Symbols
9/11 37, 39, 85
30-year 191, 193
60 Minutes 51
§121 72, 201
401(k) 24, 140
§1031 141, 201
§1034 72
1040 169
4562 169
A
absentee 157, 162
absentee management 159
ABX 47
access 90
accidental 40
accountant 187, 188
accounting 61
Accredited Investor 204
acquisition 171
acquisition cost 187
action 85
active 201
active investment 73
active investor 156
actuarial data 40, 66
actuarial table 23, 81
Actuarial table 38
actuaries 66
added value 77
adding value 33, 179
add value 18
adjacent land 74
adjacent raw land 52
adjustable rate mortgage 5, 152
adjustable-rate mortgage 10
Adjustable-rate mortgage 118
adjusted for inflation 71, 81, 86
adjustment for inflation 196
admissible evidence 161
adverse possession 98
AFR 125, 186
after-tax cash flow 173
after-tax income 152
after-tax profit 200
age 81
agent 77, 186
Aggressive Tax Avoidance for Real Estate Investors 22, 33, 137, 138, 141
209
assembly 90
assessment 30
asset class 174
asset management 78
Asset manager 76
asset-protection 59
Asset protection 58
associations 158
assume 152
assumptions 109
asteroid 38
asymmetrical risk 55
Asymmetric risk 53
Atlantic City Casino 36
atomic bomb 37
at risk 50
at-risk rule 50
atrium 92
Attila the Hun 82
attorney 150
attorney CPA 188
auction 27, 125, 149, 181, 188
auction fever 181
Australian economy bubble 87
Aversion to bluffing 82
Aversion to extremes 83
avoidable 35
B
Baby Boom 37
Baby Boomer 86, 121, 131
Back testing 58
backup generator 195
bad check 178
Bad foundation 17
bad tenant 88, 157, 158
balanced life 21
Ballard, Claude 180
balloon payment 50, 118, 181, 193
bandwagon effect 81
bank examiner 80
bankrupt 35, 41, 55, 75, 107, 123, 154, 205
bankruptcy 28, 29, 32, 36, 59, 68, 97, 118, 176, 195
Bankruptcy 38, 54
bankruptcy auction 17
bankruptcy exemption 191
bankruptcy exemptions 54
bankruptcy-planning 140, 142
bar association 203
Bar Association Code of Professional Responsibility 164
Barclays Global Investors 75
bargain 107
bargain price 77, 205
agricultural land law 30
air-conditioner 158
air-conditioning 195
Alamo 95
Alaska 107, 137, 138
all cash 18, 115
allowable 139
allowed 139
All the Money in the World 19, 36
Altamont Pass 95
Alter ego 61
alternative investment 122
ambulance chaser 163
American Bar Association Code of Professional Responsibility 165
amortization 12, 15, 16, 24, 116
Amortization 15, 169
amortize 193
amortized 170
Anchorage 107
Anchoring 82
annual constant 115, 116
antibiotics 37
anti-deficiency judgment statute 52, 54
anti-duress provision 62
anti-trust law 203
apartment association 162
apartment building 193, 195, 196
apartments 12
appeal 165
Applicable Federal Rate 125, 186
appraisal 32, 197
Appraisal fee 150
Appraisal Institute 89, 103, 198
Appraisal of Real Estate 89
appraiser 172, 203
Appraiser 71
appreciates 15
appreciation 8, 10, 12, 13, 14, 15, 16, 24, 26, 37, 65, 71, 72, 74, 75, 76, 86, 93, 100, 111, 116, 124, 125, 127, 185, 200, 201
Apprentice 36
Arab 195
arbitration 204
architect 188
architecture 33, 92
Architecture 91
Ariely, Dan 88, 207
Arizona 93
ARM , 43, 45, 46, 47, 48, 53, 67, 118
Art of Strategy 180
Art of the Comeback 36
asbestos 17, 158
Asian Financial Crisis 87
210
Best Practices for the Intelligent Real Estate Investor
bargain purchase 16, 18, 19, 105, 108, 111, 118, 139, 144, 152, 156, 179, 199, 201
bargain-purchase 33, 191, 192
Base-rate fallacy 83
basis 22
basis item 170
basis risk 45
bear market 15, 125
Bear Stearns 70
Beat the Dealer 64
Beautiful Mind 180
Bechtel Corporation 31
Beck, John 11
bedrock 90
before-tax cash flow 15
behavioral economics 79, 86
Behavioral economics 16
behavioral economist 80
behavioral finance 16, 32
Behavioral finance 28, 79
Belichick, Bill 11
bell curve 37, 38, 80
below-market interest rate 123, 125, 186
below-market-interest-rate mortgage 72
Belsky, Gary 88
Benartzi 81
benefits and burdens of ownership 69
Bernstein, Peter 65
Bernstein, Peter L. 35
Bernstein, William 65
better-safe-than-sorry 83
bias 79
bidding 181
Big building 195
biker 176
Binder title policies 149
bird dogging 111
Bird dogging 112, 186
blackjack 64, 65
Black Panther 176
black swan 55
Black Swan 36, 37, 38, 39, 80
blizzard 95
bluff 180
bluffing 82
Board Certified Texas real estate lawyer 150
Boeing 31
Bogle, John 137, 143, 171, 201
Bogle, John C. 65
boiler room phone salesman 189
BOMA 197
bonds 4, 25
bonus 16, 76
bookkeeping 32
Book of Job 12
books 181
Book store 196
boom 100, 102
Boom 130
Boston 92, 94
Brandenburger 180
breakeven 14, 105
breakeven cash flow 100
bribing 205
British property bubble 87
broadband 195
broad-based index fund 143
Broken Buildings 181
broken lease 178
Brown, Robert Wade 17
Bruss, Bob 156
bubble 79, 87, 102
Buffett, Warren 15, 63, 65, 100, 201
builder 113, 142
builder auction 17
builder leftover 17
builders 106, 181
Builders, The 97
building code 30, 94
building moratoria 30
Building Owners and Managers Association
158
building restrictions 56
bulk 152
bull market 15
bundle of rights 89
burdens and benefits 77
Bureau of the Census 73
Burlington 93
business hours 195
bust 102
Busted Budgets 181
buy and hold 199
buy-and-hold 108, 152
Buy and Hold 152
buy-and-hold-on-by-your-fingernails 110
Buy-and-hope 108
buyers broker 146
buyers’ market 7
buyers” market 72
buy-out clause 193
C
CA 95, 97
cable TV 30, 92, 195
calculated risk 66, 68, 97, 205
Calculated risk 35
calculator 84, 169, 171
calendar 170
California 93, 95, 138, 147
California Coastal Act of 1976 94
California Coastal Commission 94, 187
California Law Review 59
California property bubble 87
California Proposition 20 94
call 48
Callahan, Harry 7, 27
call option 16, 49, 50, 52, 53, 54, 70, 74, 75, 76, 77, 78, 151
Call option 73
Cal-OSHA 94
CAM 159
Cambridge 94
can’t lose 43
can’t win either 43
capital 61
capital assets 7
capital gain 21, 139
Capital gain 141
Capital Gain 169
Capital gains tax 137
Capital Ideas 65
Capital Ideas Evolving 35, 65
Capital-intensive business 4
capitalization rate 14, 101
capitalization rate compression 14
cap rate 103, 115, 116, 191
cap-rate compression 102, 103, 108
Cap-rate compression 101
carbon monoxide 176, 177
