk away from the closing 62 with nothing down and cash in your pocket Buying a below market value and finance big (negotiate with lender or seller) Chapter 12. Understanding the Various 64 Types of Ownership Lease/Option Joint Ventures Partnerships Corporate ownership Chapter 13. How to Negotiate with the Seller 67 Start renovation before closing Pay more for the property for concessions you need Lower interest rate Extend term of mortgage Seller Refinance Sell mortgage to a third person 3 Chapter 14. How to Create a “win-win” situation with a Seller 71 Chapter 15. How to Negotiate with a Lender 72 List and cost of intended renovation Photos Chapter 16. Understanding Closing Costs and 74 Closing Statements Chapter 17. What to Expect at the Closing 78 Chapter 18. How to meet expenses on your new property 80 Generating income Should you have leases Flipping the property Chapter 19. When and Why You Need to Sell the Property 82 Equity too great Problems with property Chapter 20. The Importance of Record Keeping 86 Income received Expenditures for renovation Carrying costs on property Normal property expenses Value of your “sweat equity” Chapter 21. How to Avoid Taxes on the Sale 88 Exchanging Refinancing for cash Chapter 22. What to do if You Make a Mistake 92 and the Investment Flops Deed in lieu of foreclosure Chapter 23. The Secret to Pyramiding 95 (not the ones in Egypt) 4 ... - tailieumienphi.vn