Table of contents for The real estate investor's guide to cash flow and equity management : choose the investing strategy with the maximum benefits / Jack Cummings.

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Table of Contents
The Real Estate Investor¿s Guide to Cash Flow and Equity Management
By Jack Cummings
DEDICATION
INTRODUCTION
CHAPTER ONE
WHAT IS CASH FLOW AND WHERE DOES IT COME FROM
Goal of this Chapter: To Introduce you to the Mechanics of Cash Flow
TERMS AND CONCEPTS YOU NEED TO KNOW: 
Cash Flow
Cash Flow after Taxes
Depreciation and its Effect on Cash Flow
Contract Rate vs. Constant Rate
Leverage: Positive and Negative
CAP Rate
WYSINAWYN
Minor Factors Govern the Potential Return of All Real Estate
Zoning Ordinances 
Building Rules and Regulations 
Economic conversion 
Hidden Limitations to Use 
Getting to the Cash
Sources of Cash Flow
Existing Rent
New rental opportunities
Increased rent Potential
Reduce Operating Expenses
Cost of living and other increases
Restructured debt
Reduce or remove unproductive expenses
Barter for some needed maintenance
Cut out some maintenance expenses completely
Offer pay-as-they-play amenities
Collect on tenant violations
Increased Rent Potential
	Better Management 
Reduce Fixed Charges 
Reduce Operating Expenses
Cost Of Living And Other Increases
Examples of Common ¿Pass Through¿ Items for CAM Charges
Restructured debt
Reduce Or Remove Unproductive Expenses
Barter For Some Needed Maintenance
Cut Out Some Maintenance Expenses Completely
Offer Pay-As-They-Play Amenities
Collect On Tenant Violations
Real Estate Investment Examples Applied to Cash Flow Situations
Investment property number one ¿ A 4 Unit Apartment Complex
Investment property number two ¿ A Commercial Building
CHAPTER TWO
WHAT IS EQUITY BUILDUP AND WHERE DOES IT COME FROM
Goal of this Chapter: To Introduce you to the Benefits of Equity Buildup
Terms and Concepts You Need to Know
The Three Most Important Words of Real Estate (are not Location, Location, Location)
Double Dip to Big Returns
The Seven Elements of Value in Real Estate
The Seven Elements of Value in Real Estate
	Is the foundation of all wealth
	Is expected to go up in value
	Is necessary
	Full of perks
	Builds a nest-egg for retirement
	Pays for the increases in the cost of living
	Instant value by design
TWO STEPS TO INSTANT EQUITY ENHANCEMENT
Re-zone the Property to a Higher Economic Use
Obtain a Site Plan Approval
HOW TO BUILD A RETIREMENT NEST-EGG THE DOUBLE DIP WAY
THE SEVEN SOURCES OF EQUITY BUILDUP
	Market appreciation
	The cost of living
	Reduced Debt Service
	Increased cash flow
	Economic conversion potential
	New income sources
	Better management
CHAPTER THREE
HOW TO FIND PROPERTIES WITH GREAT CASH FLOW AND/OR EQUITY BUILDUP POTENTIAL
Goal of this Chapter: To Show Tips and Traps of Finding Properties that Maximize Your Goals
Getting Ready to Invest in Real Estate
Terms and Concepts You Need to Know
	Lenders Preferences
	Comfort Zone Investing
	Local Zoning and Politics
HOW TO DECIDE WHAT YOU WANT TO BUY
Rental Apartments 
Commercial Rentals
Condo-Hotels
Conversions
Hotels and Motels
Industrial Buildings
Shopping Centers & Office buildings
Single Family Homes
Tenant-in-Common Investments
Timeshares
	Vacant Land
WHAT CAN GET INVESTORS INTO TROUBLE
	The Green Grass Syndrome
	Blind as a Bat
	The Big G Word
	Over the Leverage Cliff
	The Mouth Trap
	Fear Itself
Now Build a Comfort Zone Investment Strategy
Key Factors You Need to Look For In Your Comfort Zone
The Nine Key Elements that Control the Value of Your Comfort Zone
Road works and changes
Infrastructure changes
Building rules and regulations change
Zoning ordinance changes
Future real estate developments in the works
Utility changes being planned
Potential increases or decreases of local employment
Local Government¿s attitude toward development
Natural barriers that funnel growth pattern
Where You Find Your Comfort Zone Data
Agendas of City Meetings
Building Departments
City Commission Meetings
County Commission Meetings
Departments of Transportation
DRC Meetings
Economic Development Boards
Fire Department
Local news media
Local Utility Companies
