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Library | Item Barcode | Call Number | Material Type | Item Category 1 | Status |
|---|---|---|---|---|---|
Searching... | 30000010048000 | HD255 E43 2003 | Open Access Book | Book | Searching... |
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Summary
Summary
In the Make Money series, renowned real estate investor and bestselling author Gary W. Eldred shows you how to profit from the safest, most reliable wealth builder in the world-real estate. With coverage of all the fundamentals-from finding the right properties to financing and managing them-Eldred shows you the ropes so you don't have to learn important lessons the hard way. Unlike general guides to investing in real estate, each title in the Make Money series gives you the specialized expertise necessary to fully profit from a select investment strategy.
Make Money with Fixer-Uppers and Renovations shows homebuyers and investors how to build a fortune by purchasing properties at bargain prices, using creative improvements to add thousands to their value, and selling or renting them for high profits. There's almost no limit to the number of ways you can increase the value of a property-from quick and low-cost improvements like a fresh coat of paint to more extensive renovations such as multi-unit conversions or kitchen remodeling. This step-by-step guide includes the knowledge you need to combine entrepreneurial thinking with proven market analysis techniques. You'll learn to choose properties, plan improvements, and buy low and sell high. Make Money with Fixer-Uppers and Renovations will show you how to:
* Fix and flip properties for quick profits
* Buy properties with little or no money down
* Maximize your property's market value
* Exploit regulatory loopholes
* Create pizzazz for your interiors
* Add living space to your property
* Revitalize neighborhoods to increase property values
* Market your properties for top dollar
* Save thousands with owner-occupant financing
Author Notes
GARY W. ELDRED, PhD, has been involved in more than a hundred real estate projects as a buyer, seller, or investment consultant. Dr. Eldred has also taught numerous graduate courses in real estate at America's top universities, including Stanford, the University of Virginia, and the University of Illinois. He is also the author of Make Money with Condominiums and Townhouses and Make Money with Small Income Properties, and coauthor of the bestseller Investing in Real Estate, Fourth Edition, all published by Wiley.
Table of Contents
| 1. Your Quick Path to Profits: The Entrepreneurial Approach | p. 1 |
| The Entrepreneurial Difference | p. 2 |
| The "Bargain Price" Approach | p. 3 |
| Stretch Your Creativity and Imagination | p. 5 |
| The Entrepreneurial Approach | p. 6 |
| The Browns Create Value in a Down Market | p. 6 |
| My Awakening | p. 8 |
| Unlimited Potential | p. 9 |
| Multiple Ways to Profit | p. 13 |
| Fix and Quick Flip | p. 13 |
| Fix and Flip Slowly (Two Years) | p. 14 |
| Fix, Hold, Refinance | p. 14 |
| Fix, Hold, Trade Up | p. 15 |
| The Home (or Neighborhood) You Can't Afford | p. 16 |
| Vanquish Your Fears: You Can an Entrepreneurial Fixer | p. 16 |
| Yes, You Do Need Some Skills | p. 17 |
| My Promise to You | p. 18 |
| 2. Market Value versus Market Strategy | p. 21 |
| Market Value Defined | p. 22 |
| The Comparable Sales Approach | p. 23 |
| The Market Value Conclusion | p. 25 |
| Strengths of the Appraisal Process | p. 25 |
| Common Denominator | p. 25 |
| Disinterested Third Party | p. 26 |
| Weaknesses of the Appraisal Process | p. 26 |
| Rearview Mirror | p. 27 |
| Narrow Focus | p. 28 |
