|
Building Wealth One House at a Time by John SchaubIt is true that real estate is a long-term investment and this book fits perfectly with that statement. Building Wealth One House at a Time shows that anyone can attain financial freedom through property by repeating the two-step process, which is 1. Buying the property 2. Renting it out The author John Schaub has 30 years of experience in real estate investing. His book covers every detail aspects from finding properties to keeping and managing tenants. Believe it or not, Robert Allen, the bestselling author of the Nothing Down series, was once a student of John. Anyway, Building Wealth One House at a Time covers the author’s own personal experience in property investing in which he prefers residential homes over shops and offices although he owns both of them. I fully agree with him because this is where most novice investors will start. Besides, residential investments require less money, have better financing terms and better demand than commercial. The book also emphasizes why buying “quality” is important over quantity. What I mean by quality here is not the beauty or size of the house, but the cash flow that the house can produce. As John quotes, “Buy one, rent one, then and only then look for the next deal.” Speaking of deals, John covers a lot of tips and strategies such
as:
In his opinion, the best deals are available within the area you live. This means that you don’t need to have to go past your own town or state to find good income producing properties. Once you find a property that looks like a prospective deal, your next step is to approach the seller. This is where chapter 3 helps. In "Chapter 3: Finding Good Deals", you’ll find two lists
that measure the property owner’s desire to sell and the
profitability of the house. These two lists, which range from
scales 1 to 10, will assist you in selecting the right property.
Building Wealth One House at a Time also include chapters about making offers & professional negotiating, which are the essential steps for successfully getting the best deal out of an investment property. John has his own rule when making offers. In Chapter 4: “Knowing how are you going to pay a house before making an offer”, he outlines his simple but powerful rule which he called the “10/10/10 rule”. The rule simply means:
In addition to the “100-10-3-1 rule” which Dolf shares in his book Real Estate Riches ( Read more about the book review ) the “10/10/10” rule is a very good indicator because you can ensure you get the best combination of price, leverage, and cash flow, thus maximizing the income your property will generate. While Dolf’s rule focuses on the aspect of making lots of offers before being accepted, John’s “10/10/10 rule” focuses on property profitability. The book also emphasizes steps and techniques when negotiating for a deal. Since negotiation is important in making offers, one of the key questions to ask before you start to talk is “How are you going to convince the seller to sell his or her property? Well there are many ways to do that. What makes it different is to do it in a win-win situation, allowing both buyer and seller to benefit from the deal. John talks about becoming a professional negotiator. He covers tips on how to ensure every deal is negotiable, where and when is the right time to initiate the negotiation process, and 7 powerful secrets that the pros of negotiators use to good effect. Another great chapter that comes with Building Wealth One House at a Time deals with tenant issues. What good is a property if you bought it with a low down payment with a great offer in a good neighborhood only to discover that your tenant always skips paying rent? According to the author, quality tenants are what you should attract as they are loyal, make less trouble, and promptly pays rent. He also outlines 21 steps in successfully renting a property to a tenant, tips to good tenant management (training, inspection, and eviction), and becoming an effective landlord without having
trouble and taking midnight calls.
What else can you benefit from Building Wealth One House at a Time? Case studies, worksheet examples, and analysis of property figures that can help you select the right property. I recommend printing these pages to assist your property buying decisions. Overall I think this book is straight to the point, backed by an experienced investor as well as a landlord who not only cares about making profits, but also actively involves in providing affordable housing. If you are a residential landlord or rental property investor,
Building Wealth One House at a Time can help you improve your
knowledge.
|
