Symbols
100 strike 14
98 strike 13
A
acquisitions 33
adding value 45
adjustable rate mortgages (ARM) 8, 9, 10, 11, 12, 18, 19, 20, 21, 22, 23, 28, 32, 38, 43, 45, 46, 49, 50, 55, 58, 68, 69, 70
advance-fee-loan scam 72
Aggressive Tax Avoidance for Real Estate Investors 59, 71
agricultural lenders 11
Allen, John B. 7
Allen, Robert 74
amortization 7, 13, 17, 20, 22, 34, 35, 38, 49, 58, 70, 85
Apartment Advisor, The 51
appliances 39
Applicable Federal Rate (AFR) 84
appraisal 7, 34, 39, 40, 46, 58, 64, 65, 66, 69, 71, 72, 76, 77, 82
Appraisal Institute 64, 71
Arnold, Alvin 48
asbestos 35, 39
assumable mortgages 15, 21, 22, 30, 35, 36, 37, 39, 40, 41, 48, 62, 74, 78
at-risk rules 24
availability risk 38
B
Baker, Irv 39
balloon mortgages 9, 15, 17, 24, 27, 28, 30, 34, 36, 37, 38, 39, 49, 68, 69, 73, 88
bankruptcy 28, 49, 64, 73, 86
bargain purchases 45, 55, 57, 69, 73
basis risk 11, 14
Belsky and Gilovich, authors 71
blanket mortgage 45, 46
books
Aggressive Tax Avoidance for Real Estate Investors 59
Crittenden’s Directory of Real Estate Financing 32
Fundamentals of Real Estate Finance 6, 10, 53, 66, 84
How to Buy Real Estate for at Least 20% Below Market Value 45, 56
How to Buy Real Estate for Little or No Money Down 53
How to Increase the Value of Real Estate 45
Innumeracy 71
Language of Real Estate, The 23
Law of Real Estate Finance 24
Nothing Down 53, 56, 74
Random Character of Interest Rates, The 19
Why Smart People Make Big Money Mistakes 71
Brandenburger, Mike 49
Broderick, Wendell 43
Bronchick, William 59
Bruss, Bob 2, 7, 52, 60
Building Owners and Managers Association 54
C
California Association of Realtors® 61
capital gains tax 84
cap rate 16, 22, 39, 49
cash flow 8, 9, 10, 11, 24, 26, 31, 51, 52, 53, 84
cash out on refinancing 39, 40, 41, 49, 66
cash surplus note 42
certificate of deposit 21
Chicago Board of Trade (CBOT) 11, 12, 13
Chicago Creative Investors Association 43, 62
Code of Federal Regulations (CFR) 59
Columbus Dispatch 64, 85
commercial lenders. See institutional lenders
Comptroller of the Currency 27, 74
condemned properties 56
condos 15, 29, 57
confidence game 64
consumer-protection statutes 86
Countrywide Loan Underwriting Expert System (CLUES) 51
Cowan Jr., William 34, 35, 36
credit-cards 48, 61, 63, 67, 68
credit bureaus 63, 67, 68
credit check 58, 62
credit rating/score 63, 65, 66, 69, 82
Credit Reform Act 48
Crittenden’s Directory of Real Estate Financing 7, 29
Crittenden, Alan 7
Crittenden’s Directory of Real Estate Financing 32
Crittenden Publishing’s Real Estate Financing Report 7, 32
D
Dale, Larry 29
Dano, Eddie 44
Davis-Bacon Act 40
debt-coverage ratio 16, 37, 38, 39, 41, 49, 51, 52
debt service obligation 8
deed in lieu of foreclosure 23, 24, 30
default 7, 11, 25, 29, 31, 40, 42, 52, 57, 62, 69, 79, 85, 87
deficiency judgment 23, 75
Delegated Underwriting and Servicing (DUS) 29, 38
delinquent subdivision mortgages 56
delinquent tax auctions 56