Carpe commodum 39
carrying costs 106, 113, 139, 190, 201
Cars 57
Case-Shiller 72, 73, 124
Case-Shiller ETF 157
Case-Shiller home price index 72, 123
Case-Shiller Home Price Index 116
cash flow 10, 12, 15, 16, 25, 44, 45, 101, 108, 116, 157, 169, 172, 173, 199
cash-flow 14
Cash flow 13, 100, 185
cash-on-cash 14
cash-on-cash return 101, 107, 173
cash resale value 125
casino 6
casino gambling 64, 65, 70
casualty 5, 9, 40, 44
Catch-phrase 111
cave man 16
caveman 79, 84, 88
cavemen 82, 87
211
Index
CCIM 12, 15, 16, 172
C corporation 138, 142
cell-phone reception 92
certificate-of-occupancy fee 94
certificates of deposit 29
Certified Apartment Maintenance Technician 159
certified apartment manager 159
Certified Commercial Investment Member 12
charging order 61, 62
charitable remainder trust 21, 22
charity 23
Chase, J.P. Morgan 48
check book 170
Chicago Board of Trade , 46
child labor 205
Chinese stock bubble 87
CIA 195
Cincinnati 86, 185
Citigroup 46
Citizens for Tax Justice 129
civil case 163
Cleaning 195
Clean Water Act 94
climate 89, 90
Climate 95
Clinton, Chelsea 18
closing 152
Closing ceremony 151
closing costs 116, 170, 173
closure 85
clouds on title 90
Clouds on title 99
cocaine addict 189
Cocaine addict 189
code of ethics 203
Code of Professional Responsibility 165
code of silence 189
coincidence 83
coin-operated laundry room 195
Cold War 37
collateral 180
Collection loss 154
college communities 30
Collingswood 192
Coming-of-age 86
Commerce Department 73
commercial 197
Commingling 60
commission 110, 147, 173, 175, 180, 188, 189
commissioned real estate agent 112
commissions 146
commodity 56, 197
common area 191, 192
common stocks 15
comparables 103
competition 90
Complexity 203
Comprehensive Environmental Response, Compensation, and Liability Act 94
computer 195
computer income tax program 169
computer spread sheet 169
concrete floor 196
condemned property 17
condo 18, 72, 90, 98, 99, 142
Condo 124
condominium 191
Conduit 142
Confirmation bias 83
conflict of interest 166
conforming 73
Congruence bias 83
con men 185
consistency 82
consistent 82
Consolidated Capital 155
construction 201
construction moritoria 191
constructive discharge 158
Consumer Price Index 117, 137
consumption 81
contact client direct 203
Contract-clause ‘strategies 109
Contrariness 85
Contrast bias 86
Contributions to pension plans 140
conversion 192
Conversion 167
co-op 18, 191
Co-op 192
cooperation 192
Co-opetition 180
cop 161
corporate property 17
corporation 77, 163, 192, 193
Corporation 60
corporations 58
correlated 67
Corruption 154
Corsicana 146, 157
co-sign 194
cosmetic renovation 197
Cosmetic renovation 190
Cost accounting 156
cost-effective upgrading 105, 108, 111
Cost-effective upgrading 106
Cost of Living 4
Counterintuitive 80
Counterparty risk 123
county law 89
court decision 29
courtesy 196
covenants 90
CPI 151
crash 87
Creating Defensible Spaces 92
credit 119, 176, 182, 185
Credit 193
credit-default swap 48
Credit default swap 47
credit risk 5, 9, 40
crime 90, 97, 162
criminal 167
criminal con men 185
Croft, Steve 51
crop insurance 42
currency 29, 57, 58
Currency risk 29
currency value 28
Cusak, Jeff 74
custodial 154
CYA file 162
cycle 28, 30, 67
D
Daily Racing Form 66
DataQuick 73
dead bodies 197
dead end hallway 92
dealer 141
Dealer 142
dealer property 200
Deal orientation 175
Deals that Make Sense 18, 33, 106
Deals That Make Sense 89
Death of a Salesman 41
Death of Distance 30
Debtor-creditor law 58
Decision short-cut 88
decision theory 33, 66
decision tree 66
deductibles 68
Deductibles 42
deed 150
deed in lieu 52
deed in lieu of foreclosure 50
deedless 177, 200
Deedless 201
deedless real estate investing 5, 55, 68, 199
Deedless real estate investing 48, 161
deed ownership 77
deed restrictions 90
deep pockets 161
212 Best Practices for the Intelligent Real Estate Investor
default 52
defer 139
deficiency judgment 49
Deficit Reduction Act of 1984 186
Definition of investment 2
deflation 29, 53
Deflation 29
Delaware 138
delay or defraud 62
delinquent rent 178
delinquent-subdivision mortgage 17
delinquent tax auction 17, 53
demolition 90
demolitions 71
Demolitions 71, 124
dentist 194
Department of Agriculture 42
Department of Housing and Urban Development 144
Department of Labor 159
deposition 163, 164, 166
depreciated 170
depreciation 14, 51, 103, 139, 141, 142, 172, 200
Depreciation 169
depression 37, 97
Depression 4, 86, 192
deregulation 37
derivative 47, 53, 55, 73, 97, 125
Derivative 123, 151
Derivatives 70
designations 2
detached house 192
detached single-family house 73, 191
deus ex machina 112
direct mail 196
Directory 194
disability 158
disaster 28, 110, 111, 113, 136, 190
Disaster 157
disasters 106
disbarred 164, 166
discount lien release 47
Discount lien release 111
discount rate 171
Discovery 166
discrimination 158, 192
dispersion 30
disposition effect 80
distressed owner 17
Distressed-owner bargain 112
Distressed Real Estate Times 32
distressed-sales situation 18
Di-Tech 148
diversifiable 35
diversification 56, 57, 64, 67, 73
dividend 73, 80, 139, 142
Dividend puzzle 80
dividends 12, 15
divorce 112, 178
Dixit 180
doctor 194
documentation 180
Dodd, Christopher 179
Dodd, David 15
Do-it-yourself 61
Dole, Bob 29
dominant property 98
Domination 61
don’t wanter 111, 112
doomsday forecast 135
dot.com 86
dot.com boom 79, 87
Dot-com boom 121
Dot-com bubble 87
dot.com crash 37
double-digit cap rate 105, 108
Double-digit cap rate 107
double taxation 61
doubling up 99, 100
Dow Jones Wilshire Real Estate Index 73
down payment 172
down-zoned land 186
down zoning 191
down-zoning 56
Downzoning 197
Drake, Paul 165
driveway 192
drop light 197
drug dealer 176
Drunk under the lamp post 85
dryer 195
dry run 65
due diligence 3, 4, 152, 205
due-on-sale clause 48, 109
duet 192
dump 197
Dunning-Kruger study 82
duplex 13, 99, 188, 193
Duplex 192
duplicate bridge 6
E
earthquake 37, 41, 90, 196
easement 18, 77, 90, 98, 107
Eastwood, Clint 7, 27
Easy come easy go 82
Economic Recovery Tax Act of 1981 29, 93
economies of scale 57, 192, 196
efficient 65
Eisenhower, General 39
ejection 7
electrical outlet 197