Major Employers in the Area
Planning Departments
Planning Meetings
School Boards
Tax Assessor¿s Office
Zoning Departments
CHAPTER FOUR
HOW FINANCING AFFECTS CASH FLOW AND EQUITY BUILDUP
Goal of this Chapter: To Open Your Eyes to the Effects of Debt 
Terms and Concepts You Need to Know
	Presumed Value
	Value Added
	Delayed Payments
	Hard Costs and Soft Costs
	Construction Draws
	Cost to Carry the Debt
Interest Only, Delayed Interest, Fixed Interest and Variable Interest
	Amortized Principal, Fixed Principal and Variable Principal
	Options
	Institutional Lenders
	Seller Held Mortgages
Exchanges ¿ 1031 and Otherwise
	Sweat Equity
An Example of Creative Financing and its 
Effect to Cash Flow and/or Equity Buildup.
	Harry¿s Option Deal
Harry Chooses to Maximize Cash Flow Return
But What if Harry Chooses to Maximize Equity Build Up
	Harry¿s Condominium Conversion Approach
CHAPTER FIVE
INSIDER INVESTMENT STRATEGIES THAT INCREASE CASH FLOW
Goal of this Chapter: To Demonstrate Insider Techniques to Increasing Cash Flow
Terms and Concepts You Need to Know
	The 4 Postures of Property Management
Properties with the Best Potential to Increase the Cash Flow
	Poorly Managed Properties
	Current Rents Are Below Market Rates							Simple and Cheap Improvements Warrant Rent Increases
	New and Positive Infrastructure Is On the Way
	Properties with Economic Conversion Potential
10 Comfort Zone Bonanzas That Point Toward Increased Cash Flow
	Additional Density Available
	Estate and Court Ordered Sales
	For Sale by Owner
	Hidden Gems
Hot Neighborhood
	Lender¿s REO
	Out of Town Owners
	Overgrown Yard
	Victim of a Calamity
Alexander¿s Example of a Mixed Technique Purchase 
To Maximize Investments the Increase of Cash Flow
Sweat Equity Lease 
With an Option to Buy
Interest Only Mortgage
Sliding Mortgage
1031 Tax Free Exchange
Economic Conversion
How the Deal Finally Closes
CHAPTER SIX
PROVEN INVESTMENT STRATEGIES THAT INCREASE EQUITY BUILDUP
Goal of this Chapter: To Give You Insider Information to Enable You to Find Properties that Allow You to Quickly Build Equity
Terms and Concepts you Need to Know
The Four Magic Factors of Equity Growth
		A Cooked Development
		Dramatic Change in Zoning and/or Development Criteria for Approval
		Tax Law Changes
		Sudden Realization that Developable Sites are Disappearing
Where Do You Look for the Best Equity Increase Potential
The Key Places and Events Where Equity Growth Is A Sure Thing
Areas with Positive Impact due to the Magic 4 Factors of Equity Growth.
Where there are Under Producing Properties You can Turn Around.
When New Infrastructure with Positive Impact Potential is on the Way.
Where there is High Employment of Middle to High Income Jobs.
When there is a Potential to Sell off Under-Producing Elements that Results in a Bargain.
When Properties have Economic Conversion Potential.
Where Growth is Confined and Limited by Natural or other Barriers
CHAPTER SEVEN
TIPS ON HOW TO BALANCE CASH FLOW AND EQUITY BUILDUP TO BEST FULFILL YOUR INVESTMENT GOALS
Goal of this Chapter: Discover How to Blend Cash Flow and Equity Buildup
TERMS AND CONCEPTS YOU NEED TO KNOW
	The Unique Character of Real Estate
	Community Active
7 TIPS ON BALANCING CASH FLOW AND EQUITY BUILDUP
Comfort Zone Management
Good Accounting Advice
Good Legal Advice
Home-team Goals
Plan Property Improvements
Refine Leases
Time Tables
Ella¿s Balancing Act between Equity Buildup and Cash Flow
Ella¿s Do It Yourself Center Proforma
8 TRAPS YOU NEED TO AVOID
Urban Renewal
Greener Grass Strikes at Home
Bad Tenant Mix
Overly Friendly Leases
Cutting Down on Maintenance
Under Insured
Default Management
Code Violations
Start Opening Doors Today
 
Dedication
This book is dedicated to my mother who married as a child and when her two children were teenagers went into the real estate business. When I joined the family brokerage business, we were a grand group of Cummings¿ with my father, mother, sister, grandmother, and uncle mixed in with another group of unlikely suspects to be active in the real estate game. How we all got along, and were successful at the same time, is a tribute to my Mother, Virginia Jones Cummings.
 
