Title Details

Steve Berges is a successful real estate investor who specializes in creating real estate value through single-family homes, apartment complexes, and the development of single-family housing communities. He is also the author of The Complete Guide to Buying and Selling Apartment Buildings, from Wiley.

Chapter 1 Fundamental Principles of Investing in Real Estate 1

Background 2

Real Estate—A Sound Investment 3

Leverage—The OPM Principle 5

Economic Housing Outlook for the Next Decade 6

PART I WHAT EVERY INVESTOR NEEDS TO KNOW ABOUT FLIPPING PROPERTIES

Chapter 2 Flipping Properties Defined 11

Three Primary Classes of Flippers 13

Scouts 13

Dealers 14

Retailers 16

Using Options to Flip Properties 17

Clearly Defined Objectives 18

Entry Strategy 20

Post-Entry Strategy 20

Exit Strategy 21

Chapter 3 The Value Play Strategy 23

Buy-and-Hold Strategy 24

The Value Play Strategy 25

The Value Play Selection Process 26

Property Location 29

Price Range 30

Physical Condition 31

Chapter 4 Ten Ways to Locate Properties 39

Real Estate Agents 39

Classified Advertising 42

Real Estate Publications 44

Local and National Web Sites 44

Real Estate Investment Clubs 45

Bank REOs 47

Marketing 48

For Sale By Owners (FSBOs) 51

Vacant Properties 52

Foreclosures 53

PART II HOW TO VALUE, ANALYZE, AND NEGOTIATE FOR MAXIMUM PROFIT

Chapter 5 Valuation Methodologies 57

How to Know How Much Is too Much 57

Valuation Methodologies 58

Replacement Cost Approach 58

Income Capitalization Approach 60

Sales Comparison Approach 61

Chapter 6 Financial Analysis 63

The Texas Two-Step 63

Multiply Your Efforts by 22 70

From Residential to Commercial 77

Chapter 7 Seven Steps of Successful Negotiations 91

The Psychology of Negotiating 91

Comprehensive Knowledge of Market 93

Degree of Seller’s Motivation 94

Back Door Exits 98

Concessions 99

The Red Herring Technique 100

The Money Talks Approach 101

PART III INVESTING STRATEGIES FOR THE SMART INVESTOR

Chapter 8 Financing and Closing Considerations 105

Conventional Mortgages 105

Mortgage Brokers 107

Local Banks 107

Lines of Credit 108

Owner Financing 110

Partnerships 111

Your Business Plan 112

What Every Borrower Should Know about Credit Scores 113

Underwriting Guidelines 115

The Closing Process 117

Chapter 9 Assemble a Winning Team of Professionals 121

Scouts and Dealers 121

Office Manager 123

Property Rehab Manager 123

Local Lender or Mortgage Broker 124

Real Estate Attorney 124

Title Company 125

Real Estate Agents 126

Chapter 10 Three Keys to Maximizing Your Potential 129

Post-Entry Planning 129

Doing It Yourself versus Hiring It Out 131

Increase Your Property’s Marketability 134

PART IV IT’S A NEW DAY IN REAL ESTATE

Chapter 11 Radio Program: Weeks 1 and 2 141

Investment Week #1 141

Investment Week #2 145

Chapter 12 Radio Program: Weeks 3 and 4 151

Investment Week #3 151

Investment Week #4 155

Chapter 13 Radio Program: Weeks 5 and 6 161

Investment Week #5 161

Investment Week #6 166

Chapter 14 Radio Program: Weeks 7 and 8 173

Investment Week #7 173

Investment Week #8 177

PART V CASE STUDY ANALYSIS AND EPILOGUE

Chapter 15 Case Study Analysis: How You Can Go from Zero to $20K in 90 Days or Less! 187

Case Study: From $0 to $20K 187

The Value Play Rehab Analyzer 188

Purchase Assumptions 194

Primary and Secondary Financing Assumptions 194

Estimate for Improvements 195

Comparable Home Sales 195

Comp Averages 195

Subject Property 196

Chapter 16 The Three Principles of Power 201

The Principle of Vision 204

The Principle of Passion 208

The Principle of Autonomy 209

Chapter 17 (Bonus!) S.M.A.R.T. Goals 213

Appendix A Property Inspection Checklist 221

Appendix B Owner and Subcontractor Agreement 233

Appendix C Sample Real Estate Forms 237

Appendix D Sample Personal Financial Statement 254

Appendix E thevalueplay.com 257

Appendix F symphony-homes.com 258

Glossary 259

Index 279