Most helpful positive review
33 of 33 people found the following review helpful
Great book - helped me acquire 13 properties in 1 year
on February 7, 2005
This is a great motivational book to help you get started in real estate investing. This book inspired me to get started in real estate investing and in my first year I acquired 13 properties.
However, there is still A LOT of risk. The authors make everything sound like it is very simple and I can tell you from first hand experience that it is not. The book will give you a good background of how a lease option works and how to get a homeowner to lease option their home to you.
Where the book falls short is on the fine details and the risk. For instance, the book does not give you any sample contracts. The authors instead want you to buy their CD ROM of forms which they charge a small fortune for. I found the lease option contract form I use on the Internet for about $25 and saved myself a bundle.
And now the risk. Problems you WILL face are:
1. Tenants making late rent payments. Can you afford to cover a lease payment to the homeowner if your tenant is broke and 15+ days late paying his/her rent? For each home you put under a lease option, you face the risk of your tenants being late on their rent and you having to cover the lease payments you are legally entitled to pay the homeowner.
2. Tenants who back out of their lease agreement and stop making their lease payments. It may take you 2-4 months to find a new qualified tenant, especially if it happens in winter and you live in a northern region (people don't like to move when it is cold and there is snow). Can you afford to make lease payments to the homeowner during this period?
3. Bounced rent checks from your tenants. This is a fun one. You deposit your tenant's check and then pay your lease payment to the homeowner. Then, your tenant's check bounces. Hopefully you have enough money in the bank to cover your lease payment to the homeowner or your check will bounce too.
If you want to get into real estate investment, this book is a great place to start. Just be aware that it is not nearly as easy as the authors want you to believe it is and there is a lot of risk involved. But then again, in any type of investing, there will be risk, and the rewards of real estate investing almost always outweigh the risk.
I am thankful I read this book because it gave me the motivation and confidence I needed to get started investing in real estate. And, in my first year of investing in real estate, I have made over $50,000.