...
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
Total Employment Growth (L)
Real Rent (R) Completion Rate (L)
MIT Center forRealEstate
The Role ofRealEstate in the
Economy
• Construction [6% of GDP]
• Service flow, “Shelter”, ... forReal EMIT C state
Week 1: Introduction
• The space versus asset market: 4 Quadrant
math.
• RealEstate Micro Economics: Hedonics,
Location, density, government regulations.
• RealEstate ...
Asset Market:
Rent Determination
Asset Market:
enter forReal EMIT C state
The Value of US RealEstate Assets (1990)
$, in billions % of Total
Residential 6,122 69.8
Single Family Homes...
... AS 9 in Respect of
Saleof Goods to a RealEstate Project
4.1 The application of principles of AS 9 in respect ofsaleof goods requires
recognition of revenues on completion of the transaction/activity ... conditions
of the agreement for sale. In case ofrealestate sales, the seller usually enters
into an agreement forsale with the buyer at initial stages of construction. This
agreement forsale is ... carried forward
and accounted in accordance with AS 10,
Accounting for Fixed Assets.
6. Accounting forSaleof Land or Plots
A. Saleof plots of land without any development
Revenue from sale of...
... disposition of other realestate is addressed in ASC 360-20-40, Property, Plant and
Equipment -Real Estate Sales-Derecognition (formerly within FAS 66, “Accounting for
Sales ofRealEstate ), ... volume of houses forsale by creditors, whether acquired through
foreclosure or voluntary surrender of the property by a seriously delinquent borrower (distressed
sales). Creditors, in turn, often ... on
Rental of Residential Other RealEstate Owned Properties
April 5, 2012
In light of the large volume of distressed residential properties and the indications of
higher demand for rental...
... Sowell is a former chairman of the RealEstate
Committee of the American Bar Association (Tax Section) and is a former vice chairman of
the Tax Policy Advisory Committee of the RealEstate Roundtable.
James ... trademarks of KPMG International. 26701NSS
Investment Structures for
Real Estate Investment Funds5
What Types of Investment Vehicles
Are Available?
Just as the type of investor, type ofrealestate ... owned by such foreign governments. In addition,
a foreign government is not taxable on the saleof stock
of a USRPHC, unless the foreign government controls
the USRPHC. For purposes of this exemption,...
... a
master at realestate finance.
Financing has traditionally been, and will always be, an integral
part of the purchase and saleofreal estate. Few people have the funds
to purchase properties for ... rarely sink all of
their money in one place. Even institutional and corporate buyers of
realestate use borrowed money to buy real estate.
This book explains how to utilize realestate financing ... so, can
be more profitable than investing all of your cash in one property.
How Financing Affects the RealEstate Market
Because financing plays a large part in realestate sales, it also af-
fects...
... types of fore-
closure: judicial and nonjudicial. In mortgage states, judicial foreclo-
sure is used most often, whereas in deed of trust states, nonjudicial
(
called power of sale
)
foreclosure ... chapter.
At the closing of a typical realestate sale, the seller conveys a
deed to the buyer. Most buyers obtain a loan from a conventional
lender for most of the cash needed for the purchase price. ... desirable
☛
12
FINANCING SECRETS OF A MILLIONAIRE REALESTATE INVESTOR
pay. You also give the lender
(
not get
)
a mortgage as security for repay-
ment of the note. A
mortgage
(
also called a “deed of trust” in...
... 56
FINANCING SECRETS OF A MILLIONAIRE REALESTATE INVESTOR
Your Provable Income
FNMA loan regulations require proof of requisite income to sup-
port the loan payments. Proof of income requires ...
58
FINANCING SECRETS OF A MILLIONAIRE REALESTATE INVESTOR
basically a mathematical formula based on certain presumptions in the
marketplace
(
based, of course, on opinion
)
. The formula is as follows: ... lenders are
acting mostly out of irrational fear because of a recent barrage of real
estate scams reported in the newspapers.
Property flipping scams.
There has been a lot of negative press
lately...
... pay-
ments for someone else.
116
FINANCING SECRETS OF A MILLIONAIRE REALESTATE INVESTOR
do own a number of properties, you may not be able to qualify for the
best loan programs that offer the ... books.
120
FINANCING SECRETS OF A MILLIONAIRE REALESTATE INVESTOR
However, if interest rates did rise dramatically, a lender might
enforce the due-on -sale clause at a later time, forcing you to pay off
the loan. ...
