How to Finance Any Real Estate, Any Place, Any Time Strategies That Work James A. Misko

ISBN: 0-7570-01351 Length: 224 Pages Size: 6 x 9-inch Format: Quality Paperback Category: Business / Real Estate / Personal Finance Price: $17.95 US Availability: In Print Click below for: Synopsis • Contents Introduction • Reviews

Synopsis

Ever wonder how real estate magnates become real estate magnates? By filling out mind-numbing mortgage applications? By taking out ditech.com equity loans against their homes? By making personal guarantees to their bankers? Hardly. For years, successful real estate investors have used nontraditional methods of securing funding. They have created effective money strategies that circumvent banks, yet still result in profitable deals.

For over thirty years, real estate professional James Misko has trained thousands of licensed realtors in the use of nontraditional financing methods. Now, Misko makes his creative techniques available to the general public in his new book, How to Finance Any Real Estate, Any Place, Any Time.

In this easy-to-use guide, Jim offers fifty-three time-tested nontraditional ways of buying properties. These are not pie-in-the-sky theories about what could happen "if," but proven deal-closing secrets that will put the wraps on virtually any real estate purchase. In this book, you will learn how to turn your dwindling stocks into real estate equities, how to take frozen equity and create real estate paper, how to exchange one property for another tax-free, how to maximize tax write-offs, how to acquire land without money, and so much more.

How to Finance Any Real Estate, Any Place, Any Time provides you with all the information you might pay hundreds--if not thousands--of dollars for through realty courses, at only a fraction of the cost. If the only thing holding you back from buying your dream house or investment property is financing, maybe it’s time to buy "outside the box."

James A. Misko has been a highly successful real estate professional for over three decades. He is a Certified Commercial Investment member of the National Association of Realtors and has served as an instructor for this organization. As a sought-after lecturer, he speaks at local, state, and national real estate conventions. He is also a published author, an outdoorsman, and one of the most creative investment and exchange brokers in the nation. The author splits his time between Anchorage, Alaska, and Palm Springs, California.

Contents

Introduction

1. Champagne House on a Beer Income
2. Postdate Sale to Secure One Property While Selling Another 3. How to Support a Small Down payment by Using Collateral Security
4. How to Fund With Life Insurance to Support a Contract
5. How to Use a Life Estate to Obtain the Property You Want
6. How to Use a Life Insurance Annuity to Develop Cash Flow for the Elderly Seller
7. How to Gain Appreciation and Working Time by Using an Option to Purchase
8. How to Option a Property Without Money
9. The Rainy Day Option: How to Reap Riches Tomorrow By Paying a Higher Price Today
10. Split the Fee and Carve Up the Benefits for Investors
11. Trade One Set of Benefits for Another by Exchanging Instead of Buying
12. How to Get the Twin Benefits of Tax Shelter and Spendable Income Through an Overtrade and Cash Back
13. How to Exchange and Borrow to Get Your Assets Working for You
14. How to Have Your Cake and Eat It Later
15. Creation of Paper: How to Put a Frozen Equity to Work in a Tight Money Market
16. How to Buy, Option, Sell, and Exchange Paper
17. How Exchanging Paper Can Generate a Steady Cash Flow
18. How to Buy a Property for 20 Percent Off While Seller Gets His Asking Price
19. How to Use the Broker’s Fee in Financing the Transaction
20. Financing Financed Raw Land: How to Get Out of "Eat" and Maintain Appreciation
21. Payments Don’t Always Include Principal and Interest--and Sometimes Not Even Interest
22. The Many Advantages of Separating the Down Payment from the Principal
23. How to Convert Principal Payments to Tax Deductible Lease Payments
24. How to Acquire Land With No Cash
25. How to Get 100 Percent Financing By Sale and Leaseback
26. The Velvet Hammer: How to Turn a Leaseback Into a Triple--A Guaranteed Leased Property
27. Sale and Buyback--and Exchange and Buyback
28. How to Create Cash By Discount Sale and Lease Option and Still Retain the Benefits of the Property
29. The Blanket Mortgage: How to Secure a Favorable Loan by Using More Than One Property
30. The Wrap-Around: How to Secure New Financing Without Disturbing Existing Financing
31. How to Syndicate the Loan and Get More Than One Lender in the Picture
32 C.D. for Loan: How to Get a Lender to Make a Loan He Wouldn’t Ordinarily Make
33. Raise the Interest and Lower the Price
34. Lender Loans 75 Percent of Appraisal or Sales Price--or Does He?
35 Performance Mortgage: How to Base Your Payments on the Performance of the Property
36. Performance Purchase Price: The Real Way to Get the Seller to Stand Behind the Figures He Gives for His Property
37. Such a Business--You Got It--You Sell It--And You’ve Still Got It!
38. Convertible Loan to Equity: A Way to Give the Lender an Incentive to Make the Loan
39. Convertible Loan to Stock: How to Motivate a Lender to Make a Corporate Loan
40. Marry an Investor to a User
41. Working Out of Tough Sale or Lease Terms
42. How to Make Owner Financing Work for You
43. How to Push the Second Mortgage Around to Get the Property You Want
44. How to Make the Second Mortgage Bring in Cash
45. How to Get Cash by Solving Someone Else’s Problem
46. How to Wind Up a Winner by Turning Your Dwindling Stocks Into Real Estate Equities
47. The Ultimate Bail Out
48. Never Use a Dollar Once
49. Interest and Points
50. Tax Strategies in Creative Financing
51. Bonding Your Real Estate Loans
52. A Preferential Interest in Real Estate
53. Filling the Gap--A Bridge Loan

Conclusion

About the Author
Index

Introduction

The strategies I am about to explain will guide you in buying, selling, and exchanging real estate in ways that have probably never occurred to you, and that are known to very few people. The fact is that you truly can finance virtually any real estate, any place, any time. This book will show you how it’s done.

