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| Acknowledgments | |
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| Prologue: Invest in Property Now | |
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| Achieve A Prosperous Future: 22 Ways You Can Earn Profits With Property | |
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| 22 Sources of Profit from Investment Property | |
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| Will the Property Experience Price Gains from Appreciation? | |
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| Will You Gain Price Increases from Inflation? | |
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| Earn Good Returns from Cash Flows | |
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| Magnify Your Equity Gains with Leverage | |
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| Magnify Returns from Cash Flows with Leverage | |
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| Build Wealth through Mortgage Payoff | |
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| Over Time, Returns from Rents Go Up | |
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| Refinance to Lift Your Cash Flows | |
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| Refinance to Pocket Cash | |
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| Buy at a Below-Market Price | |
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| Sell at an Above-Market-Value Price | |
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| Create Property Value through Smarter Management | |
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| Create Value with a Savvy Market Strategy | |
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| Create Value: Improve the Location | |
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| Convert from Unit Rentals to Unit Ownership | |
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| Subdivide Your Bundle of Property Rights | |
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| Subdivide the Physical Property (or Space within a Property) | |
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| Create Plottage (or Assemblage) Value | |
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| Obtain Development or Redevelopment Rights | |
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| Diversify Away from Financial Assets | |
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| Is Property Your Best Investment Choice? | |
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| Opm: Borrow Smart, Raise Cash, Build Equity | |
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| The Birth of "Nothing Down" | |
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| Should You Invest with Little or No Cash or Credit? | |
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| What's Wrong with "No Cash, No Credit, No Problem"? | |
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| Leverage: Pros and Cons | |
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| What Are Your Risk-Return Objectives? | |
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| Maximize Leverage with Owner-Occupancy Financing | |
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| Owner-Occupied Buying Strategies | |
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| Current Homeowners, Too, Can Use This Method | |
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| Why One Year? | |
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| Where Can You Find High-LTV Owner-Occupied Mortgages? | |
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| What Are the Loan Limits? | |
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| High Leverage for Investor-Owner Financing | |
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| High Leverage versus Low (or No) Down Payment | |
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| Creative Finance Revisited | |
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| Are High-Leverage Creative-Finance Purchases Readily Available? | |
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| Build Confi dence with Lenders, Investors, Sellers, and Sales Agents | |
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| Credit Scores and Credit Record | |
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| Capacity (Monthly Income) | |
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| Cash Reserves and Source of Down Payment | |
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| Collateral | |
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| Loan-to-Value Ratios | |
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| Recourse to Other Assets or Income | |
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| Character | |
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| Competence and Experience | |
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| Compensating Factors | |
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| Automated Underwriting (AUS) | |
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| Appraisal: Ins And Outs Of Market Value | |
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| What Is Market Value? | |
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| Sales Price Doesn't Necessarily Equal Market Value | |
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| Underwriting Rules Determine the Value in LTV | |
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| How to Estimate Market Value | |
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| Property Description | |
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| Identify the Subject Property | |
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| Neighborhood | |
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| Site (Lot) Characteristics | |
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| Improvements | |
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| The Cost Approach | |
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| Calculate Cost to Build New | |
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| Deduct Depreciation | |
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| Lot Value | |
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| Estimate Market Value (Cost Approach) | |
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| The Comparable Sales Approach | |
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| Select Comparable Properties | |
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| Approximate Value Range-Subject Property | |
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| Adjust for Differences | |
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| Explain the Adjustments | |
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| The GRM Income Approach | |
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| Income Capitalization | |
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| Net Operating Income | |
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| Estimate Capitalization Rates (R) | |
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| Compare Cap Rates | |
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| Relative Prices: The Paradox of Risk and Appreciation (Depreciation) | |
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| Valuation Methods: Summing Up | |
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| Appraisal Limiting Conditions | |
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| Valuation versus Investment Analysis | |
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| Maximize Cash Flows And Grow Your Equity | |
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| Will the Property Yield Good Cash Flows? | |
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| Arrange Alternative Terms of Financing | |
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| Decrease (or Increase) Your Down Payment | |
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| Buy at a Bargain Price | |
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| Should You Ever Pay More than Market Value for a Property? | |
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| The Debt Coverage Ratio | |
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| Numbers Change, Principles Remain | |
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| Will the Property Yield Profi table Increases in Price? | |
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| Low-Involvement versus High-Involvement Investing | |
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| Compare Relative Prices of Neighborhoods (Cities) | |
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| Undervalued Neighborhoods and Cities | |
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| Beverly Hills versus Watts (South Central Los Angeles) | |
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| Demographics | |
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| Accessibility (Convenience) | |
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| Improved (Increased) Transportation Routes | |
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| Jobs and Economic Base | |
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| Taxes, Services, and Fiscal Solvency | |
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| New Construction, Renovation, and Remodeling | |
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| Land-Use Laws | |
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| Pride of Place | |
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| Sales and Rental Trends | |
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| Summing Up | |
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| Pay Less Than Market Value | |
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| Why Properties Sell for Less (or More) than Market Value | |
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| Owners in Distress | |
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| The Grass-Is-Greener Sellers | |
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| Stage-of-Life Sellers | |
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| Seller Ignorance | |
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| Prepare Screening Criteria | |
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| Bargain Sellers | |
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| Networking/Get the Word Out/Social Media | |
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| Newspapers and Other Publications | |
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| Cold Call Owners | |
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| Agent Services | |
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| Internet Listings | |
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| Seller Disclosures | |
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| The Disclosure Revolution | |
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| Income Properties | |
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| Summary | |
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| Profit With Foreclosures | |
