1 Minute to Rental Property Riches Review Pt3
Welcome to the third edition of my personal review. If you haven't been following, please read my other reviews and don't be afraid to leave a comment. You can follow these links to get you there, Part 1 and Part 2
As for the third part of my review I must say I have some mixed feelings and I'll discuss them here.
I last left off in part2 telling you that the next to come was apt buidilngs and complexes. After reading this section of his book I can't I like but I can't say I hate it either. I don't see the point of including it in the book in my opinion and I'll tell you why.
He clearly states that he doesn't recommend new investors to consider apt buildings and complexes and I of course completely agree with that. He mentions he added this section as a bonus and it wasn't originally included in his e-book.
This issue that I had with this section of the book is it wasn't really instructional like earlier parts of the book was. It really just kind of went into why apartment buildings and complexes were a great investment choice and shows you some examples between the differences of single family homes and apartment buildings from an investment and landlord perspective.
Let me make myself clear, I don't disagree with what he said, I just disagree with him saying it in the book. I think the book did a great job serving new(er) rental property investors and even if they were experienced this particular section of the book doesn't really give any instruction that is or would be usefull like the earlier parts of the book.
It does a good at painting a picture of buying apartment buildings and complexes but it really could've been left out of the book completely and it wouldn't have made the book any less of a value. It's a really short section only covering a handful of pages and about half of it was his definitions of some terms used in Multi-family investing like Cap Rate and Gross Rent Multiplier. These things could've easily been left out and I don't really understand the need to have this part or section of the book included at all. There just wasn't enough info to validate it's spot in the book. If he were to increase the information about Mulit-Family investing I would and could see it deserving a spot within the book.
Now moving, he has some motivational stuff which is great and I don't have any feelings one way or another about it, books need that stuff and I enjoy reading it as well. So nothing to say bad or good about this short section of the book.
Lets move onto something I'd like to bring up. If you've followed MikeOH in his postings and blogs you will have noticed his feelings and opinions towards those that charge for mentorship and coachings and a lot of time was spent in the beginning of this book warning the readers of the 'gurus' business practices which I don't disagree with at all.
He has half a page that the first line reads: I am generally not in favor of hiring a coach or mentor.
Now this isn't where I begin to bash him, but I would like some clarity becuase that is the only mention or impression that he either is available for a fee or he will charge a fee. He's been very clear on his opinion in the forum posts what he thinks about guys/gals who will do 50% split with students and charge for mentorships and coachings. He doesn't spend the whole page upselling you, matter of fact he clearly states becoming friends with other local investors to learn for free but I can say I was very surprised to even see any reference like this in the book at all. Order the book and read page 125 to decide for yourself.
Now the last thing I'm reviewing is the contracts before I give either my stamp of approval or my rejection.
Going through and actually reading these contracts I was surprised how basic he purchase contract was. Although it's not like it needs more, he's got the absolute needed things in there, I was just a little surprised it wasn't as lengthy or detailed as his rental agreements. Speaking of those, I did enjoy them and have asked MikeOH for a PDF of these. He mentioned that he's working on putting them on a CD and I'm hoping I'll get a copy. For now I'll have someone re-type these up for me and have them sent to my lawyer for adjustment and improvement for my particular state laws. It's clear that they are well written and within the law of his state and I think if you are going to be a landlord, these are great contracts to use as a basis, but of course, have your local attorney review them for your local and state laws.
All the other forms he puts in there for your use I think are great! I really think he's got everything you could want and need and again, for the price of the book, just these forms and contracts are well worth 2x's the money. Absolutely no issues with me concerning these and this portion of the book.
So what's the verdict you say?
I'll tell you what the verdict is and why it is
The verdict is: Yes! I would recommend it.
Now let me tell you why.
it's NOT because MikeOH paid me to do this
it's NOT because I'm trying to kiss MikeOH's butt
It's NOT because I'm trying to make money from this
It is because it's not an expensive book by any means.
It has a lot of really good info in there for newbs and experienced investors.
His rental property business plan that he includes, his contracts and forms as well as some of the great education that is included all by itself is worth far more than the price of the book.
The way I view education and why I continue to purchase real estate books and guides/courses and any material that can be considered instructional is simply because if I get at least 1 nugget that will either save me or make me more than the product I purchased then it was obviously a good investment. I can't say that this book will save you or make you X amount of dollars. I can tell you that it has a value to me of more than the price I paid for it and if you read it, you will think the same.
If you're new to REI, get with the program, it usually costs money to make money. If you can't afford to purchase this book at the low price it's being offered, then don't expect to have as much knowledge as the next guy who did make the choice to purchase the book. Don't be pissed when the next guy makes a great choice that this book had influenced him to make while you're getting left holding the bag.
get to the BiggerPockets Store and order the book today. Keep it with all the other great books in your collection! You will be glad you did!