For over three decades, I have been a highly successful real estate professional. I have helped my clients finance investments in ways they never dreamed were possible, and have watched them build their real estate portfolios and enjoy their gains. And I have built up my own portfolio along the way. At first, I relied on conventional financing techniques, turning to banks and credit unions for the loans needed to complete transactions. But, as I soon learned, conventional financing isn’t always available. Sometimes conventional lenders don’t like the property being acquired. Sometimes they don’t trust the borrower. And sometimes, while they’re willing to provide the financing, they simply can’t provide the level of financing needed by the buyer if he is to both purchase the property and make the necessary improvements. Fortunately, along the way, I also learned that there are nearly fifty financing methods that can be used when regular financing channels are not available or not adequate. And each of these methods allows both parties--buyer and seller--to come out a winner. In fact, I discovered that this is one of the keys to successfully financing real estate deals. Every party in every transaction is looking for certain benefits. You know what you want--perhaps a home, an income-producing property, or a tax shelter. But what does the seller want? Immediate cash? A steady monthly income? A piece of property that better meets his investment needs? Figure out the benefits that each party is looking for, and you’ll be able to choose a strategy that allows you to get the property you want.

How to Finance Any Real Estate, Any Place, Any Time presents forty-seven strategies, each of which either circumvents standard financing channels, or enables you to convince hesitant traditional lenders to supply the financing you require. Need time to acquire financing for a prime piece of income-producing real estate? Try securing the property with an option while you arrange for the loan. Have cash for only a small down payment, while the seller wants the security of a large down payment? Use collateral security--personal property such as automobiles, boats, or stocks and bonds--to provide the seller with the level of comfort he needs. Don’t have cash available to cover the closing costs? Use notes or other real estate-backed paper instead. Can’t afford that great property you need to house your new business? Buy only the building, and lease the land on which it’s sited. Other topics include using a blanket mortgage or wraparound mortgage to obtain financing, forming a syndication, using zero coupon bonds and certificates of deposit to secure a loan, and much much more. All strategies are tried and true, and can be used to finance a variety of investments, from a personal residence to a modest apartment house to a sprawling retail shopping center.

While it’s usually a lack of financing that stands between you and the property you want, I’ve learned that sometimes other problems exist. In cases in which the owner finances the purchase, sellers sometimes fear that if the buyer’s income were to stop because of death, illness, or accident, the monthly mortgage payments might stop as well. In situations in which property is traded, some sellers are uncomfortable trading their property for real estate that has a second mortgage on it. That’s why this book also includes a number of deal-making strategies--techniques that can be used when an obstacle other than financing stands between you and the property you want. You’ll find that there are many proven ways to give the seller the benefits he’s looking for, often without spending an extra dime on the investment.

Whether concerned with financing or deal-making, every strategy in this book is set up for maximum clarity. After a brief introduction, each first provides a “Strategy” section that presents clear step-by-step instructions for using that financing or deal-making technique. Following this, a scenario provides a true-life example, showing the strategy in action. Throughout, techniques are explained in easy-to-understand language, and definitions are provided as necessary. For further help, though, you can turn to the Glossary on page 000. Other helpful sections include a Resource List (page 000), that will guide you to groups and websites that can provide further information on real estate investments, and a list of Selected IRA Trustees and Custodians (page 000), that will come in handy if you decide to use funds from your Individual Retirement Account to purchase real estate. And throughout the book, insets present helpful information on tax strategies, owner financing, options, notes, syndication, due diligence, and many other important topics.

Before you start scanning How to Finance, looking for the best strategies for your real estate investments, a word should be said about the need to work with a team of qualified professionals. You probably already know that even the simplest transaction, such as the purchase of a home with the assistance of a bank loan, necessitates the use of an attorney. As you get involved in more complicated transactions, such as the trading of one property for another or the use of options and syndications, the need for truly qualified professionals will only increase. So if you haven’t already found an experienced real estate attorney, accountant, and escrow closer, by all means, start your search. Advise all candidates that you will be using some less-than-conventional means of financing your purchases--strategies that are most certainly legal, but do not always involve conventional lenders. If the candidate tells you that it simply can’t be done, walk away and look for someone else. Don’t worry. There are plenty of good people out there who are ready, willing, and able to think “outside the box” and help you acquire the real estate you want.

Everyone has long appreciated the security provided by wise real estate investments. And if anyone needed a reminder, the recent sharp decline in the stock market certainly provided it! Unlike a stock, a piece of land can never totally lose its value. It simply won’t cease to exist like so many dot-com companies did a few years back. The problem is that when a great real estate investment presents itself, you don’t always have the resources available to seize the moment and make that property part of your growing portfolio. But as I have learned over the last thirty years, usually resources are in fact available. You just have to understand how to identify and use them. With How to Finance Any Real Estate, Any Place, Any Time, you will know how to put the wraps on virtually any real estate purchase--even when financing seems impossible. See you in escrow.

Reviews

"A must read for every real estate investor, broker, and developer."
--The S.E.C. Real Estate Observer

"Should help investors think outside the box to land the property of their dreams."
--ForeWord Magazine

"Just the thing for investors."
--Publishers Weekly

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