| The Appraisal Process Shuns Entrepreneurial Vision | p. 30 |
| Summing Up the Appraisal Process | p. 30 |
| You Need More Market Data | p. 31 |
| 3. Your Formula for Profits | p. 34 |
| The Pieces of the Puzzle | p. 35 |
| Minimum Improved Value (MIV) | p. 36 |
| Purchase Price | p. 37 |
| Acquisition Costs | p. 38 |
| Improvement Costs | p. 38 |
| Financing Costs | p. 38 |
| Other Holding Costs | p. 39 |
| Selling Costs | p. 39 |
| Opportunity Costs | p. 40 |
| Oops Factor | p. 40 |
| Income Taxes | p. 41 |
| Profit Formula in Action | p. 43 |
| Getting the Work Done | p. 43 |
| Know Your Limits | p. 44 |
| Clearly Distinguish the Personal from the Profitable | p. 44 |
| Plan Your Project, Work Your Plan | p. 46 |
| Secure Bids | p. 48 |
| Secure Lien Releases | p. 51 |
| Stay Legal: Obtain All Necessary Permits and Comply with All Zoning and Building Codes | p. 52 |
| 4. Make Regulations Work for You | p. 54 |
| Sources of Rules and Regulations | p. 56 |
| Governments | p. 56 |
| Homeowners Associations | p. 59 |
| Private Contracts Also Restrict Property Owners | p. 61 |
| Zoning and Related Ordinances | p. 64 |
| The District Concept | p. 64 |
| What Kinds of Restrictions? | p. 67 |
| Be Wary of Nonconforming Uses | p. 78 |
| How to Challenge the Zoning Rules | p. 83 |
| Building Codes | p. 86 |
| Environmental Laws | p. 87 |
| 5. Discover Your Possibilities | p. 89 |
| The Copleys Make Half a Million | p. 90 |
| The Baglivis Discover a Bargain | p. 90 |
| Put on Your Rose-Colored Glasses | p. 91 |
| Don't Quickly Reject a "Fixer"--You Could Mistakenly Pass Up a Bargain | p. 91 |
| Your Second Set of Glasses (Buyer's Eyes) | p. 92 |
| The Critical Balance | p. 92 |
| Inspecting the Site | p. 93 |
| Site Size and Configuration | p. 93 |
| Site Quality | p. 96 |
| Fences, Driveway, and Sidwalks | p. 99 |
| Curb Appeal: Attending to the Details | p. 99 |
| The Outside of the House | p. 100 |
| Appearance | p. 101 |
| Exterior Condition: The Professional Inspection | p. 103 |
| Materials and Maintenance | p. 104 |
| Site Placement | p. 105 |
| 6. Enhance the Interior | p. 107 |
| Scrutinize Square Footages | p. 107 |
| Watch Out for Errors of Measurement | p. 108 |
| All Space Doesn't Count Equally | p. 108 |
| Make Sure All Like Space Does Count Equally | p. 109 |
| Floor Plan: Does the Layout of the House Work? | p. 111 |
| Livability | p. 111 |
| Target Market | p. 112 |
| Aesthetics: How Does the House Look, Feel, and Sound? | p. 116 |
| Create Emotional Appeal | p. 117 |
| Check Noise Levels | p. 118 |
| Clean Thoroughly | p. 119 |
| Condition: How Much Time, Effort, and Money Will the Property Require? | p. 121 |
| Legal Compliance | p. 124 |
| Estimating Costs of Repairs and Improvements | p. 125 |
| Utility Bills (Energy Efficiency) | p. 127 |
| What Utilities Are Available? | p. 127 |
| Identify Ways to Reduce the Utility Bills | p. 128 |
| Save on Property Taxes | p. 129 |
| Save on Property Insurance | p. 129 |
| Enhance the Safety and Security of Residents | p. 130 |
| Special-Purpose Uses | p. 131 |
| 7. Add More Living Space | p. 132 |
| Work the Numbers | p. 133 |
| Attic, Garage, and Basement Conversions | p. 133 |
| Target Market Needs | p. 134 |
| Aesthetics | p. 134 |
| Integrate the Conversion into the House | p. 134 |
| Create an Accessory Apartment | p. 135 |
| The Zoning Obstacle | p. 135 |
| The Mortgage Helper | p. 139 |
| What Type of House Works Best? | p. 141 |
| 8. Revitalize the Neighborhood | p. 144 |
| Neighborhoods Can Get Better | p. 144 |
| Entrepreneurs Improve Thorton Park (and Make a Killing) | p. 147 |
| Every Neighborhood Has Potential | p. 147 |
