The Weekend Millionaire Secret's to Investing in Real Estate by Mike Summey and Roger Dawson
The weekend millionaire program is a product of two authors, Mike Summey and Roger Dawson. Mike Summey is a property investor while Roger Dawson is a top negotiation expert.
So what this program is really all about?
The goal of this book is to teach beginning investors how to use their spare time to invest in properties. The book also shows that anyone can succeed in real estate without giving up their present jobs.
It's like network marketing, which is to "keep your daytime job and start a part time business"
The goal of the weekend millionaire program is to "get rich slowly" which means buying one property every year that have cash flow coming to you every month.
So where do we start?
The book is divided into two subjects, which is investing and negotiations. These two critical skills are very important.
But let's look at the first skill.
Mike stressed that "NOI" (Net Operating income) is the determinant factor between success and failure. It is also one of the themes in this book.
FOr those of you who do not know what is "NOI", it's simply net rent(after deducting from vacancy factor) minus operating expenses(taxes, insurance, management fees, etc). Notice that the NOI does not include mortgage payments (this is wherecreative financing comes into play)
The book also states why "NOI", not price that will eventually determine the profitability of a property. By changing your focus and conditioning yourself to this strategy, you can determine your cashflow and also learn how to maximize it.
Another advantage to this strategy is that you can even purchase properties based on the seller's asking price as long as the NOI calculation shows a positive cash flow.
In addition to that, Mike also shows how to spot a good property. In chapter 5: What Makes a Property a Good Buy he lays out five important factors when buying rentals with good potentials:
- Buy Wholesale instead of retail
- Must show profit by first year
- Determine the property value
- Make Inspection
- Calculate the NOI
Mike said that in order to become a true investor, you must know your numbers well.
True enough, because real estate is a numbers game.
The second skill set to master is negotiations. Roger Dawson explains how and why negotiations are important and outlines the various "negotiation gambits" that you can use to effectively negotiate with people.
One of the most common tactics used by investors is found in chapter 20 Beginning Negotiation Gambits. Roger simply states that you "never say yes to the first proposal" because if you do, two things could happen:
"Either something is not right about the property or you regret that you could have done better with a counter proposal".
Roger also points out when and where to use appropriate "negotiation gambits" to outperform others. Plenty of strategies to use here.
The Weekend Millionaire Program do include samples of NOI calculation forms, due diligent checklists, and chapters guiding you what to do on your first week, the second week and so on. So prepare to bring a calculator and do some homework.
In summary the book is easy to read and understand. I find everything acceptable except the part where he suggests hiring managers to take care of your first property. I think that managing your first rental house is important so that the experience can guide you to look for good property managers.
Other than that, the weekend millionaire Program has all the information you need to get started right away.(by the way, it's audio program is one of the top sellers at nigtingale conant website)
If you really want to build a retirement income and keeping your daytime job, then this book is right for you.
You can know more about the book here
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