Customer Reviews

How to Find Hidden Real Estate Bargains 2/e

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

 

 

#10 of year's 10 top real estate books. This survey book explains how to profit from virtually all bargain properties, such as foreclosures, probates, government property sales, REO (real estate owned by lenders) and other distressed-property situations. Emphasis is on low-cash purchase methods, along with methods for discovering these often-obscure realty bargains. by Robert J. Bruss

Robert Irwin seems to generate a wellspring of books filled with good advice about buying and investing in residential real estate. He has an urbane way of cutting out the hype that can fascinate but obscure realities for buyers and sellers. Like a good uncle, he doesn't tell you not to do it - he points out some strategies for protecting yourself from the abyss. He paints a picture of the effort you'll need, and lets you make the right choice. For example, he points out that some sheriffs' foreclosures allow the defaulters 60 days to pay up and reclaim the property even after you win the auction, and that you shouldn't begin your repairs until then. He reveals that For Sale by Owner properties are most often overpriced, so you may need to make too many inquiries before you succeed.

Irwin's investment practice is in California. Therefore, some of his advice doesn't hold up in other areas. Trust deeds, in which the seller holds the deed until the buyer's payments are complete, are not allowed in Pennsylvania, for example. Sellers would sometimes disappear after the buyer had invested many payments, leaving the buyer difficult recourse to the deed.

His updated chapter on government foreclosures is informative, although he states there is no chance for inspection. This is not quite accurate. You may not have a chance before you bid, especially in a hot market, but the contracts of HUD and Freddie Mac provide for an inspection contingency. Although you can't bargain on the "as-is" sales, you can withdraw entirely if the fixups are overwhelming. It's not much different from our private residential experiences in New York, New Jersey, Pennsylvania, Washington, D.C. and Florida, with the exception that in ordinary practice in these areas you may be able to renegotiate the price when the inspection reveals unfavorable conditions.

I especially enjoyed his explosion of the old saw that location is most important. As he pointed out, it may be true if you are buying a house to live in, but if you're investing, price and market would come first. A poor or unsuitable location can sometimes have its advantages.

A unique aspect is the coverage of ethics, done gently, in the form of honesty is the best policy. Taking all the short-term advantages while hurting others will lead to lack of trust and a bad name, which will diminish your opportunities in the long run.

We will soon be reading his new book, "Tips and Traps When Renovating Your Home." We think we can learn something useful about reducing our remodeling costs.

Nancy & Arnold Lapidus

I found this book very informative and to the point. Unlike many "how to get rich" authors, Irwin stays more on the task than on the "rah-rah" stuff. His tips and traps make good references for the uninitiated investor or purchaser. Best of all, his style is smooth and easy to read. If you're looking for a good "getting started" book, this is it.

I came across many books that sell you the "theory of real estate investing" or "why its so great to get involved in the real estate market". Thats nice. People who are looking into buying a real estate book already know that. But this book is different. The steps to take are clearly detailed, and Robert Irwin directs readers to the appropriate resources; such as internet websites.
I would highly recommend this book.

The book of the week was How to Find Hidden Real Estate Bargains by Robert Irwin. I am a big fan of real estate, so it is not surprising that this book caught my eye. And up to this point every book that I have read about real estate has had me captivated, I cannot say that this book fell into that category.

This book does have fantastic information about real estate, without a doubt. However, it is written like a textbook. It didn't get me excited, in fact, it was almost like pulling teeth to read it all in one week. It is the same format for each chapter... very cookie cutter. So that being said, it's a good thing you came here because now you get some of the gems of information without the dryness.

A real estate bargain is any way to buy property for less than market value. This book explains the process on the heavy hitters: REO, Foreclosure, HUD, VA, Fannie and Freddie REOs, GSA and IRS Auctions, SBA, Treasury, and Army Corps. Lots of information! In looking for real estate bargains within any of these categories you need to consider 7 areas: Price, Terms, Rental and Resale Market, Location, Condition, Zoning, and Occupancy. Generally, you shouldn't buy a property until you have a good understanding of each of these categories.

1. Price- Is the property selling below market value? Check out the county records, most are online, and see what surrounding properties sold for recently.

2. Terms- Will you still make money off the property after you consider the following: Down Payment? Interest Rate? Is your financing matching the market? Are you doing any risky financing that will get you in trouble 5 or 7 years down the road?

3. Rental and Resale Market- How will you match up in these areas when the time comes? What are the local rental rates? Is real estate sales historically slowing?

4. Location- Is the location better than the seller realizes? Is is worse than you think?

5. Condition- This is the biggest category with bargain properties! Is it a distressed property that you can fix up or will you be spending beyond your bargain savings paying a contractor to fix it up? Do you know how it got to be distressed? How long will it take to make the property livable again?

6. Zoning- What possibilities does the property have for the future? Is it zoned for 3 units and there are only two on it currently?

7. Occupancy- Is the property vacant? Is is fully occupied? What are the terms of the current leases? Will you have grounds for evicting a problem tenant with the way the lease is written?

Seems simple enough, right? If this is your first time buying a property I encourage you to work with an agent. Do some interviews and find the best. They can teach you a ton! Plus it doesn't really cost you any money. Their paycheck comes from a percentage of the sale. And you won't be buying the property unless the price is right anyway.

There isn't a lot more that I want to expand on with this book. Work with an agent and they will show you what is out there and help you find a bargain. Do your due diligence on the property and buy it if all the criteria stacks up. As always, if you have any questions on the book don't hesitate to ask. I would be more than happy to help anyone that wants it.

The good news is the book still contains relevant information, even after the bust. The principles are straightforward, if somewhat simplistic (for example - a bargain property will be a bargain based on price, terms, rental or resale markets, location, condition, zoning or occupancy factors). The 2nd edition introduces the reader to some internet resources - some of which are still good. So, it contains some useful general knowledge and is a fair introduction to the timeless principles of real estate investing.

On the other side of the coin, a lot of water has flowed under the bridge since 2003 when this book was published. It is good foundational background, but is probably a bit dated given the 2007-2009 real estate recession on the specifics.

From this book, I learned the Famous Price-to-Rent Ratio and it comes to my mind everytime I preview a property. It will teach you the seven things to look for in a bargain. One of these items was new to me. Buying REO requires two things to succeed: expertise and money. This book can help you with the expertise part but if you don't have some investment cash...you probably should seek another income stream. Lucky for you (and me), real estate has several income streams to pursue.

This book is an excellent introduction to real estate investing. I think that some beginning investors may feel overwhelmed with different strategies to use taught by different authors and speakers. What I like about this book is that it shows you how to find bargain deals in different areas such as foreclosures, probate, REOs, and HUD. All these places can give you a constant flow of leads to work with. In the end, it doesn't really matter where you got the property from, as long as you make money on it. I think this book is just fabulous.

- Mariusz Skonieczny, author of Why Are We So Clueless about the Stock Market? Learn how to invest your money, how to pick stocks, and how to make money in the stock market