Multi-Family Millions

DAVID LINDAHL is an accomplished real estate investor who has been involved in more than 500 deals and controls more than $140 million in real estate. He is principal owner of The Lindahl Group, a real estate investment company that acquires properties in emerging markets across the nation. He operates RE Mentor (www.rementor.com), a publishing and seminar company that shows investors how to profit from all forms of real estate investing. He is also a popular speaker and expert at real estate investment clubs, conventions, and seminars throughout the country. For more information, please visit www.multifamilymillions.com.

• Acknowledgments xiiiChapter 1A Different Approach that Creates Huge Real Estate Profits 1How This Book is Different 2Chapter 2Why Invest in Apartments? 9Apartments Set You Free 10Let’s Explode the No-Money-Down Myth 13More Myths about Apartment Investing 14This is Not a Myth, This is Reality: They’ll Laugh First, and You’ll Laugh Last 18Opportunity is Everywhere 20A Brief Overview of the Different Kinds of Multi-Family Housing 21Burned-Out Landlords are Great Sources for Deals 23In the Next Chapter 24Chapter 3An Overview of How to Get Your First Deal 25The 14 Steps to Acquiring a Property 261. Decide What Size Buildings You Want to Start Investing In 262. Decide Where You Want to Invest 273. Determine What Types of Multi-Family Properties You’ll Buy 294. Put Your Team in Place 305. Market to Get Your Deal 316. Analyze the Deals 317. Create the Offer or Letter of Intent 328. Negotiate the Deal 339. Create and Sign the Purchase-and-Sale Agreement 3310. Do Your Due Diligence 3511. Renegotiate the Deal 3712. Start Your Financing 3813. Choose a Management Company 4014. Close the Deal 41Option 1: Buy and Flip 42Option 2: Buy and Hold 46Option 3: Buy, Reposition, and Sell 47In the Next Chapter 53Chapter 4Where to Find Enormous Profits from Repositioning 55It’s All about Raising the NOI 57Problems to Look For 58Making a Change 60Then there’s the Perception 61Send the Message that Change is Happening 62The Property Cycle 64A Common Repositioning Mistake 67The Two Main Reasons Why Repositions Fail 68The City Cycle 69Revitalization Zones 70In the Next Chapter 73Chapter 5How to Attract Deals to You with a Minimum of Time and Money 75Principle #1: Make It Easy to Do Business with You 75Principle #2: Do What You Say You Will Do 77Principle #3: Don’t Be a Pain in the Butt 78Inexpensive Deal-Attraction Techniques 79Go Directly to the Owners 84Other Techniques that Cost Little but Bring Big Results 88Go After the Don’t Wanters 90Cruising for Dollars 91Another Way to Cruise 92Oh So Many Ways to Get Deals 93Don’t Make These Three Mistakes 93In the Next Chapter 95Chapter 6Separating the Gold Mines from the Land Mines 97The Power of Negative Thinking 97Profiting from Value Plays 98How to Find—and Profit from—Burned-Out Landlords 99Profiting from Management Nightmares 100Properties that Need Repair: Where the Gold is 101Avoid Certain Repairs 102Solving High-Vacancy Problems—Once and for All 104How I Filled 400 Units 105How to Raise Rents at Takeover and Not Lose Your Tenants 106How to Raise Rents Steadily While Keeping Your Tenants 107When It Makes Sense to Clean House 109In the Next Chapter 111Chapter 7How to Analyze a Property Using the Fewest Numbers for the Most Profit 113Back to the Cap Rate 114Analyzing Your First Deal 116How Do We Know It Really is a Deal? 118Current Management: When to Hold ’Em and When to Fold ’Em 119What Matters the Very Most to Tenants 122Is Someone Putting Lipstick on a Pig? 123Let’s Look Inside 125Market Area Inspection 126The Sidewalk Tells the Story 128But What If My Numbers are Off ? 129Don’t Get Depressed on Me! 129In the Next Chapter 130Chapter 8Where to Get the Money for All Your Deals 131Why Banks Like Apartments 132Three Flavors of Lenders 133Conduits 136When to Use a Mortgage Broker 136Putting Your Package Together 137How to Get Partners to Fund Your Deals 138The Big, Profitable World of Private Money 139Debt versus Equity Deals 143In the Next Chapter 145Chapter 9Twelve Negotiating Secrets of the Pros 1471. Be Prepared 1472. Understand the Other Party’s Needs 1493. Set Your Goals and Rank Them in Order of Priority 1504. Decide What Your Strike Price is and Don’t Exceed It 1525. Anticipate the Next Move and Don’t Avoid Haggling 1536. Remain Calm and Unemotional 1547. Build Rapport and Trust 1558. Create a Win/Win Environment 1559. Remain Flexible and Open to Options 15610. When the Seller Speaks, Listen Closely and Delay Your Response 15711. Demonstrate Empathy 15812. Silence is Golden 158In the Next Chapter 160Chapter 10The 80/20 Rule of Rehabbing 161Exterior Improvements 162Interior Improvements 166How to Get the Most from Insurance Claims 170Dealing with Contractors 171In the Next Chapter 176Chapter 11How to Avoid Being a Landlord: Secrets to Hiring Great Property Managers 177How to Find the Best Managers 179What You Should Expect to Pay 182Repositioning Managers: A Special Breed 187How to Get Contractors to Beg You for Business 190Managing the Manager: Reports You Should Get Regularly 191You’re an Asset Manager 194In the Next Chapter 194Chapter 12Reselling for Huge Profits 195Return on Equity 196Is Your Property Stabilized? 198Get Your Financial House in Order 199Get Your Physical House in Order 201Time to Tell the World 202Your Obligations as a Seller 205In the Next Chapter 205Chapter 13The 10 Biggest Mistakes Repositioners Make, and How to Avoid Them 207Mistake #1: Running Out of Money During a Repositioning 207Mistake #2: Leasing Up Too Soon 210Mistake #3: Not Using Licensed Contractors 211Mistake #4: Not Getting Three Bids 212Mistake #5: Assuming the Lowest Bid is the Best Bid 213Mistake #6: Not Going after Private Money Sooner 214Mistake #7: Not Marketing Consistently 215Mistake #8: Discriminating 215Mistake #9: Not Having Signing Authority on Bank Accounts 216Mistake #10: Buying a Property with Environmental Issues 217Mistake #11: Inspecting the Property Yourself 218Mistake #12: Managing the Property Yourself 219Mistake #13: Using Fill-in-the-Blank Legal Forms 219Mistake #14: Dealing with Tenants 220Mistake #15: Thinking You Know It All 221In the Next Chapter 222Chapter 14Creating Your Success Team 223Real Estate Brokers 224The Property Manager 225Attorneys 227Property Inspector 229Appraisers 229Lender 230Contractors 230Insurance Agent 231Demographer 2321031 Specialists 233Accountant 235In the Next Chapter 236Chapter 15Next Steps on Your Road to Wealth 237How Impatient are You? 239The Absolute Shortest Shortcut to Real Estate Wealth 240Free Bonus Materials for You 241Index 243