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Investing in Real Estate
The bestselling guide to real estate, newly revised for today’s investors
More than ever, investing in property today will set you on track to conquer financial uncertainty and build your long-term net worth. Investing in Real Estate, Seventh Edition offers dozens of experience- proven methods to convert these challenging times into the best of times.
Whether you want to fix and sell or buy, improve, and hold, market savvy real estate investor Gary W. Eldred shows you how to achieve your goals. He provides time-tested ways to grow a profitable portfolio and shows you how property investing can deliver twenty-two sources of financial return. You’ll learn how to negotiate like a pro, read market trends, and choose from multiple possibilities to finance your properties. This timely new edition also
Historical context to emphasize how bargain prices and near record low interest rates now combine to offer unprecedented potential for short- and long-term profits Successfully navigate and meet today’s loan underwriting standards How to obtain discounted property prices from banks, underwater owners, and government agencies How to value properties accurately—and, when necessary, intelligently challenge poorly prepared lender appraisals Effective techniques to acquire REOs and short sales on favorable terms within reasonable time frames How to market and manage your properties to outperform other investors And much more! Join the pros who are profiting from today’s market. All you need is the knowledge edge provided by Investing in Real Estate, Seventh Edition—the most favored and reliable guide to gaining the rewards that real estate offers.
More than ever, investing in property today will set you on track to conquer financial uncertainty and build your long-term net worth. Investing in Real Estate, Seventh Edition offers dozens of experience- proven methods to convert these challenging times into the best of times.
Whether you want to fix and sell or buy, improve, and hold, market savvy real estate investor Gary W. Eldred shows you how to achieve your goals. He provides time-tested ways to grow a profitable portfolio and shows you how property investing can deliver twenty-two sources of financial return. You’ll learn how to negotiate like a pro, read market trends, and choose from multiple possibilities to finance your properties. This timely new edition also
Historical context to emphasize how bargain prices and near record low interest rates now combine to offer unprecedented potential for short- and long-term profits Successfully navigate and meet today’s loan underwriting standards How to obtain discounted property prices from banks, underwater owners, and government agencies How to value properties accurately—and, when necessary, intelligently challenge poorly prepared lender appraisals Effective techniques to acquire REOs and short sales on favorable terms within reasonable time frames How to market and manage your properties to outperform other investors And much more! Join the pros who are profiting from today’s market. All you need is the knowledge edge provided by Investing in Real Estate, Seventh Edition—the most favored and reliable guide to gaining the rewards that real estate offers.
494 pages, Kindle Edition
First published September 24, 2009
111 people are currently reading
690 people want to read
About the author
Gary W. Eldred
31 books6 followersGary W. Eldred, PhD, is the author of The Beginner's Guide to Real Estate Investing and 106 Mortgage Secrets All Homebuyers Must Learn—But Lenders Don't Tell, both from Wiley. A real estate investor, he speaks at major investment conferences and has served on the graduate business faculties at Stanford University and the University of Virginia.
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Displaying 1 - 30 of 35 reviews
April 20, 2017
It's important to get in at the right time, right price and the right property.
Take advantage of amortization. Increase rent to increase gain.
Arrange a cash out refinance. You can pocket some cash tax free, you can then buy more properties.
Manage a property and tenant more intellectually.
Make sure that your tenants are clean and will not trash, and ruin your property. The less people in your property, the better.
In Manhattan, buildings and high-rises were lucrative as condos. Airspace can be purchased in NYC.
Disney - over the span of 10 years, have acquired all the land from land owners.
Depreciation and deduction is a must if you want to save on taxes in real estate.
OPM can help you tremendously on returns. OPM Other people's money - banks, friends, family and etc.
Net operating income (NOI) is a calculation used to analyze real estate investments that generate income. Net operating income equals all revenue from the property minus all reasonably necessary operating expenses.
ROI is usually expressed as a percentage and is typically used for personal financial decisions, to compare a company's profitability or to compare the efficiency of different investments. The return on investment formula is: ROI = (Net Profit / Cost of Investment) x 100.
