PURCHASING REAL ESTATE 101: CH. 3 - Investor Tools

What are some of the tools and knowledge that you will need to
become a successful investor?

1. Knowledge of financial Instruments
  a. Assumption  b. Seller Carry back
  c. No Money Down

2. Build your team
  a. Realtor (Experience is key. Also, do they invest themselves?)
  b. Mortgage Professional
  c. Attorney
  d. Contractors
  e. Software Programs (Analyze your investment)
  f. Title representative
  g. Escrow Company
  h. Warranty Company

3. Taking Title on your new purchase
  a. In your name?
  b. Partnership
  c. LLC (Limited Liability Corporation)
  d. Joint Tenants
  e. Tenants in Common

4. Your Skill Set
  a. Can you make repairs to your investment
  b. Extended Home Warranty Insurance
  c. Property Management
  d. Keeping good records

5. Landlord/Tenant Relationships
  a. Truth, Honesty, Paperwork
  b. Verify, Verify, Verify

6. You and the Tax Man
  a. 1031 Exchange
  b. Professional Investor/Agent
  c. $25K Limit on losses for non-professionals
  d. Depreciation deductions
  e. Can you complete your own personal & corporate tax forms?