Customer Reviews

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

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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.

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

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

As a commercial real estate professional with over 20 years of appraisal, lending, brokerage, and advisory experience, Ken Rosen's "Investing in Income Properties" is one of the better reads on the subject that I've found in quite a while. Whether you're a novice trying to break into this dynamic and potentially profitable industry, or a seasoned income real estate investment pro, there is something here for everyone. His "Big Six" formula reads much like a due diligence checklist on what to consider when potentially purchasing an investment property, and he addresses strategies for the most typical property types - retail, apartments, industrial, office, and more. The book also addresses the fears and uncertainties associated with purchasing investment real estate. There is also relevant discussion about the importance of - and how to build - a team of professionals such as brokers, lawyers, appraisers, accountants, property managers, lenders, and others that are instrumental in the acquisition and ownership process. Rosen also warns of some of the pitfalls and how to circumvent them.

One of Rosen's most interesting concepts is what he refers to as "infinity returns", whereby an investor's original equity investment can be recouped from a property without selling while at the same time retaining cash flows, both of which allow for future acquisitions of real estate. Every type of income-producing property is discussed, with varying strategies for each. But, by far the greatest gems in the book are the case studies. The author takes the reader through critical aspects of prior deals he's done, and provides real world insight on what to do - and what not to do. There's over forty years of commercial real estate experience packed in this book, and based on that alone it's worth the price.

When I came across Ken Rosen's book, "Investing in Income Properties", I immediately ordered it for three reasons. First, I am a firm believer in continual learning from many sources. Second, because I was aware of Ken Rosen's real world real estate success. And third, because investing in income properties has given me a very secure and comfortable lifestyle at a young age.

The real treat came when I read this incredible book. I have always believed that learning from the mistakes and successes of others is the fastest and most intelligent way to succeed yourself. With that in mind, and being a private, independent real estate investor, I have always wanted to sit down with other successful real estate investors to "pick" their brains for the valuable insight and wisdom that can only come from years of real life experience. Well, reading Ken's book provided that the valuable insight and wisdom. For anyone with real life experience as a direct investor in real estate, you will immediately relate to and benefit from the content in Ken's book. More importantly, for a beginner in real estate investing, it provides a framework from which to gain a broad understanding of the subject and practical steps on getting started towards real estate investing success.

This book is not only great fun to read because it flows like a real life conversation with a truly successful person in the real estate field, but it will also teach you real life situations, unlike most other real estate books written by authors whose primary profession is "writing" books instead of "living" the information that their book contains.

When you read Ken's book, you will immediately realize that he is not "talking" the real estate talk. He has actually "walked" the real estate walk in a big way and has personally achieved great real estate success, and he is willingly sharing with you his years of real life experience so that you too can live your lifestyle dreams with real estate investing.

Don't miss this book.

Charles A. Guerra
Real Estate Investor- Miami, Florida

I have just finished reading "Investing in Income Properties by Kenneth D. Rosen.

I can't imagine a better book on the subject for non-professional investors in real estate income property. Mr. Rosen has written this great book in plain English and in a very logical manner that ordinary investors can understand (something hard to find in books written by professional's)

Before retiring, we were heavily invested in income real estate. As I think back about how we floundered around trying to get reliable advice, I can only imagine how much time and anguish we would would have saved had we had been able to read Ken's book beforehand.

As I said, "I can't imagine a better book on the subject." 5-stars PLUS.

By Taylor Larimore, co-author of "Bogleheads' Guide to Investing."

I am the author of 23 reference books, so for me to praise a book about investing indeed is a rare compliment. The timing of this book is extraordinary. The stock market is precarious and residential housing is in a shambles. Ken Rosen provides a simple alternative -- commercial real estate. He describes small office buildings and other commercial properties that a neophyte can obtain with a relatively small initial investment. The step-by-step instructions are easy to understand and, surprisingly, a pleasure to read. This book will be extremely useful to all types of investors, including people like me who have no real estate experience except for owning my home.

This was what I was looking for - it lays out in clear terms what you need to do to be successful in investment real estate. The author really does give you the facts and the real background information without filler, and that in itself is quite refreshing. I would recommend a couple other books (primarily related to finances) as suppliments, but even as a stand-alone, this is a great book to have if you want to get into this area of investment.

I have been a Real Estate Broker for 30 years and I just finished this book, "The Big Six Formula". This should be required reading for anyone in the Real Estate Business or in college. The book clearly demonstrates Mr. Rosen's expertise in the field and his ability to communicate to his readers. I particularly liked his candid sharing of his successes and his failures and his dispelling the myth that you can get rich in Real Estate fast and enjoy large cash flows with no money down. Coodo's to Mr. Rosen, I hope his book hits the top ten in 2009.

Respectfully,

J.E. LeMieux
R.E. Broker

I have been a widow for many years and timid about anything but the most conservative investments. A friend recommended this book to me. As I proceeded from chapter to chapter I gained a resolve not to be so intimidated by the world of real estate investing. I have contacted an agency to find me appropriate investment properties that fit : The Big Six Formula for Achieving Wealth in Real Estate as outlined by Mr Rosen.
I am excited about my prospects and thankful to have read this book.