Do not speculate.
A wraparound mortgage, more commonly known as a "wrap", is a form of secondary financing for the purchase of real property. The seller extends to the buyer a junior mortgage which wraps around and exists in addition to any superior mortgages already secured by the property.
Credit card sometimes costs too much when dealing with real estate, but sometimes you need it to make a quick buy.
Find a partner if you need to get a property, but is not capable of buying one alone.
Improve your credit score and pay everything on time!
Some lenders will need to know how much you will rent your property for, how much you have in bank now, and your financial history.
Character does count when getting a loan. Lenders who trust you are more likely to loan to you.
Convince the lender that you DO understand the market and how you will commit in long term investment and will plan to improve the property and increase rent, how you educate yourself with many books on real estate and finance. Lenders want to see that you will do as you say.
Buy less than market value and do not be haste about purchase.
You must analyze all appraisals and then compare it with other appraisers.
Lenders do not like REOs
The take it or leave it approach does not work for owners. Your competitors will get the deal on that home!
The sooner you find out about a pre-foreclosure, the better deal you can get.
Make friends with REO pros
Even brand new properties has defects.
Go check out outstanding properties in your city and mimic those ideas. Bring in more natural light, deep clean unit and bring nature inside the home. Buyers love space. Ask your tenants to cooperate and keep the units clean and in good condition.
Net operating income (NOI) annual income generated by an income-producing property after taking into account all income collected from operations, and deducting all expenses incurred from operations.
Don't overspend on improvements
Have a smart builder, business and creative mind
With a lease option - it is only 50% that your buyer/renter will buy. It is a win win for an investor.
TIC - Tenancy in Common is a popular option of home ownership in San Francisco, California.
A sage property flipper can get a contract for a home and immediately find a buyer to sign off on the home and make a fast and nice profit.
FSBO' A method of selling property without the use of an agent or broker. Generally, the reason that the seller does not use the services of an agent or broker is because they want to avoid paying a hefty commission for the transaction.
Take advantage of amortization. Increase rent to increase gain.
Arrange a cash out refinance. You can pocket some cash tax free, you can then buy more properties.
Manage a property and tenant more intellectually.
Make sure that your tenants are clean and will not trash, and ruin your property. The less people in your property, the better.
In Manhattan, buildings and high-rises were lucrative as condos. Airspace can be purchased in NYC.
Disney - over the span of 10 years, have acquired all the land from land owners.
Depreciation and deduction is a must if you want to save on taxes in real estate.
OPM can help you tremendously on returns. OPM Other people's money - banks, friends, family and etc.
Net operating income (NOI) is a calculation used to analyze real estate investments that generate income. Net operating income equals all revenue from the property minus all reasonably necessary operating expenses.
ROI is usually expressed as a percentage and is typically used for personal financial decisions, to compare a company's profitability or to compare the efficiency of different investments. The return on investment formula is: ROI = (Net Profit / Cost of Investment) x 100.
Do not speculate.
A wraparound mortgage, more commonly known as a "wrap", is a form of secondary financing for the purchase of real property. The seller extends to the buyer a junior mortgage which wraps around and exists in addition to any superior mortgages already secured by the property.
Credit card sometimes costs too much when dealing with real estate, but sometimes you need it to make a quick buy.
Find a partner if you need to get a property, but is not capable of buying one alone.
Improve your credit score and pay everything on time!
Some lenders will need to know how much you will rent your property for, how much you have in bank now, and your financial history.
Character does count when getting a loan. Lenders who trust you are more likely to loan to you.
Convince the lender that you DO understand the market and how you will commit in long term investment and will plan to improve the property and increase rent, how you educate yourself with many books on real estate and finance. Lenders want to see that you will do as you say.
Buy less than market value and do not be haste about purchase.
You must analyze all appraisals and then compare it with other appraisers.
Lenders do not like REOs
The take it or leave it approach does not work for owners. Your competitors will get the deal on that home!
The sooner you find out about a pre-foreclosure, the better deal you can get.
