Another thing that was emphasised was the importance of finding a good deal. This book is informative but incomplete. Find helpful customer reviews and review ratings for The ABCs of Real Estate Investing: The Secrets of Finding Hidden Profits Most Investors Miss at Amazon.com. i wish he talked about funding and how to fund properties on low down payments. If you find yourself in that group, I recommend you build yourself up to the point where you are confident in yourself and in your abilities first. One comment I read on here was that it takes courage to do, and I couldn't agree more. This book makes investing seem possible for the average Jane or Jo. The ABCs of Real Estate Investing: The Secrets of Finding Hidden Profits Most Investors Miss (Rich Dad's Advisors (Paperback)) [McElroy, Ken] on Amazon.com. It was the right amount of information to get a quick read over a long plane flight and lead me in the right direction. He presents his investing strategy as the only right strategy. I hope to start my own investment company buying apartments. I recommend this book to anyone interested in real estate investing. Do not rely on instincts when you buy a property. And the end of each chapter, it gives you a summary of what you need to do. Fees paid for professional services (an attorney and accountant).3 Marketing and advertising4 Management costs5 Repair and maintenance costs6 Property taxes7 Insurance8 Utilities9 Capital repairs, CHAPTER 11 You Own it… Now What?Property manager should do the following:1 Solving problems daily2 Handling staffing issues3 Leasing the property4 Increasing the cash flow5 Legal and contracts6 Maintenance7 Rent collection8 Paying the bills9 Managing the budget10 Evictions11 Customer serviceIf you want to hire a property management company, ask them about the following:1 Property management fees2 Time in business3 Accounting software and capabilities4 References5 Policies and procedures6 Professional affiliations and associations7 Training programs8 Real estate licenses9 Legal and background checks10 Vendor negotiations11 EmployeesWhen to fire your property manager:1 When the property does not perform well as anticipated2 When the property does not improve its operations year to year3 When the property really outperforms expectations because management is easy and a management company is not neededMistakes you should avoid:1 Renting to the wrong person2 Not taking care of your current residents3 Not budgeting for the unexpected, CHAPTER 12 To Sell or Not to SellWhen you want to sell your property, you need to:1 Maximize your future potential income. “Locations have to be evaluated not based on geography alone, but based on how they measure up in relation to supply and demand.” Look for:1 Great locations have drive-by visibility. In bad deals, they do not.You need to know the following three things:1 The seller’s asking price is irrelevant2 You determine the property value, which becomes your offer3 With multiple units, the property value is based on the current cash flow of the propertyThe Five-Step Property Valuation1 Verify property incomeCheck a pro forma document and rent roll.There are three types of income to consider with any property:1 Actual income: The total income the property generated in the prior twelve months2 Actual potential income: The total income the property could have generated in the prior twelve months had all units been 1—percent occupied and had the owner taken advantage of all other income opportunities3 Future potential income: The total income the property could generate at today’s market rents, 100 percent occupancy, and taking full advantage of all other income opportunitiesBuy based on actual income!Do not forget vacancies and turnover from residents moving in and out.2 Verify expenses. If you are wealthy but lack overall business acumen or basic real estate knowledge and want to grasp the overall complexity of this operation then this book is for you. I'm soooo lucky. I also like the formulas to find out the cap rate, Property value, etc. With the basics discussed and outlined, it’s time for practice! Read honest and unbiased product reviews from our users. Great Real Estate Knowledge from this book! CHAPTER 7 IS IT REALLY A DIAMOND?In good deals the numbers work. You will learn how to achieve wealth and cash flow, find promising properties, negotiate deals by the numbers, evaluate purchase prices, increase your income and confront the myths of rental properties. My feeling is that anyone with enough business acumen and investment capital to leverage a multi unit, larger scale commercial rental property can easily run these analyses for themselves not really requiring this book. Be the first to ask a question about The ABC's of Real Estate Investing, CHAPTER 1 THE MYTHS AND THE MAGICMyth 1 You Have to be already wealthy to invest in real estatePartners “help you spread your risk by allowing you to own smaller positions in a number of properties rather than a big position in just one.”Myth 2 You need to start small – big deals are too riskySome of the reasons why large properties are not riskier:1 “Mortgages on smaller properties like single-family homes are almost always guaranteed through the buyer’s own personal earning potential and wealt, CHAPTER 1 THE MYTHS AND THE MAGICMyth 1 You Have to be already wealthy to invest in real estatePartners “help you spread your risk by allowing you to own smaller positions in a number of properties rather than a big position in just one.”Myth 2 You need to start small – big deals are too riskySome of the reasons why large properties are not riskier:1 “Mortgages on smaller properties like