BN.com Gift Guide

HOLD: How to Find, Buy, and Rent Houses for Wealth [NOOK Book]

HOLD: How to Find, Buy, and Rent Houses for Wealth

Available on NOOK devices and apps  
  • NOOK Devices
  • Samsung Galaxy Tab 4 NOOK 7.0
  • Samsung Galaxy Tab 4 NOOK 10.1
  • NOOK HD Tablet
  • NOOK HD+ Tablet
  • NOOK eReaders
  • NOOK Color
  • NOOK Tablet
  • Tablet/Phone
  • NOOK for Windows 8 Tablet
  • NOOK for iOS
  • NOOK for Android
  • NOOK Kids for iPad
  • PC/Mac
  • NOOK for Windows 8
  • NOOK for PC
  • NOOK for Mac
  • NOOK for Web

Want a NOOK? Explore Now

NOOK Book (eBook)
$13.99
BN.com price
(Save 44%)$25.00 List Price

Overview

USA TODAY BESTSELLER

Take HOLD of your financial future!



Learn how to obtain financial freedom through real estate. The final book in Gary Keller’s national best-selling Millionaire Real Estate Investor trilogy teaches the proven, reliable real estate investing process to achieve financial wealth:



1. Find – the right property for the right terms and at the right price.



2. Analyze – an offer to make sure the numbers and terms make sense.



3. Buy – an investment property where you make money going in.



4. Manage – a property until it’s paid for or you have a large amount of equity to leverage.



5. Grow – your way to wealth and financial freedom.

Read More Show Less

Product Details

  • ISBN-13: 9780071797054
  • Publisher: McGraw-Hill Education
  • Publication date: 10/4/2012
  • Sold by: Barnes & Noble
  • Format: eBook
  • Edition number: 1
  • Pages: 400
  • Sales rank: 321,248
  • File size: 16 MB
  • Note: This product may take a few minutes to download.

Meet the Author

Steve Chader contributed to both The Millionaire Real Estate Agent and The Millionaire Real Estate Investor. He has been investing in real estate since the 1970s with his father and grandfather as his first partners. Since then, Steve' has partnered with Jennice Doty to build a thriving real estate investment business with both residential and commercial income properties.

Jennice Doty, co-author of HOLD, has been in the real estate industry since 1979. Together with investment partner Steve Chader, Jennice has built a successful career, providing management services for more than 1,000 residential homes and 35 commercial properties.

Launching a longstanding career in real estate investing was not what Jim McKissack, HOLD co-author, had in mind when he and Linda—his wife and investment partner—bought their first investment property in 1991. The first investment was far from successful, but taught them many lessons, which they used to make the property cash flow. Today, Jim and Linda head a real estate enterprise that encompasses 79 single-family homes, 6 commercial buildings, 2 multifamily structures, 6 vacation rental cabins and 5 real estate franchises spanning three states, all with an annual cash flow of more than $1 million.

Linda McKissack is a Realtor, entrepreneur, author, and public speaker who began her real estate career in the 1980s. Linda has built a successful team, which includes her husband Jim, that has sold more than $40 million in volume. The HOLD co-author has also made a career of helping others by sharing her successes in order for them to increase their revenue and grow their businesses.

Read More Show Less

Read an Excerpt

HOLD

HOW TO FIND, BUY, AND RENT HOUSES FOR WEALTH


By STEVE CHADER, JENNICE DOTY, JIM MCKISSACK, LINDA MCKISSACK, JAY PAPASAN, GARY KELLER

The McGraw-Hill Companies, Inc.

Copyright © 2013Rellek Publishing Partners, Ltd.
All rights reserved.
ISBN: 978-0-07-179704-7


Excerpt

CHAPTER 1

CREATE YOUR PERSONAL INVESTMENT CRITERIA


After reading this chapter, you will know how to:

* Define your HOLD mission and vision.

* Determine your preferred time frame, rate of return, and risk tolerance.

* Understand the importance of a wealth adviser.


FOCUS YOUR MISSION FOR A CLEAR VISION

You are the head of your investment portfolio. And, as any good leader must do, it's up to you to define the mission—"where are we going?"—and vision—"how will we know when we get there?"—for your investment team. In other words, before you decide what to buy, you need to understand why you are investing in real estate. The HOLD strategy focuses on two primary financial drivers to determine investors' property criteria: cash flow and net worth.

Depending on where you are in your financial journey, your criteria may be very different. If you are a twenty-eight-year-old single female aiming to purchase your first home as an investment property, your personal investment criteria probably looks nothing like a couple in their fifties looking for a property portfolio that will afford them retirement in ten years.

