Rich Dad's Advisors®: The ABC's of Real Estate Investing: The Secrets of Finding Hidden Profits Most Investors Miss,   ISBN:9780446691840

Customer Rating: 

Both the mortgage and real estate markets have crashed since this was published. The game has changed. Find something more current to read.

Customer Rating: 

What can I say but this book gives you an education that you can use to get started. The first one I have read that is more applicable today than the day it was written. Would love to meet the author as he is obviously a very gifted yet common thinker who could easily be your next door neighbor.....if it werent for the road he has traveled.

Customer Rating: 

The book this week was The ABC's of Real Estate Investing by Ken McElroy. I was introduced to this book by a friend of mine. He has become quite the adviser on the subject of Real Estate Investing, starting his own Investment Group LLC at the early age of 22.

McElroy's book is slow starting, (which is expected with any book that has "The ABC's" in the title) but it really picks up after a few chapters. I know that after reading this book I could make six figures in the business of real estate investing in 5 years or less.

And now that you have your goal, it is time to hit the ground running. You will need to find a team because great things are seldom done alone. You will want a lawyer, accountant, engineer, etc. People that you can turn to and ask questions when they arise during your research. Another great thing about having a team to help you with your real estate dreams is you have people to keep you accountable. If you have ever worked out.. weight-lifting, running, or biking. You know it is so much easier to succeed when you have a partner to help you through.

You will then have to go out and find your ideal real estate. McElroy line-items just about everything you will need to look for when you are researching. This can be a fun time. Once you find the right property for you, this book will tell you how to find the "right" asking price. In the book there are detailed guides to writing your letter of intent to your buyer and how to go through the final process of acquiring your property.

After you have your property you will need to decide if you are going to be a the property manager- the person that handles the landlord duties- or are you going to outsource that job to property management company. I recommend outsourcing for any property over 8 units. Let someone else handle the rent checks, leaks, broken appliances, flooding, evictions, background checks, criminal checks and the list goes on. Outsourcing this job will allow you to work on researching other properties or continuing career goals. Property management companies will charge between 8% and 14% depending on the number of units and the company. However, remember that like all things, you get what you pay for.

As you venture into this new world of Real Estate Investing you may start small with a duplex or a small apartment complex. If you follow the guidelines laid out in this book you will have a steady cash flow to reinvest in new larger properties. The goal that I previously outlined in this review is not far-fetched. If you are motivated, put the excuses aside, believe in yourself, and really go for it you can reach this goal. In the current economy you have a goldmine of opportunity. Go do some research and put yourself out there. Interest rates are low and everybody is selling. Its a buyer's market, so take advantage!

I think this book is good for anyone that has ever thought about investing in property to supplement their income, but never really knew what steps to take. If you have any questions on the book don't hesitate to ask me a question. I would be more than happy to help anyone that needs it.

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Customer Rating: 

This is a great book. It tells you all the ends and outs of investing in and generating cash flow from real estate, especially apartments. The author walks you through all the pitfalls, and emphasizes the importance of not overpaying for the property, and having good property management. He also walks you through the best methods for buying a property or selling it to maximize your gains.

My only problem with this book(the reason I gave it "4" stars instead of five), is because the book DOES NOT tell you how to finance the investment. At the beginning of the book, the author says that even though he put down $20,000 on his first deal, he later purchased a $9 million property with $2 million down and didn't use his own money, using a group of investors instead. I read the entire book hoping that he would get to the point where he explained how he raised capital for the investment. He never did. The flaw in this book is that the author does not explain "how" he secured $2 million from a group of investors, and, if you are starting out, it ain't exactly easy to convince someone to give you $2 million, even a bank, let alone a group of investors.

In my opinion, at the bare minimum, an entire chapter should have been dedicated to raising capital and putting the down payment on the property. I have no idea where to find investors who are willing to put down $80,000 on a property, let alone $2 million on an apartment complex, and this author doesn't explain this or how to convince them to do so. If you are already rich, and have the capital or can raise it from a bank, then this book is perfect for you. If you have little or no money, while this book will teach you how to invest, it won't teach you how to raise the capital to do it. This is its greatest flaw.

Customer Rating: 

Very practical information about real estate investment. It teaches you how to buy assets, not liabilities and as Robert Kiyosaki always says, "don't work for money, let money work for you". This book may not cover all the aspects in detail, but a very helpful guide for the beginners in this business.