Value Investing in Real Estate
Author: Gary W. Eldred
List Price: $24.95
Our Price: Click to see the latest and low price
ISBN: 0471185205
Publisher: John Wiley & Sons (15 February, 2002)
Sales Rank: 43,934
Average Customer Rating: 4.54 out of 5
Customer Reviews
Rating: 5 out of 5
Stock enthusiast ?Not any more!
This book opened my mind to the impossibility of everybody getting wealthy in stocks. I confess, though, I was one of those stock enthusiasts. I believed Jeremy Siegel (Stocks for the Long Run). I'm now convinced, there's no way the 401k and other touted stock plans can give 70 million boomers enough income to retire. Eldred proves it through both common sense and clearly presented number crunching. But for me, his biggest point was this: As millions of boomers begin to realize that they've been sold a defective product(stocks for retirement), they're going to turn to income properties. In fact,it's already beginning just as he predicted. So, he warns not to wait. Because just as with stocks, the price-yield for real estate is going to get worse as too much money continues to chase after too few good investments. That's the bad news for those who ignore the real world. On the bright side, his "metrics" for valuing both the present and future values(areas and properties that will show great returns) surpasses by far any other book I have read. Low risks, high rewards--they're still out there, as long as you are willing to use your enterprise and intelligence.
Rating: 5 out of 5
Outstanding comparison of value investing
As an investor with 11 years left to retirement(I hope), I greatly appreciated the detailed and thoughtful way this author compared and and contrasted various investments. I like to think of myself as a smart investor who is extremely concerned about asset allocation and this book truly fills that need. Also, the book doesn't "trash" stocks. It shows that based on yield and risk, stocks will subperform well-selected income properties. It does not allege that stocks always rank poorly, nor does it claim real estate is always a great investment. Instead, it gave me the knowledge to make more profitable investments--regardless of whether I buy stocks or property. The book is extraordinarily well researched and referenced (hundreds of notes at the end of the book) for serious investors. Personally, I enjoyed reading these notes as much as the book, itself. Lots of insight into how we got to where we are and where we're going. If you decide to only browse through the real estate-stock analysis, the latter 6 or 7 chapters that focus primarily on property will give you more than your money's worth.
Rating: 5 out of 5
Get A Clue
First of all, I have been in the investment business for years. I recommend stocks, mutual funds, bonds, treasuries, commodities, REIT's, etc. Many of the reviewers here don't have a clue what they are talking about. The stock market is not the only way to invest. In fact, given current market valuations and investor sentiment (historically high sentiment now-2003) future stock market returns will come nowhere close to what we've seen over the past 2 decades. Personally, I think that at least to 2010 we will be lucky to get market returns of 5% annually - very lucky!! The reason making money in real estate is so attractive now is that many rentals offer positive cash flow immediately (unless you live in most areas of CA, Boston, D.C, etc). Also, the KEY to making money in real estate is LEVERAGE. Example: You buy a $100k property that appreciates at 3% year for the next 5 years. You put down 20% ($20k). Your 30 yr fixed mortgage payments are $475 month ($80k at 6%). You rent the unit for $800 month ($9600). Expenses are $100 month. Taxes are $75 month. So, in Year 5 your property is now worth $116k. Your mortgage balance is $75k. You have equity of ($116-$75 = $41k). All this on a $20k cash investment. In the meantime, you've NETTED $150 month X 60 months = $9000 total. You've really turned $20,000 into $50,000 in 5 years (20.1% CAGR). This doesn't include annual rent increases OR tax deductions (both of which would equal thousands of dollars). The key is you get leveraged appreciation WITHOUT MARGIN CALLS. Unless you are Warren Buffett, forget about making money in the stock market now or EVER. Real estate is not for everyone though. If you are serious about real estate this book is a great read. Similar Products
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