| Community Action and Community Spirit Make a Difference | p. 149 |
| Become a Neighborhood Entrepreneur | p. 150 |
| Add to Neighborhood Convenience | p. 150 |
| Improve Appearances and Aesthetics | p. 151 |
| Zoning and Building Regulations | p. 152 |
| Eliminate Neighborhood Nuisances | p. 152 |
| Invoke Your Local Ordinances, Deed Restrictions, or HOA Rules | p. 153 |
| Sue in Small Claims Court | p. 153 |
| Upgrade the Schools | p. 155 |
| Safety and Security | p. 156 |
| Lobby the Politicians | p. 156 |
| Add Luster to Your Image | p. 157 |
| Accent Something Special | p. 157 |
| Talk Up the Neighborhood | p. 158 |
| Get the Banks Involved (Affordability) | p. 158 |
| Homes for Dallas | p. 158 |
| Easier Financing Means Appreciation Potential | p. 159 |
| Buy on the Bad News | p. 159 |
| 9. Market Your Property for Top Dollar | p. 161 |
| Whom Do You Want to Reach? | p. 162 |
| Why So Many Questions? | p. 162 |
| Sell Benefits, Not Just the Property | p. 163 |
| Sell the Sizzle | p. 164 |
| Crafting a Newspaper Ad | p. 165 |
| Prepare a Property Brochure or Flyer | p. 168 |
| Make Your Sign Stand Out | p. 177 |
| Sell with Honesty | p. 178 |
| Sell the Property, Don't Just Show It | p. 178 |
| Prepare to Sell the Property | p. 179 |
| Not an Isolated Case | p. 181 |
| Sales Success: Your 12-Step Program | p. 181 |
| More Tips on Financing | p. 185 |
| Avoid Deception | p. 186 |
| Back to Financing | p. 186 |
| Should You Employ a Realty Agent? | p. 187 |
| Co-op Sales | p. 191 |
| What about Lawyers? | p. 192 |
| 10. Buying Your Property | p. 193 |
| Finding Good Properties | p. 193 |
| Real Estate Agents | p. 193 |
| Newspapers | p. 196 |
| Drive, Bike, or Run Neighborhoods | p. 199 |
| Networking | p. 200 |
| Foreclosures and REOs | p. 201 |
| The World Wide Web | p. 205 |
| Search for Agreement | p. 206 |
| Deal Points | p. 207 |
| Reduce Seller Anxiety | p. 208 |
| Win-Win Isn't for Wimps | p. 210 |
| Develop a Cooperative Attitude | p. 211 |
| Learn as Much as You Can about the Sellers | p. 212 |
| A Win-Win Example | p. 214 |
| How to Bargain for a Low Price | p. 216 |
| Don't Compromise, Conciliate | p. 216 |
| Learn the Sellers' Reasons and Reference Points | p. 219 |
| Use an Agent as an Intermediary, but Negotiate for Yourself | p. 219 |
| The Deal's Not Over 'til It's Over | p. 222 |
| 11. Easy Money for Owner-Occupants | p. 225 |
| Owner-Occupied Financing | p. 225 |
| Passable Credit | p. 225 |
| Attention Current Homeowners | p. 226 |
| FHA 203(k): The Homebuyer's Best Choice for Financing | p. 227 |
| Owner-Occupied Purchase Loans | p. 230 |
| Owner-Occupied Assumptions | p. 237 |
| 12. Money for Everyone | p. 240 |
| "Subject to" versus Mortgage Assumptions | p. 240 |
| Is This Technique Legal? | p. 241 |
| Should You Worry? | p. 241 |
| Short Term, Not Long Term | p. 242 |
| Risks to Sellers | p. 243 |
| Your Borrowing Strategy | p. 243 |
| Seller-Assisted Financing | p. 244 |
| First Mortgage or Deed of Trust | p. 246 |
| Buy on the Installment Plan | p. 247 |
| Lease Option a Property | p. 250 |
| Lease Purchase Agreements versus Lease Purchase Options | p. 252 |
| Easy Money--Hard Terms | p. 255 |
| Predatory Lending | p. 255 |
| Why Would You Want to Deal with This Type of "Easy-Money" Lender? | p. 256 |
| The Optimistic Entrepreneur | p. 256 |
| Where to Find This Easy Money | p. 258 |
| Cash to Close | p. 258 |
| Personal Savings | p. 259 |
| Sell Unnecessary Assets | p. 260 |
| Obtain a Home Equity Loan (or Downsize the House) and Free Up Investment Capital | p. 261 |
| Bring in Partners | p. 262 |
| Second Mortgages | p. 264 |
| Cash Advances | p. 264 |
| Summing Up | p. 266 |
| Index | p. 267 |
