the complete guide to real estate finance for investment properties

[...]... textbook format with both the student and the professional in mind Finally, the other works deal with advanced theoretical principles of ■ 3 ■ ■ Real Estate Finance for Investment Properties ■ finance, which are of little value to the investor who most likely has no background in finance The Complete Guide to Real Estate Finance for Investment Properties, on the other hand, is designed to appeal to those... 233 Appendix A www.thevalueplay.com 243 Appendix B www.symphony-homes.com 245 Glossary 247 Index 269 ■ ix ■ The Complete Guide to REAL ESTATE FINANCE for INVESTMENT PROPERTIES Part 1 Real Estate Finance Chapter 1 Introduction to Real Estate Finance As investors continue tofor soundfrom the stock marketoftoincomemigrate the real estate market, the need financial analysis producing properties is greater... investing in real estate who fail to exercise sound valuation principles and act on nothing more than the advice of someone who has no business giving advice, such as a broker with a supposedly hot tip The Complete Guide to Real Estate Finance for Investment Properties is further intended to take the theories of real estate finance discussed in other books and demonstrate how they can be used in real- world... income-producing properties, as well as to those who desire to invest in them Furthermore, those same individuals who are now investors will at some point have a need to divest themselves of their holdings Whether an investor is buying or selling, the basis for all decisions must be founded on the fundamental principles of finance as they apply to real estate valuations The failure to understand these key... the principles of valuation as they apply to real estate Notable exceptions include more expensive titles such as Real Estate Finance and Investments by Brueggeman and Fisher, with a list price of $125, and Commercial Real Estate Analysis and Investments by Geltner, boasting a list price of $114 The Complete Guide to Real Estate Finance for Investment Properties: How to Analyze Any Single Family, Multifamily,... real- world situations In other words, it is the practical application of these theories that really matters to investors An in-depth examination of several case studies will provide the learning platform necessary for investors to make the transition from the theory of real estate finance to its practical application Investor comprehension will be further augmented through the use of several proprietary... classes of real estate Chapter 9 provides a discussion on financial statements, including how to more fully understand them and how you can use them to make prudent buy-and-sell decisions Part 2 takes most of the information discussed in Part 1 and uses it in a case study format Chapter 10 examines real estate finance as ■ 5 ■ ■ Real Estate Finance for Investment Properties ■ it applies to the valuation... horizon, the rate at which you intend to buy and sell, along with the type of real estate you will invest in, the proper financial instruments may then be put in place TIME HORIZON Most real estate professionals incorporate the element of time into their investment strategy The element of time refers to the duration of the holding period In other words, it is the length of time a particular piece of investment. .. real estate book that ■ 9 ■ ■ Real Estate Finance for Investment Properties ■ came out They all seemed to be saying the same thing, with only slight variations in theme, some delving into nothing-down techniques while others focused on slowly accumulating a portfolio of properties, gradually building a level of cash flow sufficient to provide a living, otherwise known as the buy-and-hold approach The. .. then sold to investors The prepayment penalties are used to ensure that investors who buy the loans are guaranteed a minimum yield on their related investment VOLUME OF INVESTMENT ACTIVITY The element of volume is the second significant factor that affects an investor’s strategy and the type of financing to be used For example, increasing the volume of units bought and sold, or flipped, increases the . hot tip. The Complete Guide to Real Estate Finance for Investment Prop- erties is further intended to take the theories of real estate finance discussed in other books and demonstrate how they can. in finance. The Complete Guide to Real Estate Finance for Investment Properties, on the other hand, is designed to appeal to those indi- viduals who are actively investing in income-producing properties, as. vi The Complete Guide to REAL ESTATE FINANCE for INVESTMENT PROPERTIES 11532_Berges_ffirs.k.qxd 7/6/04 11:46 AM Page i 11532_Berges_ffirs.k.qxd 7/6/04 11:46 AM Page ii T he Complete Guide to REAL