Make friends with REO pros
Even brand new properties has defects.
Go check out outstanding properties in your city and mimic those ideas. Bring in more natural light, deep clean unit and bring nature inside the home. Buyers love space. Ask your tenants to cooperate and keep the units clean and in good condition.
Net operating income (NOI) annual income generated by an income-producing property after taking into account all income collected from operations, and deducting all expenses incurred from operations.
Don't overspend on improvements
Have a smart builder, business and creative mind
With a lease option - it is only 50% that your buyer/renter will buy. It is a win win for an investor.
TIC - Tenancy in Common is a popular option of home ownership in San Francisco, California.
A sage property flipper can get a contract for a home and immediately find a buyer to sign off on the home and make a fast and nice profit.
FSBO' A method of selling property without the use of an agent or broker. Generally, the reason that the seller does not use the services of an agent or broker is because they want to avoid paying a hefty commission for the transaction.
October 5, 2015
Epic. I've lost count of how may times I've read this book.
November 30, 2017
Phew! That book was thick. But good stuff. I'd recommend reading it physically or following along here:
http://nebula.wsimg.com/5834d8997f754...
a free PDF
Really good stuff though. Like seriously this book covers everything you could ever need to know to make money in real estate.... that's not true but it at least lets you know about hundreds of them and dives pretty deep into many of them.
http://nebula.wsimg.com/5834d8997f754...
a free PDF
Really good stuff though. Like seriously this book covers everything you could ever need to know to make money in real estate.... that's not true but it at least lets you know about hundreds of them and dives pretty deep into many of them.
June 4, 2018
Great book especially if you are starting out
August 20, 2018
This book is a good resource for the small-scale real estate owner with one or a few smaller apartment houses or for the person who would want to enter the business. Partially, the logic and advice applies to the operations of larger real estate companies. The author Gary Eldred is a real estate investor who has written several books on the subject and who is a sought after public speaker on investing in property.
A number of areas are covered that all aim to increase the returns from the property ownership. Eldred discusses how to gain from price appreciation by purchasing real estate at the right time in the cycle and using appropriate amounts of leverage to magnify the gains from the hopefully increasing prices and the rental income. With increasing prices and cash flows from the operations, the landlord can pay back loans and increase his equity that will allow him to refinance to better interest rates as the risk goes down. Alternatively he can keep the loan-to-value ratio constant and use his now more valuable property as collateral for new purchases.
The real estate management also gets a chapter and over his real estate investing career the author has gradually come to appreciate that it is actually more profitable to keep the properties clean and well maintained. It will lead tenants to care for the houses and even accept reasonable rent increases.
Eldred dedicates several chapters to the many types of projects that could be undertaken to increase the value of the real estate such as converting it to the use that generates the most income (from commercial to residential or vice versa etc.) and utilize various untapped opportunities for the buildings or the site or alternatively sell the development rights so that others can use them. He even discusses how to improve the location of the property. By joining forces with other nearby landlords and engage tenants, municipalities and shop keepers, areas can be transformed and made much more pleasant, i.e. a location that didn’t use to be seen as especially favorable can improve by time.
An important insight from the book is how non-standardized the market is. Those who are creative developers of properties, savvy negotiators and have good industry contacts can buy and sell properties at prices that differ from current market prices. In the equity or bond market everybody gets the same price quote at any given time.
Eldred manages to strike a fair balance between being a real estate bull and keeping a sound and healthy attitude with regards to the booms and busts of the sector. The text is directed to the non-professional so it’s light reading. For a 7th edition you could perhaps have expected the text to be a bit tighter and more distinct.
I liked the fact that Eldred spares no punches when it comes to the many snake oil salesmen that promise quick riches with minimal effort from investing in real estate. The tone is spirited, opinionated and the approach taken is generally quite practical and focused on execution but at times it could also be a bit too generic.
Personally I didn’t really do my due diligence before buying Investing in Real Estate and I had expected a book covering how to invest in listed real estate stocks. Hence, when I started to read the book I wasn’t too pleased. But then it grew on me and I don’t at all regret purchasing it.