electricity 90
electric utilities 99
electrolysis 177
elevator 92, 93, 195
Eleventh-hour 183
Ellis, Charles 65
Emanuel, Rahm 73
embezzlement 167, 177
Emergencies 177
eminent domain 30, 90
employee 159, 162
Employee 157
employee law 33
employer tax 158
Endangered Species Act of 1973 93
endowment effect 88
Endowment effect 81
eneighborhoods.com 97
energy conservation 195
Energy efficiency 92
English Channels Bubble 87
Enough 171
Enron 84
entrepreneurial 154
environmental-problem property 17
Environmental Protection Agency 94
equilibrium 101
equitable title 98
Equity premium effect 80
err 86
errors-and-omissions insurance 149
Estate of Franklin 50
estate planning 33, 68
estate-planning 142
Estate tax 22
ethics 32
E*Trade 143
evacuation 195
eviction 61
Eviction 188, 197
evictions 94
Evolution and the Theory of Games 180
excess loans over basis 109
exchange 21, 142, 180, 200, 201
Exchange 22
exchange rate 151
Exchange Traded Funds 73
exclusions 38
Exempt 139
existing financing 152
existing option 17, 74
existing single family homes 124
expected future value 80
expected value 3, 5, 6, 15, 63, 82,
Index 213
83, 85
Expected value 81
experience 204
expert 32
expert witness 163
explosives 197
F
face-to-face 181
facts 164, 165
Fairfield 95
fairness 82
false choice 86
farm 95
farm land 197
farmland 91
fashion 28, 67, 100
Fashion 30
favor 82
FBI 195
Fear 80
federal bond interest 140
federal building 195
federal court 167
Federal Deposit Insurance Corporation
80
Federal exemption 55
federal income tax history 129
federal income tax law 89, 199
Federal Reserve 195
Federal Reserve Bank of San Francisco
80
Federal Reserve Library 164
Federal Rules of Civil Procedure 166
Fedex 151
feedback loop 81, 102
Feedback loop 102
fee simple 3, 90, 98
Fee simple 3
FHA 17, 193
FHLMC 73
FICA 61, 139
FICO score 96
Fidelity Federal Savings and Loan Association
vs. de la Cuesta 152
fiduciary duty 61
fiduciary relationship 52
Fifth Amendment 197
Fight or flight 79
finance 191, 193, 197
financial calculator 13
financial engineer 46, 66, 75
financial engineering 48, 151
Financial feedback 102
financially-sophisticated person 204
financial professional 204
Financial wimpiness 82
financing 176, 181, 201
finder’s fee 112, 186
Finding and Buying Your Place in the Country 95, 98
fire 153, 177
fire insurance 44
Fiserv 73
Fisher 181
fit and finish 92
fixed-rate 126, 193
Fixed-rate 43
fixed-rate mortgage 5, 53, 118, 191
fixer 10, 110
fixers 40, 106, 107, 108
Fixers 18, 32, 33, 89, 106, 110
flat 192
flat roof 195
flip 40, 43
flipping 106, 111, 113, 199
Flip that House 106
Flip This House 106
float valve 177
flood 90
flood insurance 41
Florida 137, 138
Florida speculative building bubble 87
Florida swampland real estate bubble 87
fluorescent light 195
FNMA 73
folding 163
Fooled by Randomness 65
fool for a client 163
Forbes 148
Forbes 400 19, 36, 156
forced sale 71
forced-sale situation 53
Force, Magnum 7
foreclosure 19, 53, 71, 72, 75, 108, 117, 175, 176, 180, 188
Foreclosure 18, 113, 125
foreclosure auction 17, 49, 111
Foreclosure title search 148
foreign currency futures contract 67
foreign currency risk 67
Form 4562 172
formalities 60
Form D 169
form pleadings 51
Forms of ownership 142
For Sale By Owner 146
foundation 192
foundation repair 107
Four Pillars of Investing 65
four-plex 192
four-story walk-up 195
Framing 75, 83
Frank, Barney 179
fraud 77
Fraud 61
fraudulent transfer in anticipation of bankruptcy 62, 205
Fraudulent transfer in anticipation of bankruptcy 59
free 87
free and clear 14, 22, 101, 115, 137, 140, 149
free-and-clear 117
free-and-clear principal residence 55
freezer 197
Freon 175
fresh water 89
Fresh water 95
frivolous judgment 58
Frivolous lawsuits 58
frozen pipe 177
fundamentals 100
Fundamentals of Real Estate Finance 7, 13, 32, 45, 182
FUTA 61
futures contract 42, 44
G
Gadiesh, Orit 105
Galton, Francis 100
gamble 108
gambler 64
Gambler’s fallacy 81
gambling 5
game theory 163, 168
Game theory 180
garnish 75
Garn-St. Germain Depository Institutions
Act of 1982 152
Gates, Bill 142
general partner 70
general practitioner 60
get-rich-quick guru 11
get-rich-quick seminar 111, 185, 189
Getting to Yes 181
GIGO 25
Gilovich, Thomas 88
Girls All Get Prettier at Closing Time 183
Gladwell, Malcolm 81
Global Positioning System 196
Glucksman, Joel R. 59
Golden Rule 205
Goldilocks rent 153
Goldilocks standard 92
Goldman, Ronald 55
214 Best Practices for the Intelligent Real Estate Investor
Goldman Sachs 46
Gore 39
GPS 195
GPS surveying device 150
graffiti 177
Graham, Benjamin 15, 16, 65, 100, 101, 103, 201
grass 196, 197
Gravamen of the complaint 166
grave digger 179
gravel 197
Great Depression 29, 97, 121
greater-fool theory 102
Greater Fool theory 102
Greene, Jeff 47
green space 30
Greenspan, Alan 79
Gross Monthly Rent Multiplier 12
gross rent multiplier 14
groupthink 81
growth 12, 15
Growth 24
guarantee 51, 180
Gut feeling 80
gut feelings 87
gut rehab 201
H
Haddonfield 192
hallway 93
Hambeuchen 51
Hammonds, Willard 40
handshake 180
hangar 30
harassment 158
Harborplace 92
Harford, Tim 88
Harry Markowitz 56
Harvard Business School 62, 66, 80, 82, 155, 156, 164, 180, 188
Harvard Law 181
Harvard Law School 163
Harvard Law School Law Library 164
Harvard MBA 47
Harwood, Tim 88
hassle 154
hazard and liability policy 150
hazard insurance 40, 68
heads I win tails you lose 74
health 23, 28, 29
heat exchanger 175
hedge 4, 35, 43, 45, 46, 47, 48, 53, 67, 70, 123, 125
hedge fund 18, 76
hedge-fund 200
hedge instrument 45
hedging 73, 144, 204
Hedging 43
Height 38
heir 22, 141
Hell’s Angels 97
herd instinct 16, 102
Herd instinct 79, 81, 87
heuristics 83
hiding assets 205
Hiding assets 58
highest and best use 91
Highest and best use 90
high-pressure sales call 189
high school football 182
high-speed internet 92
high-speed Internet cable 30
high-traffic 196
high-visibility 196
highway 30
hinder 62
hindering or delaying creditors 205
Hindering or delaying creditors 59
hindsight bias 83
historical buildings and districts 30
historic properties 191
History of bubbles and panics 102
Hoffman Associates 92
holding period 169, 200