single-family homes are almost always guaranteed through the buyer’s own personal earning potential and wealth… Larger investment property loans are secured by the asset itself.”2 Appreciation of small properties depends on the appreciation of the surrounding neighborhood while appreciation in commercial properties is based on the cash flow of the property itself.3 Your exposure related to occupancy is reduced the more residents you have.Myth 3 You can “flip” your way to success or get rich quick with no money downFlipping is dangerous and no money down means that the property is 100 percent financed, which means more expenses with little or nothing left for you to improve the cash flow. You can still see all customer reviews for the product. But be aware of rumors and verify what you hear.5 Join a business networking group or trade association.So after these steps, what do you do when there is no property for sale? Read this book using Google Play Books app on your PC, android, iOS devices. CHAPTER 2 YOU GOTTA HAVE A GOALA goal is something you plan to achieve, should be measurable (in time, earnings), and should be attainable and realistic. Sri Lanka has Nine Provinces and 25 Districts; with its metropolitan city of Colombo subdivided further into 15 parts, there is a range of real estate to choose from to invest. The title is a bit misleading as it should specify that it is entirely devoted to large-scale multi-family unit investing. The key to being a successful investor is studying how to forecast future expenses and incomes. The book is also of great value to working professionals. I took thorough notes and plan to put this knowledge to work soon! We’d love your help. The key to being a successful investor is studying how to forecast future expenses and incomes. I will be referencing back to this book as my rental investments grow. This was a great book - easy to read and follow. This book is really of no use for those of us looking to invest in houses as rental properties. But if you are a looking to invest in smaller properties, like single family homes or duplexes, the advice in this book is more complicated than I would imagine you need. The ABCs of Real Estate Investing: The Secrets of Finding Hidden Profits Most Investors Miss is a rather quick read at just over 200 pages, but it does well to give you the basics in an easy to understand manner and prepare you to get started building your wealth with this kind of investment. How to guide to buying and selling real estate. A champion and advocate for entrepreneurs and real estate investors, Ken has spoken worldwide at top industry events. There's a problem loading this menu right now. It goes step by step through how to make a purchase, and how to do your due diligence, so you can be confident in your investment. Repairs and maintenance, utilizes, real estate taxes, insurance, replacement reserve.3 Determine net operating income (Income – Expenses)4 Find the capitalization rate and valuationCapitalization rate = Net Operating Income / Purchase PriceProperty Value and Offer Price = Net Operating Income / Capitalization Rate5 Calculate the loan payment and your profit or cash on cashNow you come up with the initial cash flow and arrive at an offer price. If you are interested in buying properties as investments but have no experience and are not even sure where to begin, The ABCs of Real Estate Investing: The Secrets of Finding Hidden Profits Most Investors Miss by Ken McElroy may be a great place to start. I have a product and marketing management background and have worked at a global level in a few Fortune 500 companies. No. Disabling it will result in some disabled or missing features. Love the positive goal setting that the book starts out with! The ABCs of Real Estate Investing teaches how to:Achieve wealth and cash flow through real estateFind property with real potentialShow you how to unlock the myths that are holding you backNegotiating the deal based on the numbersEvaluate property and purchase priceIncrease your income through proven property management tools Publication date 2004 Topics Real estate investment Publisher ... plus-circle Add Review. Concise and brief learning material found in the writer successful story in multifamily apartment properties investment. Supply is “the number of rental properties available in a market or submarket.” Demand is “the number of people looking to rent.” Ask brokers and property managers to find out these information. While I think the book’s content is well laid out, the assumptions made about who is reading it are disjointed which is where I get the “split personality” description. If you are seriously considering to transition into multifamily investing, the first book you should read is The ABCs of Real Estate Investing by Ken McElroy.It is one of the only books that will teach you how to find, underwrite, negotiate, manage and prosper in the multifamily space. User Review - Flag as inappropriate. Top subscription boxes – right to your door. £6.64. It also analyzes reviews to verify trustworthiness. Despite technical writing errors, this book dives deep into the topic of real estate investing with incredibly insightful tips and an easy to follow outline. I learned alot about how to make investments more strategic and less risky. Love the questions to ask potential sellers and property managers. CHAPTER 3 IT TAKES A TEAMThe following qualities are required in partnership:1 Healthy debate: You should have room for debate before decisions are made2 Open-mindedness: You should not have to spend valuable time continually convincing your partner of your goals3 Commitment: