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ABCs of Real Estate Investing by Ken McleroyThe ABCs of Real Estate Investing is another new publication in addition to Real Estate Riches and Real Estate Loopholes. When I read the book, I have mixed feelings. But before I explain, let's know more about the author.
If you have been reading rich dad publications or listen to rich dad audio products, you've probably know that Ken Mcleroy is one of Robert's advisors and a reputable property manager. He's also successful as a real estate investor, acquiring apartment buildings and multiple units.
What he shares with you in this book is his experience in both as an investor and a property manager.
He starts off with having a goal. Not a general goal, but a concrete, specific, and attainable one. In Chapter 2, he stressed why having a specific goal is important in investing.
Want an example?
Compare these two goals:
"I will invest in rental properties" is not clear and specific
"I will invest in one rental property a year for the next five years" is much better
Besides, he pointed out why its equally important to refine your goals as you progress in your real estate business. In my opinion, this is useful to determine your current progress or plan without losing sight of your overall goal.
He also spoke about gathering a team and asking specific questions to the right people. I agree that investing is not a one man show.
One of the most useful techniques that he has used to evaluate properties is his "five step evaluation process". In chapter 7, he'll show you how he uses the five steps to determine the income, expenses, and profit for an unknown property to come up with a price.
All these are crucial because according to the book, the price of a building is determined by the operating value as opposed to the market value for single family homes.
The only drawback I found is that the process is favourable to multiple units or apartment buildings.
I can't seem to find any examples or methods specifically for single unit properties.
Since he is also highly specialized in managing properties, he do include in Chapter 11 about effective property management. He even prepared a list of questions to ask when hiring potential property management companies.
You may want to take a serious look at these questions because after reading this chapter, I found that managing the property yourself can be time consuming and full of stress!
Conclusion?
Overall, The ABCs of Real Estate Investing reflects more on apartment buildings rather than single family real estate. (If you are interested on investing in single properties, I recommend Real Estate Riches. You can read the review here)
Besides, the book did not cover nothing down techniques unlike Robert Allen's Nothing Down for the 2000s.
Despite that, the principles and wisdom is usable and every investor can apply them to any types of real estate
But investors looking to invest in apartment buildings will find The ABCs of Real Estate Investing the perfect book for them.
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