For example, let's go back to the $170,000 single-family home you bought at a 10 percent discount in the previous section. In that scenario, you purchased on a 30-year note and in year one enjoyed total financial returns of about $9,859—a rate of return more than 25 percent of your initial investment—and cash flow of $1,200 from the get-go. What happens when you HOLD that property for thirty years and pay it off completely? In year thirty, your property would be cash flowing $17,908 annually, and would have cash flowed nearly a quarter of a million dollars over its lifetime. Your accumulated financial return would be $812,387, and you'd be turning the corner toward $1 million.

Now, if you rewind again, and buy the same property on a 15-year note, what do you think those same numbers look like? It may be surprising that your investment would have negative cash flow until year six. The same rent that generated $100 in monthly cash flow on a 30-year note won't initially cover the higher monthly note on a 15-year mortgage. But, at the thirty-year mark, the property would have been paid off for fifteen years, cash flowing $27,014 annually and would have produced an accumulated cash flow of more than $340,000. Your property's accumulated financial return on investment in year thirty would be $905,065.

As you can see in figure 1-1, both scenarios prove large financial returns, but each has its own path to get there. The 30-year model immediately cash flows and can be used as a reliable source of income year over year. The 15-year model, on the other hand, has apparent up-front risk, as it does not cash flow until year six. However, if you can afford to put money in for five years with no cash flow, you will reap higher financial returns more quickly as you rapidly pay down the mortgage principal and increase equity.

Of course, it is important to remember this is a hypothetical scenario. The main purpose of showing you the side-by-side comparison on this property is to illustrate how different approaches play out. For the record, we do not advise buying an investment property that does not cash flow—and definitely not one that isn't cash flowing until year six.

Let's take a look at some real-life scenarios.


Increase Your Cash Flow

Again, cash flow is money you get from a real estate investment when the rental income you receive is more than the costs you incur, including maintenance, taxes, mortgage payments, and vacancy. When you buy a property right, finance it correctly, and control your expenses, you will achieve a positive net cash flow from the start. And, as rents increase over time, your cash flow can continue to grow.

Jim and Linda McKissack were already in their 40 s and had four children when they began investing in real estate. Significance? They were looking for the fast-cash chance to rebuild their livelihood and eventually secure their financial future.

The couple came up with a plan to acquire 20 houses, financed on 15-year notes, and rent them at $1,000 a month. Since hitting this target, the McKissacks' plans, like most investors', have changed. With all properties performing, the couple's net worth has continued to grow, at the same time they keep collecting extra green each month. Over the years, they've leveraged the equity to acquire more properties—residential and commercial. Funny thing is, with so much financial security rolled up in their real estate portfolio today, they realized both stakes—cash flow and net worth—and retirement is something they no longer worry about.

Cash flow is king regardless of your personal criteria. If you make sure your property cash flows even $1/month from the get-go, you can hedge your bets on having made a good investment decision. But $1 is obviously not the end goal, so here are a few ways to achieve increased cash flow fast:

1. Put more cash down up front.

2. Amortize your mortgage on a 30-year note, for lower monthly payments.

3. Look at duplexes and small multifamily properties for multiple income streams.

4. Buy properties that are steeply discounted (foreclosures).


Increase Your Net Worth

Net worth, on the other hand, is the sum total of your assets and liabilities—what you own minus what you owe. It's the best and truest yardstick for calculating and keeping track of your financial success, and most wealthy people understand this. When you build your net worth, you increase your financial security over the long haul. With the HOLD strategy, you do this by paying down your mortgages and increasing your equity as quickly as possible. The question to ask here is: Where do you want to be in five years, in ten years, at age sixty-five? And, is building your net worth the best way to get there?

Steve Chader's son Matt bought his first investment property before he was twenty years old. With the luxury of time on his side, Matt pursued the HOLD strategy thinking in the long term. However, he still kept cash flow top of mind to guarantee each property a win. He did this by buying at the right price—meaning below market value—so that he made money going in. He financed his first property for thirty years to keep his monthly payments low, and he earned "sweat equity" by doing many home improvements himself. This not only allowed Matt to command higher rents, but ultimately to increase the value of his property—to add to his net worth.

Today, twenty years later, Matt has far exceeded his original net worth and cash flow goals and continues revisiting his plan to aim at hitting new targets. When it comes to upping your net worth, time is an amazing thing to have on your side. But, it's not the only way to increase your overall wealth using HOLD. You can also do the following:

1. Make sure to purchase on shorter amortization notes (e.g., a 15-year vs. a 30-year mortgage).

2. Be willing and able to make improvements to your HOLD properties for hidden added value, or buy "fixer-uppers" with the intent to add value.

