CASH-FLOW
FINISH LINE
Top 12 Strategies for
Making Mone y in
Real Estate
ANDREW CORDLE
NATIONAL ASSOCIATION OF REAL ESTATE INVESTORS
CASH-FLO W FINISH LINE - TOP 12 STRATEGIES FOR MAKING MONEY
I N REAL ESTATE
Published by: NAREI LLC Copyright 2016
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of the publisher.
Printed in the United States of America | First Printing January of 2016
Neither the author nor NAREI LLC, in any way make any warranty, guaranty or representation, expressed or implied, as to the potential volume, profits, or success of any activity or undertaking described herein.
All information related to the potential to earn money or realize a profit from any activity described herein was received from third parties and was not created or verified by the author or NAREI LLC, or any agent of either of them.
Neither the author nor NAREI LLC, in any way warrant or confirm the accuracy of any information provided herein.
The reader should conduct an independent investigation into the information contained herein before taking any action.
The success or failure of any undertaking described herein or based on the information provided herein may involve financial risks solely dependent upon the readers own ability and efforts, changes in technology or shifts in market realities.
Finally nothing contained herein should be construed as legal advice.
Regulations vary from state to state, and change from time to time.
Consult your own independent legal counsel as to the legality of any undertaking before taking action based on information contained herein.
Contents
Introductio n
Chapter 1
Buy Homes Ready to Ren t
Chapter 2
Buy & Fix to Hold for Rental 25
Chapter 3
Buy & Fix to Sell 48
Chapter 4
The Teardown or Add-on 71
Chapter 5
Wholesaling & Money Matters 86
Chapter 6
Buying Property Subject To 102
Chapter 7
Lease Options & Sandwich Leases 113
Chapter 8
Mobile Homes & RV Parks 127
Chapter 9
Multi-family Properties 147
Chapter 10
Commercial Properties Investing 166
Chapter 11
Tax Liens & Notes 188
Chapter 12
Private Lending 211
Chapter 13
Bakers Dozen - Asset Protection 228
Chapter 14
Get Started with Your Plan 253
Introduction
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What comes by the dozen? Well, eggs, flowers, and doughnuts normally do. And there are 12 months in a year and 12 signs of the Zodiac. So we have a special relationship with the number 12, and that started me thinking about real estate investing by the dozen.
Most of the textbooks, websites and courses out there will cover from three to six ways in which to profit from real estate investment. A few may make it to eight. I realized that I had to think outside the box to uncover other strategies that are solid profit generators in real estate.
Theres no fluff, nor are there marginal strategies here. Each is a solid and proven technique to profit from investing in real estate. One thing that makes this book different is that I wanted to only cover those that I believe are truly profitable opportunities, not lures for the new investor. Thats why you will not find a chapter on Bird Dogging here.
I not only stretch the envelope with innovative ways to purchase or control real estate, I also cover multi-family and commercial investing here. There are new opportunities for smaller investors to participate in these niche markets, and I wanted to tell you about them.
Youre even going to get an exciting chapter on a rarely covered niche in real estate: mobile home and recreational vehicle parks. Knowing that Warren Buffett is reputed to be the largest investor in mobile home related industries should pique your interest.
From private and hard money lending to buying tax liens and notes, youre going to learn about all of it in this book. There is NO WAY that you will not find one or more strategies that you can use, no matter what your financial situation or time available.
Any good baker will tell you that providing value in their wares is good for business. Thats why Ive also included an extra chapter, a bakers dozen if you will. Not only will you learn the strategies for real estate investment profits, youll learn how to structure your business to keep what you make and protect your assets.
Why wait, just turn the page to get started on your new business!
Chapter 1
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Buy Homes Ready to Rent
For the rental home investor, this is by far the fastest and easiest way to get rental cash flowing. It is appealing to many newer investors because there isnt a lot of extra knowledge or rehab experience needed to get started.
There are pitfalls however. You really need to know the value of a property, how much you can reliably rent it out for, and the demand for rental homes of its type and its location in your market area. Here is where a knowledge gap can mean disaster. So a lot of this chapter is going to be about running the numbers, market research, and selecting the right rental homes.
First lets take a look at sources for ready-to-rent properties and the benefits and challenges of each.
Foreclosure Properties
Of course, initial cost is a major benefit here, as you can usually get these homes at a discount to current market value. Or at least that used to be the case.
When the real estate market crash got into full swing in 2007 and for several years, you could buy homes that had just gone into foreclosure and had owner occupants in them until just before your purchase. So you could often buy a home with no significant problems or repair issues and immediately put it into rental service.
As time moved on, foreclosures slowed and inventories dropped. Then the properties became homes that had been empty for months or even years. Between neglect and vandalism, they were not ready to rent or even inhabit in most cases. Many were stripped of everything that could be ripped out.
Im not saying you cannot find a foreclosure that is in ready-to-rent condition, but you shouldnt rely on this one source, as they are few and far between.
Real Estate Wholesalers
A popular real estate investment strategy is wholesaling. The wholesaler is a middle person who locates and buys or controls homes and sells them to buyers, in some cases rental property investors. The wholesaler doesnt do any rehab or repair work on the home, taking only a flipping role.
Of course, wholesalers are in the same boat when it comes to finding foreclosures that are ready to rent. However, they are also advertising to locate distressed and motivated sellers who are still occupying their homes.