Multi-Family Millions E-Book

David Lindahl

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 419

Veröffentlichungsjahr: 2012

Beschreibung

Multi-Family Millions offers expert advice for investors who want to make the transition from single-family homes to more profitable multi-family units. Successful real estate investor David Lindahl shows you how to find troubled properties that are ripe for quick profits, how to fix or flip those properties, and how to re-sell at maximum value. With a proven step-by-step system for managing each stage of the process, this book shows you how to get started in moneymaking multi-family units?even while you work your day job.

Leseprobe

Contents

Acknowledgments

Chapter 1: A Different Approach that Creates Huge Real Estate Profits

How This Book Is Different

Chapter 2: Why Invest in Apartments?

Apartments Set You Free

Let’s Explode the No-Money-Down Myth

More Myths about Apartment Investing

This Is Not a Myth, This Is Reality: They’ll Laugh First, and You’ll Laugh Last

Opportunity Is Everywhere

A Brief Overview of the Different Kinds of Multi-Family Housing

Burned-Out Landlords Are Great Sources for Deals

In the Next Chapter

Chapter 3: An Overview of How to Get Your First Deal

The 14 Steps to Acquiring a Property

1. Decide What Size Buildings You Want to Start Investing In

2. Decide Where You Want to Invest

3. Determine What Types of Multi-Family Properties You’ll Buy

4. Put Your Team in Place

5. Market to Get Your Deal

6. Analyze the Deals

7. Create the Offer or Letter of Intent

8. Negotiate the Deal

9. Create and Sign the Purchase-and-Sale Agreement

10. Do Your Due Diligence

11. Renegotiate the Deal

12. Start Your Financing

13. Choose a Management Company

14. Close the Deal

Option 1: Buy and Flip

Option 2: Buy and Hold

Option 3: Buy, Reposition, and Sell

In the Next Chapter

Chapter 4: Where to Find Enormous Profits from Repositioning

It’s All about Raising the NOI

Problems to Look For

Making a Change

Then there’s the Perception

Send the Message that Change Is Happening

The Property Cycle

A Common Repositioning Mistake

The Two Main Reasons Why Repositions Fail

The City Cycle

Revitalization Zones

In the Next Chapter

Chapter 5: How to Attract Deals to You with a Minimum of Time and Money

Principle #1: Make It Easy to Do Business with You

Principle #2: Do What You Say You Will Do

Principle #3: Don’t Be a Pain in the Butt

Inexpensive Deal-Attraction Techniques

Go Directly to the Owners

Other Techniques that Cost Little but Bring Big Results

Go After the Don’t Wanters

Cruising for Dollars

Another Way to Cruise

Oh So Many Ways to Get Deals

Don’t Make These Three Mistakes

In the Next Chapter

Chapter 6: Separating the Gold Mines from the Land Mines

The Power of Negative Thinking

Profiting from Value Plays

How to Find—and Profit from—Burned-Out Landlords

Profiting from Management Nightmares

Properties that Need Repair: Where the Gold Is

Avoid Certain Repairs

Solving High-Vacancy Problems—Once and for All

How I Filled 400 Units

How to Raise Rents at Takeover and Not Lose Your Tenants

How to Raise Rents Steadily While Keeping Your Tenants

When It Makes Sense to Clean House

In the Next Chapter

Chapter 7: How to Analyze a Property Using the Fewest Numbers for the Most Profit

Back to the Cap Rate

Analyzing Your First Deal

How Do We Know It Really Is a Deal?

Current Management: When to Hold ’Em and When to Fold ’Em

What Matters the Very Most to Tenants

Is Someone Putting Lipstick on a Pig?

Let’s Look Inside

Market Area Inspection

The Sidewalk Tells the Story

But What If My Numbers Are Off?

Don’t Get Depressed on Me!

