How to Make Money in Real Estate in the New Economy [Paperback]

Matthew Martinez (Author)

Book Description

Publication Date: December 7, 2010

"If you're an investor sitting on the sidelines thinking you have no play in today's property market, think again. In his new book, Matt Martinez gives you everything you need to know to start profi ting from the new paradigm in real estate." -- ROBERT IRWIN, bestselling author of How to Get Started in Real Estate Investing

THE NO-GIMMICKS GUIDE TO PROFITABLE REAL ESTATE INVESTING IN POST-RECESSION MARKETS

Praise for HOW TO MAKE MONEY IN REAL ESTATE IN THE NEW ECONOMY:

"Martinez demonstrates that real estate is still the place to be in order to grow wealth. Every serious investor and would-be investor needs to read this book." -- MICHAEL C. THOMSETT, author, Getting Started in Real Estate, third edition

"The great recession has created a new reality for real estate investors--and Matt Martinez describes a sensible pathway toward intelligent buying decisions in the midst of changing times." -- MATT WANDERER, principal, Alterra Capital Group

"A must read." -- JON SWIRE, author, There's No Free Lunch in Real Estate

"Matt Martinez is the Warren Buffett of real estate investing. I give his books to all investors who buy buildings from me." -- FRANK PONCE, Commercial & Investment Properties, Scott Anastasi Realty

"Matt's book provides the tools for success that are essential for anyone interested in building a winning real estate portfolio in this new economy." -- DANIEL M. PALMIER, president & CEO, Potomac Realty Capital

"Matt Martinez does it again! The real estate landscape has changed forever. The lending industry is different, the players have changed and it is a new world out there. The new buyer must be an educated buyer. Matt allows the reader to become embedded in the industry -- smarter and more powerful. Get smart and READ Matt’s book before you go out there." -- DALE ROBYN SIEGEL, award winning author of "The New Rules for Mortgages"

"Matt Martinez is giving a no nonsense guide on how to succeed in today’s complex real estate investment market. A must read." -- PACO DIAZ, Senior Vice Prsident CB Richard Ellis

"Matt has really hit the target with his new book. The real estate landscape has changed dramatically, so investors who want to prosper must adapt to these turbulent times. Matt clearly outlines the pitfalls and opportunities that exist in this new environment. Matt’s book is a must read for anyone investing in the new economy!”" -- GARY KACHADURIAN, Chairman, Apartment Realty Advisors

"As a sole owner of roughly 2,900 units located mostly in Silicon Valley, I thoroughly enjoyed Matt’s book. I would HIGHLY recommend it to anyone interested in real estate investing in the new economy, as it is informative and practical."--TOD SPIEKER, President, Spieker Property Management Company

"As a professional who is involved in real estate transactions on a daily basis, I have seen the commercial real estate market transform in the past three years. In How To Make Money In Real Estate In The New Economy, Matt Martinez outlines key strategies for seizing strategic investment opportunities and identifying would-be pitfalls. It’s a terrific resource for anyone looking to invest in today’s complex real estate landscape."--TERE BLANCA, President and CEO of Blanca Commerical Real Estate

HowToMakeMoneyInRealEstateInTheNewEconomy.com

Editorial Reviews

About the Author

Matthew Martinez is a principal of Beacon Hill Property Group, a founder of Landlord and Investor Group (LIG), and the author of the bestsellers 2 Years to a Million in Real Estate and Investing in Apartment Buildings. Visit Matthew Martinez at www.matthewamartinez.com.

Product Details

• Paperback: 192 pages
• Publisher: McGraw-Hill; 1 edition (December 7, 2010)
• Language: English
• ISBN-10: 007174262X
• ISBN-13: 978-0071742627
• Product Dimensions: 6 x 0.4 x 9 inches
• Shipping Weight: 8.8 ounces (View shipping rates and policies)
• Average Customer Review: 4.6 out of 5 stars  See all reviews (38 customer reviews)
• Amazon Best Sellers Rank: #144,458 in Books (See Top 100 in Books)
  • #95 in Books > Business & Investing > Real Estate > Buying & Selling Homes

More About the Author

Beacon Hill Property Group, a private real estate investment company that acquires value-add income-producing properties, was established in 1999 by Matthew Martinez.

The company's transaction expertise covers a broad range of disciplines including multifamily, retail, property management, consulting, construction and development. In a principal capacity, Matthew has been successful in a number of real estate ventures.