You should be committed to each other and your goals4 Similar values: You and your partner should share the same values5 Accountability: You and your partner should push each other to achieve objectives and have mutual accountabilityYou do not need all of your team members at all times. For purchasing buildings; apartments, condos and townhomes, Reviewed in the United States on October 11, 2020. Read The ABCs of Real Estate Investing: The Secrets of Finding Hidden Profits Most Investors Miss (Rich Dad Advisors) book reviews & author details and more at Amazon.in. To calculate the overall star rating and percentage breakdown by star, we don’t use a simple average. But still interesting. Highly recommend this read for beginner or even amateur investors! It makes financial analysis of a deal to make sure it will produce positive cashflow for you straightforward and easy to understand even for newbies. Ask for recommendations in these meetings.Level Three Research. Find helpful customer reviews and review ratings for ABCs of Real Estate Investing (Rich Dad's Advisors (Paperback)) at Amazon.com. ABCs of Real Estate Investing : The Secrets of Finding Hidden Profits Most Investors Miss, Paperback by McElroy, Ken, ISBN 1937832031, ISBN-13 9781937832032, Like New Used, Free P&P in the UK Outlines how to achieve financial independence and successful self-employment through property investment, discussing such topics as screening potential partners, utilizing research tools, and setting … The “ABCs” in the title suggests that it’s meant for beginners, and will go on in everything a beginner must know, but the truth is, I feel that many important aspects of real-estate investing … The ABCs of Real Estate Investing: The Secrets of Finding Hidden Profits Most Investors Miss - Ebook written by Ken McElroy. This book will be referred to very often. Let us know what’s wrong with this preview of, Published Cheers. The ABC's of real estate investing : the secrets of finding hidden profits most investors miss by McElroy, Ken. Ken is a great storyteller and was able to convey the message in a very interesting way. Fairly decent guide to multi-family commercial properties. Reviewed in the United States on April 1, 2017. It will walk you though the entire process of considering, evaluating, writing offer, and managing. “There will come a day when the properties my partner and I own will be sold. If you are trying to buy and invest in apartment complexes this is a great how to book. Even a great deal is meaningless if nobody is around to lease it. Rich Dad's Guide to Investing: What the Rich Invest in, That the Poor and the Middle Class Do Not! It has everything you need to find the best opportunities and the most lucrative income strategies. Will keep on my shelf and revisit when I start in that market. I would recommend this book before starting multifamily apartment complex real estate investment, If you are interested in buying properties as investments but have no experience and are not even sure where to begin, The ABCs of Real Estate Investing: The Secrets of Finding Hidden Profits Most Investors Miss by Ken McElroy may be a great place to start. A very easy read, and very informative. Reviewed in the United States on May 25, 2016. Price: $16.95 on Amazon Page count: 220 Year published: 2012 Amazon rating: 4.6 stars / 1,164 ratings Goodreads rating: 4.08 stars / 5,111 ratings Why we recommend it: Commercial real estate is a very different animal compared to residential real estate. This book so far showed me that there is no secret serum for an amazing real estate investor. Myths of real estate investing: you have to be wealthy, big deals are too risky so start small, flipping places or using no money down will get you rich, some people are just always lucky, you need to know everything, you don’t have time, you need connections to start, and you need to be a skilled negotiator. For investors who want to learn the basics of Real Estate investing, THIS BOOK IS FOR YOU. Cash On Delivery Available! This evaluation process does not require a physical inspection. 565 Previews . The ABCs of Real Estate Investing: The Secrets of Finding Hidden Profits Most Investors Miss (Rich Dad's Advisors (Paperback)) eBook: McElroy, Ken: Amazon.com.au: Kindle Store This book teaches people who are new to real estate investing a ton, but what it doesn't let you know early on is that this book primarily focuses on commercial multifamily homes. He touched on the basics of real estate investment, how to conduct reasonable due diligence, a walk though the buy and selling processes. *FREE* shipping on qualifying offers. Look at the employment and presence of companies as well as employment stability; how stable the employment base is.2 Population. He did seem stuck on larger properties, and left me hanging with a few questions about smaller investments, but nothing overly required. Thanks for reading. The book is simple to read and carries some importa. Do your homework and find facts!Supply and demand is a critical tool to understand the market and submarket in a particular area. Six days a month, a wide range of people troop to the Asian Institute of Management Conference Center to attend a lecture series on real estate investment. Author Ken McElroy is CEO of his own real estate firm and has 20 years of real estate experience. Sometimes I had to let the information sink in for a while, since I am not too much of a numbers guy, but I feel like I eventually got the gist of it. 2. It is ultimately up to you to dissect and see what information is relevant to your particular situation. Lowest price and Replacement Guarantee. This