You Can Be The Next Millionaire Landlord

How To Buy Apartment Buildings So You Can Be Rich!

De: Mark Rosenfeld

Narrado por: Virtual Voice

Many of the richest people in the world are landlords. Would you like to be one too? This book will help the reader to learn about the process of buying and managing commercial multifamily properties (apartment buildings). This may seem like a daunting thing, and I suppose it is when it’s a new idea. Before I bought my first building, and was admittedly a little scared, I remember driving up the West Side Highway in New York and thinking, “Look at all those apartment buildings, someone owns every one of those, so surely I can own one too.” Start small, build your portfolio, hopefully someday you will retire rich, and You Can Be The Next Millionaire Landlord! Why Real Estate? In 2004, there were 8.9 Million Millionaires in US, more than at any other time before. So how did these people make their money? The following statistics suggest that a majority of them made it by buying income producing property: •44% of “Rich Households,” those with $750,000 in assets and $200,000 in income own Real Estate other than 1st or 2nd homes!!! •75% of “Super Rich Households,” those with $10,000,000 in assets & $2,000,000 in income own Real Estate other than 1st or 2nd homes!!! “Real Estate other than 1st or 2nd homes,” means investment property, which is usually of the income producing variety: rental property. Overall 46% of millionaire households own investment real estate, according to CNNMoney.com. What’s Inside? Preface Introduction Why Real Estate? Do it for your grandchildren Why Me? Why Multi-Family Properties? Why You? Chapter I Real Estate As An Investment Why Is Real Estate a Better Investment? Power of Compounding Rule of 72 Island of Manhattan Long Term Rates of Return Leverage Debt So What’s The Point? Chapter II Types of Real Estate Commercial Vs. Residential Multi-family Downsides of Multi-family Chapter III Valuing a Building Capitalization Rates Gross Rent Multiplier Cash-on-Cash Returns Replacement Cost Comparables Case Study Chapter IV Financing Mortgage Terms and Rates Loan to Value Ratio (LTV) Recourse Debt Service Coverage Ratio Debt Service Coverage Ratio Worksheet Cash-Out Refinancing No Money Down, Fact or Fiction? Chapter V The Acquisition Process Search For Buildings Value Buildings Make Offers Go To Contract Perform Due Diligence Renegotiate, Cancel Or Continue Secure Financing Secure Insurance Prepare For Closing Close Begin Management Phase Acquisition Flowchart Chapter VI Increase Your Building’s Value Raising rents When to Raise rents Renovations Other Income Increases Condo Conversion Chapter VII Legal Issues Disclaimer Incorporate? LLC! Evictions Lawsuits Finding an Attorney Chapter VIII Accounting and Bookkeeping Disclaimer Collecting The Rent Paying The Mortgage QuickBooks Manual Systems Depreciation Capital Improvements Vs. Repairs Leasing Chapter IX Dealing with People Existing Tenants New Tenants Contractors Judges City/State Officials Anger Management Chapter X Creating Wealth Cashing Out Pyramiding 1031 Exchange The Triple Axel Chapter XI Management Miscellany Rent Control Insurance Employees Property Management Government Rental Subsidies Chapter XII Achieving Success Setting Goals Working on Goals Negotiating Patience Perseverance Be in for the long haul Flipping Epilogue You Can Do It! Appendix A 10 Biggest Mistakes Appendix B Excuses For Not Paying Rent Appendix C Case Studies Appendix D Forms Tenant Information Sheet Eviction Notice Notice to Cease (New Jersey) Cover Letter for Notice to Cease Notice to Quit (For Rent Increase, New Jersey) Cover Letter for Notice to Quit (For Rent Increase, New Jersey) Notice to Quit (For Lease Violations) Property Management Calendar Glossary