Real Estate Investing II: Financing Your Property

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.

All courses run for six weeks, with a two-week grace period at the end. Two lessons are released each week for the six-week duration of the course. You do not have to be present when lessons are released. You will have access to all lessons until the course ends. However, the interactive discussion area that accompanies each lesson will automatically close two weeks after the lesson is released. As such, we strongly recommend that you complete each lesson within two weeks of its release.

The final exam will be released on the same day as the last lesson. Once the final exam has been released, you will have two weeks to complete all of your course work, including the final exam.

Lesson 1
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.

Lesson 2
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.

Lesson 3
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.

Lesson 4
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.

Lesson 5
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.

Lesson 6
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.

Lesson 7
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."

Lesson 8
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.

Lesson 9
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!

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.

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.

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!