Investing in Income Properties: The Big Six Formula for Achieving Wealth in Real Estate [Hardcover]

Kenneth D. Rosen (Author)

Book Description

ISBN-10: 0470190833 | ISBN-13: 978-0470190838 | Publication Date: August 4, 2008 | Edition: 1

Praise for INVESTING IN INCOME PROPERTIES

"Investing in Income Properties is a cogent and well organized presentation of the principles of real estate analysis, financing, and investment. With his 'Big Six Formula,' Ken Rosen shares his knowledge and experiences on how to analyze and take advantage of commercial real estate investment opportunities. This book should be required reading in all real estate investment courses."
--John S. Zdanowicz, PhD, Professor, Finance and Real Estate, and Director of the Jerome Bain Real Estate Institute, Florida International University

"Ken Rosen has a unique ability to make the most complicated seem clear and easy to follow. In Investing in Income Properties, he gives practical steps so that the reader can take action and begin or continue to build wealth by investing in income properties. This book will become the buyer's bible."
--Alex Zylberglait, Associate Director, National Office and Industrial Properties Group, Marcus & Millichap Real Estate Investment Services

"Investing in Income Properties is a step-by-step approach to investing in commercial real estate. It is clear, easy reading with every base covered. This book is a great tool for both the new and seasoned investor."
--Donna Abood, Chief Executive Officer, Colliers Abood Wood-Fay, Commercial Real Estate

"Ken Rosen's style is straightforward and his formula for building wealth is well grounded in the fundamentals--nothing fancy or tricky about it! He even puts the would-be investor at ease by addressing the fear factors of real estate investing. Twenty-one years into my career as a real estate investment sales broker, I have met many successful investors, but Ken Rosen clearly stands out as a savvy, self-made entrepreneurial investor who is generously sharing his wealth of knowledge and insight in this very instructive and easy-to-read book."
--David L. Meline, Executive Director, Capital Markets Group, Investment Sales Specialist, Cushman & Wakefield of Georgia Inc.

"One of the best, precise, and accurate real estate books on the market. A must-read for investors at any stage."
--Scott K. Sime, Managing Director, CB Richard Ellis Brokerage, Miami-Dade County

Editorial Reviews

From the Inside Flap

Many people think of real estate in terms of homes, but there is much more to this market. Real estate offers a powerful alternative for people seeking investment opportunities beyond the stock market. In fact, one of the best kept secrets in the country is that fortunes are being made every day in income-producing properties—not just by the rich, but by ordinary people who started off buying little apartment buildings, neighborhood shopping centers, small office buildings, and clusters of small warehouses. And even though the housing market is still in a significant slump, income-producing properties—also known as commercial real estate—remain healthy and vibrant.

Ken Rosen, a real estate investor who has bought and sold $300 million worth of investment real estate over the past thirty years, knows what it takes to achieve exceptional wealth through income-producing properties. With this easy-to-understand resource, he'll show men and women who have never invested how they can be successful. Rosen also reveals how experienced investors can find useful new ways to look at their real estate portfolios.

Divided into three comprehensive parts, Investing in Income Properties reveals the profitable six-step formula Rosen has created to capture impressive profits over the course of his successful real estate investing career.

• Part One: The Basics explores the essentials of real estate investing, its unique advantages over other investments, how to overcome investment fears, ways to obtain the cash to get started, and how to find the right professionals to help build a successful portfolio.

• Part Two: The Big Six Formula breaks down Rosen's time-tested real estate investment strategy and shows you how it can be used to identify and purchase the right property at the right price, arrange financing, build equity, cut income taxes, and much more. Rosen will also tell you why money is made in buying—not selling.

• Part Three: Moving Forward focuses on how to handle your investment after you've closed the deal, and examines how you can increase the revenue and maximize the value of your property. Rosen uses photographs of actual properties and cites case studies of people who became rich using his approach.

Investing in Income Properties will help you become a successful real estate investor. If you come to understand the real estate industry and apply the insights found in this book, you'll begin to forge a personal path to financial freedom that could last a lifetime.

From the Back Cover

Praise for INVESTING IN INCOME PROPERTIES

"Investing in Income Properties is a cogent and well organized presentation of the principles of real estate analysis, financing, and investment. With his 'Big Six Formula,' Ken Rosen shares his knowledge and experiences on how to analyze and take advantage of commercial real estate investment opportunities. This book should be required reading in all real estate investment courses."
—John S. Zdanowicz, PhD, Professor, Finance and Real Estate, and Director of the Jerome Bain Real Estate Institute, Florida International University

"Ken Rosen has a unique ability to make the most complicated seem clear and easy to follow. In Investing in Income Properties, he gives practical steps so that the reader can take action and begin or continue to build wealth by investing in income properties. This book will become the buyer's bible."
—Alex Zylberglait, Associate Director, National Office and Industrial Properties Group, Marcus & Millichap Real Estate Investment Services

"Investing in Income Properties is a step-by-step approach to investing in commercial real estate. It is clear, easy reading with every base covered. This book is a great tool for both the new and seasoned investor."
—Donna Abood, Chief Executive Officer, Colliers Abood Wood-Fay, Commercial Real Estate

"Ken Rosen's style is straightforward and his formula for building wealth is well grounded in the fundamentals—nothing fancy or tricky about it! He even puts the would-be investor at ease by addressing the fear factors of real estate investing. Twenty-one years into my career as a real estate investment sales broker, I have met many successful investors, but Ken Rosen clearly stands out as a savvy, self-made entrepreneurial investor who is generously sharing his wealth of knowledge and insight in this very instructive and easy-to-read book."
—David L. Meline, Executive Director, Capital Markets Group, Investment Sales

Specialist, Cushman & Wakefield of Georgia Inc.