home builder 200
Home builder 197
Home gain exclusion 201
Home Insurance Building 57
home mortgage interest 72
homeowners association 191, 192
Home price history 122
home price statistics 71
homestead 29, 191
homestead exemption 54, 55
Home warranties 150
honesty 205
hotel 92
hotels 23
housing bubble 87
How I Became a Quant 75
How I Turned $1,000 into $1,000,000 in Real Estate in My Spare Time 123
How I Turned $1,000 into $5,000,000 in Real Estate in My Spare Time 170
How to Buy Real estate For at Least 20% Below Market Value 17
How to Buy Real Estate for at Least 20% Below Market Value 19, 47, 64, 74, 75, 105, 112, 179
How to Buy Real Estate for At Least 20% Below Market Value 33
How to Buy Real Estate For at Least 20% Below Market Value 17, 98
How to Buy Real Estate For At Least 20% Below Market Value 111
How to Buy Real Estate for Little or No Money Down 110, 118, 187
How to Buy Real Estate For Little or No Money Down 32
How To Buy Real Estate For Little Or No Money Down 109
How to do a Delayed Exchange 33
How to Do a Delayed Exchange 22
How to Get Started in Real Estate Investment 33, 189
How To Get Started in Real Estate Investment 176
How to Increase the Value of Real Estate 18, 32, 33, 77, 89, 91, 92, 98, 106, 107
How to Increase The Value of Real Estate 74
How to Manage Residential Property for Maximum Cash Flow and Resale Value 154, 155, 163
How to Manage Residential Property For Maximum Cash Flow and Resale Value 32, 89, 106, 182
How To Manage Residential Property For Maximum Cash Flow and Resale Value 3
How to Structure Your Mortgage 32
HP 12-C 84
HUD 193
HUD-1 Settlement form 144
human will 38
human-will 80
humidity 95
hurdle rate 64
hurricane 95
Hurricane Katrina 90
HVAC 195
HVAC maintenance plans 150
hyperbola 84
Hyperbolic discounting 84
I
ICSC 198
Illinois 185
Illusion of control 84
immigrant 100
immigration 90
impressive round number 21
improvement 72, 75
Index 215
Improvement 72, 124
improvements 71
inaction 85
Inc. 73
incentive pay 181
Income approach 103
income-producing property 73
income properties 96
income property 12
Income stocks 12
income tax 10, 33, 181
Income tax 200
income tax law 30
Income tax risk 56
incompetence 10
incorporation 39
index fund 4, 65, 123, 201
index funds 3
indexing capital gains 137
Indian services bubble 87
Indian stock bubble 87
industrial 196, 197
industrial building 92, 193
Inefficient market hypothesis 65
Inequity aversion 82
inflation 5, 9, 14, 28, 29, 37, 40, 53, 81, 90, 117, 123, 127, 137, 172
Inflation 4, 127
inflation-adjusted value 117
inflation calculator 137
information asymmetries 179
information asymmetry 181
inheritance 76, 82, 204
in-house property management companies
156
initial offer 182
in lieu of foreclosure 150
Innumeracy: Mathematical illiteracy and its consequences 88
in propria persona 163
Inside information 65
insolvent 62
inspector 176
installment sale 142
installment-sale 200
Installment sale 140
Institute of Real Estate Management 12, 158, 173, 197
institutional financing 197
institutional loan 201
institutional real estate investor 188
Institutional real estate investor 10
instrumentality 61
insurable interest 40
Insurable interest 41
insurance 32, 35, 37, 61, 65, 67, 90, 148, 158, 162, 177, 182, 194
Insurance 42
insurance adjuster 177
Intangible improvement 107
intangible upgrade 157
intangible upgrading 106
Intelligent Investor 65
interest 84, 139
interest only 44, 118
interest rate 5, 9, 13, 28, 31, 37, 40, 41, 43, 44, 46, 57, 84, 90, 96, 122, 126, 139, 148, 151, 152, 186, 193
Interest rate 7, 126
interest-rate-futures 96
interest rate futures contract 43, 45, 67
interest-rate-futures contract 44, 45, 46, 47
Interest-rate-futures contract 46
interest rate futures hedge 44
interest-rate risk 56
Interest rate swap 46
interior hallway 195
intermediary 181
intermediate choice 83
internal rate of return 25
Internal Revenue Code 4, 50, 138, 141, 201
International Council of Shopping Centers 198
Internet 30, 37, 122, 126, 165, 168, 196
in the money 49, 53, 74, 75
intimidate 165
Intra-family transaction 125
intrinsic value 15, 16
inventories 93
inventory tax 93
investigator 165
investment criteria 80
investment objective 204
Investment Retirement Account 140
investors lowered their standards 102
Investor, The Intelligent 15, 100
IRA 24, 126, 140
IRC §121 21, 22
IRC §1031 22
IREM 197
Irish property bubble 87
IRR 25, 26
irrational behavior 80
irrational despair 102
Irrational despair 122
Irrational exuberance 79
Irrational Exuberance 121, 122, 126, 128
Irrationality 87
IRS 75, 186
IRS auction 18, 125
IRS sale 17
Israeli 195
iteration diversification 63
iterations 64
ivory tower 186
J
James Rouse 92
janitorial service 195
Japan 86
Japanese asset price bubble 87
jargon 33
Jefferson, George 19
John Bogle 152
Johnstown 107, 108
joint venture 7
journal 28
judgment 17, 62, 65, 75, 141, 163
Judgment 58
Judgmental area 141
Judicial and Statutory Definitions of Words and Phrases 59
jumbo 73
jury 161, 164
just-in-time inventory 30
K
Kahneman, Daniel 16, 80
Kahn, Ronald N. 75
Kansas 97
Kansas City 97
Kaplan, Larry 46
keeping options open 87
kickback 154, 155, 156, 205
kill rate 19
Kinsley, Michael 158
Know your customer rule 204
L
laches 98
land 197
land contract 98
Landlocked land 98
landlord 176, 194
landlord-tenant 30
landlord-tenant law 94
landmark 195
Language of Real Estate 49
Lasser, J.K. 138
law book 165
Law of Large Numbers 63, 64
Law of Real Estate Finance 51
lawsuit 48, 53, 55, 67, 74, 75, 77, 157, 164, 168, 176
216 Best Practices for the Intelligent Real Estate Investor
lawyer 61, 187, 188, 194
Lawyer 203
lawyer ethics 164
Lawyer ethics 165
lawyers fee 142
layer cake 89
lead generator 35
lead paint 158
leads 186
lease 194
lease option 16, 185
lease-options 109
leasing agent 159
leasing agents 110
legal fee 163
legal treatise 167
legislation 29
Lender-triggered fee 148
length of cycles 131
LePatner, Barry 181
Les Scher 98
Lessons from Private Equity Any Company Can Use 105
leverage 140, 148
Levine, Mark Lee 2
Liability insurance 41
libel 166, 167
Libel 167
Library of Congress 164
