CONTENTS
1. The Big Picture of Real Estate Investing
Three Common Real Estate Investment Exit Strategies
2. An Overview of Funding Options
3. An Introduction to Asset-Based Loans
Is Asset-Based Lending What You Need?
The Good, the Bad, the Ugly, and the Facts of Working with Asset-Based Lenders
4. An Introduction to Hard Money Lenders
Can Hard Money Lenders Be a Good Source of Funding for You?
5. What You Need to Know About Private Money Lenders
Can Private Money Lenders Be the Answer for You?
Two Types of Private Money Lenders
How to Find Private Money Lenders
The Importance of Relationships
6. How to Take the Mystery Out of Private Money
Is It Really Possible to Borrow from Private Individuals?
The Components of a Private Money Loan
7. Thinking of Crowdfunding Your Deal?
When Does It Make Sense to Crowdfund a Deal?
The Cost to Raise Capital Through a Crowdfunding Platform
8. The New Kid on the Block: Crowdfunding
Is Crowdfunding a Good Option for You?
How to Participate in a Crowdfunded Property
How Do Investors Earn Returns?
9. Partnering to Get the Funds You Need
When Should Property Investors Consider a Partner to Obtain More Funding?
Potential Cons of Partnering Up
Who Can Investors Partner With?
What and Who to Avoid When Pitching Potential Partners for Money
10. Using Banks to Fund Real Estate Investments
Are Banks and Traditional Lenders a Viable Option?
What It Takes to Fund Investment Property
Why Traditional Lenders Have Turned Away from Funding Investors
11. How to Find Asset-Based Lenders
The Traditional Method of Finding Asset-Based Lenders
The New Way to Find Asset-Based Loans
12. Inside the Mind of Asset-Based Lenders
What Do You Need to Know to Get Your Deal Funded?
13. Asset-Based Lenders: A Peek at Their Cards
What More Do You Need to Know About How They Operate?
How Asset-Based Lenders Make Money and How It Works to Fund Your Deal
Key Areas Where Asset-Based Lenders and Their Capital Partners Make Money
14. Dealing with Down Payments
Five Ways to Secure a Down Payment for Real Estate Investment
15. The Dirty Truth About Some Real Estate Lenders
Tips for Finding Lenders You Can Trust
16. Hard Money Lender Scams and How to Avoid Them
17. How to Successfully Get Funded as a New Investor
Specific Challenges Facing Newer Real Estate Investors
What to Look for in a Real Estate Lender
How to Improve Your Funding Success as a New Investor
18. How to Land the Best Loans for Your Deals
Finding the Best Financing for Investment Property
What’s So Important About Finding the Right Loan?
How to Match Loans and Lenders to Your Needs
Financing a Real Estate Investment Using Different Real Estate Strategies
Comparing Loans for Your Real Estate Deals
Quick Tips for Quickly Homing in on the Best Loan Programs
The Due Diligence Steps Every Real Estate Investor Should Take
Everyone Thinks Their Baby Is Beautiful
How to Screen for Money Makers
Is There a Lender for This Deal?
20. Estimating Your Project’s Costs
How Much Is Your Property Renovation Project Going to Cost?
Knowing Your Customer and Your Exit Strategy
Inspecting and Evaluating the Property
Seven Steps to Your Scope of Work
Don’t Underestimate the Value of Your Time
22. What Every Investor Needs to Know About Terms, Cash Flow, and Formulas
Do You Know What You Don’t Know?
An Alternative to the 70 Percent Rule for Flippers
23. The Hole Poker: The Devil’s Advocate
An Important Part of Your Real Estate Investment Team
Emotional vs. Fact-Based Real Estate Investment
The Value of Second Opinions for Funding
Where to Find a Good Hole Poker
How to Get a Great Hole Poker to Help You
Knowing When to Go Your Own Way
24. Next! Know When to Walk Away from a Real Estate Deal
Ten Detours to Take When Things Don’t Go as Planned
Important Considerations for a Successful Venture
26. What Comes First? The Deal or the Dollars?
Putting the Horse Before the Cart
Finding the Right Funding Sources for Your Deals
27. Preparing to Get Your Loan Funded
Failing to Plan Is Planning to Fail
What You Need to Fund Your Deal
Quick Tips for Setting Up a Smooth Funding Process
The Real Estate Professionals You Need to Close the Deal
Seven Real Estate Pros to Have on Your Side
How Long Will It Take to Close?
Steps Involved in Closing a Real Estate Deal
Things That Will Slow You Down
When You Close—Watch the Calendar
30. Avoiding Costly Borrowing Mistakes
Understanding the Underlying Costs of Funding
Real Estate Contract Contingencies
Sabotaging Your Loan Application
Accurately Forecasting Closing Time Frames
Failure to Hit the Ground Running
31. Investment Property Loans: Everything Is Negotiable, Right?
The Toll Booth—How Much Will It Cost to Get Your Deal Funded?
Borrowing Costs + Investment Strategy
Common Borrowing Costs and Fees
Everything Is Negotiable, Right?
Quick Tips for Negotiating Better Loan Deals
32. How to Choose the Best Funding and Investment Property Lender to Meet Your Needs
Taking Different Paths to Reach the Same Destination
Picking the Right Lender for Your Project
The Importance of Investor-Lender Relationships
The Reality of the Lender Relationship
Investment Property Lenders Need You Too
33. High-Performance Property Financing: Understanding the Mechanics of Your Loan
How to Keep Your Loans Rolling Through till Closing
What to Expect at the Closing Table
Being Prepared to Close: A Checklist
34. Fix and Flip Strategies to Get Your Investment Property Sold
What Smart Tactics Can Help Real Estate Investors Go from Flip to Flip with Ease?
Tips for Fixing and Flipping Fast
Renovate to Your Target Market to Sell Fast
When to Start Marketing for Resale
Choosing the Right Real Estate Marketing Formula for Your Deals
35. Buy and Hold Real Estate Investment
Maximizing Income Property Opportunities
Refinancing and Optimizing Financial Leverage
What’s the Best Leasing Strategy?
Property Maintenance and Management
Quick Tips for Tuning Your Engine
37. When Your Lender Takes the Exit
38. When Your Rehab Goes South: What You Can Do When Your Rehab Takes a Wrong Turn
Coping with Over Budget Issues
When Investors Need More Money
Working with Your Lender When You Need More Money
Four Strategies for Turning Your Rehab Nightmare into Cash
39. What If You Can’t Make Good on Your Investment Property Loan?
Why Investors Can’t Pay Their Loans
What Happens When Investors Don’t Pay Their Loans?
Effects of Foreclosure on Real Estate Investors
40. When the Wheels Come Off Your Real Estate Investment Venture
Why Do Real Estate Investors Fail?
Tips for Preventing Failure in Real Estate Investment
Tips for Getting Back on the Road to Real Estate Riches
Sample Chapter from The Real Estate Investor’s Pocket Calculator, 2nd Edition by Michael C. Thomsett