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| The Foreclosure Process | |
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| Lender Tries to Resolve Problem | |
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| Filing Legal Notice | |
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| The Foreclosure Sale | |
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| REOs | |
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| Buy Preforeclosures from Distressed Owners | |
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| Approach Owners with Empathy | |
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| The Difficulties of Dealing Profitably with Owners in Default | |
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| Prequalify Homeowners and Properties | |
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| Finding Homeowners in Default (Prefiling) | |
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| Networking | |
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| Mortgage Collections Personnel | |
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| Drive Neighborhoods | |
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| Find Homeowners (Postfiling) | |
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| Cultivate a Relationship with Property Owners | |
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| Two More Issues | |
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| Vacant Houses | |
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| Satisfy Lenders and Lien Holders | |
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| All Parties Are Better Off | |
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| Win by Losing Less | |
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| Profi t from the Foreclosure Auction | |
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| Why Foreclosures Sell for Less than Market Value | |
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| Make the Adverse Sales Efforts Work for You | |
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| How to Arrange Financing | |
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| The Foreclosure Sale: Summing Up | |
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| Profit From Reos And Other Bargain Sales | |
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| Sad for Sellers and Builders, Bargains for You | |
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| How to Find REOs | |
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| Follow Up with Lenders after Foreclosure Sales | |
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| Locate Specialty Realtors | |
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| HUD Homes and Other HUD Properties | |
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| Homeowners versus Investors | |
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| As-Is Condition | |
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| Potential Conflict of Interest | |
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| Buyer Incentives | |
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| The Bid Package | |
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| Department of Veterans Affairs (REOs) | |
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| Big Advantages for Investors | |
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| Fannie Mae and Freddie Mac REOs | |
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| Agent Listings | |
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| Investors Invited | |
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| Federal Government Auctions | |
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| Buy from Foreclosure Speculators | |
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| Probate and Estate Sales | |
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| Probate | |
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| Estate Sales | |
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| Private Auctions | |
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| How to Find Auctions | |
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| Profit By Creating Value | |
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| Fix, Sell, Profit! | |
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| Your Fixer-Upper Search | |
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| The Browns Create Value in a Down Market | |
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| Research, Research, Research | |
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| Improvement Possibilities | |
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| Deep Clean the Property | |
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| Add Pizzazz with Color Schemes, Decorating Patterns, and Fixtures | |
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| Create Usable Space | |
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| Create a View | |
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| Capitalize on Owner Nearsightedness | |
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| Eliminate a Negative View | |
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| Enhance the Unit's Natural Light | |
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| Reduce Noise | |
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| Required Repairs and Improvements | |
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| Plumbing | |
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| Electrical System | |
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| Heating and Air Conditioning | |
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| Windows | |
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| Appliances | |
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| Walls and Ceilings | |
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| Doors and Locks | |
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| Landscaping | |
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| Storage Areas | |
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| Clean Well | |
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| Safety and Health | |
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| Roofs | |
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| Improvements and Alterations | |
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| You Can Improve Everything about a Property-Including Its Location | |
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| South Beach: From Derelicts to Fashion Models | |
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| Community Action and Community Spirit Make a Difference | |
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| Neighborhoods Offer Potential | |
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| What Types of Improvements Pay the Greatest Returns? | |
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| How Much Should You Budget for Improvements? | |
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| Beware of Overimprovement | |
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| Other Benefits | |
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| No-No Improvements? | |
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| Budgeting for Resale Profits | |
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| Estimate the Sales Price First | |
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| Estimate Costs | |
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| Future Sales Price - (Costs + Profi t) = Maximum Acquisition Price | |
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| Comply with Laws and Regulations | |
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| Should You Buy a Fixer-Upper? | |
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| Too Little Time? | |
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| Put Your Creativity to Work | |
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| More Techniques To Profit With Property | |
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| Lease Options | |
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| Here's How Lease Options Work | |
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| Benefits to Tenant-Buyers (an Eager Market) | |
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| Benefits to Investor-Sellers | |
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| The Lease Option Sandwich | |
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| How to Find Lease Option Buyers and Sellers | |
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| A Creative Beginning with Lease Options (for Investors) | |
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| Lease Purchase Agreements | |
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| Seems More Defi nite | |
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| Amount of the Earnest Money (Option) Deposit | |
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| Contingency Clauses | |
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| Conversions | |
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| Condominium Conversion | |
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| Convert Apartments to Office Space | |
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| Tenants in Common | |
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| Master Leases | |
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| Assignments: Flipping Purchase Contracts | |
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| Summary | |
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| Negotiate A Win-Win Purchase Agreement | |
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| Win-Win Principles | |
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| The Purchase Contract | |
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| Names of the Parties | |
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| Site Description | |
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| Building Description | |
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| Personal Property | |
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| Price and Financing | |
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| Earnest Money Deposit | |
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| Quality of Title | |
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| Property Condition | |
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| Preclosing Property Damage (Casualty Clause) | |
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| Closing (Settlement) Costs | |
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| Closing and Possession Dates | |
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| Leases | |
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| Contingency Clauses | |
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| Assignment and Inspection | |
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| Public Records | |