license 110, 147, 180
license course 89
lien 75, 90
life and remainder estate 17, 65
life estate 98
life-expectancy calculator 24
life insurance 41
Life insurance 38
life tenant 76
lifetime cap 45, 46, 118
lighting 194
light meter 194
limit 181
limited liability companies 58
limited partnership 16, 32, 70, 155
linear regression 38
line of credit , 45
lines of credit 201
liquidity 5, 9, 40, 72
listing 173, 188
listing agent 147
litigation 5, 9, 28, 30, 33, 40, 56, 58, 162, 165, 166, 167, 176, 181, 188, 191, 203, 205
Litigation 165, 171, 176
litigious 192
Little Book of Commonsense Investing
137
Little League 182
LLC 39, 60, 61, 62, 142, 193
Load factor 93
Loan call 48
Loan call provision 49
loan item 171
Loan-to-purchase-price ratio 118
loan-to-value ratio 51, 52, 53, 74, 107, 110, 115, 118
Loan-to-value ratio 13, 24
lobbies 93
local rules 164, 165, 166, 167
location 89, 91
lock 53
lock-in 49
Logic of Life 88, 183
long position 47, 48, 53, 201
long term 174
long-term asset 81, 193
long-term capital gain 200
long-term capital gains rate 141
long-term holding 201
Long-term lease 193
long-term leasehold 98
long-term relationship 82
losing 163
Loss aversion 80
lottery 204
lottery ticket 6, 15, 64, 65, 82, 85, 108
low-ball offer 182
low-cost index fund 84
low-document 96
lower tax rate bracket 140
low-income 191
low probability event 82
low-traffic 196
low-visibility 196
luck 2, 6, 8, 16
Luck 11, 24
Ludic fallacy 80
lying 187, 205
M
MacroMarkets LLC 109
MacroShares Major Metro Housing 123
mad money 81
Magnum Force 27
M.A.I. 172
MAI 198
maintenance 32, 161, 191
Malkiel, Burton 65
malpractice 150
management 67, 197, 201
Management 3
Manhattan 86
Manhood 118
mania 79, 81
Mare Island Naval Base 97
margin 44
margin call 45, 46, 48
market approach 103
marketing 33
Market setback 176
market timing 64
market value 28, 106
market-wide appreciation 15, 16, 200
Marshall, Bill 46
Mason, Perry 165
Massachusetts 94
Mauboussin, Michael J. 88, 180
Maximum federal tax rates 128
Mayer, Martin 97
McCartney, Paul 36
McDonalds 187, 194
McVeigh, Timothy 195
mechanical trick 181
median home price 71
Medium-size apartment building 193
Memphis 95
Mental accounting 81
mentor 189
Mentor 189
mentoring 11, 35, 185, 187, 189
mercenary 10, 19
Merchant, Larry 64
Mero, Laslo 180
Merrill Lynch 46, 48
Mexico 138
micro climate 95
Microclimates 95
Microsoft Windows 142
Mid-American Commodity Exchange 46
military base 97
Miller, Arthur 41
millionaire 81, 189
Millionaire Next Door 19
minerals 89, 94
Minimum deal size 65
miniwarehouse 157, 193, 198
Miniwarehouse 196
minor 205
minor children 61
minority shareholder 61
Mississippi Company 87
Missouri 97
mitigatable 35
Mitigating 40
mixed strategy 168
MO 97
modified adjust gross income 14
Index 217
Momentum investing 80
money illusion 81
money-manager 55
Money manager 27
money market fund 29
Montana 138
Monte Carlo fallacy 81
Moral Calculations 180
moral hazard 41
moral obligation 52
More than You Know 88
More Than You Know 180
Morgan Stanley Capital International U.S. REIT Index 73
Morgenstern 180
Mortgage Bankers Association 156
mortgage broker 193
mortgage commitment interest rate 53
mortgage note 141
mortgage payment 13
motel 194
motion 164, 165, 166, 176
motions to dismiss 164
motion to dismiss 166
motivated seller 111, 112
Mount Holly 157
move the building 91
moving average 83
MSCI 73
Multi-disciplinary 1
multi-family 192
multiple listing service 147
multi-tenant building 93
municipal” bond interest 140
Municipal income tax 138
municipal law 89
Municipal Securities Rulemaking Board 204
murder 177
Mutihousing Coucil of the National Association of Home Builders 158
mutual fund 16, 76, 86, 201
N
NAA 198
NAHB 197
Nalebuff 180
NAR 197
NAREIT 198
Nasar, Sylvia 180
NASD 204
Nash, John 180
National Apartment Association 159, 198
National Apartment Owners Association
158
National Association of Home Builders
197
National Association of Real Estate Editors 156
National Association of Real Estate Investment Trusts 198
National Association of Realtors® 71, 123
National Association of REITs 73
National Association of Securities Dealers 204
National Bureau of Economic Research
130
National Football Lottery 64
nationally known corporation 196
National Multi Housing Council 158
National Multi-Housing Council 197
National Oceanic and Atmospheric Administration 7
natural disaster 136, 199
natural gas 90, 99
ndex fund 152
negative 189
negative amortization 118
negative cash flow 10, 14, 43, 51, 100, 108, 113, 116, 185, 187, 199, 200
Negative cash flow 13, 108
negative expected value 64
negative leverage 115, 116
negative value 197
neglect 156
negligence 162
negotiation 33
net lease 110, 196
net operating income 13, 43, 96, 100, 101, 157, 173
net present value 25
Net sale proceeds 173
net worth 21
net-worth 25
Neumann, John von 180
neuroeconomics 83
neuroscience 83
Nevada 93, 137, 142
never sell 201
new construction 71
New Hampshire 93, 137, 138
New home 124
new home contract 76
New Jersey 55, 147, 182, 186, 194
Newman, Oscar 92
New York 195
New York City 187, 192
New York Stock Exchange 204
Nichols, Miller 97
Nickerson, William 123, 150, 170
Nicole Brown 55
Nifty Fifty 87
Nixon Administration 30
Nixon, Richard 192
NJ 112, 151, 157, 192
NMHC 197
no-document 96
no-interest loan from the government 140
Nonexistent patterns 83
non-recourse 51, 118
Non-recourse 49
non-recourse debt 51
non-recourse financing 51
non-recourse mortgage 50, 51, 53, 54
Non-recourse mortgage 52
non-residential 191
Non-residential 193
non-residential lease 74
nonresidential lease 52
normal distribution 37, 80
Norris, Bruce 96
not by results. 2
nothing down 109, 115, 187
nothing-down 204
Notice of Removal 167
novice 187
noxious liquid 197
NPV 25, 26
nuclear accident 38
O
Oakland 97
Obama, Barack 73
obsolescence 5, 9, 40, 195
Obsolescence 56
Occupational Safety and Health Administration
94
Occupied property 153
offense 33
office building 193, 194, 197
Office building 30
Office of Federal Housing Enterprise Oversight 73
offshore trust 62
OFHEO 73, 124, 128
OFHEO Home Price Calculator 128
oil glut 37
oil shortage 37
