Do This, Not That!: 10 Critical Decisions That Can Make Or Break Your Real Estate Investment - Softcover

Inhaltsangabe

Bad decisions can ruin a good investment. Good decisions can save a bad one.

In real estate investing, your success is not determined by the property. It is determined by the decisions you make about the property.

And most of those decisions get made once, quickly, on the word of someone who will not be there when it goes wrong.

This book contains ten stories that end badly.

Then it tells each one again, with the same person, the same property, the same money — and one different decision.

Every chapter has the same four parts. What the situation is. What happened. What should have happened instead. And what it cost, worked out in actual dollars.

The ten:

• Cash-Out or Lease/Purchase — he sold the duplex and walked away with $190,000, and only part of it was profit. There was a better way to get the same money.
• Pre-(Not Really)Approved — what a lender means by that word, and what it costs to believe him.
• Me or LLC? — borrowing personally and putting the property in the entity. This idea has been circulating on blogs and podcasts for years, and it is the most dangerous situation in real estate investing.
• Spend Cash, Don't Spend Cash — when paying cash for a property is the wrong move, even when you have the cash.
• I Guarantee It — a Guaranty Agreement is one document with several forms, and they are not equally dangerous.
• Combining an LLC With a Partnership — why the two most common structures are usually presented as either-or, and what happens when you stop treating them that way.
• But I Don't Own That! — liability protection is conditional. Here is the condition, and what it looks like when it fails.
• Sell With Seller Financing — the opportunity hiding inside a rental property that is paid off, and how to combine it with a Section 1031 Exchange.
• Don't Sign That Deed-In-Lieu — it solves one problem and creates two, and the second one is a tax bill.
• Buy Me Out, or I'll Buy You Out — the clause you write at the beginning, for the day when one partner wants to cash out, and the other one does not.

The people are made up. The facts are not.

These are the situations that actually happen, with the numbers run all the way through — down payments, principal paydown, appreciation, transaction costs, taxes, and what ends up in the bank.

Why it matters that both versions are here.

Anyone can tell you what to do. This shows you the same deal both ways, so you can see exactly where the fork was, what it looked like at the time, and what the two paths were worth.

That is how experience works, except experience makes you pay for it.

Written by a lifelong real estate investor.

Michael Lantrip is licensed to practice law in Texas, Virginia, North Carolina, and the District of Columbia, and before the United States Tax Court. He is a former IRS Tax Examiner and a former Tax Accountant for a Big 8 accounting firm. He owned his own Title Insurance Company, and has handled over 2,000 real estate closings, which means he has watched a great many people make these exact decisions.

He has written ten books on real estate investing and tax strategy.

You will know all of this after twenty years in the business.

Or you can learn it now.

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