I can tell you one thing. I will be buying some more rental properties in Missouri here really soon and they all will be at or below the $50,000 mark, I will have this book in hand as I make that journey and I'm positive I will succeed because of it.
Thank you all for following and reading my blogs. Even with all the horrible grammar and I'm sure a million misspellings, I hope I was able to add value to your reading experience! If any of you are interested in buying my copy of this book, I will glad sell it to you for $199.00 + shipping and handling :)
Thanks again, have a prosperus rest of '09
Comments (9)
I guess I'm a day late and a dollar short!
Michael Rossi, over 14 years ago
MikeOH, I'm pretty sure that book is either being written or it's already at the printers waiting for the ok from the chosen one to start shipping
Nick J., over 14 years ago
Jon, No, nothing has changed in the market since the real estate boom/bust and in fact the basic principles never change. What has changed is that some of the guru nonsense "strategies" that were popular during the boom have now been shown to be folly. All the REAL real estate strategies have been around for hundreds of years and won't be changing anytime soon - unless the government nationalizes our industry. Then, another book will probably be warranted. I think I'll call it 1 Minute to Being a Good Little Socialist! Mike
Michael Rossi, over 14 years ago
"Mike, are there enough changes in the market and in your experience to do a new edition?" Jon, I have owned Mike's eBook for about a year. These concepts don't change. They have worked through the decades. If there is a revision that should be made, it is that a buyer should be picking up these types of properties for even cheaper amounts.
Matthew Gil, over 14 years ago
I would highly recommend that you order Mike’s book as a PDF. That way you can copy over Mike’s forms to either Adobe Professional or Word. His business plan came in pretty handy. In fact, with just a few modifications to suit our market, we use the business plan to submit to our lenders.
Matthew Gil, over 14 years ago
Nick, thanks foir the comprehensive review. Mike, are there enough changes in the market and in your experience to do a new edition?
Jon Klaus, over 14 years ago
Great review Nick. Thanks for taking the time.
James Ward, over 14 years ago
Nick, I'm glad that you enjoyed the book and more importantly, I hope it helps you make some money. I would like to clarify a couple of points. I had two goals in writing the apartment building chapter: 1. to show that operating apartment buildings is basically the same as operating SFHs (except bigger) and 2. to expose all the gibberish words and terms that the so-called "sophistocated" investors use to take advantage of less "sophistocated" investors and newbies (such as cap rate, IRR, etc). I tried to convey that in this chapter. As I said in the book "Knowing a bunch of fancy terms won't do one thing to improve your cash flow, but it does sound good at parties." I would also like to answer your comment about the paid coaching/mentoring. As you said, page 125 does imply that I will do mentoring/coaching for a fee - I have not and will not. I can honestly say that I have NEVER taken a penny from anyone for mentoring or coaching. Having said that, when I wrote the book in 2005, I wasn't as fed up with all the guru gibberish and b.s. as I became over time and at that time I was entertaining the idea providing limited coaching or mentoring, which is why it was in the book. Unfortunately, once you publish a book, it's hard to take the words off the page! If I had it to do again, that sentence would definitely not be in the book! As people called and inquired about this potential mentoring, it became rapidly apparent to me that I could help them for free simply by answering their questions and that their best source of a mentor/coach was a successful investor at their local REIA (as I stated in the book) - someone that knows their local market; local contacts; local laws; etc. Furthermore, many people wanted (and still call today) wanting to come "shadow" me. That would just be impossible. I typically work 3-4 hours a day, 3-4 days a week. As I sit here this morning, I couldn't tell you which hours or days this week I will work. Moreover, if something more interesting comes up, I may decide to do something else. So, what would a shadow (student) do? Come to my area and sit in a hotel room waiting for me to decide if I'm going to work today? Then, if I do, I wonder how exciting it would be for the "student" to watch me paint an apartment or change a toilet ring? The real life of a landlord isn't glamorous or sexy on a daily basis - at least from a business standpoint. I do like to get out of the house and have fun, but that's from riding my motorcycle, mountain biking, camping, snowboarding, etc. Finally, from a selfish standpoint, I consider myself to be semi-retired (working 12-16 hours each week). Doing mentoring/coaching would be a JOB. I got into the rental property business so that I could be semi-retired and enjoy myself, not so that I could get in the rat race with another job. That would defeat the whole purpose of being in the rental business. Mike
Michael Rossi, over 14 years ago
I appreciate your candidness Nick - thanks for the detailed review!
Ted Harris, over 14 years ago