Buy it for inspiration on how to get started in small scale real estate investing or, as a landlord, for gaining insights on how to revitalize and get more out of your existing business.
A number of areas are covered that all aim to increase the returns from the property ownership. Eldred discusses how to gain from price appreciation by purchasing real estate at the right time in the cycle and using appropriate amounts of leverage to magnify the gains from the hopefully increasing prices and the rental income. With increasing prices and cash flows from the operations, the landlord can pay back loans and increase his equity that will allow him to refinance to better interest rates as the risk goes down. Alternatively he can keep the loan-to-value ratio constant and use his now more valuable property as collateral for new purchases.
The real estate management also gets a chapter and over his real estate investing career the author has gradually come to appreciate that it is actually more profitable to keep the properties clean and well maintained. It will lead tenants to care for the houses and even accept reasonable rent increases.
Eldred dedicates several chapters to the many types of projects that could be undertaken to increase the value of the real estate such as converting it to the use that generates the most income (from commercial to residential or vice versa etc.) and utilize various untapped opportunities for the buildings or the site or alternatively sell the development rights so that others can use them. He even discusses how to improve the location of the property. By joining forces with other nearby landlords and engage tenants, municipalities and shop keepers, areas can be transformed and made much more pleasant, i.e. a location that didn’t use to be seen as especially favorable can improve by time.
An important insight from the book is how non-standardized the market is. Those who are creative developers of properties, savvy negotiators and have good industry contacts can buy and sell properties at prices that differ from current market prices. In the equity or bond market everybody gets the same price quote at any given time.
Eldred manages to strike a fair balance between being a real estate bull and keeping a sound and healthy attitude with regards to the booms and busts of the sector. The text is directed to the non-professional so it’s light reading. For a 7th edition you could perhaps have expected the text to be a bit tighter and more distinct.
I liked the fact that Eldred spares no punches when it comes to the many snake oil salesmen that promise quick riches with minimal effort from investing in real estate. The tone is spirited, opinionated and the approach taken is generally quite practical and focused on execution but at times it could also be a bit too generic.
Personally I didn’t really do my due diligence before buying Investing in Real Estate and I had expected a book covering how to invest in listed real estate stocks. Hence, when I started to read the book I wasn’t too pleased. But then it grew on me and I don’t at all regret purchasing it.
Buy it for inspiration on how to get started in small scale real estate investing or, as a landlord, for gaining insights on how to revitalize and get more out of your existing business.
July 27, 2024
A good and fairly balanced overview of the subject. Has stood the test of time quite well. I read the 2012 edition, frequent and promotional references to the financial crisis and opportunities in its aftermath were annoying, although it must be said that the author was correct in his predictions about a recovery.
February 4, 2018
This is the book (and the author) that taught me enough to take that first scary leap into real estate and has set me on the path to a comfortable retirement. I’m rereading it now as I negotiate my 4th income property in 8 years, all on a nurse’s salary!
September 23, 2017
A definitive text on the real estate investing world. No fluff, just great detailed content.
August 14, 2020
Some good information but it reads like a giant listicle
October 23, 2020
super basic, very 101
October 29, 2020
Great read
Highly recommended. I’m a beginner and this book was a great overview into the world of real estate investing and the options available.
Highly recommended. I’m a beginner and this book was a great overview into the world of real estate investing and the options available.
January 4, 2021
An excellent read for small-scale residential real estate owners or those interested in beginning a career in real estate.
February 1, 2021
Good reference.
June 5, 2022
This is the Real Estate version of Benjamin Graham’s The Intelligent Investor and I can think of no higher compliment.
June 26, 2023
One I'll have to go back to with more experience.
June 28, 2023
Creates a framework of necessary information. Plenty more to learn beyond the book
February 17, 2017
Great book. Gary Eldred covers all the basic topics, but has a lot more practical advice and interesting options than I've come across elsewhere. Discusses things all over the map like being considerate of sellers' feelings to get a better deal, things to look out for when gathering accurate comps, clauses to consider putting in leases, protecting your assets... great stuff. Clearly written and even funny. I'm sure I'll be re-reading it soon.