Oklahoma 107
Oklahoma City 195
Omerta 189
one-bedroom house 8, 76, 77
one-time” expense 171
218 Best Practices for the Intelligent Real Estate Investor
operating expense 171
operating expense ratio 12
operating-expense ratio 13
operating expenses 13, 116, 171
opportunity cost 44, 84, 170
optimism 86
Optimism 85
option 193, 204
option ARM 118
optionee 9
option pricing model 74
OR 92
or assigns 109
Or assigns 110
ordinary course of business 142
Ordinary income tax rate 200
Oregon 93, 138
O’Reilly, Bill 179
OREO 17, 113
Original Issue Discount Rules 125, 186
Original Issue Discount Rules. 139
orphan disease 193
OSHA 158, 196
out-of-county landowner 17
out-of-pocket cost 170
overassessment 153
overbuilding 5, 9, 30, 40
overconfidence 28
Overconfidence 28, 82
overconfident 10, 81
overconsume 81
overflow 177
overhead 106, 156
overpaying 87
Overreaction 17
Over The Counter 70
overtime 170
Overvaluing 87
owner-occupied 23, 74
owner-occupied home 110
owner-occupied single-family home 73
owner-unknown property 17
P
PA 107
Pacific Heights 154, 176, 182
Pacific Legal Foundation 197
panic 102, 103
paper 109
Paperless 167
paranoid schizophrenic 176
Paris 146
parking 194
parking garage 195
partial interest 18, 98
partnership 56
Partnership 142
part-time job 4
party wall 192
passive 4, 108
passive income 13
passive investing 65
passive investment 73, 204
passive investor 39, 66
Passive investor 157
passive loss limit 141
passive loss limits 37, 57, 142
passive low-cost 143
Passive real estate investment 66
passive strategy 152
Patton 181
Paulos, John Allen 88
Paulson, John 47
payment pattern 118
pay off early 49
Pearl Harbor 39
Pebble Beach 86
pendulum swing 100
pension 29, 30, 32, 55, 59, 84
pension fund 97, 156
Pension fund 140
People v. Pacific Landmark 62
P/E ratio 12, 13, 121, 122
per-bet limit 64
perfect information 66
permit 94, 197, 201, 205
Permit 125
Persistence 119, 176
personal injury 55, 77
personal-injury lawsuit 19
personality 181
personal liability 33
personally liable 50
personal residence 139
pessimism 85, 86
phone company 194
phony name 189
physical danger 80
physical injury 5, 40
Physical renovation 106
Piedmont 97
Piercing the corporate veil 60
Pioneering Portfolio Management 105
plague 37
plane crash insurance 82
planned-unit development 192
Planned Unit Development 191
point spread 64
poker 64, 65, 180
Poker 6
political candidate 205
political risk 5, 9, 40, 56, 191, 195, 197
pond 197
Ponzi, Charles 79
Ponzi scheme 79
Ponzi Scheme 87
Portland 92
Portman, John 92
Poseidon bubble 87
positive cash flow 14, 43, 119, 173, 185, 187, 191, 200
Positive cash flow 13, 116
positive equity 51
positive leverage 115
power equipment 205
power team 32, 187, 188
preconceived notion 83
predatory lending 185
pre-empted rent control 136
preempt municipal rent control 94
pre-foreclosure 17, 27, 152
preforeclosure 109
pre-nup 36
prepayment discount 186
prepayment penalty 49
prescription 98
present value 13, 15, 23, 25, 44, 84, 139, 140, 174, 186, 190
preventive maintenance 158, 195
price limit 181
Price or terms 186
pride of ownership 9, 10
pride-of-ownership 10
principal residence 22
privacy law 112
private equity 18, 105
private information 186, 205
private investigator 165
private REIT 66
private sale 71
private school 98
probability 85
Probability 2, 5
probability and statistics 32, 81
Probability and statistics 66
Probability weighting function 82
probate 17, 18, 71, 108
Probate 19, 125
procedural law 164
procedure 164
professional property manager 154
profit 106
profit margin 31, 106
profit strategy 105
propane 99
property management 32, 33, 197,
Index 219
201, 205
Property management 176, 187
property manager 3, 177
Property search 169
property tax 93, 107, 191
property type 32
Proportional cause and effect 81
pro se 163, 166
prostitute 176
Prudential 180
psychiatry 83
public-figure-plaintiff-media-defendant
libel 166
public-housing 92
published rate 40
PUD 192
punitive damages 42
purchase agreement 76, 150
Purchase agreement 188
purchase-money mortgage 54
purpose of property management 153
put 48
put option 49, 50, 51, 52, 53, 54, 55, 77
Q
quant 46, 57, 66
quash 164
Quicken 32
quiet-title suit 99
Quincy Market 92
R
Race 203
Radio Shack 167
Railroad 30
railroad right of way 91
Railroads Bubble 87
railroad siding 196
ranch 95
Random Walk Down Wall Street 65
rape 177
rational men 16
raw land 4, 16
Reagan 37
real 81, 117, 137
real estate agent 175, 179, 194
real estate broker 187, 188
Real Estate Club 180
Real estate derivative 70
Real Estate Derivatives World USA conference 151
Real Estate Finance Techniques 32
real estate investment information business 185
Real Estate Investment Strategy 33
real estate investment trust 4
Real Estate Investment Trust 73
real estate investors club 189
real estate license 9
Real estate syndicate 155
realized 139
Realtors® 194, 203
Realtors®median existing home price 125
Realtors® median home prices 123
recession 37, 86, 99, 100, 130
Reciprocity 82
recognized 139
recording 94
recording fee 147
Record phone call 167
recourse 50
recourse loan 205
recovery period 14
recreational vehicle 138
recruiting 158
Reed’s Rule of Real Estate Investment #1: Judge decisions by what the decisionmaker knew at the time 2
Reed’s Rule of Real Estate Investment #2: 5
Reed’s Rule of Real Estate Investment #3: 7
Reed’s Rule of Real Estate Investment #4: 7
Reed’s Rule of Real Estate Investment #5: 7
Reed’s Rule of Real Estate Investment #6: 10
Reed’s Rule of Real Estate Investment #7: 26
Reed’s Rule of Real Estate Investment #8: 33, 68
Reed’s Rule of Real Estate Investment #9: 88
Reed’s Rule of Real Estate Investment #10: 89
Reed’s Rule of Real Estate Investment #11: 113
Reed’s Rule of Real Estate Investment #12: 119
Reed’s Rule of Real Estate Investment #13: 136
Reed’s Rule of Real Estate Investment #14: 142
Reed’s Rule of Real Estate Investment #15: 152
Reed’s Rule of Real Estate Investment #16: 159
Reed’s Rule of Real Estate Investment #17: 168
Reed’s Rule of Real Estate Investment #18: 174
Reed’s Rule of Real Estate Investment #19: 178