Department of Housing and Urban Development 27. See also HUD
depreciation 24, 46, 84
Desktop Originator/Underwriter System (DOUS) 51
DiGrazia, Gary 57
distressed real estate times 45
dollars-per-unit limits 37
down payment 15, 16, 20, 60, 61, 67, 80, 81, 85, 86, 87
due-on-sale 15, 59, 60, 62, 63, 69, 74, 75, 78, 79, 80
Dupre + Scott Apartment Advisors 51
E
electronic appraisal 65
Employment Retirement Income Security Act (ERISA) 31
environmental audit 35
Environmental Site Assessment 39
equitable title 85
equity 10, 16, 17, 18, 23, 24, 25, 27, 28, 31, 33, 44, 45, 48, 50, 53, 54, 57, 58, 61, 68, 69, 72, 75, 79, 85
Estate of Franklin 24
Expanding American Homeownership Act of 2006 88
F
Fair-Isaac Company (FICO) 63, 65, 69
Fair Housing Amendments 17
Farmers Home Administration (FmHA) 48
FDIC Division of Supervision Manual of Examination Policies 33
federal felony statutes 60
Federal Home Loan Bank Board 74
Federal Home Loan Mortgage Corporation (FHLMC/Freddie Mac) 7, 15, 16, 29, 30, 33, 43, 44, 48, 59, 60, 68, 69, 70, 71, 72, 73, 85
Federal National Mortgage Association (FNMA/Fannie Mae) 15, 18, 27, 29, 30, 33, 34, 37, 38, 42, 43, 44, 45, 59, 60, 66, 71, 73, 85
FNMA fees 37
federal participation rate 48
FHA. See Federal Housing Administration
Fidelity Federal Savings and Loan Association vs. de la Cuesta 15. See also de la Cuesta
Financial Institutions Reform, Recovery, and Enfor 28
fire insurance 9
fixed-rate mortgages 6, 7, 9, 11, 17, 20, 21, 22, 23, 29, 32, 34, 35, 36, 41, 43, 48, 52, 69, 70, 73, 88
flipping 72, 82, 86
floating-rate loans 57
foreclosure auction 23, 56, 64, 69
for sale by owner 32
Franklin Foundation 80
friendly foreclosure 15, 16
Fundamentals of Real Estate Finance 6, 10, 53, 66, 84
futures contracts. See interest rate futures contracts
G
Garn-St. Germain Depository Institutions Act of 1982 15, 59, 62, 63, 74, 78
Garvey, Jane 2, 43, 62
get-rich-quick scams 81
gift letter 60
Gilovich and Belsky, authors 71
Government National Mortgage Association (GNMA/Ginnie Mae) 13, 14, 40
gurus 53, 57, 59, 63, 72, 74, 75, 78, 80, 81, 84
H
Hahn, Charles 34, 35, 36
Harney, Ken 80
hazard insurance 14, 75, 79
hedging 9, 10, 11, 12, 13, 14, 21, 23, 38, 46
Helfant, Dorcas 31
highly leveraged transactions 32, 33
home equity lines 45
Homegain.com 65
Housing and Community Development Act of 1987 15
How to Buy Real Estate for at Least 20% Below Market Value 45, 56
How to Buy Real Estate for Little or No Money Down 53, 72
How to Increase the Value of Real Estate 45
How to Maximize Your Leverage and Minimize Your Income Taxes in Real Estate 53
HUD 15, 16, 27, 29, 30, 37, 39, 40, 41, 42, 60, 62, 63, 75, 80, 87
HUD 223(f) 27, 39, 40, 41, 42
HUD Section 8 41
I
id=156675 87
in-the-money options 56
income property 5, 6, 7, 17, 18, 29, 32, 35, 36, 44, 45, 46, 53, 58, 60, 65, 73. See also rental property
inflation 22, 76, 82
Innumeracy 71
Institute of Real Estate Management 54
institutional financing 5, 30