April 17, 2013
This was an incredibly thorough and pertinent read. It was not thorough in the regard that it will tell you everything you need to know about each type of investment opportunity, but it does indeed inform you of the rudimentary fundamentals of all the different possibilities in real-estate. There are several concepts that are absolutely ESSENTIAL to anyone that hopes to find financial security in real-estate, and these concepts are by no means common sense. This was like having a friend in the business lay it all out for you, without any sugar on top. I believe reading this is truly my first step to be free from the chains of the wage slave. I do not accept 40 hours a week for 40 years. I refuse. Those who do forfeit a 3rd of their lives. And those are the well rested hours too. I protest vehemently. Those hours are mine to live, for I can never get them back.
April 24, 2012
The beginning of the book at times sounds like an infomercial talking about purchasing homes for 0 down and other creative financing techniques. But the author does warn you that you have to be smart and do work in order to make real estate work for you.
the book gives a lot of information regarding lease clauses and what you will need to have in place to protect you if you are a landlord. Definitely good information and knowledge that I would not have thought about.
Overall this is a good book that gives you an idea of what it will take in real estate and what you need to consider before buying. This book will not tell you all you need to know, but provides good a good breadth of information.
the book gives a lot of information regarding lease clauses and what you will need to have in place to protect you if you are a landlord. Definitely good information and knowledge that I would not have thought about.
Overall this is a good book that gives you an idea of what it will take in real estate and what you need to consider before buying. This book will not tell you all you need to know, but provides good a good breadth of information.
April 24, 2015
I think this is a great book for someone just beginning in Real Estate. It gives a wonderful overview of several aspects of the home and commercial real estate market, with sound advice on many topics. That being said, perhaps it is because I had a bit of background knowledge already, but some parts of this book were almost comical common sense, such as, (and this is a summary in my own words) "don't ever pay more for a property if you can pay less." I think it goes on a bit longer about some things than necessary, as well.
Overall, a helpful companion to someone just starting out in the real estate market looking for a sound, common-sense overview of the challenges of buying a home or commercial property.
Overall, a helpful companion to someone just starting out in the real estate market looking for a sound, common-sense overview of the challenges of buying a home or commercial property.
February 8, 2017
Super interesting and full of tons of great info for anyone with any interest in real estate inventing.
January 14, 2014
Investing in Real Estate covers the basic approaches to evaluating real estate investment opportunities. This includes profits generated through rent, capital appreciation and creative financing. The book avoids get rich quick fantasies; it provides the relevant financial tools for analyzing a real estate investment opportunity.
December 27, 2014
I don't know what to say apart from the fact that it doesn't really tell you much beyond what most in the industries would have already known. It's one of those "for dummies" type book with a very US centric content most of which does not reflect real estate in the rest of the world.
October 14, 2016
Great reference
Excellent book on all real estate aspects. Very good reference to keep handy even if you don't read it all at once. Detailed step by step guidelines even with the relevant forms! Recommended
Excellent book on all real estate aspects. Very good reference to keep handy even if you don't read it all at once. Detailed step by step guidelines even with the relevant forms! Recommended
January 7, 2021
One of my first titles on the subject and still a reference til this day. Gary does a great job explaining the basics and expanding into more advanced strategies also. From beginning to end he drops gems for the novice and more astute investor. A must read!
April 4, 2013
Great read/reference for those interested in buying a home or investment property.
August 20, 2013
Pretty basic material, but useful for a novice trying to get to know the subject a little better.
February 11, 2014
The book gives a good overview of the basics of real estate. Be careful though because Gary has a very strong bias towards real estate and against other investment opportunities.
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February 11, 2016Good comprehensive guide to real estate investing.
October 25, 2013
A good read for those looking for something that will give them an overview of the various real estate investing options.
Displaying 1 - 30 of 35 reviews