The Complete Guide to Flipping Properties

Now in a newly updated and revised second edition, The Complete Guide to Flipping Properties covers all the ins and outs of buying, renovating, and reselling distressed properties at big profits. Steve Berges shows you how to excel at every aspect of flipping, from finding great deals, to analyzing property values, to negotiating sales, to closing deals. With new information on flipping in a soft market, this is the only guide you need to start turning a profit now.

Table of Contents:
Chapter 1 Fundamental Principles of Investing in Real Estate 1 Background 2 Real Estate—A Sound Investment 3 Leverage—The OPM Principle 5 Economic Housing Outlook for the Next Decade 6 PART I WHAT EVERY INVESTOR NEEDS TO KNOW ABOUT FLIPPING PROPERTIES Chapter 2 Flipping Properties Defined 11 Three Primary Classes of Flippers 13 Scouts 13 Dealers 14 Retailers 16 Using Options to Flip Properties 17 Clearly Defined Objectives 18 Entry Strategy 20 Post-Entry Strategy 20 Exit Strategy 21 Chapter 3 The Value Play Strategy 23 Buy-and-Hold Strategy 24 The Value Play Strategy 25 The Value Play Selection Process 26 Property Location 29 Price Range 30 Physical Condition 31 Chapter 4 Ten Ways to Locate Properties 39 Real Estate Agents 39 Classified Advertising 42 Real Estate Publications 44 Local and National Web Sites 44 Real Estate Investment Clubs 45 Bank REOs 47 Marketing 48 For Sale By Owners (FSBOs) 51 Vacant Properties 52 Foreclosures 53 PART II HOW TO VALUE, ANALYZE, AND NEGOTIATE FOR MAXIMUM PROFIT Chapter 5 Valuation Methodologies 57 How to Know How Much Is too Much 57 Valuation Methodologies 58 Replacement Cost Approach 58 Income Capitalization Approach 60 Sales Comparison Approach 61 Chapter 6 Financial Analysis 63 The Texas Two-Step 63 Multiply Your Efforts by 22 70 From Residential to Commercial 77 Chapter 7 Seven Steps of Successful Negotiations 91 The Psychology of Negotiating 91 Comprehensive Knowledge of Market 93 Degree of Seller’s Motivation 94 Back Door Exits 98 Concessions 99 The Red Herring Technique 100 The Money Talks Approach 101 PART III INVESTING STRATEGIES FOR THE SMART INVESTOR Chapter 8 Financing and Closing Considerations 105 Conventional Mortgages 105 Mortgage Brokers 107 Local Banks 107 Lines of Credit 108 Owner Financing 110 Partnerships 111 Your Business Plan 112 What Every Borrower Should Know about Credit Scores 113 Underwriting Guidelines 115 The Closing Process 117 Chapter 9 Assemble a Winning Team of Professionals 121 Scouts and Dealers 121 Office Manager 123 Property Rehab Manager 123 Local Lender or Mortgage Broker 124 Real Estate Attorney 124 Title Company 125 Real Estate Agents 126 Chapter 10 Three Keys to Maximizing Your Potential 129 Post-Entry Planning 129 Doing It Yourself versus Hiring It Out 131 Increase Your Property’s Marketability 134 PART IV IT’S A NEW DAY IN REAL ESTATE Chapter 11 Radio Program: Weeks 1 and 2 141 Investment Week #1 141 Investment Week #2 145 Chapter 12 Radio Program: Weeks 3 and 4 151 Investment Week #3 151 Investment Week #4 155 Chapter 13 Radio Program: Weeks 5 and 6 161 Investment Week #5 161 Investment Week #6 166 Chapter 14 Radio Program: Weeks 7 and 8 173 Investment Week #7 173 Investment Week #8 177 PART V CASE STUDY ANALYSIS AND EPILOGUE Chapter 15 Case Study Analysis: How You Can Go from Zero to $20K in 90 Days or Less! 187 Case Study: From $0 to $20K 187 The Value Play Rehab Analyzer 188 Purchase Assumptions 194 Primary and Secondary Financing Assumptions 194 Estimate for Improvements 195 Comparable Home Sales 195 Comp Averages 195 Subject Property 196 Chapter 16 The Three Principles of Power 201 The Principle of Vision 204 The Principle of Passion 208 The Principle of Autonomy 209 Chapter 17 (Bonus!) S.M.A.R.T. Goals 213 Appendix A Property Inspection Checklist 221 Appendix B Owner and Subcontractor Agreement 233 Appendix C Sample Real Estate Forms 237 Appendix D Sample Personal Financial Statement 254 Appendix E thevalueplay.com 257 Appendix F symphony-homes.com 258 Glossary 259 Index 279

About the Author :
Steve Berges is a successful real estate investor who specializes in creating real estate value through single-family homes, apartment complexes, and the development of single-family housing communities. He is also the author of The Complete Guide to Buying and Selling Apartment Buildings, from Wiley. Steve Berges is a successful real estate investor who specializes in creating real estate value through single-family homes, apartment complexes, and the development of single-family housing communities. He is also the author of The Complete Guide to Buying and Selling Apartment Buildings, from Wiley.