In the Next Chapter

Chapter 8: Where to Get the Money for All Your Deals

Why Banks Like Apartments

Three Flavors of Lenders

Conduits

When to Use a Mortgage Broker

Putting Your Package Together

How to Get Partners to Fund Your Deals

The Big, Profitable World of Private Money

Debt versus Equity Deals

In the Next Chapter

Chapter 9: Twelve Negotiating Secrets of the Pros

1. Be Prepared

2. Understand the Other Party’s Needs

3. Set Your Goals and Rank Them in Order of Priority

4. Decide What Your Strike Price Is and Don’t Exceed It

5. Anticipate the Next Move and Don’t Avoid Haggling

6. Remain Calm and Unemotional

7. Build Rapport and Trust

8. Create a Win/Win Environment

9. Remain Flexible and Open to Options

10. When the Seller Speaks, Listen Closely and Delay Your Response

11. Demonstrate Empathy

12. Silence Is Golden

In the Next Chapter

Chapter 10: The 80/20 Rule of Rehabbing

Exterior Improvements

Interior Improvements

How to Get the Most from Insurance Claims

Dealing with Contractors

In the Next Chapter

Chapter 11: How to Avoid Being a Landlord: Secrets to Hiring Great Property Managers

How to Find the Best Managers

What You Should Expect to Pay

Repositioning Managers: A Special Breed

How to Get Contractors to Beg You for Business

Managing the Manager: Reports You Should Get Regularly

You’re an Asset Manager

In the Next Chapter

Chapter 12: Reselling for Huge Profits

Return on Equity

Is Your Property Stabilized?

Get Your Financial House in Order

Get Your Physical House in Order

Time to Tell the World

Your Obligations as a Seller

In the Next Chapter

Chapter 13: The 10 Biggest Mistakes Repositioners Make, and How to Avoid Them

Mistake # 1: Running Out of Money During a Repositioning

Mistake #2: Leasing Up Too Soon

Mistake #3: Not Using Licensed Contractors

Mistake #4: Not Getting Three Bids

Mistake #5: Assuming the Lowest Bid Is the Best Bid

Mistake #6: Not Going after Private Money Sooner

Mistake #7: Not Marketing Consistently

Mistake #8: Discriminating

Mistake #9: Not Having Signing Authority on Bank Accounts

Mistake #10: Buying a Property with Environmental Issues

Mistake #11: Inspecting the Property Yourself

Mistake #12: Managing the Property Yourself

Mistake #13: Using Fill-in-the-Blank Legal Forms

Mistake #14: Dealing with Tenants

Mistake #15: Thinking You Know It All

In the Next Chapter

Chapter 14: Creating Your Success Team

Real Estate Brokers

The Property Manager

Attorneys

Property Inspector

Appraisers

Lender

Contractors

Insurance Agent

Demographer

1031 Specialists

Accountant

In the Next Chapter

Chapter 15: Next Steps on Your Road to Wealth

How Impatient Are You?

The Absolute Shortest Shortcut to Real Estate Wealth

Free Bonus Materials for You

Index

Copyright © 2008 by DCL Carlsberg LLC. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada.

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Library of Congress Cataloging-in-Publication Data:

Lindahl, David.

Multi-family millions: how anyone can reposition apartments for big profits/David Lindahl.

p. cm.

Includes index.

ISBN 978-0-470-26760-8 (cloth)

1. Rental housing—United States. 2. Apartment houses—United States. 3. Real estate investment—United States. 4. Rental housing. 5. Apartment houses. 6. Real estate investment. I. Title.

HD1394.5.U6L56 2008

333.33′8—dc22

2007052400

Praise for Multi-Family Millions

If I didn’t know better, I’d say Dave Lindahl has a degree in psychology.

This book shows you how to get inside the heads of real estate brokers, sellers, tenants, and buyers. When you follow Dave’s advice in this book, your deals will become irresistibly attractive to the people you’re negotiating with. Well done!

—Bill Bartmann, named “One of the Top 100 Entrepreneurs of the Last 100 Years” by the Kauffman Center for Entrepreneurial Leadership (www.BillBartmann.com)

Let’s get real: There are hordes of real estate investors out there. These days the chances are slim of finding a deal with fat, obvious profits.

That’s where this book is so crucial: Dave Lindahl shows you how to uncover the deals with fat, hidden profits that your competition will walk right by.

—Jeff Adams, President, www.RealEstateWebProfits.com

No theory here! Dave’s book is filled with the practical steps you need to go from where you are to landing your first major deal. It just doesn’t get more “connect the dots” than this.

