By Barbara Ballinger, REALTOR® Magazine
Real Estate Riches: How to Become Rich Using Your Banker’s Money by Dolf de Roos (John Wiley & Sons Inc., 2005)
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Dolf de Roos isn’t the type of real estate investor to keep all the riches to himself. Rather, de Roos, who owns hundreds of investment properties, shares his success tips and encourages others to invest. In his latest book, he offers the best tips from his 31 years of experience, walking both new and seasoned investors through the process—and encourages salespeople to invest, too. “You can still find good bargain properties, buy them using mostly other people’s money, and obtain returns of 30 percent to 100 percent,” de Roos says. But before diving in, you need to do your homework, he stresses. Know the best markets, be prepared to look at many properties before buying, and hang on to solid investments, especially if you’ve made smart improvements. But you also should be ready to unload poorly performing investments, he says. This is the first book in a series of products recommended by the NATIONAL ASSOCIATION OF REALTORS® that focus on real estate investment; the REALTOR® logo appears on the book’s cover.
Tips From the Book:
- Don’t overlook the classifieds. When searching for a great deal, don’t forget about classified ads in the local newspaper—often the advertising method of choice for owner-sellers who aren’t using a real estate salesperson. These properties are sometimes offered way below market value, and there is less competition because the property wasn’t marketed as widely as it would have been through a real estate practitioner.
- Make a seductive offer. To boost the chances that your offer will be accepted, staple a check for the deposit to the contract. It makes no difference to your cash flow; if the seller doesn’t countersign he can’t bank the check, and if he does countersign, you would have to write the check out anyway. The seller will know you’re serious, and psychological power is phenomenal.
- Use other people’s money. When you do, you are using other people’s money for your own profit. It sounds as though it should be forbidden, but it’s perfectly legal—and the people whose money you use even encourage you to do so. Because banks are so willing to lend money for real estate, you don’t need most of the money required for the purchase, and that gives you the opportunity to earn great returns on the capital you invested.