- Course Title
- Real Estate Investing II: Financing Your Property
You've found the perfect investment property, and now the real work begins. How are you going to pay for it? Can you be sure it will show a profit?
Financing the purchase is hands-down the most confusing piece of the puzzle for buyers investing in real estate. Where do find a good lendor? How do you manage the cash flow? In this course, we'll demystify lending in real estate finance. Designed for pros as well as novice investors, this practical, straightforward guide will shine a light on real estate finance and the mortgage industry. We'll walk you step-by-step through the loan process, with special sections on commercial and construction loans.
Take the time upfront to get the right information, identify the right tools and discover how financial deal analysis can be easy, and yes, even fun!
Combined with our first course, "Real Estate Investing," you'll have all the tools you need to make your real estate investing efforts a success! Offered in partnership with ed2go.
- Find out how mortgages work, and learn the four ways to make money from your investment property.
- Learn about various loan products in the market and when you should (or shouldn't) use them, depending on your investment goals.
- Discover why good credit is vital to maximizing your investment returns, and find out how to improve and maintain your credit score.
- Explore how the loan application and underwriting processes work.
- Figure out how the right combination of debt and equity can help you maximize your investment returns and lower your risk.
- Understand how to compare the costs and payments of different loan types to one another side by side.
- Learn the three approaches to determining the value of a property.
- Get familiar with techniques for analyzing the financial aspects of commercial property.
- Track current cash flow and project future cash flow using documents such as an operating statement and a pro forma.
- Explore the "time value of money" concept and learn how it can help you measure your investment returns.
- See how to use the federal tax code to your advantage by claiming all the tax advantages you qualify for.
- Look at your decision-making process from a big-picture standpoint.
Wednesday - Lesson 01
Welcome to the fascinating world of real estate finance! In our first lesson, I'll guide you through a brief history of the mortgage industry, and then we'll walk through the life of a loan so you understand what happens to your loan before, during, and after your purchase. Finally, we'll look at the four areas from which you can gain value or profit from a property: appreciation, cash flow, amortization, and tax benefits.
Friday - Lesson 02
If you're buying real estate, you probably have some questions about loans. Where do you go to get the best loan for your needs? And what is the best loan for you? Today we'll explore some common (and some not-so-common) loan types, including ARM loans, pay-option loans, and mortgage checking accounts. We'll also go over how to shop for a good mortgage broker.
Wednesday - Lesson 03
As you probably know, your credit score is one of the most important factors in getting a mortgage loan. In this lesson, we'll deconstruct your credit score and go over ways to improve it. You'll learn how poor credit can affect your cash flow, and we'll talk about how to remove errors on your credit report and improve your score in as little as 24 hours. I'll also give you a step-by-step plan for improving and maintaining your credit so you always get the best deal on every loan.
Friday - Lesson 04
What do lenders look for when they evaluate your loan application? How can you make your application as attractive as possible? In today's lesson, we'll explore the loan approval process and the variety of ways to apply for a loan, depending on your circumstances.
Wednesday - Lesson 05
Are you ready to start calculating how your real estate investments can pay off? We'll turn to some beginning number-crunching in this lesson. We'll look at how to avoid negative cash flow situations, and we'll discuss the best strategies for reducing your risk with smart financing structures. You'll find out if it's wise to buy with no money down, or if you'd be better off investing some cash from the get-go.
Friday - Lesson 06
Whether your monthly loan payment is manageable or not can make all the difference in your investing activities. But until you get the loan, mortgage payments can be a bit of a mystery. Do you know how to calculate your mortgage payment? In this lesson, I'll show you how to compare payments and loan costs on interest-only loans, ARM loans, and fixed-rate loans so you can make the right financing decision for you.
Wednesday - Lesson 07
As a real estate investor, you'll probably find yourself constantly asking the question, "How much is that property really worth?" Today we're going to discuss the three appraisal methods, and you'll see how appraisers determine value on different types of property. You'll learn how to use income to determine value, and you'll find out how to compare very different properties to one another using an important calculation called the "capitalization rate."
Friday - Lesson 08
Maybe you started off investing in residential property, but now you've got your eye on office buildings or retail space. If you're considering investing in commercial property, today, you'll learn how to evaluate the numbers on these kinds of deals. You'll discover how to apply the cap rate and cash-on-cash return measurements to actual property listings. By the end of this lesson, you'll have a strong grasp on how to analyze a commercial deal.
Wednesday - Lesson 09
Let's get into some more detailed financial analysis! In today's lesson, I'll provide you with some tools and worksheets that you can use to forecast your long-term cash flow and expenses. You'll learn how to read an operating statement and prepare a pro forma. These documents will help you evaluate and compare deals to see how profitable they'll be so you can make the best decisions possible!
Friday - Lesson 10
If you invest a dollar today, what will it be worth in the future? When you're choosing properties to invest in, that's an important question to ask. In today's lesson, we'll discuss the time value of money. You'll learn how to apply the concepts of Internal Rate of Return, Net Present Value, and the Profitability Index to determine long-term profitability. You'll find out just how much you stand to make from your investments over time.
Wednesday - Lesson 11
Your investment profits can take a hit come tax time, so today, we'll go over how to use tax deductions, credits, and deferrals to minimize your tax liability. You'll find out what it means to be a "real estate dealer," and you'll get tips on how to avoid this undesirable classification. We'll look at how to file a property tax appeal, defer capital gains taxes, and use depreciation to your advantage.
Friday - Lesson 12
Now that you have all these great new evaluation tools, how do you use them together to make better investing decisions? In this, our final lesson, you'll learn how to take everything we've covered in this course and use it to make the best investing decisions possible. I'll provide you with a few last nuggets of wisdom, and by the end of the lesson, you'll have a comprehensive investing plan in writing to use as you go forward in your investing journey!
Method of Instruction