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Why did I give this 4 stars? Because Part 1, "How To Analyze a Potential Real Estate Deal", was fantastic -- it gets 5 stars. However, Part 2, "37 Calculations Every Real Estate Investor Needs To Know", only gets 3 stars.The book opens by presenting a fairly comprehensive framework for measuring real estate returns as coming from one of four mechanisms: cash flow, appreciation, loan amortization, and a tax shelter. Then it goes through and describes each of these one by one, including metrics fo...
the important points to not in this book are:1) few simple definitions like GRM (gross rent multiplier)Realistically, you would probably be surprised (and suspicious) tosee a GRM below 4 and aghast to see one higher than 10.GRM= selling price/gross income2) capitalization rate which is nothing but Net operating income/purchase price.its nothing but affectively yield.3) present value analysis of NOI will give return on real estate investment with out affects of financing and taxes.NOI is nothing
Gallinelli is quick and to the point about what really matters in investing, i.e. getting a return on your money. He has a light and joking style that I enjoyed.
Boring as all hell unless you're a math junkie. However, it contains great formulas for real estate investors. I keep it on hand as a reference manual.
I found this to be an good reference for commonly used real estate definitions and concepts. There were some terms I had come across for a while now, and was not entirely sure what they meant or fully entailed. This book filled a lot of knowledge gaps. Unfortunately, though, it is very technical and frankly, boring. There are many examples used to illustrate the terms and concepts, usually involving math and sometimes complex equations. These were, for me, incomprehensible and not worth my time...
My only issue with this book is there a few sections that are out if order from the author's original manuscript. He will mention a section he says you already covered but it turns out it's a few sections later. Still a great book despite that.
Took a while to get into, but gives you the vocabulary needed when researching real estate deals.
My kind of book. Very practical.
I did not finish since it goes into many details if you already are an investor. Once I begin investing, I may go back and reference this book.
So many great methods to use in the realestate business
too much information
A book for nerds
This is my real estate investor bible.
Though I learnt a something new, I felt that the book is overpriced. Not really worth a buy if you are already good at understanding basic financial ratios.
Should I buy it or not? Since buying property is likely the largest purchase that most people ever make, how can you afford not to get educated? If you are buying for investment purposes, this book will give you the tools to analyze your return on investment. Of course, ultimately you are forced to make assumptions about the market that are just that - assumptions, but tools provided here are clearly based in common sense, and a lot of the power of the tools is in comparative analysis. Mr. Galli...
This is a very specific kind of book for a very specific kind of reader. It came highly recommended from a community of real estate investors, though I admit to not grasping many of the calculations in it. I think you have to work daily with financial spreadsheets to be able to appreciate the advantage that one return on investment calculation has over another. For me, it was informative as a reference but not game-changing. I will still rely on my bookkeeper and financial advisor to help me wit...
Financial analysis 101. The book is not dumped down. The concepts transfer to stock analysis as well.
A great book about reading and understanding the P/L or operating statements of income producing properties. Its great to read to master the fundamentals.
Good 50,000 foot level overview of real estate investing. A good place to start, but does not go into the detail necessary for you to start.
Excellent book, extremely thorough!
...will be reading it again as I put the principals to use.
Lots of great formulas Nice book, I sure it will help me out in the future. I recommend this to an realtor or any one interested in real estate.
Useful introduction to financial concepts and handy reference material for various profitability and expense metrics.