Updated about 9 years ago on . Most recent reply
Are real estate books selling over optimism?
Hello Folks - I just finished several different real estate books including rich dad, poor dad and Investing in duplexes, triplexes and quads. In general I think they are painting a very rosy picture and paper numbers that don't seem aligned with reality. Like in the example of buying a quad, living in one, rehabbing the rest, increasing rents for the rehabbed unit, using the GMR for the area to find a new valuation price for the quad, refinancing, buying another unit, waiting for another year, monitoring the GMR and selling the first unit at a high appreciation, using the proceeds towards a 1031 exchange and repeating the process. I find several disconnects compared to reality. As starters, valuations are not changing that much year over year in compressed markets like NJ. In addition, the whole GMR multiple and revaluation seems like money made out of thin air with no basis in reality. Do I need to take all these books and advises with a bit of salt?
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What parts of these books have you put into practice?
You do not need to apply the scenario they have laid out all at once.
Like in the example of buying a quad, living in one, rehabbing the rest, increasing rents for the rehabbed unit. Just start with this part. If you do this the next step will be clear. Right now it is like being in the fog. You can not see 10' in front of you. If you walk those 10' the next 10' will be clear. This will work all the way to end of the road.