Introduction to
The Real Estate Investor¿s Guide to Cash Flow and Equity Management
Choose the Investing Strategy with the Maximum Benefits
	Real estate consultant and author, Jack Cummings, is focused on the nitty-gritty of one of the most important of all real estate investment decisions. Which is most important, Cash Flow or Equity Buildup? In his latest book, THE REAL ESTATE INVESTOR¿S GUIDE TO CASH FLOW AND EQUITY MANAGEMENT, he tackles the pros and cons of each of these two benefits. Although they are sometimes in conflict with each other, he shows you the primary and hidden source of each, how to identify which you need most, and how to maximize your ultimate benefit to achieve your goals.
In his easy to read style, Mr. Cummings shows you the magic of cash flow, as well as the long-term benefits of equity buildup. This book is filled with dozens of true ¿insider techniques¿ so that by the time you have completed this book you will have the confidence to set your own goals to maximize your return from your real estate holdings.
	Mr. Cummings has over 35 years of experience as an investor, developer and Realtor. His chapters are filled with concise easy to follow examples of tips as well as investment traps that await you in the real world of real estate investing. He begins by describing exactly how you can increase both cash flow and equity buildup, and then he proceeds to carefully illustrate how you can find properties that will offer the best potential for each. 
	Each chapter is presented in what Mr. Cummings calls his building block method. The goal for each chapter is presented, then special terms and concepts that are especially relative to that chapter are discussed. Then the real ¿insider stuff¿ is unveiled as he shows you how to increase the bottom line and to maximize your goals.
	He describes and then illustrates his points with concise examples from his own investment career and experience. He begins with the Magic of Cash Flow and ends showing you how to blend cash flow and equity buildup to best suite your age, experience and investment needs. Each investor, Mr. Cummings stresses, has a different need to be satisfied. Whether it is to maximize cash flow, or to quickly buildup equity, Cummings shows you the path to those goals, and how they differ for each investor. His goal is to give you the tools you need to ascertain which of these two elements is to be maximized, how to get the maximum benefit and when, if ever, you should switch to the other. 
	Chapter two opens a new world for investors who believe the three most important words in real estate are ¿location, location, location¿. Cummings quickly dispels this myth with clear evidence the old trilogy is outdated. He says ¿location¿ is just one of the three most important words. To discover the other two is worth the cost of the book.
	Cummings borrows insider concepts from his many other real estate investing books, selecting those critical to cash flow and equity buildup and then adds new concepts that fit modern real estate strategies. He illustrates the mystic math of equity buildup and shows the miracle of using ¿Other People¿s Money¿ to double dip your way to wealth in real estate, no matter if you prioritize cash flow or equity buildup¿ as long as you follow his examples and experience.
	Do you want to have the safeguard that if the value of your investment drops to half of what you paid for it you can still profit? Why not, Cummings has shown investors the secret of how you can do this with every income producing property you ever buy. He has done it himself, and he shows you how easy it is. In fact, after you see how it works, you are likely to hit yourself on your forehead and say ¿why didn¿t I see that myself¿. You will profit from this concept.
	No matter if you are just getting started in real estate, are getting ready to retire or have already retired, you will discover how best to achieve your personal objectives through simple, positive oriented interim goals with the property you will buy, or that you presently own. Investment strategies are changing, and many concepts that were valid ten to forty- years ago are no longer safe. Too many people follow real estate news that is spread by Wall Street, or your evening television news and believe what they hear and see. Cummings spells this out in big bold letters that real estate is local, not national. What goes on in your hometown is not following the same trends at the same time as in other areas of the country, your state, or even in the town ten miles down the road. 
	This book is an easy and fast read. It will deliver to you the most bang for your buck you¿ll get today. In fact, it could well be one of the most important books you will ever buy that can get help you avoid mistakes, or to move back to the right path for maximum profits. You will know if you should you maximize cash flow, or set up an investment strategy that will allow you to quickly build equity? This book has the answer. 

Library of Congress Subject Headings for this publication:

Real estate investment.