book was an easy read, yet full of some excellent facts on working in real estate investing. The ABCs of Real Estate Investing Summary. I recommend this book to anyone interested in real estat. You would be an ideal candidate for the author’s investment company as you would be likely unwilling to deal with the minutia of this business. CHAPTER 4 RESEARCH CAN BE FUN?Level One Research. It takes courage to do what this book advises and it really doesn't give you enough instruction to build up that confidence. “Being too far out on the fore front of things can be expensive and dangerous. “[It] contains your offer along with the basic deal points like down payment amount, due diligence time frame, escrow amount, and financing contingencies.” During the letter of intent stage the property is not off the market.Purchase and Sale Agreement. But if you are a looking to invest in smaller properties, like single family homes or duplexes, the advice in this book is more complicated than I would imagine you need. Now it's time to apply the knowledge. You need to read the book business guide to help you run the business. I was tempted to not finish the book because of this and its generalness, but the latter chapters include more specific and applicable advise that I found valuable. Be the first one to write a review. For me, it’s not likely I would read it twice. After viewing product detail pages, look here to find an easy way to navigate back to pages you are interested in. This book does tend to focus on commercial real estate which I would warn new investors towards as I hold the belief of starting small and building big. McElroy reviewed how to analyze properties and their P&L statements, and how to put together a team (actually...that first). This is not clear when you read the back of the book. Ask every team referral.Remember that all the information you will gather in your research is free! To see what your friends thought of this book, The ABC's of Real Estate Investing: The Secrets of Finding Hidden Profits Most Investors Miss, "What makes this book different [is] it is written from the most important aspect of real estate investment, which is property management"- Robert Kiyosaki, This book was an easy read, yet full of some excellent facts on working in real estate investing. Reviewed in the United States on September 6, 2017. Great book if you are interested in learning more about the subject. Worse yet, most of the examples used are 100+ unit buildings! Reviewed in the United States on February 26, 2013. As a bad deal would end up failing which would make it harder to find partners in the future. Goodreads helps you keep track of books you want to read. Good book on how the real estate industry works. Just a moment while we sign you in to your Goodreads account. Not a bad book, but I assumed this would be helpful for someone looking to invest in single family rentals. The information is not only useful for people who want to know about investing, but also for people about to pick out a home to buy for themselves. He did seem stuck on larger properties, and left me hanging with a few questions about smaller investments, but nothing overly required. Unlike when you are buying, when you sell “you want to demonstrate the highest future potential income for the property, not the highest actual income.”2 Running your expenses lean. The ABCs of Real Estate Investing teaches how to achieve wealth and cash flow through real estate, find property with real potential, unlock the myths that are holding you back, negotiate the deal based on the numbers, and much more. CHAPTER 5 SWAMPLAND FOR SALEAn important lesson from the poor people who have purchased swampland is that “the market is more important than the property.” You should evaluate your market and submarket. Have a partner who will encourage you.What you do after setting your goal is important:1 Communicate your goal clearly. You can do it inside your house. I probably don't need an accountant and a tax consultant for. Look at every real estate website and gather information about the economy and employment in the area.Level Two Research. This book provides the reader with the secret methods of gaining profit through investments. With media appearances on television and radio, Ken also host Entrepreneur Magazine’s Real Estate Radio program, where he helps listeners navigate the financial and legal arenas of real estate. Source: (William Bout / Unsplash) 3. Actually, it happens before it. “This is where you communicate all the specifics of the sale, in other words you list exactly what each party is going to do to complete the deal.” Do not forget the statement: “All units must be rent-ready at close of escrow.”, CHAPTER 9 DUE DILIGENCE: THE EASTER EGG HUNTDuring the due diligence phase:You need to conscientiously review every document pertaining to property operations.You need to perform thorough walk-throughs of every apartment unit.You need to pay careful attention to every detail.You need to be thoughtful about how you can improve the property and cut expenses.You need to be attentive to the tasks and deliver them on time.You need to be meticulous in your evaluation and reporting.It is the time when you make detailed assessments of actual costs for property improvements, ongoing maintenance, and operations.The Due Diligence Checklist1 The File Audit2 The Interior Inspection3 Government Agency Reviews4 Service Agreement Review5 Exterior InspectionYou also need to check the books and records, obtaining information for your operating budget by categorizing the income and expenses. 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