In our careers in investment real estate and as individual real estate investors, the most frequently asked question has been “Are there any good, but simple, books which explain the basic principles of real estate investment?” Unfortunately, we do not know of any! There are many books on real estate appraisal, real estate taxation, and other specific areas of real estate. These, however, do not seem to meet the needs of the typical real estate investor or the investor who does so as a secondary source of income.
We have prepared this guide in the hope of filling this need. We would like to say, however, that this guide was not written to replace, in any way, the advice and services of attorneys, accountants, real estate agents, or any other qualified real estate consultants. At some point in your real estate investment program, you will no doubt require the professional services of these people. They are, for the most part, well worth their fees.
We have not made an attempt, in this guide, to present the reader with all of the advantages and disadvantages of real estate investment. The content of this guide presents only the basic information and tools that beginning investors need in order to launch a good real estate investment program. As you proceed with your real estate investment program, you will learn all that is necessary to succeed through your association with real estate agents, other investors, escrow agents, etc.
The chapters in this guide are structured to give you the ability to:
Select your type of investment
Appraise your investment’s value
Determine your annual return on invested capital
Purchase your investment wisely
Sell/Exchange your investment for maximum return
Avoid pitfalls that are common in investment real estate