"One of the best, precise, and accurate real estate books on the market. A must-read for investors at any stage."
—Scott K. Sime, Managing Director, CB Richard Ellis Brokerage, Miami-Dade County

See all Editorial Reviews

Product Details

• Hardcover: 272 pages
• Publisher: Wiley; 1 edition (August 4, 2008)
• Language: English
• ISBN-10: 0470190833
• ISBN-13: 978-0470190838
• Product Dimensions: 9.2 x 6.4 x 1 inches
• Shipping Weight: 15.2 ounces (View shipping rates and policies)
• Average Customer Review: 4.8 out of 5 stars  See all reviews (24 customer reviews)
• Amazon Best Sellers Rank: #125,445 in Books (See Top 100 in Books)

More About the Author

Discover books, learn about writers, read author blogs, and more.

Customer Reviews

Most Helpful Customer Reviews

54 of 55 people found the following review helpful:

1.0 out of 5 stars Experienced Investor - Thoroughly Disappointed, May 19, 2009

By 

James M. Dorey Jr. - See all my reviews
(REAL NAME)   

This review is from: Investing in Income Properties: The Big Six Formula for Achieving Wealth in Real Estate (Hardcover)

I am a 30-year old experienced real estate professional that was thoroughly disappointed in this book. I'm a commercial real estate analyst for a national firm in a large U.S. city. I also own five rental properties of my own. It is rare that an "entry-level" book such as this will catch my attention anymore. However, as it had a one-page write-up in the National Real Estate Investor magazine, it caught my eye. Looking further at the reviews on Amazon.com, I saw 19 reviews - all were 5 stars. So I purchased the book.

However, it is disappointing. For one thing, the author makes the claim that commercial properties are recession proof. Really? For the un-initiated, commercial properties are typically purchased based on cap rates. You'll take the Income that a property produces and divide it by an appropriate cap rate to determine what you will pay for the property, or what market value for the property is. As a result of the current credit crisis, risk has been re-assessed and cap rates have risen significantly across the board.

There is no doubt that cap rates have risen. Take for example a property that produces an annual income of $100,000. If you use a cap rate of 6.5% (fairly typical about a year ago), the result would be a value of approximately $1.5 million. Cap rates have risen consistently approximately 200 basis points over the past year. That same property would sell today w/ a cap rate of 8.5%. Using this cap rate results in a value of approximately $1.2 million. That is a value loss of $300,000, or approximately 20% of your value. Typically an investor would put 20% down. So if you bought this property a year ago w/ a 20% downpayment, your investment today would be gone and you could potentially be bankrupt. Does this sound like an investment that is "recession proof" to anyone?

I know my comments here sound like I am a nay-sayer. I actually am not. However this authors angles on things are simply not accurate and are clearly written to an audience that can't counter the author's points. It may be a good read for someone looking to learn more about the real estate industry. However, anyone with any existing knowledge and experience in the industry should skip this one.

4 of 4 people found the following review helpful:

5.0 out of 5 stars A review from a CPA, August 30, 2008

By 

R. Glick - See all my reviews
(REAL NAME)   

This review is from: Investing in Income Properties: The Big Six Formula for Achieving Wealth in Real Estate (Hardcover)

As a practicing CPA in both California and Florida for 20 years and as a witness to the recent real estate boom and downturn, it is clear that Ken Rosen has deep understanding and a vast experience in investing in income producing property. I wish all my clients over the years had his insight into the basic fundamentals before jumping into a real estate investment. I have no doubt that if certain of my clients were aware of Ken Rosen's investment approach that many of them would have made much better decisions and as a result, would either have made more money or could have even avoided financial crises.

It is important to note that this book speaks to many relevant fundamental issues that are driving the US economy. Ken Rosen addresses the most current and relevant tax issues, legal concerns, the importance of ideal financing and negotiating with a bank.

Anyone already involved in commercial real-estate or getting started will benefit from this well written and easy to read book

2 of 2 people found the following review helpful:

5.0 out of 5 stars Good introduction to commercial real estate, November 14, 2009

By 

Mariusz Skonieczny "Author" (Schaumburg, IL) - See all my reviews
(REAL NAME)   

This review is from: Investing in Income Properties: The Big Six Formula for Achieving Wealth in Real Estate (Hardcover)

This is a good book on commercial real estate investing. It introduces readers to many different types of income properties, and describes how to get them financed and how to analyze them. While there are certain advantages to real estate, such as control and leverage, no investment is risk-free or recession-proof. There is no such thing. The best way to make money in any investment is to buy it at a reasonable price. I don't care whether your investment is in stocks, bonds, or real estate, if you overpay, you will lose money. Many are learning this lesson the hard way because stocks and real estate prices have recently plunged. With that being said, I think that this is a perfect opportunity to buy both stocks and real estate because investors are fearful sitting on the sidelines hoping for the economy to recover. When it does recover, the deals will be gone. Commercial real estate suffers from lack of financing availability, which makes it extremely attractive to those who are able to get financing. Follow this book's advice, but remember that when you are buying a piece of real estate or a stock, you are buying into a business. With real estate, you have the control so you will be running it yourself. With stocks, you have no control so you better pick a company with good management. Either way, you must buy at a good price, and when the business operates and makes good money, the value of your investment will go up and you will make a profit.

- 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