institutional lenders 6, 11, 18, 21, 46, 48, 72, 75, 80, 83
institutional mortgages 5, 17
interest-bearing securities 9, 13
interest rate futures contracts 9, 10, 11, 12
interest rate locks 78
interest rate swaps 12
Internal Revenue Code (IRC) 24, 50, 69, 87
Internal Revenue Service (IRS) 24, 56, 84, 87
IRS auctions 56
inter vivos trust 59
IRS auctions 56
J
judgments 45, 63
junk bonds 84
K
Kaplan, Larry 12
L
land contracts 15, 47, 59, 74, 75, 83, 84, 85
Language of Real Estate, The 23
Law of Real Estate Finance 24
lead-based paint 39
lease options 15, 53, 59, 63, 68, 72, 74, 75, 79, 83, 85
leverage 6, 18, 33, 44, 45, 46, 53, 54, 55, 56, 59
leveraged buyouts 33
liens 24, 40, 45, 56, 63, 80
lifetime cap 11, 12, 20, 21, 22, 49, 70
limited partnership 41, 55
line of credit 10, 11, 18, 45, 56, 57, 58, 61
living trust 59, 74
loan-to-purchase-price ratio 69
loan-to-value ratio (LTV) 6, 7, 16, 18, 20, 22, 23, 30, 37, 38, 39, 40, 41, 46, 48, 65, 66, 68, 69
loan constant 74
loan fees 16, 37, 78
long-term assets 17, 28, 49, 65
lying 60, 61, 82
M
maintenance 35, 37, 38, 39
margin [call] 8, 9, 10, 11, 12, 18
mark to market 84
Marshall, Bill 12
matching maturities 28, 30
mergers 33
Mid-America Commodity Exchange 11
Milken, Michael 84
miniwarehouses 57
mortgage-backed securities 13, 14, 31
mortgage-elimination programs 81
Mortgage and Real Estate Executives Report 48, 73
Mortgage Bankers Association 69
mortgage broker 6, 7, 29, 34, 37, 43, 70, 82
mortgage fraud 82, 86
mortgage insurance 39, 41, 58, 61, 68, 69, 88
mortgages-per-person limit 18, 42, 45
mortgage shortage 33
multi-year projections 55
Multifamily Accelerated Processing (MAP) 39, 41, 42
multifamily mortgage programs 27, 28, 29, 37, 38, 39, 40, 41, 42, 48, 73
Murphy Jr., Joseph 19
N
“no seasoning” cash out 66
National Association of Realtors® 31
National Credit Union Administration 74
National Housing Act 37
National Housing Impact Division 29
negative amortization 20
Nevada Real Estate Commission 75
non-owner-occupied 60, 66, 68
nonrecourse loans/mortgages 23, 24, 25, 30, 31, 37, 39, 41, 52, 55, 61
nonresidential 18, 29, 30, 32, 40
nothing-down 54, 55, 57, 72, 79, 80, 81, 87
Nothing Down 53, 56, 74
O
one-way fixed-rate mortgages 22
oomph principle, The 57
orphan disease 43, 44
Orth, Penny 64
Other Real Estate Owned (OREOs) 30, 41, 46
out-of-county land owners 56
overbuilding 17, 26, 48, 54
owner-occupied 46, 48, 65, 66, 68
P
Paper Source 79
Parrish, Robert 64
payback criteria 78
personal liability 7, 24, 30, 50, 52, 58
portfolio lenders 18, 43
pre-foreclosures 56, 74, 79
predatory lenders 87
prepayment 36, 37, 38, 41, 50, 51, 70, 73, 84, 88
prepayment penalty 36, 37, 38, 50, 51, 70, 73
present-value 83
principal residence 18, 42. See also owner-occupied
prior-approval lenders 38
private mortgage insurance (PMI) 17, 68, 69. See also mortgage insurance
probability 14, 20, 21, 53, 67
property tax lien certificates 45
property value 16, 70