3. Invest in single-family homes, which generally have higher appreciation rates than multifamily properties.

4. Accelerate your debt pay down—regardless of your mortgage length.


Stick to the Standards

The takeaway from both Matt and the McKissacks' stories is regardless of your original reason for investing—cash flow or net worth—
(Continues...)


Excerpted from HOLD by STEVE CHADER, JENNICE DOTY, JIM MCKISSACK, LINDA MCKISSACK, JAY PAPASAN, GARY KELLER. Copyright © 2013 by Rellek Publishing Partners, Ltd.. Excerpted by permission of The McGraw-Hill Companies, Inc..
All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
Excerpts are provided by Dial-A-Book Inc. solely for the personal use of visitors to this web site.

Read More Show Less

Table of Contents

Contents

FOREWORD          

INTRODUCTION          

OVERVIEW          

STAGE 1: FIND          

Chapter 1: Create Your Personal Investment Criteria          

Chapter 2: Create Your Property Criteria          

Chapter 3: Lead Generate for Properties          

STAGE 2: ANALYZE          

Chapter 4: Understand Your HOLD Worksheet          

Chapter 5: Estimate the Purchase Price          

Chapter 6: Project the Rent          

Chapter 7: Calculate the Costs          

Chapter 8: Analyze the Property          

STAGE 3: BUY          

Chapter 9: Arrange Financing          

Chapter 10: Write and Present the Offer          

Chapter 11: Close the Purchase          

STAGE 4: MANAGE          

Chapter 12: Find Good Tenants          

Chapter 13: Increase Value          

Chapter 14: Run It Like a Business          

STAGE 5: GROW          

Chapter 15: Manage to the Goal          

Chapter 16: Models for Growth          

PUTTING IT ALL TOGETHER          


Read More Show Less

Customer Reviews

Average Rating 3.5
( 2 )
Rating Distribution

5 Star

(1)

4 Star

(0)

3 Star

(0)

2 Star

(1)

1 Star

(0)

Your Rating:

Your Name: Create a Pen Name or

Barnes & Noble.com Review Rules

Our reader reviews allow you to share your comments on titles you liked, or didn't, with others. By submitting an online review, you are representing to Barnes & Noble.com that all information contained in your review is original and accurate in all respects, and that the submission of such content by you and the posting of such content by Barnes & Noble.com does not and will not violate the rights of any third party. Please follow the rules below to help ensure that your review can be posted.

Reviews by Our Customers Under the Age of 13

We highly value and respect everyone's opinion concerning the titles we offer. However, we cannot allow persons under the age of 13 to have accounts at BN.com or to post customer reviews. Please see our Terms of Use for more details.

What to exclude from your review:

Please do not write about reviews, commentary, or information posted on the product page. If you see any errors in the information on the product page, please send us an email.

Reviews should not contain any of the following:

  • - HTML tags, profanity, obscenities, vulgarities, or comments that defame anyone
  • - Time-sensitive information such as tour dates, signings, lectures, etc.
  • - Single-word reviews. Other people will read your review to discover why you liked or didn't like the title. Be descriptive.
  • - Comments focusing on the author or that may ruin the ending for others
  • - Phone numbers, addresses, URLs
  • - Pricing and availability information or alternative ordering information
  • - Advertisements or commercial solicitation

Reminder:

  • - By submitting a review, you grant to Barnes & Noble.com and its sublicensees the royalty-free, perpetual, irrevocable right and license to use the review in accordance with the Barnes & Noble.com Terms of Use.
  • - Barnes & Noble.com reserves the right not to post any review -- particularly those that do not follow the terms and conditions of these Rules. Barnes & Noble.com also reserves the right to remove any review at any time without notice.
  • - See Terms of Use for other conditions and disclaimers.
Search for Products You'd Like to Recommend

Recommend other products that relate to your review. Just search for them below and share!

Create a Pen Name

Your Pen Name is your unique identity on BN.com. It will appear on the reviews you write and other website activities. Your Pen Name cannot be edited, changed or deleted once submitted.

 
Your Pen Name can be any combination of alphanumeric characters (plus - and _), and must be at least two characters long.

Continue Anonymously
Sort by: Showing all of 2 Customer Reviews
  • Anonymous

    Posted November 6, 2012

    No text was provided for this review.

  • Anonymous

    Posted October 17, 2012

    No text was provided for this review.

Sort by: Showing all of 2 Customer Reviews

If you find inappropriate content, please report it to Barnes & Noble
Why is this product inappropriate?
Comments (optional)