128
FINANCING SECRETS OF A MILLIONAIRE REALESTATE INVESTOR
property to Barney Buyer for $100,000
(
about 10% above
market
)
, taking $10,000 down and carrying the balance of
$90,000 at 11% for 30 years....
... certificate
of sale
Georgia Mortgage Power ofSale None
Hawaii Mortgage Power ofSale None
Idaho Deed of Trust Power ofSale None Borrower can cure with 115 days of the filing of the notice of
default ... None
Arkansas Deed of Trust Power ofSale Within one year
California Deed of Trust Power ofSale None
Colorado Deed of Trust Power ofSale 75 days Borrower can cure up to sale date
Connecticut ... confirmation ofsale
Oregon Deed of Trust Power ofSale None Borrower may reinstate up to 5 days before sale
Pennsylvania Mortgage Judicial None Borrower may reinstate before the sale, up to...
... SAMPLE FORMS
161
158
APPENDIX C
SAMPLE FORMS
175
SAMPLE FORMS
165
SAMPLE FORMS
163
172
APPENDIX C
176
APPENDIX C
162
APPENDIX C
164
APPENDIX C
170
APPENDIX C
160
APPENDIX C
SAMPLE FORMS
159
174
APPENDIX ... C
160
APPENDIX C
SAMPLE FORMS
159
174
APPENDIX C
SAMPLE FORMS
169
168
APPENDIX C
SAMPLE FORMS
167
SAMPLE FORMS
173
SAMPLE FORMS
171
SAMPLE FORMS
177
178
APPENDIX C
...
... Mortgage Association’s official Web
site.
www.HSH.com—publishers of mortgage information for consumers.
www.realtytimes.com—industry news about realestate and mortgages.
www.realestateabc.com—CNBC ...
www.inman.com realestate news service, featuring articles by syndicated
real estate columnist Robert Bruss.
www.notenetwork.com—excellent resource for connecting buyers and
sellers ofrealestate ... paid off. The buyer has
equitable title and, for all intents and purposes, is the owner of the
property. Also known as a “contract for deed” or “contract of sale. ”
installment sale
A sale...
... types of fore-
closure: judicial and nonjudicial. In mortgage states, judicial foreclo-
sure is used most often, whereas in deed of trust states, nonjudicial
(
called power of sale
)
foreclosure ... to
cover the loss for its guarantee, and the VA takes ownership of the
home. The VA then offers the property forsale to the public.
12
FINANCING SECRETS OF A MILLIONAIRE REALESTATE INVESTOR
pay. ... most
of your debt is nonrecourse.
30
FINANCING SECRETS OF A MILLIONAIRE REALESTATE INVESTOR
Title 1 loan.
The Title 1 loan insures loans of up to $25,000 for
light to moderate rehab of single-family...
...
For an excellent reference on using bonds as collateral for real
estate financing, I recommend
Formulas for Wealth
by Richard Pow-
elson, Ph.D.
(
Skyward Publishing, 2001
)
. For more information ... explanations
of negative information
•
A copy of the purchase contract for the subject property
•
A copy of the down payment check and documented proof of
where it came from
•
Copies of recent ... proceeds of the sale.
As you can see, subordination and substitution of collateral are
two powerful tools to make you more money in real estate.
76
FINANCING SECRETS OF A MILLIONAIRE REAL ESTATE...
... the value of money, go and try to borrow some.
—Benjamin Franklin
Owner financing is one of the best sources of capital for your real
estate purchases. In an ideal world, every realestate purchase ... purchase price of the
property. If the option is not exercised, the optionee forfeits the op-
tion money.
110
FINANCING SECRETS OF A MILLIONAIRE REALESTATE INVESTOR
For more information on using ... maintain positive cash
106
FINANCING SECRETS OF A MILLIONAIRE REALESTATE INVESTOR
age realestate is an effective alternative to bank financing when
future realestate values are uncertain.
The Sandwich...
... you do not realize is that the additional ¹⁄₄ per-
cent amounts to over $6,000 in interest over the life
of your loan!
136
FINANCING SECRETS OF A MILLIONAIRE REALESTATE INVESTOR
I offered the ... lender might
enforce the due-on -sale clause at a later time, forcing you to pay off
the loan. If you plan to hold the property for the long term, you should
consider a backup plan for this contingency, ... obligations.
116
FINANCING SECRETS OF A MILLIONAIRE REALESTATE INVESTOR
do own a number of properties, you may not be able to qualify for the
best loan programs that offer the lowest interest rates....