- He is currently the adviser to several private equity groups that have raised more than $1 billion dollars to acquire distressed multifamily assets
- He has bought and sold numerous real estate projects
- He has skillfully raised private capital to acquire income-producing real estate assets throughout the United States.
I- n 2002 he founded the Landlord and Investor Group (LIG), the largest real estate investment association in New England. With more than 2,500 members, LIG helps investors excel in the real estate industry by educating and sharing best practices and time-proven strategies.
- He is the best selling author of three investing books.
- He is a spokesperson for Intuit's rental property management software and an AOL Money Coach.

Matthew serves on the housing committee for Travelers Aid Family Services, a Boston-based non-profit founded in 1920 to assist the poor and disadvantaged with their housing needs.

He is also a member of the Metropolitan Boston Housing Partnership's (MBHP) Board of Directors. MBHP helps individuals and families find and retain affordable housing. MBHP is the state's largest provider of rental voucher assistance, serving the homeless, elderly, disabled, and low- and moderate-income residents of Boston and 29 surrounding communities.

Matthew Martinez founded a scholarship to support single parents who are determined to obtain a college degree so that they may improve their earning capacity and improve their family's long-term economic stability. The scholarship was founded as a partnership between the University of Massachusetts Boston, Metropolitan Boston Housing Partnership (MBHP) and Beacon Hill Property Group

Matthew has never wavered in his commitment to supporting his community. He has been involved in many charitable causes and civic organizations over the years.

Most Helpful Customer Reviews

63 of 64 people found the following review helpful

5.0 out of 5 stars I would re-title the book, "White Paper on Real Estate in 2011" January 30, 2011

By Jennifer Lamb

Format:Paperback|Amazon Verified Purchase

As a beginner to the world of real estate investing, I found this book a realistic, down-to-earth perspective on the real estate market. It is a primer on the author's perspective that real estate is still a solid investment in 2011-2012, even with the economic meltdown still in progress. Although he is quick to point out is not nearly as easy to invest as it was in 2005 at the peak of the bubble.

I don't see this as much of a how-to book, however, Martinez's perspective on buying in 2011 is well-worth the purchase price if you're looking for a well-formed, thoughtful opinion of the market in general and why real estate is a solid investment. There is no how-to advice or steps to follow. 740 FICO score, 20% down payment required, non-owner-occupied investment properties now require 25% down, those requirements for funding were the extent of any how-to. What is most valuable is the concise, easily digestable explanation of the steps leading to the economic meltdown; investing now is smart because commercial real estate is the next shoe to drop due to shorter-term commercial loans maturing in coming years with the high likelihood that there won't be enough equity to support refinancing. Banks will be forced to address their commercial loans the same way they have had to address their lending practices with residential real estate and there will be foreclosures. He says that experts estimate that commercial loan deliquencies will peak in 2012.

"How To Make Money In Real Estate In The New Economy" is a bit of a departure from his last book, "2 Years to a Million in Real Estate...." The title of that book is a misnomer as it seems more of a get-rich-quick scheme than the informational how-to I found it to be. That being said, if you're looking for a more in-depth explanation of HOW-TO, "2 years to a million" is a better book by Matthew Martinez for an explanation of real estate terms and ratios etc. This book is better for a realistic outlook on buying in 2011-12. I liked both books for different reasons. This book reads more like an informed op-ed piece in the Wall Street Journal than a how to book, it is grounded with multiple stories from investors and that is why I find it so valuable... you won't get this information or perspective in a get-rich-quick book or the many Robert Kiyosaki Rich Dad's Guide to Investing: What the Rich Invest in, That the Poor and the Middle Class Do Not! books that are more motivational than packed with useful information.

Martinez does not present any new how-to information here, he reiterates the tried and true foundations of real estate investing: 20% down, capital available for reserves, good credit score and conservative investing. This advice is a departure from the last book of pulling out equity on each purchase to fund the next; Admittedly, this is how he made his fortune in real estate, but over-leveraged financing is a relic from the past.

The value in this book comes from his perspective on why this is a great time to invest if you can find the capital for the down payment. "Investors who choose to align themselves on the side of prosperity will act before the media begin writing about the Great Recovery. After all, contrarian investors will have acquired much of the low-hanging real estate fruit in your farm area(chosen neighborhood for acquisitions) by the time the media decide to stick their necks out and publicly declare the end of the "Great Recession.""

The entire book is Martinez's well-thought out perspective on real estate with examples from history to support his assertions. He offers detailed reasons to underpin his observations and this makes it a compelling read since everyone else seems to be screaming to avoid real estate. If you have the same recurring thought that now may be a good time to invest, when everyone else is leaving the game,this is a great book to find out WHY that thought makes a lot of sense.

There are many stories from successful real estate investors and how they have changed their strategies since 2007 that are worth your time. This is a great read.

