John T. Reed

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John T. Reed

Jon Klaus
Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes

He is prolific in his opinions of RE gurus on his website, but what about him? Anyone recommend his books? Which ones?

"Many people say they are happy if a book just gives them one good idea. For God’s sake, raise your standards. If an author only has one good idea, he should write a fortune cookie, not a book. One good idea might be worth the price of a book store book, but what about the value of your time? It takes many hours to read a book." John T. Reed

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William Bronchick
Real Estate Attorney · Aurora, CO · Member since 2009 · 21 posts · 21 votes
16y

Before you take any advice from someone in real estate, ask them how many deals that deal LAST YEAR, not 20 years ago. I did 12. JTR, uh... none.

I am not a big fan as you can tell because I believe what's he doing is very self-serving in that he does not give away or share anything for free, but instead bashes others to get you caught in the search engines so he can SELL you info. He won't participate on any public forum, which shows that he's afraid or selfish.

While he makes some very good points about SOME bad people, about 1/2 of what he claims to be the truth is really his twisted view of the world.

When he says, "this doesn't work in the real world" when in fact we know from experience it does, it only ticks those of us with experience off and discourages people who are newbies from learning new ideas.

The only reason we are talking about him is because his website hits high in the rankings, mostly because he's been doing it (the website) so long.

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  • Account Closed
    Manhattan, NY · Member since 2008 · 801 posts · 61 votes
    17y

    He has a very high opinion of himself.

    In the late 1990's my research guys and I reviewed his books.

    If you want to know everything he knows about a subject, it is in his books. But, they are very long on theory and very short on practicality.

    He is not a real estate investor and has not been for many years. His reasoning for this is reading and writing about investing is a full time job. Well, it is if it is your primary job.

    The money spent on gas for a trip to your local library is a better investment for the average real estate investor than buying his books.

    1Reply
  • Mark N.A
    Real Estate Investor · North Carolina · Member since 2008 · 1k+ posts · 483 votes
    17y

    I have a fair number of his books, or 'booklets', really. For the most part I like them. He is opinionated but does not portray real estate investing or landlording as fun or easy, like so many other authors more interested in selling books than in revealing hard truths.

    To my knowledge Reed has not actively owned any rentals for a long time, but he is an astute observer with good prior experience in some areas.

    As far as his assertion that --

    >>Many people say they are happy if a book just gives them one good idea. For God’s sake, raise your standards. If an author only has one good idea, he should write a fortune cookie, not a book.<<

    -- Reed perhaps fails to understand that if someone has read 20 books on real estate investing, the 21st book will cover much of the same ground but in different words.

    Having read a great many books myself, I am indeed happy to uncover one new idea in the next book I read.

    As has been emphasized repeatedly on this site, the fundamentals of investing succesfully in real estate are relatively simple, but putting them into actual practice is often very difficult.

    1Reply
  • Jon Klaus
    OP
    Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    17y

    Here's an excerpt from his article "The biggest mistakes real estate investors make" on overstating your return:

    "Your actual cash flow is what you put on Line 22 (“Income or loss from rental real estateâ€) of your Schedule E plus the depreciation you claimed on Line 20 minus the totals of line 19c and 20c on Form 4562, Depreciation and Amortization (“Basis of assets placed in service during the most recent tax yearâ€). It’s a big negative isn’t it? So stop telling others at cocktail parties, and yourself, that you have positive cash flow. In your dreams you have positive cash flow.'

    While there seems to be some arrogance, he does seem to have a way of cutting through hype better than many. At the same time he is clearly promoting his own material throughout while criticizing others for doing the same.

    0Reply
  • Bryan Hancock
    Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
    16y

    He tells it like it is...in his opinion at least...and that pisses people off. I don't agree with about 10% of what he says. The rest is pretty solid from my experience in the field.

    0Reply
  • William Bronchick
    Real Estate Attorney · Aurora, CO · Member since 2009 · 21 posts · 21 votes
    16y

    Before you take any advice from someone in real estate, ask them how many deals that deal LAST YEAR, not 20 years ago. I did 12. JTR, uh... none.

    I am not a big fan as you can tell because I believe what's he doing is very self-serving in that he does not give away or share anything for free, but instead bashes others to get you caught in the search engines so he can SELL you info. He won't participate on any public forum, which shows that he's afraid or selfish.

    While he makes some very good points about SOME bad people, about 1/2 of what he claims to be the truth is really his twisted view of the world.

    When he says, "this doesn't work in the real world" when in fact we know from experience it does, it only ticks those of us with experience off and discourages people who are newbies from learning new ideas.

    The only reason we are talking about him is because his website hits high in the rankings, mostly because he's been doing it (the website) so long.

    6Reply
  • David Lunsford
    Fort Worth, TX · Member since 2009 · 66 posts · 25 votes
    16y

    Many times I have been offended by Reed's opinion's of people whom I know quite well and these same people have been and still are very successful in the real estate business. He's an ignorant blowhard in my opiniion. He loves to write negative things about people he doesn't even know.

