Customer Reviews

The Complete Guide to Buying and Selling Apartment Buildings

5 star:		(28)
4 star:		(10)
3 star:		(4)
2 star:		(0)
1 star:		(1)

 

 

This book is an easy read, but those who considered it the "best" real estate book out there may have been rotting their brains on no money down schemes (this book thankfully notes that beginning investors will not find a no money down investment property deal).

If you are looking for Real Estate Investing 101, this is a good choice.

If you already understand Cap Rates and NOI, and are confident in your ability to estimate the value of a property based on its financial statement, then pass on this book.

All in all, the book is good but basic. Unfortunate that the tables presented in the text are not explained fully--the author prefers, I think, to sell you the software separately.

As a real estate investor and author myself, I read a lot of real estate books. Many, if not most, are written by folks who do not invest in real estate themselves; they only write about it. Berges is not one of them. He knows his stuff and it's clear that he practices what he preaches. I have read three of his books and, I must say, he's one of my favorite real estate authors. You can trust what he says. Experienced investors may want a bit more detail from Steve, but what he does say is accurate and safe. This is a good book on buying apartments. In fact, in my own book, "Investing in Duplexes, Triplexes & Quads," I list the best books I've read on different areas of real estate. This book is the ONLY book I recommend on investing in commercial multifamily (ie, apartments of 5 units and up) properties.

Having given those accolades, here are a few of my constructive criticisms:

1. On pages 37 and 38, Steve gives nice charts illustrating the long-term financial benefits of investing in multifamily properties. On page 39, however, there is an error in referring to the big numbers shown. The reference is made to Investor A's "equity" of $2.1 million and Investor B's (the multifamily property investor) equity of $92 million. I just don't think Steve caught this, but those numbers don't refer to the investor's equity, but to the fair market value of his collective assets (his properties). The investor's equity might be in the range of 20% of that. I do like the charts, however, and I used a similar analysis in my recent book. One other note on the charts - they presume selling and buying exactly at the end of one year - a difficult task as Steve would surely admit. On average, I think 18 months to two years is a better time frame for flipping apartments.

2. Refinancing - Steve didn't give a chart showing the long-range effect of the "buy, hold and refy" strategy (using proceeds to buy again, but retaining the first property). In addition, Steve only mentioned the general banking guideline that you can only pull out cash up to 80% of the new appraised value (i.e., the bank has an LTV of 80%). However, you can get around this. I've done it. It requires a second lender giving a second mortgage, with a CLTV (combined loan to value) of up to 90%. As such, you can pull out much more cash.

3. GRM - gross rent multiplier. In his financial analysis section, Steve doesn't give much detail or provide real life examples on this crucial analysis factor. Granted, the cap rate is the analysis primarily used for commercial real estate, while the GRM is the one used for residential multifamily (2-4 units) real estate. Since many owners and selling brokers will "fudge" on expenses, a cap rate can be very hard to verify. The GRM, however, is fairly simple - just look at the lease agreements.

4. Lack of coverage on residential multifamily apartments. In fact, this is why I wrote my book on this topic. If Steve had covered it here, I would not have written mine. I like Steve's writing style and he knows his stuff. But for investing in small multifamily properties (certainly on residential, but probably up to about 10 units), we really have to cover valuation and selection of properties using the GRM. That and I felt like the "buy, hold, and refy" strategy needed much more coverage.

But for investing in commercial multifamily properties, I recommend this book as the only good one on the market.

Larry Loftis
Author: Investing in Duplexes, Triplexes and Quads: The Fastest and Safest Way to Real Estate Wealth

I have read allot of real estate books, as I am involved in this industry, but there are not many books that go into the apartment building side like Steve Berges has done.

This is an excellent book, if you are just getting involved in multi-units, as well as the experienced professional...there is information here that is beneficial to everyone involved in real estate.

Beyond the beginners books. If you dont want to fool around with rental houses are looking beyond, to getting into more commercial projects, read this one.

Covers the numbers (which is the only way these types of properties are evaluated,) how to create value, locating properties, due diligence and negotiating, financing and when and how to sell.

The market is flooded with marginal tomes on flipping single family houses, buying rental houses, no money down deals, ad nauseum. This is a breath of fresh air.

This book devotes a fair amount of time on valuation from a beginners standpoint. Overall good, easy and quick read. The case studies and examples appear a stretch. The author suggest that the sweet spot is to find a property with 20% vacancy, a few minor cosmetic issues. It then claims that that by leveraging a 80% LTV, the owner, in a short period of time can increase the vale and sell for a healthy premium. Hmmm... I want to see Steve Berges try this in Chicago or New York metro areas.

As a relatively new property investor, I found the book useful and would recommend to others. I purchased and downloaded the software at thevalueplay.com which is adequate to complement the book's instruction bias. However, buyers beware, these are password protected Excel spreadsheets with macros and without the ability to add formulas, change things here and there, they are useless.

I can't tell you what a great book this is. I started reading it one day and couldn't put it down. It is an easy to read, information packed book for anyone who wants to invest in apartment buildngs. He tells you to exactly how to value the property and exactly what to look for when purchasing a building. I just sent a copy to my brother so he can enjoy it too!

I just received Steve's book and let me just say that I was totally blown away by the amount of info in this one book. It is clear that Steve is an expert on real estate investing- he doesn't give you any b.s info on the no money down approach but he offers a very sensible and intelligent approach to purchasing buildings. In no way am I an expert on the subject of real estate investing but i have read at least 10 books so far on this subject. By far, Steve comes across as the most experienced and seasoned real estate investor. If you are looking to invest in buildings, then look no further. Just buy this book...its all you need. Believe me, its that good. I am returning the "Income Stream"- it was a total waste of money compared to this book. You will not regret it.

This is a terrific book for someone interested in approaching real estate investment in a serious way -- using analysis and sound business principles. But if you are only interested in the "no money down" & "get rich quick" schools of thought, pass on this book.

I don't know what BASICS (other review) is talking about. The financial models are explained, and it is not heavy on marketing his software. Outside of a financial textbook this is one of the better fundamentals books I have read. Stresses value play - in-out - approach, but the key financial ratios and it's points are very astute. If you are looking to get into the business this is a great introduction and, I would say, a must read.

I decided to start REI about 6 months ago, and have read about 20 "serious" books on real estate investing since that time. This was one of the first books I read and, after reading many more, it is still just about the best. I am planning to go back to it for a second read shortly, and will buy Steve Berges' new book when it comes out.

It also gave a credibility boost because many of his investing experiences were in and around Houston, where I lived and owned real estate myself for many years. He's the real deal!