Customer Reviews

How to Buy and Sell Apartment Buildings

5 star:		(13)
4 star:		(4)
3 star:		(5)
2 star:		(2)
1 star:		(10)

 

 

What a T-U-R-K-E-Y !!!!! Based on the online reviews at AMAZON, I decided to take a chance on this book - BIG MISTAKE. In addition to the numerous typos (e.g. Asset "CONVERSATION" instead of conversion, etc.) The information in the book is either OLD, MISLEADING or Flat out incorrect. The Book's fundamental premise is based on two things: The author's ability to "time" the market and buy into quickly accelerating markets (from 1982-88), well before the markets turn around, and: His ability to 1031 exchange his profits (while cutting out his partners), into two other "well timed" investments in markets (well) outside his home market. He supports this simple concept with a lot of content which includes a deep bias against other types of investment strategies, which did not work for him (such as foreclosures), and a lot of statistics which are dubious at best, including lots of charts where the titles and legends have been intentionally omitted to support his position (questionable ethics - I think). Finally, he repeatedly points readers to an organization that he is a "Director" of to get a better understanding of the methodologies for his analytical strategies ( A LITTLE SELF SERVING). Final Analysis: NOT Well Written; Questionable LOGIC & Conclusions; Full of information which is probably no longer valid (Pub. 1992, cases based on strategies from 1980-88). Better off reading stuff by REED and available from ULI (Urban Land Institute). The Paper back was not a good investment - The Hardback at over $100.00 is an insult.

I am a beginner and a lot of this stuff is over my head. He only focuses on mid-size buildings, and the $6,000 is assuming you're going in with a group, which I wouldn't want to do. Also, he recommends software (from a company of which he is a director) and finding consultants. This would have to add up to spending a lot before you can invest a single dollar. This is basically a book version of a seminar he holds "Three Moves to a Million." This approach to me is a little get rich quickish, and I have to wonder how many buildings out there actually fit his mathematical formula; probably not many. I have a feeling he's getting rich these days not through apartment ownership but with seminars and software sales. But still, he's thorough in describing a range of processes and things to consider.

While the book provides a wealth of information and numerous valuable sources of information, the author is biased to mid-sized apartment buildings. Despite his recommendations to hire top notch professional "consultants" to save time and limit problems, readers should be prepared to perform the necessary due dilegence required to find and monitor good consultants (requires your time and $), and to research and understand the conditions of each real estate market in detail. I benefited from the points set forth in the book overall, but compared to other "how to" books I've read, this one lacks the depth that I expected given its title.

I have been investing in residential properties for 27 years. Over the years I also attained the Certified Property Manager (CPM) designation. Based on my long experience and review of many other books in this field over the years, I find Vollucci's work an excellent one. The book covers all the essential steps an investor should take, and it is not too technical. Buying apartments or even fourplexas requires a considerable amount of work. At first properties may be hard to find and evaluate, but gradually one becomes more and more at ease with the process. Like no other, this book brings together all the elements of search and evaluation. In my opinion this is the best multi-family residential investment guide to date. I just bought my paperback last week (March 1999) and found that it was published in 1993. Although the nation's economy and real estate market for the most part has improved since 1993, this guide is entirely applicable today, even in my fairly tough area (Austin, Texas). Needless to say, I wish I had read it five years ago.

