Appendix A. Income Property Analysis Form

Income Property Analysis Form



Line No.



Income Data (Monthly)



Per Month



1



Total Gross Income (Present)



$___________



2



Vacancy Allowance Min. 5% Line 1.

Attach copy of 1040 Schedule E or

provide past 12 months income

statement for verification.



$___________



Uncollectable or Credit Losses (rents

due but not collected)



$___________



Net Rental Income



$___________



3

4



Expense Data (Monthly)

5



Taxes, Real Property



$___________



6



Insurance



$___________



7



Management (Allow Min. 5%)



$___________



8



Maintenance



$___________



9



Repairs



$___________



10



Utilities Paid by Owner (Monthly)



$___________



Electricity

Water

Sewer

Gas

Garbage

Cable TV



$_______

$_______

$_______

$_______

$_______

$_______



Totals =



$_______



11



Total Expenses



$___________



12



Operating Income (Line 4 – Line 11)



$___________



Existing Mortgage Debt

1st Bal Due

2nd Bal Due

3rd Bal Due

4th Bal Due

5th Bal Due



________

________

________

________

________



Payments

Payments

Payments

Payments

Payments



13



Totals



14



Monthly Cash Flow Available

(Line 12 – Line 13A)



296



13A



(Pos or Neg)



Monthly Due Mo/Yr

$_______ ________

$_______ ________

$_______ ________

$_______ ________

$_______ ________

$_______

$_______

________



Appendix B

Typical

Property

Sketch

When you’re looking at a property, putting together a sketch like the one

on the next page can help you have a concrete sense of exactly what it is

you’re buying.



Copyright 2003 by Jay P. DeCima. Click Here for Terms of Use.



297



Typical Property Sketch



To Hartnell Ave. 1 block

Raley's Shopping Center

Not a

through

street



Henderson Road

Elect.

Service Pole



Water Meters



Wooden Fence



30"

Shrubs



Private Driveway

Dirt and Gravel



Oak

Mail Boxes

Elect Meters

2584/2586

2588/2590



2578

1 BR 1 BA



2580

1 BR 1 BA



Elect Meters

2578/2580

2582/2582A



2590

2 BR 1 BA



18"

Oak

Well House

Storage



24"

Oak



24"

Oak



20"

Oak

2582

STUDIO

Driveway



cle

Cir



2588

STUDIO



Concrete

Patio



36"

Oak

Gate Way



Tel. Service Pole

Shrubs



2582A

SHOP &

STORAGE



2586

1 BR 1 BA

2584

1 BR 1 BA



JMK 53 APN 107-400-07



298



Fence Line Wood Board



Shrubs



Appendix C

Sample

Co-Ownership

Agreement

1234 Easy Street, Golden City, California

THIS AGREEMENT is made effective as of the first day of April, 2002,

between Fixer Jay and Sam Moneybags.

1. Transaction: Fixer Jay (Jay) and Sam Moneybags (Sam) will join

together as co-owners for the purpose of owning and operating that

certain real estate located at 1234 Easy Street, Golden City, California

(the Property), for the mutual benefit and profit of each. Each party

agrees to perform fully under this Agreement for the success of both

parties herein.

2. Acquisition of Property: Sam and Jay have purchased the Property

for a purchase price of Seventy-Five Thousand Dollars ($75,000). The

cash down payment of Twenty Thousand, Five Hundred Dollars

($20,500) was paid by Sam. Both parties will take title subject to the

existing mortgage lien in the amount of Thirty-One Thousand, Five

Hundred Dollars and 00/100 ($31,500). The seller of the Property has

agreed to finance the balance of the purchase price, approximately

Copyright 2003 by Jay P. DeCima. Click Here for Terms of Use.



299



Sample Co-Ownership Agreement

Twenty-Three Thousand Dollars and 00/100 ($23,000), with installment payments of Two Hundred Dollars and 00/100 ($200) or more

per month, including seven percent (7%) interest until the entire principal is paid in full.

3. Cash Distributions from Rental: All excess cash derived from

rental of the Property, after payment of all expenses and debt service,

shall be divided eighty percent (80%) to Sam and twenty percent

(20%) to Jay.

4. Cash Proceeds from Sale or Refinancing of the Property: Net

cash proceeds derived from the sale or refinancing of the Property

shall be shared as follows:

First, Sam shall receive back all of his capital invested in the

Property by way of the initial down payment, fix-up expenditures, and

operating expenses made pursuant to Paragraphs 2, 11, and 12

hereof. Thereafter, all remaining proceeds derived from the sale or

refinancing shall be shared eighty percent (80%) to Sam and twenty

percent (20%) to Jay.

5. Management: All decisions regarding the management of the

Property shall be made upon the joint approval of both Sam and Jay

provided, however, it is agreed that Jay will have primary responsibility

for the day-to-day management operations, such as rent-up, property

maintenance, repairs, cleaning and the like, in order to conduct an efficient rental business. (Rent-up is the time it takes for newly constructed or renovated rental properties to be fully occupied.) Jay shall receive

a 6% management fee per month (fee based on income) for managing

the property. In addition, Jay shall be reimbursed for his actual out-ofpocket costs and expenses incurred in connection with such management.

