CASHLESS INVESTING IN REAL ESTATE by Jack Cummings

CASHLESS INVESTING IN REAL ESTATE

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KIRKUS REVIEW

Under that flashy title, Cummings (Successful Real Estate Investing for the Single Person, 1981) offers a trustworthy rundown on resourceful property-financing techniques that invariably involve access to capital or some form of cash. Each smart-money play is illustrated with a case history or two. Then comes an examination of the negotiating aspects--including the prospective pitfalls and benefits for those on both sides of the bargaining table. Re the use of mortgages, or of notes held as collateral for a loan, to take advantage of an irresistible opportunity with a time limit, Cummings warns against getting in too deep. ""If there is a reversal in your economic fortunes, you could be courting bankruptcy."" He also appraises dozens of other opportunities in detail--from family loans (eschew handshake deals in favor of legally binding agreements) through pre-sale financing arrangements, do-it-yourself syndications, mortgage transfers, and property swaps. (The last, unless carefully handled, can run afoul of Section 1301 of the Internal Revenue Code, which governs tax-free exchanges.) Some of Cummings' suggestions are highly imaginative (restaurateurs might issue script good for food and drink in lieu of down payments), while a few are highly dubious (the ""home-loan down payment caper""--based on the relative ease of financing single-family residences). Mainly, though, he sticks to legitimate business: the risks and rewards of property investment on a short bankroll in high-interest times. (Appended tables reveal just what the cash-flow obligations might be under varying circumstances.)

Pub Date: April 30th, 1982
Publisher: Playboy--dist. by Harper & Row