Reed’s Rule of Real Estate Investment #20: 181
Reed’s Rule of Real Estate Investment #21: 181
Reed’s Rule of Real Estate Investment #22: 182
Reed’s Rule of Real Estate Investment #23: 190, 198
Reed’s Rule of Real Estate Investment #24: 203
Reed’s Rule of Real Estate Investment #25: 203
Reed’s Rule of Real Estate Investment #26: 203
Reed’s Rule of Real Estate Investment #27: 205
Reed’s Rules for Understanding Income
Taxes 141
Reed’s Rules of Real Estate Finance 45
refinance 49, 53, 118, 149, 192
refinancing 48
refrigerator 197
region 192
Regional variations 123
registration fee 142
regression to the mean 86, 101
Regression to the mean 100
regression toward the mean 101
regulations 28, 29, 30, 32
regulators 77
rehabilitation 29
REIT 57, 66, 67, 68, 73, 109, 123, 151
REIT debacle 37
REIT index fund 201
REIT index funds 157
REIT share 141
rejection 27
related corporation 61
Remagen Bridge 39
remainder estate 98
Remainder estate 76
remainderman 22, 23
Removal 167
renovating 106
renovation 18, 190
rent 139
rental house 116
rent control 18, 29, 56, 84, 89, 94, 191, 192
rent-controlled building 186
rent-controlled property 17
220 Best Practices for the Intelligent Real Estate Investor
replacement 172
Replacement cost 103
replacement cost approach 103
represent yourself 61
Reputation 179
resale profit 187
Reserve fund 172
reserves for replacement 172
reset 118
residential lease 52
Residential Property Acquisition Handbook 3, 32, 33, 91, 97, 182
residential rental property 191
resident manager 3, 158, 196
Resolution Trust Corporation 111, 151
resort area 30
restrictions 192
rest room 93
results 2
Retail 195
retail store 193
retainer 188
retire 201
retrofit 197
return on equity 200, 201
Return on equity 173
return on investment 200
return-on-investment calculation 172
Revenue Procedure 2000-37 53
reverse annuity mortgage 75
reverse-delayed exchange 53
revolution 40
Rex 74
Rex & Co. 74, 75
right of way 90
rights of redemption 17, 53
Rights of redemption 75
right to redeem 76
riot 40
riparian rights 98
risk 8, 10, 31, 200, 201, 205
Risk 199
risk aversion 80
risk management 32
risk-management 2
risk preference 62, 85
risk tolerance 204
Robert Shiller 79, 121
Robinson, Leigh 150
Rockefeller Center 86
Romanian property bubble 87
Romney, Mitt 18, 105
Ronald Reagan 93
roof 158, 192
roof inspector 148
roommates 99
room, telephone boiler 194
Ross, George 188
Roth IRA 140
Roulac, Stephen 1
Rousseau, Jean Jacques 11
routine 176
Rule 11 166
rules of civil procedure 165
rules of thumb 88
Rules of thumb 83
rural property 95
Russians 195
RV dwellers 138
S
Sack on Defamation, Libel, Slander, and Related Problems 167
Sack, Robert D. 167
sales tax 93, 138
Salomon Brothers 46
sanction 166
sandwich lease 77, 109, 110, 112
San Francisco 95
San Francisco Bay Area 86
San Francisco real estate investors association 47
San Ramon 95
savings 24
savings-and-loan crisis 49
sawdust 197
scam 185
schedule 23
Schedule D 173
Schedule E 15, 169, 172
Scher, Les 95
school 97
school district 97
schools 90
S corporation 142
screening 154
script 162
securities 4
Securities and Exchange Commission 204
securities law 77
securities license 9
security 161
Security 195
Security Analysis 15
security guard 195
security problem 195
security system 195
Selection bias 86
self-amortizing 118
self-amortizing mortgage 193
self-assessment 88
Self-Employed Pension 140, 143
Self-employment income 139
self-inflicted Ponzi scheme 79
self-inflicted Ponzi Scheme 102
self-insurance 68
Self insurance 42
Self-serving bias 81
Self-Storage Association 198
self-storage facilities 196
seller financing 71, 110, 193
seller loan 201
Seller’s plan 182
selling costs 172
selling short 28, 47
seminar 169, 181, 185, 187
SEP 140, 143
septic leach field 89
serendipity 39
Serial home seller 139
Serviceman’s Group Life Insurance 41
servient property 98
setback 92
settled for cash 50
settlement statement 170
settle out of court 163
sewer 89
shape 89
Shape 91
sheriff’s auction 75
Sheriffs’ auction 125
sheriff’s execution sale 17
sheriff’s sale 19
Shiller 122
Shiller, Robert 126
Shiller, Robert J. 128
Shop around 148
Shopper 162
shopping 183
shopping center 30, 194, 195
shopping list 21
short position 47, 48, 53
short sale 47
Short sale 111
short sales 111
short term 118
short-term 10
short-term financing 118, 193
side-by-side housing 192
silent partner 27, 77
SIMPLE IRA 140
Simpson, OJ 55
Single-Family Lease Options 50, 109, 185
Single-Family Lease-Options 74
Single-family residential 191
Index 221
sit out the race 64
situation 19, 64
situations 105
size 89
Size 90
skill 7, 8, 24, 200, 205
Skill 6
Slander 167
S&L crisis 111
slum 97
small claims 61
small claims court 75
Small claims suit 188
smell 17
Smith, John Maynard 180
smoking 194
snow removal 95, 196
social security 139
Social Security 24, 32
soil 90
Soil conditions 95
solar electric generator 99
sole proprietor 142, 194
sole proprietorship 60
sophistication 204
sources of real estate value 89
South Dakota 137
South Sea Company 87
Soviet Union 37
S&P 500 stock index 76
space heater 197
Spanish property bubble 87
S&P Case-Schiller home price index 97
S&P/Case-Shiller Home Price Indices 70
S&P/Case-Shiller® Home Price Indices 53
S&P Case/Shiller House Price Index 8
speculating 45
speculation 66, 108, 200, 204
Speculation 47
speculative 201
speculative mania 87, 102
Speculative mania 87
speculator 33
speed-dating 183
Speed mismatch 46
speed strategy 180
spendthrift protection 62
sports betting 64
Sports cards 87
spotted owl 93
spread risk 44
spread sheet 171, 173
sprinkler 195
Squatter 197
squatters 153
Squirrels 79
SSA 198
stable 57
stables 56
Standard and Poors Case-Shiller Home Price Index 109
Standard & Poors 500 84
Standard & Poor’s composite stock Price Index 121
Starr, Ron 7, 76
Star Wars 86
state court 167
state income tax 137, 142
state law 89, 167
Status quo bias 80
statute of limitations 164
statutes of limitation 62
statutes of limitations 98
stepped-up basis 141
Sticker shock 86
Stickiness 82
Stick with what you know 84
stock brokerage 203
stock market indices 151
stock option 204
stolen goods 197
stop-loss 49, 52
