Real Estate Investing II: Financing Your Property

About This Course

Congratulations! You've found the perfect investment property! Now the real work begins: How are you going to pay for it? And how much profit will you make?

Financing your new purchase is hands-down the most confusing piece of the puzzle for buyers investing in real estate. Where do you go to get a good loan? How can you be sure that your investment will make money? What's the best strategy for the market we're in? In "Real Estate Investing II: Financing Your Property," we'll demystify lending and the world of real estate finance so you know exactly how to profit from your investments.

In today's market, you can get burned by not doing your homework, or by just buying a property and hoping it goes up in value over time. Few investors take the time to really do in-depth analysis on a potential investment. Either they don't know how to do financial analysis, or they find it difficult or unnecessary. Then they wonder why they didn't make as much money as they hoped, or why they didn't sell when they should have. Instead, smart investors take a little time up front to "crunch the numbers" and do thorough financial analysis before committing to a deal. If you have the right information and tools, financial deal analysis can be easy, and yes, even fun! "Real Estate Investing II: Financing Your Property" will help you uncover the secrets of deal analysis so you can stretch your investment dollar further than ever.

If you're looking to create cash flow, invest for retirement, or simply build wealth, you need to understand how to crunch numbers and make decisions. "Real Estate Investing II: Financing Your Property" will show you how to improve your borrowing power, create more cash flow, and maximize your investments.

We'll also explore what to do if you have credit challenges, are self-employed, have a heavy debt load, or want to invest in new construction or commercial property. We'll look at how to easily perform real estate investment calculations using specially designed Excel worksheets that calculate investment returns, mortgage amortization, cash flow forecasting, and many other functions, even if you're allergic to math!

You'll discover how to find a good loan officer, what questions to ask when shopping for a loan, and how to increase your credit score by 30 points or more overnight! You'll discover a loan that allows you to pick how much you pay each month. You'll also learn about a new loan product that allows you to pay off your mortgage in less than 10 years without making additional payments or paying more than an interest-only payment!

Designed for old pros as well as novice investors, this practical, straightforward guide will shine a light on real estate finance and the mortgage industry, and will walk you step-by-step through the loan process. With special sections on commercial and construction loans, this course will demystify the lending process and put you on your way to financial freedom.

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!

About The Instructor

This course includes a knowledgeable and caring instructor who will guide you through your lessons, facilitate discussions, and answer your questions. The instructor for this course will be Josh Fuhrer.

Josh Fuhrer is a real estate investor and developer with over 15 years of experience in single-family homes, and multifamily & commercial properties. For over 10 years, he has run his own real estate development company, focusing on developing and asset managing nearly one million square feet of retail, office, and mixed-use projects. Josh holds a Master's Degree in Real Estate from Georgetown University, and a Graduate Certificate in Real Estate Development from Portland State University.

Syllabus

A new section of each course starts monthly. If enrolling in a series of two or more courses, please be sure to space the start date for each course at least two months apart.

Week 1

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.

Week 2

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.

Week 3

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.

Week 4

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.

Week 5

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.

Week 6

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!

Requirements

Internet access; e-mail; and the Microsoft Internet Explorer or Mozilla Firefox Web browser.

If you do not have Microsoft Excel installed on your computer, you will need to dowload one of these free Excel viewers to use the spreadsheets provided in this course. Microsoft's Free Excel Viewer or Free OpenOffice.org Application