6. Books and Records: All books and records will be kept at the office

of Jay. A statement of operations will be provided to Sam on a monthly

basis. This statement will be prepared by Jay as part of his management duties.

7. Bank Accounts: Jay shall maintain a commercial checking account

at Gold Street Bank, 2930 Silver Lane, Golden City, California, or at

300



Sample Co-Ownership Agreement

such other banking institution that shall be approved by Sam, for the

purpose of operating the Property.

8. Indemnification: Each party shall indemnify and hold harmless the

other party and the Property from and against all separate debts,

claims, actions, and demands of said party.

9. Termination: This Agreement shall terminate upon the sale of the

Property or by mutual consent of Sam and Jay. Sam shall have the

sole right to determine when the Property is to be sold, provided,

however, that Sam shall first offer Jay the right to purchase the

Property for the same amount and upon the same terms and conditions as Sam is willing to sell the Property pursuant to a bona fide

offer received from any third party. Jay shall exercise said right of first

refusal within ten (10) days after the receipt of notification from Sam

of his intention to accept said third party offer. Jay shall consummate

the transaction within sixty (60) days after the exercise of his right of

first refusal.

10. Death of Parties: Upon the death of Sam, Jay shall have the right

to either purchase Sam’s interest in the Property in the manner

described in Paragraph 9 hereof, based upon a bona fide offer

received by Sam’s estate or, in absence of such an offer, Jay shall have

the right to cause the Property to be sold and the proceeds divided in

accordance with Paragraph 4 of this Agreement. In the event liquidation is elected, Jay shall proceed with reasonable diligence to liquidate

the Property within twelve (12) months after Sam’s death.

11. Initial Fix-Up Expenditures: Initial fix-up funds for rehabilitation of

the Property will be contributed by Sam. All work will be performed by

employees of Jay. Employee time sheets and material invoices shall be

part of Jay’s record keeping.

12. Operating Funds: All expenses for repairs, improvements, taxes,

insurance, maintenance, and other operating expenses deemed necessary for the operation of the Property shall be paid first from rental

income derived from the Property and, thereafter, from additional funds

to be contributed by Sam.

301



Sample Co-Ownership Agreement

13. Business Address: The official management office for the Property

will be Jay’s One-Stop Rental Company, located at 2020 End of the

Trail Drive, Golden City, CA 96001. The mailing address is c/o Fixer

Jay, P.O. Box 492029, Redding, CA 96049-3039.

14. No Partnership or Joint Venture: The relationship between Jay

and Sam under this Agreement shall be solely that of co-owners of real

estate and under no circumstances shall said relationship constitute a

partnership or joint venture.

IN WITNESS WHEREOF, the Parties have executed this Agreement

as of the day and year first above written.

________________________________

Sam Moneybags

________________________________

Fixer Jay



302



Appendix D

Resources for

Real Estate

Investors

Books

Gene Autry with Mickey Herskowitz, Back in the Saddle Again, Doubleday.

Suzanne Brangham, Housewise, Harper & Row.

Robert J. Bruss, Effective Real Estate Investing, Regency Books, Inc.

Richard Jorgensen, The New No-Nonsense Landlord, McGraw-Hill, Inc.

A. D. Kessler, A Fortune at Your Feet, Probus Publishing Co. (Irwin)

Ray Kroc with Robert Anderson, Grinding It Out–The Making of

McDonald’s, Berkley Medallion Publishing.

Albert J. Lowry, How You Can Become Financially Independent by

Investing in Real Estate, Simon & Schuster.

John T. Reed, Aggressive Tax Avoidance for Real Estate Investors, Reed

Publishing.

Leigh Robinson, Landlording, Express Publishing.



Copyright 2003 by Jay P. DeCima. Click Here for Terms of Use.



303



Investing in Fixer-Uppers



Newsletters for Do-It-Yourself Investors

(Free copy for asking)

Common Wealth Letters (Monthly)

Jack Miller

Common Wealth Press, Inc.

P.O. Box 21172

Tampa, FL 33622

813-286-8478

Creative Real Estate Magazine (Monthly)

A. D. Kessler

Drawer L

Rancho Santa Fe, CA 92067

858-756-1441

The Money Maker Report (Monthly)

Jim Napier, Inc.

P.O. Box 858

Chipley, FL 32428

800-354-2072

Mr. Landlord (Monthly)

Jeffrey Taylor

Mr. Landlord, Inc.

Box 64442

Virginia Beach, VA 23467

800-950-2250

Real Estate Newsletter (Monthly)

Robert J. Bruss

251 Park Road

Burlingame, CA 94010

650-348-6916

Strategies and Solutions (6 issues annually)

John Schaub

Pro Serve

2677 South Tamiami Trail, Ste 4

304