    0Reply
  • Joshua D.Pro Member
    BiggerPockets Founder · HI · Member since 2008 · 16k+ posts · 5k+ votes
    16y
    Originally posted by William Bronchick:
    He won't participate on any public forum, which shows that he's afraid or selfish..


    This goes for most of the real estate "gurus" out there. Very few will participate on forums . . . I'll let the community come to a conclusion why that is. (You and one or two others are certainly the exception)
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  • Account Closed
    Real Estate Consultant · Charlotte Area, NC · Member since 2010 · 13 posts · 0 votes
    16y

    I currently own a couple of his books and have found them to be helpful. I purchased them several years back when I was just getting started and the do have some valuable content.
    Funny we make fun of the size of them when if you have gotten any of the guru's stuff out there lately it has a lot of extra stuff that is absolutely worthless. Meaning it comes with a ton of filler.
    I think that there is an arrogance to him that turned me away from his material and much of the good content can be found free at your local library in other books. Although his books on coaching football are really not that bad, haha. Seriously.

    0Reply
  • Mitch Kronowit
    SFR Investor · Orange County, CA · Member since 2009 · 1k+ posts · 1k+ votes
    16y
    Originally posted by William Bronchick:
    Before you take any advice from someone in real estate, ask them how many deals that deal LAST YEAR, not 20 years ago. I did 12. JTR, uh... none.

    Hello Mr. Bronchick,

    Thanks for taking the time to post here. I read Wealth Protection Secrets of a Millionaire Real Estate Investor earlier this year and enjoyed it very much. I especially liked the idea of "equity stripping" and my RE attorney agreed it would be a great idea for one of our properties.

    0Reply
  • Loc R.
    Note Investor · Pasadena, CA · Member since 2009 · 849 posts · 544 votes
    16y

    I own quite a few of his books and I find him to be refreshing in that he is quite the "pessimist/reality check/downer" compared to what a lot of the other REI authors are pitching. IMO he's the yin to a lot of the yang out there.

    Mr. Bronchick, I would also like to say I really enjoy a lot of the stuff you've written and have out there.

    1Reply
  • Bryan Hancock
    Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
    16y

    I like how he actually goes through a real-world analysis of numbers and doesn't make things seem easier than they are.

    Some of his material has a tendency to drift off topic, but it is still rather engaging to me. I guess it is because I am an engineer and I like to get the brass tacks stuff instead a bunch of marketing fluff.

    William Bronchick's article on, "No Due on Sale Jail" is one of the best ones ever written on the subject IMO. I sent the legal citations to my father-in-law when I was doing due diligence on the technique several years back and I point all of my students to it.

    Reed is someone people will probably either love or hate. Given his approach I rarely see people in the middle. I do agree that he takes several people to task that I consider to offer good "non guru" information. The marketing approach is a turn-off to many, but I think his books are very educational.

    To each his own...

    2Reply
  • Mitch Kronowit
    SFR Investor · Orange County, CA · Member since 2009 · 1k+ posts · 1k+ votes
    16y
    Originally posted by Bryan Hancock:
    Reed is someone people will probably either love or hate. Given his approach I rarely see people in the middle. I do agree that he takes several people to task that I consider to offer good "non guru" information.

    I'm interested in what JTR has to say, but I don't take his word as gospel. Everyone's entitled to their own opinion.

    0Reply
  • Nick Cifonie
    Real Estate Investor · Joliet, IL · Member since 2008 · 30 posts · 8 votes
    16y

    I'd suggest you take a pass...

    Would you let a doctor operate on you if he's "read about" modern medicine, but not seen a patient in 20+ years?

    Would you pay someone who's not made any money in 20 years to teach you the business he "used to run"?

    Even when he "did" invest, he says himself he only bought 8-10 properties. He also admits he didn't profit on most I believe. (I could be wrong here) That's far from a pro.

    In my opinion, unless you're "in" the business you shouldn't be teaching the business. I'm with Bill on this one...

    I won't comment on the method he uses to market his products. : X

    Nick

    0Reply
  • Paul Strauss
    Wholesaler · Melbourne, FL · Member since 2010 · 72 posts · 59 votes
    16y

    ...:::He is opinionated but does not portray real estate investing or landlording as fun or easy, like so many other authors more interested in selling books than in revealing hard truths:::...

    True, however I take issue with people whose self-serving "reviews" (I mean, the guy DOES sell his own stuff, right?) include scathing personal attacks-- such as his vicious verbal beating of Robert Kiyosaki.

    Beating up the competition is hardly a "book review".

    There are plenty of other places you can find the "hard truths" of real estate investing sans vitriol - such as Barron's Keys to Real Estate Investing, a real estate sales associate course, The Unofficial Guide to Real Estate Investing, and numerous other books and websites.

    My momma taught me that you can be right, and still be wrong. I think that applies where John T. Reed is concerned.

