Table of Contents
Contents
Title
Copyright
Foreword
Praise
Acknowledgments
Preface
Part One: Why is Property So Good?
Chapter 1: Four Magic Questions
Question One
Question Two
Question Three
Question Four
Chapter 2: Conspiracy Theory
Increases in Asset Values
Yields
Chapter 3: A Taxing Issue
Chapter 4: Beating the Averages Easily
The Numbers Game
Beating the Averages through Geography
Beating the Averages through Demographics
Life is a Holiday by the Seaside
Keeping Your Eye on the Market
Chapter 5: Yes, But . . .
Chapter 6: Summary: Why Invest in Real Estate?
Part Two: Okay! Show Me How to Do It!
Chapter 7: The 100:10:3:1 Rule
Chapter 8: Finding Properties
Classified Advertisements
Real Estate Magazines
Real Estate Agents
Off-Market Sales
Write Your Own Advertisements
Other Sources of Property Listings
Chapter 9: Analyzing Deals
Yield
Cash-on-Cash Return
Internal Rate of Return
Other Factors to Consider
Chapter 10: Negotiations and Submitting Offers
How to Make Your Offer Incredibly Seductive to the Seller
It’s Just a Game of Poker
Chapter 11: Getting High on Opium (aka OPM)
Finding Sources of Finance
Various Classes of Mortgages
Should You Pay Off the Mortgage?
Some Closing Thoughts on Mortgages
Chapter 12: Massively Increase the Value of Your Properties (Without Spending Much Money)
The Humble Carport
Let’s Build Five Storage Garages
Chapter 13: Managing Your Properties
Tenant Selection
Finding Tradesmen
How to Get a Tradesman to Do Your Work First, Always
Rule Enforcement
Accounting
Evictions
Property Managers
Part Three: Liftoff!
Chapter 14: Residential versus Commercial Property
Classes of Property
The Philosophical Difference Between Residential and Commercial Property
Rentals
Care of the Property
Lease Length
Getting a New Tenant
Finding a New Tenant
Capital Required to Buy
Loan-Value Ratios Available
Management Overheads
Residential or Commercial—Which is Right for You?
Chapter 15: Government Interference
Chapter 16: The Eight Golden Rules of Property
Chapter 17: The World is Your Oyster
Appendix: Other Books
About the Author
Index
Praise for Real Estate Riches
Chapter 5: Yes, But …
Copyright © 2005 by Dolf de Roos, Ph.D. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
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Library of Congress Cataloging-in-Publication Data:
De Roos, Dolf.
Real estate riches : how to become rich using your banker’s money / Dolf de Roos.—[New ed.]
p. cm.
Originally published: New York : Warner Books, 2001.
Includes index.
ISBN 0-471-71180-2 (pbk. : alk. paper)
1. Real estate investment. 2. Real estate investment—Finance. 3. Mortgage loans. I. Title.
HD1382.5.D47 2004
332.63’24—dc22
2004058398
Baseball has blessed me with a sensational career and an avenue to reap rich financial rewards. However, the hard work does not stop in the baseball diamond, nor does it end with the paychecks. I am acutely aware that many professional athletes are paid well for their talents but, sadly, are victims of poor financial planning.
When I landed my well-publicized 10-year, $252 million contract, I set about finding an investment vehicle that would ensure my financial fitness long after baseball. I read many books on wealth, entrepreneurship, and investing, as well as biographies of successful individuals, but nothing inspired or captivated me as much as Real Estate Riches by Dolf de Roos. Dolf makes real estate investing simple and accessible to anyone who has the will to succeed. He is an All Star in his field!
On my journey to verify the opportunities available in real estate, I met with Joanne Mitchell, a good friend and local real estate advisor who owns and operates several thousand apartments in Miami. She immediately recognized the copy of Real Estate Riches under my arm and consequently pulled her copy out from her desk. Her book had been highlighted, and notes had been scribbled in the margins—it had been an inspiration to her as well. This book holds powerful recipes for prosperity.
I had to meet this wizard of real estate called Dolf de Roos. After great effort due to scheduling conflicts, we met in Dallas. To his surprise I was a baseball player and not a basketball player, and to my surprise he was accessible and eager to teach a newcomer his strategies. Clearly whether you are on the baseball field or a field slated for real estate investing, life is a numbers game. Some days you score big, and others, well … you don’t; but if you practice hard, learn from your mistakes, stay focused, and above all have passion, then the numbers start to work in your favor and your success fuels even more success.
I credit Real Estate Riches and Dolf de Roos as valuable guides that helped give me the confidence to form Newport Property Ventures. I began by investing in a small duplex in an emerging area of South Florida, which led to the acquisition of several other income-producing properties. With hard work and determination my projects and portfolio continue to grow with phenomenal returns. Dolf’s principles are working strong!
That Dolf has passion is apparent from the first few pages of this book. This passion and enthusiasm for his game is even more apparent when you meet him in person. Recently we met in New York where we once again reviewed the principles that lead to great success in a newfound sport from which I will never have to retire!
—Alex Rodriguez, #13
M.L.B. American League MVP
Founder and CEO, Newport Property Ventures
August 2004
“I have always been interested in property but have never had the courage to admit to myself that property is in fact a passion of mine and not just an interest. Your book, Real Estate Riches, has helped me make that final leap and as a result I have decided to pursue my passion and restructure my life to make more time for real estate investment.”
—Paul Dinis, South Africa
“I read your book, Real Estate Riches, and I loved it. Thanks for breaking things down in such a simple fashion. I am now looking to get into real estate investing.”
—Mike Desroches, New York
“I just closed my first Las Vegas property last week and want to thank you for pointing me in the right direction and giving me the tools to begin my investing. I feel like I have begun building my real estate dynasty! I am very happy; thank you so much!!!!!!!!”
—Pamela, California
“Thank you so much for the great book Real Estate Riches.”
—Moshe Mizrachi, California
“I have read Dr. Dolf de Roos’ book titled Real Estate Riches....
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