5 Magic Paths to Making a Fortune in Real Estate [Paperback]

James E. A. Lumley (Author)

Book Description

Publication Date: May 21, 2004 | ISBN-10: 0471548251 | ISBN-13: 978-0471548256 | Edition: 2

A new and revised edition of the commonsense guide to real estate riches

More and more people are discovering that real estate investing is a safe and affordable way to increase their cash flow and build lasting wealth. If you want to achieve financial freedom, then look no further. 5 Magic Paths to Making a Fortune in Real Estate reveals the proven real estate investment strategies that many of today's millionaires used to make their fortunes. In fact, you don't even need a lot of money to start investing and start putting cash in your pocket today!

Real estate expert James Lumley offers simple, straightforward explanations of the most common and lucrative approaches to property investment--including fixer-uppers, lease/options, wholesales, buy-and-hold, and single-and multifamily rentals. You'll understand all the basics of real estate and learn to use these five strategies to make a killing in any economy. Packed with new information--including sections on the IRS's simplified tax exchange rules and the capital gains exclusion--5 Magic Paths to Making a Fortune in Real Estate will show you how to:
* Find foreclosed, repossessed, or condemned properties
* Research the markets and perform valuations
* Determine what you can safely afford
* Negotiate with sellers and buyers
* Find the best financing terms, including seller financing
* Price and perform money-making repairs
* Work with agents and contractors
* And much more!

Editorial Reviews

From the Back Cover

A new and revised edition of the commonsense guide to real estate riches

More and more people are discovering that real estate investing is a safe and affordable way to increase their cash flow and build lasting wealth. If you want to achieve financial freedom, then look no further. 5 Magic Paths to Making a Fortune in Real Estate reveals the proven real estate investment strategies that many of today’s millionaires used to make their fortunes. In fact, you don’t even need a lot of money to start investing and start putting cash in your pocket today!

Real estate expert James Lumley offers simple, straightforward explanations of the most common and lucrative approaches to property investment––including fixer-uppers, lease/options, wholesales, buy-and-hold, and single-and multifamily rentals. You’ll understand all the basics of real estate and learn to use these five strategies to make a killing in any economy. Packed with new information––including sections on the IRS’s simplified tax exchange rules and the capital gains exclusion––5 Magic Paths to Making a Fortune in Real Estate will show you how to:

• Find foreclosed, repossessed, or condemned properties
• Research the markets and perform valuations
• Determine what you can safely afford
• Negotiate with sellers and buyers
• Find the best financing terms, including seller financing
• Price and perform money-making repairs
• Work with agents and contractors
• And much more!

About the Author

JAMES E. A. LUMLEY is a real estate broker with more than thirty-five years of experience as a real estate salesperson, consultant, and educator. He is also the author of How to Get a Mortgage in 24 Hours and Challenge Your Taxes, both from Wiley.

Product Details

• Paperback: 336 pages
• Publisher: Wiley; 2 edition (May 21, 2004)
• Language: English
• ISBN-10: 0471548251
• ISBN-13: 978-0471548256
• Product Dimensions: 9.1 x 6 x 0.9 inches
• Shipping Weight: 14.2 ounces (View shipping rates and policies)
• Average Customer Review: 3.8 out of 5 stars  See all reviews (6 customer reviews)
• Amazon Best Sellers Rank: #381,144 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

188 of 189 people found the following review helpful:

2.0 out of 5 stars Very basic - too simplistic, November 26, 2000

By 

Linda Dyke (Midwest) - See all my reviews

This review is from: Five Magic Paths to Making a Fortune in Real Estate (Paperback)

The book covers five (5) very diverse ways to make money in the real estate market. The only problem is that four of the five catagories are treated too simplistic.

I live in the Milwaukee area and have been investing in multi-families for five years. Real estate investing is a great and quick equity builder. The tricky part is that real estate has been very robust here. A lot of these authors write as if we were still in a recession. They act as if good quality homes are being auctioned at the sheriff's office or that banks are loaded up on suburban defaults.

Every sheriff sale that I have been to in the suburbs has a price above market value.

Most of the owners that will do lease / options are selling inner city junk. Flipping houses in a hot or expensive market is a very tricky act, because you have a commitment for a high capital product. For instance, take a house at $170,000. Monthly hold cost will be high - $ 2,000 (including taxes). Wisconsin has a title transfer fee. Add in a realtor's fee and you really have to buy low. There are realtors every morning searching the MLS for ubder valued properties. I know some of them. "Get a steal" is fairly difficult.

Another truth that I discovered, if there is a really good deal, investors with cash reserves, will step in and buy. That means approaching an owner in greater MILW suburbs with an under valued property with all owner financing does not go to far.

The key to finding a good property; get to the owners before the realtors do. Do a mailing to apartment owners. Call them up. I have never been yelled at or hung up on when I called an owner and told them I was interested in buying their property. That how I brought my last two.

Last note, novices at "fixing-up" property generally under- estimate cost (and the value of their time) is fixing up houses.

In general, I thought he gave specific numbers in each example. However, I though they were unrealistic and not applicable to this market. The book is good for someone not in real estate, who wants to get in. However, readers will some intermediate real estate knowledge will be bored with the book.

132 of 149 people found the following review helpful:

5.0 out of 5 stars This book contains what the $5,000 seminars have... Buy it.., April 16, 2000

By 

Matt (US) - See all my reviews

This review is from: Five Magic Paths to Making a Fortune in Real Estate (Paperback)

I'm a fulltime real estate investor and I've spent thousands on RE courses and materials. This books is the BEST I've read under $500!

It contains the High-end Techniques that the expensive courses call "SECRETS".

This is Must-Buy for anyone that wants tot get in on the $ in Real Estate Investing.

23 of 24 people found the following review helpful:

5.0 out of 5 stars Great for Novices, August 26, 2000

By 

Nichole Byers - See all my reviews

This review is from: Five Magic Paths to Making a Fortune in Real Estate (Paperback)

I'm just starting out in Real Estate Investing, and this is the first book I've read on the topic. The book explains the 5 "paths" in a way that, as a beginner, I can still understand, yet its far from being simplistic.

I was expecting this book to be just a basic "overview" of Real Estate investing, but the author gives you a lot more inforation than just the basics.