stop-loss agreement 51
storage 197
storefront 57, 195
strategies 33
stream 197
strike price 74, 76, 77
strike” price 48
sua-sponte 166
subcontractors 181
subdivide 106
subdivided land 142
subdivision 91
subject to 109, 152
Suboptimal management 157
subpoena 164, 166
subprime 2, 37, 38, 47, 48, 57, 72, 96, 118, 187
Subprime 125
substance over form 51
substantive law 164, 165
subtenant 110
suburb 57, 91, 95, 196
Succeeding 19, 27, 39
Suicide 38
Suitability 203
Sunk cost 82
Supreme Court 203
surface rights 94
survey 150
survivor bias 86
suspended loss 141
sweat equity 109
Sweat equity 110
Swensen, David F. 77
Swenson, David 105
Swenson, David F. 74
swimming pool 158
syndication 70
T
taking 197
Taleb 39
Taleb, Nassim 36
Taleb, Nicholas 65, 80
talent 11, 27
tax 10
Taxachusetts 93
tax benefit 173
tax benefits 14, 93, 200
tax-deferred 141
taxes 137
tax-exempt number 138
tax flow 15
tax-free 140
tax-free exchange 33
Tax law 72, 93
tax lien certificate 65
tax rate 200
Tax rate bracket 140
Tax Reform Act of 1986 14, 29, 37, 70, 84, 93, 141
tax savings 12, 16, 19
tax shelter 93, 185
Tax “shelter” 14
teaching credential 86, 121
teaser 118
technical default 109
technological advance 71
technological change 28, 67
technological development 37
technological developments 33
technological improvement 30, 40
Technological obsolescence 30, 195
telemarketer 35
Telemarketer 194
telemarketing 189
temporal interest 76
tenancies in common 65, 98, 142
Tenancies in common 18
tenancy in common 56
Tenant improvement 195
tenant-in-common 17
tenant-in-common interest 98
Tenant mix 194
222 Best Practices for the Intelligent Real Estate Investor
tenants 20
termite inspector 148
termites 153
Texas 55, 137, 138, 151
Texas Apartment Association 158
Thaler 81
Thaler, Richard 16
The Jeffersons 19
Theory of Games and Economic Behavior 180
thermometer 194
thieves 197
Thin market 48
Thompson, Paul 17, 150
Thorp 64
three approaches to value 103
three-year payback criterion 40
Throw-away item 182
tilt-up concrete wall 196
timber 197
timberland 94
time 3, 4, 10
time markets 102
Time on market 72
time value of money 171
time-value-of-money 15, 23, 33
Time value of money 13, 84
timing 39
timing market 205
Timing markets 82
TIP 143, 144
Tipping Point 81
TIPS 123, 200
title 32
title companies 149
title insurance 18, 173
title insurance policy 150
title insurer 99
title problem 18
title-problem 17
Title search 148
to-be-constructed 76
to-be-constructed home 53
Tokyo 86
topography 90
Topography 99
top soil 197
tornado 95
tortious interference with a business relationship 166
total overall rate of return 173
Tower, Trump International Hotel and 36
townhome 72
townhouse 124, 192
toxic chemicals 197
toxic clean-up 191
toxic contamination 5, 9, 19, 30, 40, 55, 90, 94, 196
Toxic contamination 42
toxics 48
toxic substance 161
trade association 203
trade organization 33
transaction cost 9, 10, 44, 187, 188, 190, 201
transaction costs 19, 44, 64, 105, 109, 137, 143, 148, 151, 152, 174
Treasury direct 146
Treasury Inflation Protected Securities
174
Treasury Inflation Protection 4, 53
Treasury Inflation Protection Securities
29, 143
trespasser 197
Triple-net 110
triple-net lease 109, 196
triplex 192
troubled asset 179
truck-high loading dock 196
Trump, Donald 36, 55, 142, 188, 200
trust 62, 77, 142
Truth-in-Lending Law 164
tsunami 37
Tulip mania 87
TurboTax 173
turnaround 157
TV 196
Tversky, Amos 16, 80
Twin 192
twins 191
TX 146, 157
TY Beanie Babies 87
U
ULI 198
uncertainty 3
Uncertainty 4
unchangeable 91
unconscionable act 190
unconscionable advantage 187
Unconventitonal Success: A Fundamental
Approach to Personal Investment 74
uncorrelated 67
Uncorrelated 57
Uncoventional Success 77
underconfidence 82
underreact 82
under save 81
under water 117
Underwood-Simmons Tariff Act 129
Undiversifiable risk 57
undoubling 99, 100
unemployment 159, 178
unhedged ARMs 45
unincorporated area 94
uninsurable risk 41
union 159
unionization 90
Unique Ability 19
unity of interest 61
University and Highland Park 97
University of California 22
unrealized potential 179
unsophisticated seller 187
unwritten rules 166
upgrade 144, 157, 192, 199
upgrading 16, 18, 19, 89, 106, 107, 108, 139, 152, 191, 192, 199, 201
Urban Land Institute 198
urine smell 177
Ury 181
USAA S&P 500 143
U.S. bonds 187
use tax 138
Utah 11, 35, 189
V
vacancies 30, 193
vacancy rate 41
vacant 157
vacant properties 40, 201
Vacant property 153
vacation home 22, 201
vacation rental 23
Vallejo 97
value added 200
value investing 101, 103
value of perfect information 66
value of your time 66, 153, 173, 187
Value of your time 170
value” theory 100
vandalism 177
vandals 153
Vanguard 73, 143, 144, 201
Vanguard 500 Index 5, 143
Vanguard REIT Index 109
Vanguard REIT index fund 201
Vanguard REIT Index Fund Investor Shares 73, 123, 144
Vanguard S&P 500 Index 84
Vanguard Total Stock Market 84
VA repo 17
variance 85
Venture capital 31, 39
vicious spiral 102
Victorian land boom 87
Index 223
view 18, 90
vig 65
vigorish 6, 64, 143
Vintage 192
VIPERs 84
Vividness overreaction 85
volcano 90
volume discounts 111
von Neumann 180
W
wage-and-hour violation 159
wage-hour violation 158
waiting list 157
Waiting-list 155
walk-away situation 51
walking away 117
Wall Street Journal 47
Walters, Lloyd 75
war 40
warehouse 193
Warehouse 30
warehouse boom 93
Warren Buffett 152
washer 195
Washington 137
Waste disposal 95
Watched pot 81
water 196
water damage 177
waterfront 95
water rights 95
water tank 195
waterway 30
weasel clause 109, 110
weather 153
Weather Bureau 7
Weekly talk to manager 162
weight 38
weighted average 85
Weisbrod, Harry 159
Welfare office 194
Westlaw 165, 167
West Point 177
wet carpet 177
wetlands 94
wholesaling 111
Wholesaling 111
Why smart people make big money mistakes and how to correct them 88
Wilshire 5000 84
Windmill 95
windows 195
winner’s curse 181
winning 163
Winning the Loser’s Game 65
Winning Through Intimidation 180
Win-win 189
withholding 61
witness 161
workers comp 159
work ethic 11
World Trade Center 195
world war 37
World War II 97, 122, 126
Worry 176
wraparounds 109