Real Estate 101 Summary
Midterm/Book Review
By
George Nemi
English 1101: Wednesday Professor Philip Glauber
Due Date (10.1.08)
Entreprenurial Investmet in Real Estate? You bet!
Real Estate 101: Building Wealth with Real Estate Investments; by Gary W. Eldred. Copyright in 2006 by Trump University.
. Dr. Eldred, a professor who has faculty positions in top universities, including Stanford, is the bestselling author of several real estate investing books that preach the importance of becoming a knowledgeable investor. Eldred’s latest book, Real Estate 101, is a “How To” on real estate investing for beginners that expands on his theory of being knowledgeable that includes thinking like an entrepreneur. …show more content…
By thinking like an entrepreneur, the author means becoming a savvy investor by doing the research (due diligence), market forecasting, profit analysis and marketing.
The most important thing for Eldred, however, is for the investor to see his real estate not as property but as a product to be marketed and sold. Thinking like an entrepreneur starts with DUST, a system design by Eldred that stands for: Demand, utility, supply and transfer process. By learning this system you’ll be able to sharpen your entrepreneurial thinking and then turn your property into an MVP (most valued property). In this way, Eldred views rental properties as products that investors create, market and sell to renters like an entrepreneur would sell a product at a
store. Eldred complements this new, creative approach to investing by also including traditional methods of real estate valuation, timing and property management. He explains in detail the different formulas to value an income producing property, to calculate the return, and the net operating income. Finally Eldred reiterates traditional investment theory of buying low through short sales and foreclosure.
I agree with Dr. Eldred entrepreneurial theory because basically it supports a long term investment strategy. Dr. Eldred introduces the idea that real estate investment is not about making a quick profit but rather, by thinking like an entrepreneur, one can buy intelligently and then rent so that one can have steady returns for long term with low risk. This is very different than many of the real estate investing books that advocates risky, speculative strategies like trying to time the market or buying and flip for a quick profit.. I also agree with Dr. Eldred entrepreneurial theory of creating a product. Basically he studies the market and learns what the market segment is looking for and then he creates the product and rents it to them. This affectively increases the value of the investment while decreasing the risk that the property would go unrented and not make a return. I particularly enjoy and appreciate the method that Eldred uses to convey his theory like giving real-life examples of mistakes he and some other big investors have made. Some of the best advice, in my opinion, is not to limit your search of investment properties to you local neighborhood, but rather, think big. For example look in other cities or other states or even go internationally if you can. Another piece of good advice is always to perform a title search. One never knows what liens the property carries. Also get a home inspection. This is a key factor that helps avoid unexpected future repairs. All of this advice saves money and headaches, which is priceless. The only real issue I have with Eldred theory of entrepreneurial real estate investing is that it seems tight to the old traditional theory of having to buy property at reduce prices to be successful. While of course buying property cheaper is always a smart thing to do. When you use Eldred’s entrepreneurial strategy that is based on market research, product creation and marketing it shouldn’t be necessary to buy low. And I thought Eldred could have made this clearer. As it is, it looks like it could be confusing to novice investors or just a reader that is trying to get the idea of investing in real estate. In summary, Dr. Eldred a very well respected professor at different top universities introduces a new method of real estate investing by thinking like an entrepreneur which means becoming a savvy investor by researching and study the market. He also treats the property as a product which is a totally new concept for most investors. I agree with Dr. Eldred because I do believe that long term investments are always the smartest move because its more secure and is not subject to the market like just buying and flipping properties. As much as I agree in Dr. Eldred method of real estate investing I still think that some of his new ideas are based on the old methods like buying low. I believe in his method so I disagree that you need to buy a foreclosure or a short sale to make a long term profit.
By
George Nemi
English 1101: Wednesday Professor Philip Glauber
Due Date (10.1.08)
Entreprenurial Investmet in Real Estate? You bet!
Real Estate 101: Building Wealth with Real Estate Investments; by Gary W. Eldred. Copyright in 2006 by Trump University.
. Dr. Eldred, a professor who has faculty positions in top universities, including Stanford, is the bestselling author of several real estate investing books that preach the importance of becoming a knowledgeable investor. Eldred’s latest book, Real Estate 101, is a “How To” on real estate investing for beginners that expands on his theory of being knowledgeable that includes thinking like an entrepreneur. …show more content…
By thinking like an entrepreneur, the author means becoming a savvy investor by doing the research (due diligence), market forecasting, profit analysis and marketing.
The most important thing for Eldred, however, is for the investor to see his real estate not as property but as a product to be marketed and sold. Thinking like an entrepreneur starts with DUST, a system design by Eldred that stands for: Demand, utility, supply and transfer process. By learning this system you’ll be able to sharpen your entrepreneurial thinking and then turn your property into an MVP (most valued property). In this way, Eldred views rental properties as products that investors create, market and sell to renters like an entrepreneur would sell a product at a
store. Eldred complements this new, creative approach to investing by also including traditional methods of real estate valuation, timing and property management. He explains in detail the different formulas to value an income producing property, to calculate the return, and the net operating income. Finally Eldred reiterates traditional investment theory of buying low through short sales and foreclosure.
I agree with Dr. Eldred entrepreneurial theory because basically it supports a long term investment strategy. Dr. Eldred introduces the idea that real estate investment is not about making a quick profit but rather, by thinking like an entrepreneur, one can buy intelligently and then rent so that one can have steady returns for long term with low risk. This is very different than many of the real estate investing books that advocates risky, speculative strategies like trying to time the market or buying and flip for a quick profit.. I also agree with Dr. Eldred entrepreneurial theory of creating a product. Basically he studies the market and learns what the market segment is looking for and then he creates the product and rents it to them. This affectively increases the value of the investment while decreasing the risk that the property would go unrented and not make a return. I particularly enjoy and appreciate the method that Eldred uses to convey his theory like giving real-life examples of mistakes he and some other big investors have made. Some of the best advice, in my opinion, is not to limit your search of investment properties to you local neighborhood, but rather, think big. For example look in other cities or other states or even go internationally if you can. Another piece of good advice is always to perform a title search. One never knows what liens the property carries. Also get a home inspection. This is a key factor that helps avoid unexpected future repairs. All of this advice saves money and headaches, which is priceless. The only real issue I have with Eldred theory of entrepreneurial real estate investing is that it seems tight to the old traditional theory of having to buy property at reduce prices to be successful. While of course buying property cheaper is always a smart thing to do. When you use Eldred’s entrepreneurial strategy that is based on market research, product creation and marketing it shouldn’t be necessary to buy low. And I thought Eldred could have made this clearer. As it is, it looks like it could be confusing to novice investors or just a reader that is trying to get the idea of investing in real estate. In summary, Dr. Eldred a very well respected professor at different top universities introduces a new method of real estate investing by thinking like an entrepreneur which means becoming a savvy investor by researching and study the market. He also treats the property as a product which is a totally new concept for most investors. I agree with Dr. Eldred because I do believe that long term investments are always the smartest move because its more secure and is not subject to the market like just buying and flipping properties. As much as I agree in Dr. Eldred method of real estate investing I still think that some of his new ideas are based on the old methods like buying low. I believe in his method so I disagree that you need to buy a foreclosure or a short sale to make a long term profit.