    0Reply
  • Paul Strauss
    Wholesaler · Melbourne, FL · Member since 2010 · 72 posts · 59 votes
    16y

    I would also add that he doesn't seem to fully grasp the tax implications. Quoting from the post above which ostensibly quotes Mr. Reed (I know, right?) anyway,

    "Your actual cash flow is what you put on Line 22 (“Income or loss from rental real estateâ€) of your Schedule E plus the depreciation you claimed on Line 20 minus the totals of line 19c and 20c on Form 4562, Depreciation and Amortization (“Basis of assets placed in service during the most recent tax yearâ€). It’s a big negative isn’t it? So stop telling others at cocktail parties, and yourself, that you have positive cash flow. In your dreams you have positive cash flow.'"

    WRONG! If you make any money at all outside of real estate, and the depreciation offsets your income as say, a "brain surgeon", then the math is a little different.

    Even in the event you sell a property early in the depreciation schedule and you are liable for "recapture" - that is capital loaned to your business interest free.

    0Reply
  • Aisha S.
    Professional · New York, NY · Member since 2009 · 19 posts · 6 votes
    16y

    Hello Everyone!

    After having spent tens of thousands of dollars on worthless real estate information, I happened upon Mr. Reed. He does tend to go on a rant now and then but, he really opened my eyes to how these fake real estate gurus operate.

    I credit his B.S. Guru List at his website with helping me decide to take things slowly and carefully evaluate these people before I buy from them.

    Mr. Reed's books can be very technical but, I love the fact that he does not sugar-coat his information just to get your money. He tells it like it is and seems to stay abreast of what is going on in real estate, today.

    0Reply
  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    16y

    When I intially came across Reed's website years ago I thought it very good at exposing the nonsense, myths and outright lies sold by many gurus. However, I began to notice Mr Reed implying negatives on some others whom he was not familiar with. He panned one particular real estate teacher whom I knew very well and with who's teachings I was very familiar. I called Mr Reed to inform him of his errors in this regard and provide documentation supporting my opinion of this individual. Mr Reed asked me to send him the info and stated he would include it on his website. Mr Reed has never updated his opinion of this particular individual, nor added my information, and stopped taking my phone calls. All of which leads me to believe either that Mr Reed's sole purpose is to sell his books, or that his arrogance does not allow for the possibility of error.

    This in no way lessens the factual errors he exposes of some gurus.

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  • Bill Gulley
    Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    16y

    Hmmm, sounds like someone I know, LOL

    Just putting this back up from the prakster kid from Arkansaw

    0Reply
  • Account Closed
    Landlord · Seattle, WA · Member since 2010 · 3k+ posts · 1k+ votes
    16y

    Have never read any of his books, but will in the coming weeks. Typically, I don't put a lot of stock in professionals, writers or others that have little or no practical experience.

    I have been around CPAs that have gone to college worked at a CPA firm, but lack any common business sense. Theory can be useful, but it is not always practical or even possible.

    0Reply
  • Aisha S.
    Professional · New York, NY · Member since 2009 · 19 posts · 6 votes
    16y

    Yes, I agree with Don Konipol. Mr. Reed is extremely opinionated and I have contacted him, as well, and he did not contact me back. However, I did see on his site where he changed his opinions about one other investor he misjudged on his B.S. List but, you would need to click on the name to see. I don't remember who it was and I am sorry for that. That list definitely needs to be updated.

    I just stick to the facts and ignore his subjective rants.

    0Reply
  • Bryan Hancock
    Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
    16y

    Really?

    I have sent him email several times and he responds in very short order. My questions were always real estate related to get his opinion though.

    0Reply
  • Account Closed
    Landlord · Seattle, WA · Member since 2010 · 3k+ posts · 1k+ votes
    15y

    I just finished one of John T Reed's books, "Aggressive Tax Avoidance for Real Estate Investors." I would agree with others that he has a way of cutting through the hype. Can't say that I agree with everything, but he made many valid points in the book.

    One point I strongly agree with is that all investors should have at least some understanding of the tax law in order to capitalize on the advise they can get from tax advisers.

    There are many optional ways of looking at some transactions many of which can be valid.

    2Reply
  • Bryan Hancock
    Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
    15y

    What did you think of his idea to use a sole proprietorship Charles?

    He knows MANY of the laws well, but I agree that he methods on some stuff are suspect.

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  • Jimmy H.
    Lexington, KY · Member since 2010 · 315 posts · 133 votes
    15y

    I would rate JTR as "better than the average guru".

    He has some free articles that contain good info.

    I don't pay for any guru BS so my ability to form an opinion of him and compare him to other "guru's" is limited.

    Read the free stuff online and go to the library, probably your best option as you get a more well rounded view and cheaper than paying to hear one guru's insights.

    0Reply
  • Thomas Wilson
    Riverside, CA · Member since 2017 · 8 posts · 1 vote
    9y

    I looked at his list and didn't see Bill Vaughn's name anywhere on it. I guess he couldn't find anything about Bill Vaughn's program to criticize . 

    As for what I read here about John T. Reed himself two things stand out: (1) He has never personally WORKED any of the programs he puts down. (2) He hasn't even put into practice his own teachings in 20 years! For these two reasons I just can't take anything this guy has to say seriously even if I got his books for free. ( Which I probably could do by going to the library.)

    0Reply
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