This book published in 1993 is one of the worst real estate books ever written. It surprising that a book this bad has lasted this long. Anybody who gives this book a good review is related to the author or seriously delusional. Some real estate books are bad because the author is unfamiliar with the topic, or can not offer detailed real world advice from their theoretical perspective. Believe it or not some real estate books are written by authors, who don't know what they're talking about, or tell a tale that has no basis in the practical real world. Mr. Vollucci apparently has been an investor for 25 years, at least according to the book's cover. so from his years of experience, you would assume that he would write a good book. You know what they say about assuming. He also has taught a real estate seminar entitled "Three Moves to a Million." This is a catchy title! The author states, "You too can become a millionaire starting with just $6,000, and you can do it in only three moves, if these moves consist of investing in midsize apartment buildings." He further defines midsize as 18 to 100 unit complexes. The first move is to buy a "hypothetical apartment building for $600,000" in Phoenix. He hypothetically forms an investment group of 10 individuals who put up $6,000 EACH for the down payment. Four years later the Phoenix property is "hypothetically" sold for $860,000. And a second "hypothetical" 44 unit building was bought in Boston for $1,750,000, now with a group of 5 investors. Apparently one "hypothetical" investor went home. Two years later the Boston property is "hypothetically" sold for $2,325,000. The third move was a 40 unit building in Seattle bought for $1,450,000 with no investing group. The one investor takes the proceeds from the Boston building and buys the Seattle building by himself. In 1990 the Seattle building was "hypothetically" sold for $2,267,043. Therefore the author using a computer program and 10 years of hindsight turned a mythical $6,000, into a "hypothetical" $1million dollars in only 10 years.

In the book are other facts that are suspect. For example its written in the book "that seven out of ten millionaires made their money in real estate." Read "The Millionaire Next Door" and the Forbes 400 riches for the real scoop. You'll find that the 7 out of 10 figure is grossly exaggerated by the author.

If you want to play a computer game and you want a million dollars "hypothetically", then this is the book for you. Otherwise read "The Millionaire Next Door" By Thomas Stanley and William Danko for information on REAL life millionaires. And for buying real estate apartments read William Nickerson's "How I Turned $1,000 into a Million in Real Estate in my spare time", which is not a computer simulation game.

Overall, I liked the book. It seems helpful. BUT, it is indeed outdated by 10 years, and although he mentions the IRR (Internal Rate of Return) over & over, as the most important number to evaluate a property -- he never explains how to calculate it or even what it is. I had the oppty to ask him in person (8/2002) what the formula is, and he hedged. He said that he knew it once, but now the computer calcs it, and to buy his ($$$) "Tenants In Common" text & Dr Jack Friedman's software package (also 10 yrs old, runs in DOS mode & WinME). Ok, so maybe 10 years isn't so old in Real Estate, but I was miffed that I couldn't find this important formula in the book anywhere. A few minutes with Google & I discovered that the IRR is indeed a very complicated calc that is much better for a computer to figure. The IRR is a measure of your investment; taking into account the Time Value of Money. The book didn't even say that. Otherwise, it's an ok book, and he uses examples that he is familiar with. Probably a better investor than writer.

This book is outdated and incorrect in many cases. The author presents data from the 80's, and no real substance behind his recommendations.

I use the criteria of "one good idea in a book makes it worth reading". I honestly did not get one idea from this book.

DO NOT WASTE YOUR MONEY!

If you want a top notch contemporary, practical guide to the realities of real estate investing, this is the book. Vollucci approaches the game of buying apartment houses from his background of many years as an accountant. He evidently learned from his wealthy clients and has figured out the formulas for identifying suitable locations in which to invest. His explanations are virtually void of hyperbole and he writes in a clear jargon-free manner. In addition to outlining his methods for analyzing markets and regions this book includes sections on syndication, marketing, and strategies for buying and arranging financing. This is not a game for the unsophisticated, but if you do the homework these strategies are the prudent investor's standard fare. Also, his references on how to use consultants and getting computer programs to help with analysis have can save alot of legwork.

This book talks about buying and selling apartment buildings, in fact it discusses the ownership of these buildings in such detail that it is easy to forget that all of the discussion is based on theoretical buys and sells. Never is a purchase or sale actually accomplished or discussed. This book also recommends readers to consult with a "real estate education" organization the author also happens to head, and to use the software developed by this organization.

This book is not based on real transactions but on "computer generated" sales and projections.I'm a long time and astute investor and I normally don't fall for "get rich quick" book sales,but volucci got me on this one.I thought I was buying a book written by on experienced apartment building investor,not a computer model "projection".I supose even an old dog like me will get "suckered" but rarely.It won't happen again.