Customer Reviews

All Real Estate Is Local: What You Need to Know to Profit in Real Estate - in a Buyer's and a Seller's Market

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Mr. Lereah likes to publish books. Tragically, they have almost comedic timing. He wrote a book on how to get rich in tech stocks that came out in 2000, when the tech stock market collapsed. His previous book was about how the housing market would continue to grow at double digit rates through the end of the decade. He then re-released it when it was obvious that there was a bubble with a new title on why the real estate bubble won't bust. That brings us to his latest book All Real Estate is Local. Now he tries to backpedal off of his hyping of the bubble areas and start bombastically declaring that even though the national trend of inflating housing prices across the country has stalled and is reversing, you can still find good deals if you start focusing on tinier and tinier sections of housing, down to individual neighborhoods. The cheap, easy money that fueled the boom is on the way out, and it will be harder and harder to qualify for loans and interest rates are likely to keep rising. The net result is stagnant or deflationary housing prices.

He's been wrong in his previous two books, and now he's swinging for the fences at a ball that's in the dirt for his third. Instead of saying "Buy everything!" like his last books, now he's saying "Move your buying to an area that isn't already wildly overpriced!" So write those checks for investment homes in Topeka, Kansas everybody!

If you want a book to educate you about real estate investing, this isn't it. If you want a book that tries to convince you to stuff money into some realtor's pocket, then this is the book for you. If you just want to buy yourself a home, forget all the real estate books and calculate your renting costs vs. your owning costs, and then make an informed decision as to when you want to purchase.

If you don't know already by this date, Mr. Lereah has resigned his post in the NAR. He is disagraced all over the internet as a liar (do a Google search) and rightfully so. If he believes what he says, at worst he's an ignorant fool. If he does not he's a lying fool...either way the man is a fool.

2 major drawbacks.
1). The author suggest buying rental properties with negative cashflow. It doesn't take a rocket scientist to realize that you wont become rich if you're paying OUT more than you are getting IN. One major maintenance issue will make you broke for with negative cashflow you won't be able to build cash reserves. Then he suggests using the current tax code to offset the negative income against your job (active) income. Well, two things here. (Under current tax code) if you make a lot of money (150k and above), you won't qualify. And two - the tax code can be changed and the tax break might dissapear (like it happened in the 80's).

2). The author suggests buying property in other areas. Why not suggest buying in the own backyard where you're familiar with local economics? You can also visit the property anytime; and if you're hands-on person, you can also save 10% on Property Manager's fees.

Look for qualified advise on buying investment real estate - authors like Mike Butler and Jeffrey Taylor.

A very useful read. Mr. Lereah provides excellent insights about real estate investing, whether it's labeled "buyer" or "seller" market. In very readable style, he outlines the factors we all should look into, when buying our own home or considering other real estate investment. Former US House Speaker Tip O'Neill was right on the money about politics being local...and David Lereah is on the money (for all of us) about the LOCAL factors affecting real estate.

Why do I rate this book highly? This book encourages people to do more research and make more informed decisions. People receive enormous amounts of data about real estate and it is often macro in nature. David Lereah ultimately suggests that "Location Location Location", while an over-used term, is THE factor of importance. He is correct. Most real estate professionals have been working hard to encourgae people to apply local factors to their analysis of real estate. It is true that, often, people talk about real estate in generic terms and can expect generic positive results. David Lereah's message is sound and a refreshing voice.