Don't count on "how-to" steps but rather a great perspective to reinforce your decision to pursue real estate investing even when it appears the rest of the world is running the other way. That's how people have made a lot of money throughout history... get in while the price is low, keep your debt low and make sure you're making money on the property as soon as you close, don't count on appreciation. Read more ›

32 of 34 people found the following review helpful

1.0 out of 5 stars there was a bubble, now it's over - that's all this book says October 11, 2011

By Susan Klefstad

Format:Paperback|Amazon Verified Purchase

Unfortunately, I wasted my money on the Kindle edition I can't return or resell. I am interested in investing in real estate, have no experience, so I'm looking to learn. This book doesn't teach you anything you don't already know if you read a paper, like the Wall Street Journal, and have the tiniest bit of common sense -- like don't buy a property for more than it's worth.

This book describes, over and over, how deals that were done during the bubble overleveraged with easy credit to pay inflated prices for assets, but now lending is tight. Well, duh. If you've been reading the Wall Street Journal the last few years, there's nothing new about this concept. There are numerous "case studies" or stories of people who avoided overleveraging, or else didn't avoid it...once again, if you read the paper, you've already read lots of stories like this. This book tells you things like don't pay too much for the property. Uh-huh. If you can't find a good deal for yourself to buy, instead you could work really hard to broker deals for other people, like the author did. Well, for me personally, if a deal isn't good enough investment for me, I'm not going to try to sell it to someone else.

For example, here's a quote:
"There is also a tremendous opportunity to acquire foreclosures at undervalued prices. However distressed investing will require extensive due diligence and research on your behalf to avoid overpaying in a market that's continuously evolving."

I thought I was doing research by buying this book, hoping to learn some of the gritty details of what to look for in distressed properties, how to value them, etc -- then this book tells me to be sure to do research. Uh, thanks.

Because lending is so tight, how do you finance a deal to get started?... The author suggests -- get ready for these brilliant insights now from Chapter 20 -- that you either a) get money from friends or family, b) use your own savings, or 3) earn money in another business first, then invest it in real estate:

"If you don't have an extra $250,000 in your trust fund, you'll need to earn it before buying. This chapter introduces you to the notion of making money in another industry so that you can afford to buy real estate on your own."

The chapter then goes on to describe a "Case Study" of David, who made money selling carpet and futons to college students. I didn't buy this book because I want to start a business selling futons to college students. I want to know the inside details of how real estate markets work, and how prudent investors value properties. This book does not provide ANY information about these things. If you have been living under a rock the last few years, then this book will explain ad nauseum how there was a real estate bubble of easy lending and inflated property values which has since collapsed. If you already know this, you can skip this book. Read more ›

32 of 35 people found the following review helpful

2.0 out of 5 stars not for rookie investors August 2, 2011

By Martin Cortes

Format:Paperback|Amazon Verified Purchase

I have been wholesaling for 2 years and still consider myself a novice investor. I picked up this book with the intent to maybe pick up some tips on investing through wholesaling (flipping), buy and hold, etc. Instead most of the book it talks about why we are in a down market which everyone interested in real estate should know. It is mostly geared towards commercial real estate and experienced investors. Not for the average investor trying to come up.

11 of 11 people found the following review helpful

5.0 out of 5 stars Tried and True Way to Build Assets January 15, 2011

By Frank H. Ponce

Format:Kindle Edition|Amazon Verified Purchase

If you are a real estate professional, real estate investor, or want to get into real estate investing - this is the book to buy. Matthew's book is unlike all of the other attention-grabbing get-rich-quick schemes one sees on late night television that truly do not work. They do not work because there is no discipline and sound analysis. It is just speculation. In this economy you must get back to fundamentals. Investing in real estate using Matthew's methods and books are a true and tried way to build up assets, enhance income, and prepare for when you retire or the cost for college. With his books, a thought out plan, and some money, anyone can profit by purchasing and selling rental properties. This is a down economy and the time to buy property. Don't be left behind. I am an apartment building owner and I also broker apartment buildings. I read a lot of books on the subject, and no one does a better job than Matthew Martinez in showing you how to do it. Get this book!

5 of 5 people found the following review helpful

1.0 out of 5 stars Not a Lot of Meat, Plenty of Fat November 8, 2011

By Michael Chavez

Format:Paperback|Amazon Verified Purchase

This book is full of details and observations about our existing economy. Yes, we all know that many people lost a lot. Yes, things are bad for many. I get it. The book is full of stories of people who were already in the business and found success in various forms. But the book is very weak and vague on specific strategies that can be applied to investors. Sure, "some guy did some deal", but but the preceeding analysis was weak or simply did not exist. Also, waiting for years until the market improves before buying--is not a real estate strategy.