proportionate-release clause 45, 46
put option 12, 13, 14, 23, 24, 25
Q
quick-sale value 7
R
Random Character of Interest Rates, The 19
range theory 19
rapid amortization mortgage 70
rate-of-increase caps 22
Real Estate B.S. Artist Detection Checklist 64
Real Estate Financing Report 32
Real Estate Perspectives 31
Realtor® News 33
recession 26, 29, 54, 57
Reed’s Rules for Understanding Income Taxes 71
Reed’s Rules of Real Estate Finance 10, 19, 50, 51, 66
refinancing 35, 66, 68, 70, 71, 78
rehabilitation/renovation 35, 37, 40, 45, 64, 86
rental property 5, 6, 8, 18, 26, 28, 29, 30, 32, 33, 34, 48, 54, 65, 66, 68
rental property mortgage 5, 6, 8, 33
rent control 17, 41
repos 30, 44, 46
reserve for replacements 37, 39, 40
return on investment (ROI) 20, 53
reverse annuity mortgages (RAM) 17
rights of redemption 45, 56
Robinson, Angie 64
Roddy Report 7
S
Samorajski, Greg 13
Scott, Mike 2, 17, 28, 51, 55
seasonal changes 58
secondary financing 5, 6, 7, 15, 16, 22, 23, 42
second home 18, 42, 68, 69
second mortgage 5, 6, 7, 15, 16, 22, 23
secured loan 61
Securities and Exchange Commission (SEC) 31
self-amortizing mortgage 30, 35, 36, 38, 69, 73, 88
self-employed 67
seller financing 5, 26, 30, 45, 46, 64, 73, 84. See also seller mortgage
seller mortgage 24, 83. See also seller financing
Selling Income Property Successfully 7
sell now assistance program (SNAP) 80
shared equity 17
sheriff’s execution auctions 56, 64
short-term money 17, 28, 49, 65, 73
single-family home investing 17
single-family mortgage 6, 17, 28, 31, 35, 43, 59
Small Business Administration (SBA) 29, 58
Statistical Abstract of the United States, The 54
stop loss agreements 24
sub-prime mortgages 68, 83, 85
subject to 15, 16, 39, 41, 59, 62, 63, 74, 78, 79
Sumichrast, Michael 31
T
tax bracket 5
tax deductible 13, 14, 24, 50, 69, 71, 87
tax efficiency 46
tax reform 17, 54
Tax Reform Act of 1986 26, 29, 31, 50, 54
Thompson, Paul 2, 18, 43
Three C’s of Credit 57
thrift industry 48, 73
transaction costs 9, 40, 62, 74, 78
transfer of ownership 59
Treasury-bond 61
trust deed 7, 17, 45, 52
trust fund 21
U
Units magazine 38
unsecured loan 61, 66
usury laws and rates 17, 32, 38
V
Van Reken, Randall 74
Veterans Affairs (VA) 15, 16, 17, 21, 29, 30, 38, 44, 62, 63, 68, 74, 75, 78, 84
W
Wellenkamp vs. Bank of America 15, 74
Why Smart People Make Big Money Mistakes 71
worst case scenario 19, 20, 21, 22, 23, 43, 50
wraparound mortgages 74, 75, 79, 80
www.efanniemae.com 38
www.equifax.com 67
www.experian.com 67
www.gomez.com 70
www.Homegain.com 65
www.hsh.com 58
www.irs.gov/newsroom/article/0 87
www.johntreed.com/BSchecklist.html 64
www. johntreed.com/dueonsale.html 63
www.legalwiz.com/freearticles/dueonsale.shtml 59
www.lendingtree.com 70
www.nationalbankofalaska.com 58
www.paper sourceonline.com 79
www.tuc.com 67
www4.law. cornell.edu/cfr/12p591.htm 59
www4.law. cornell.edu/uscode/12/1701j-3.html 59
Y
yield-maintenance 37, 38
Z
zero percent tax bracket 5