—Stacy Kellams, President, www.RealEstateCourseReviews.com

So many books are just a bunch of vague generalities. Not the book you’re holding in your hands: Dave Lindahl details the numbers investors need to get comfortable: specific ratios, rules of thumb, and tons of concrete examples. Add in Dave’s easy-to-understand conversational style, and you have a winner.

—Wendy Patton, best-selling author of Investing in Real Estate with Lease Options & Subject Tos and Making Hard Cash in a Soft Real Estate Market (www.WendyPatton.com)

Dave Lindahl delivers the goods again. This step-by-step book shows you how to find almost secret deals with big hidden profits, and you won’t even have any competition. It just doesn’t get better than that!

—J. P. Vaughan, publisher, Creative Real Estate Online (www.creonline.com)

To the memory of my grandmother, Mabel Bowser, who, after the loss of her husband Fred Bowser just two years after opening the Old Town Fish Market in 1950, raised four teenage daughters and a late-in-life baby boy while keeping that business operating well into the 1980s.

The lessons that my mother, aunts, uncle, cousins, and I learned while doing our time at that fish market left a legacy of “family first” and hard work for generations of Bowsers to come.

Acknowledgments

I’d like to acknowledge Jon Rozek for his infinite wisdom and tireless work ethic in getting this book written. Readers have Jon to thank for its existence. When I was first offered the project by Richard Narramore, Senior Editor at John Wiley & Sons, I originally planned to turn it down due to time constraints. Jon showed me the importance of getting this information into the hands of the public.

To my mother and father, Carl and Barbara Lindahl, who give their endless support on an ongoing basis and whose company I enjoy thoroughly.

I’d like to thank Jeff Lindahl, Daniel Lindahl, Tammy Beckwith, and Robert Campbell for their tireless support and work ethic. Without their efforts behind the scenes, this project could not have been completed.

To Justin Meszaros, fellow principal of the Bostonian Investment Group, of which he is CEO, and LMW Management, for being the engine behind the phenomenal growth that we have experienced in the past few years.

I’d like to acknowledge Barry Weaver, President of LMW Management, for bringing his incredible industry knowledge and systemization to our growing real estate portfolio and using his expertise on a regular basis to keep our assets performing at their peak.

To Joan Lindahl, Chris Bowser, Jeannie Orlowski, Beth King, Jennifer Crawford, Debbie Marino, Patricia McKenna, Jill Emond, Amanda Elwood, Kim Diamond-Santo, Jim DeRito, Elise Keane, Lisa McCarthy, Amy Londraville, and Doug Curley for being the pistons that keep the flow of business coursing through the Lindahl Companies on a regular basis.

To my nephews and nieces, Patrick Lindahl, Collette Lindahl, Nicholas Beckwith, Andrew Beckwith, Jacob Lindahl, Jonathan Lindahl, Kyle Lindahl, and Shannon Lindahl, for filling my life with endless pleasure. It will be exciting to share each and every one of your successes as you grow into this world.

Finally, I am deeply grateful to all of the RE Mentor seminar attendees, support staff, and joint venture partners. Without you, there would be no life-changing seminars.

Chapter 1

A Different Approach that Creates Huge Real Estate Profits

Congratulations. You’re now reading a book that can change the way you think and invest in real estate. And it’s a change for the better, because there are big profits awaiting the action-takers who follow the steps inside this book.

I must warn you: I’m a contrarian. If you’re looking to get the same old advice from this book that will reinforce all the other things you’ve heard about real estate, I will disappoint you.

Are you also a contrarian? If you are, you’ll understand what I mean when I say that it can sometimes be scary to zig when everyone else is zagging.

But the biggest profits are to be made when you buy low and sell high. And to buy low, that means you’re buying when everyone is telling you how crazy you are. When you sell high, you’re dumping properties just when everyone else thinks the party’s just getting started.

If you stick with me, get used to two things:

1. You’ll feel like a head case when everyone else is telling you how you’re investing wrong; and

2. You’ll make a whole lot more money than all the naysayers and backseat drivers put together!

That money will allow you to have what I call The Attitude: You can do what you want, when you want, where you want, for as long as you want, and with whom you want!

After all, isn’t that a great way to live your life? That’s the freedom that serious wealth brings.

How This Book Is Different

Not only am I a contrarian, but I’m also different from the vast majority of real estate . I believe you’ll find those differences to be a breath of fresh air.