The Complete Guide to Investing in Rental Properties

✍ Scribed by Steve Berges

• Publisher: McGraw-Hill
• Year: 2004
• Tongue: English
• Leaves: 289
• Edition: 1
• Category: Library

✦ Synopsis

Maximize profits in the single-family and multi-unit rental market. You probably know that small rental properties are among the safest, most affordable, and most profitable investments around. With the a little help, however, you can minimize both your investment and your costs and send your profits straight through the roof! In this comprehensive handbook, real estate investing expert Steve Berges reveals the secrets that have made him one of the most successful entrepreneurs in the field. He shows you all of the indispensable tricks of the trade, explains why they are so important, and connects them to other essential steps for super-profitable investing.Arming you with his Five Golden Rules for Success, Steve Berges also shows you how to: select a house and negotiate the best price and terms; perform a comprehensive financial analysis to maximize value; secure financing and prepare for your closing; find qualified tenants and draft favorable lease agreements; reduce operating costs, increase rents, and improve profitability; and, avoid the little-known pitfalls of real estate investing. With Steve Berges' expert guidance and no-nonsense advice, you can maximize your investment, minimize your time and effort, and make the most of every foray into the real estate market.

✦ Table of Contents

Terms of Use......Page 3
Want to learn more?......Page 4
Contents......Page 7
Section 1 How to Buy Rental Properties the Smart Way......Page 11
1 Real Estate for the Smart Investor......Page 13
Historical Performance......Page 14
Four Ways to Benefit from Owning Real Estate......Page 15
Economic Housing Outlook for the Coming Decade......Page 17
The Lever and the Fulcrum......Page 20
The Magic of Compound Interest......Page 28
How to Build a $10 Million Retirement Portfolio......Page 31
2 Selecting Great Rental Houses for the Smart Investor......Page 36
How to Choose the Right Location......Page 37
How to Choose the Right Type of House......Page 38
Physical Condition: Inspecting Is Key......Page 40
How to Determine the Best Price Range for Your Area......Page 45
3 Eight Ways to Locate Rental Houses for the Smart Investor......Page 47
Classified Advertisements......Page 48
Real Estate Magazines......Page 49
Internet Searches......Page 50
Billboards and Signs......Page 51
Real Estate Agents......Page 52
Scouts......Page 55
Professional Affiliations......Page 57
FSBOs......Page 58
4 Financial Analysis of Rental Properties......Page 62
Traditional Valuation Methods......Page 64
How Much Rent to Charge Your Tenants......Page 70
How to Analyze Your Rental House Investment......Page 73
Test 1: Comparable Sales Analysis......Page 77
Test 2: Cash-Flow Analysis......Page 80
Financing Terms and Conditions......Page 90
Additional Financing Considerations......Page 101
Loan Documentation Checklist......Page 108
Six Smart Ways to Finance Your Rental Property......Page 111
Real Estate Sales Forms......Page 123
Residential Sales Contract......Page 124
Property Condition Disclosure......Page 134
Loan-Assumption Addendum......Page 135
Seller-Financing Addendum......Page 136
Closing Documents......Page 137
Title Report......Page 138
Settlement Statement......Page 139
Deed......Page 140
Promissory Note......Page 141
Section 2 How to Manage Rental Properties the Smart Way......Page 143
7 How to Find, Qualify, and Keep Good Tenants......Page 145
How to Find Good Tenants......Page 147
Signage......Page 148
Classified Ads......Page 150
Referrals......Page 152
Locator Services......Page 154
How to Qualify Good Tenants......Page 156
How to Keep Good Tenants......Page 159
The Golden Rule......Page 160
Visibility Adds Value......Page 161
Concentric Circles......Page 163
8 Lease Agreements for the Smart Investor......Page 168
Residential Lease Agreement......Page 170
9 Eight Smart Ways to Increase Rents by Making These Improvements......Page 181
Good First Impressions......Page 182
Landscaper’s Delight......Page 184
Fancy Fencing......Page 185
Room to Stow......Page 186
Room with a View......Page 187
Flattering Floors......Page 188
Clean Kitchens......Page 190
10 How to Decrease Expenses the Smart Way......Page 193
Pass the Buck......Page 194
Hire the Handyman......Page 195
Utilize Utilities......Page 196
A Taxing Matter......Page 197
Dialing for Dollars......Page 198
Management 101......Page 200
Your Role as a Manager......Page 203
How to Collect Rents When They Are Due......Page 205
When and How to Raise Rents......Page 208
How Much to Raise Rents......Page 210
Section 3 How to Sell Rental Properties the Smart Way......Page 213
12 Five Smart Ways to Enhance Your Rental House’s Marketability......Page 215
Begin with the End in Mind......Page 216
Maximize Your Exposure......Page 217
Sell What the Buyer Wants......Page 221
Price Your House to Sell......Page 224
Sweeten the Pot......Page 225
13 Six Smart Ways to Negotiate for the Best Price and Terms......Page 227
Psychology 101......Page 228
Market Knowledge Is Key......Page 231
The Trial Balloon......Page 232
The Blame Game......Page 234
Put It in Writing......Page 237
The Chess Player......Page 239
14 Five Golden Rules for Success......Page 243
The Five Laws of Gold......Page 245
The First Law of Gold......Page 247
The Fourth Law of Gold......Page 251
The Third Law of Gold......Page 252
The Fifth Law of Gold......Page 253
For More Information......Page 256
Glossary......Page 257
Index......Page 280
About the Author......Page 289