Been there, done that: Now he's rich （發財 book review)

Been there, done that: Now he's rich

January 23, 2005

START SMALL, PROFIT BIG IN REAL ESTATE


By Jay P. DeCima (McGraw-Hill, New York), 2005, $19.95; 216 pages; Available in stock or by special order at local bookstores, public libraries, and Amazon.com.

REVIEWED BY ROBERT J. BRUSS


The theme of Jay P. DeCima's latest real estate book, "Start Small, Profit Big in Real Estate," is to begin investing in small bargain-priced fix-up rentals, as he did, with the goal of creating enough cash flow to quit your day job. With over $100,000 per month gross rents coming in, DeCima says he has plenty left over to live very comfortably.

The book begins with the author explaining why he thought he would make a small fortune as a licensed real estate salesman. But then he shares how his real estate instructor emphasized to the class it is much more profitable to be a realty investor than a sales agent. DeCima then uses an example of how he earned 17 times more than the sales agent did on a typical property purchase.

To get started, as the author did after he left his 20-year boring telephone company job, he suggests buying run-down properties that nobody else wants. Although most of the properties he buys are at least 40 to 50 years old, DeCima cautions to avoid slum areas especially where gangs are fighting.

Buying with low cash down payments and seller financing is the author's specialty. He recommends staying away from banks and other institutional lenders because he doesn't want some 30-year-old loan officer living off a salary telling him how to earn his profits.

The author's formula recommends doing the small repairs yourself but hiring contractors and handypersons to handle the major fix-up so the work gets done fast and correctly. He shows how to finance both the acquisitions and the improvements. DeCima emphasizes the goal is to make profitable upgrades so the rents can be increased, thus raising the cash flow and the value of the property.

Although DeCima admits to having flipped a few properties for fast cash resale profits, he prefers long-term ownership. Throughout the book are many personal examples from his realty investing career of more than 40 years involving more than 200 properties, most of which he still owns.

One problem with the book, to which readers will quickly adjust, involves the comparatively low property prices and low rents used in the many examples. The reason is DeCima lives in the modest-size Northern California town of Redding where prices are still reasonable. Although his formula also works in higher-priced cities, the low prices used in the book seem a bit out of the past.

DeCima spends considerable time emphasizing how to find the bargain-priced fix-up properties. He recommends reading the local newspaper classified ads every day, letting local realty agents know what you're looking for, and just keeping your eyes open for trashy-looking properties in decent neighborhoods.

Along the way, the author explains some of the mistakes he and other first-timers made and how to avoid them. The importance of buying from a highly motivated seller is strongly emphasized. Many of DeCima's examples show he is often the only prospective buyer for a run-down property because most buyers don't know how to get sellers to finance the sale, as the author reveals in the book.

The final chapter wraps up this excellent book by explaining how to get top dollar when selling property and providing for future retirement income. DeCima recommends selling the same way he buys by using seller installment-sale financing.

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buying run-down properties that nobody else wants. Although most of the properties he buys are at least 40 to 50 years old, DeCima cautions to avoid slum areas especially where gangs are fighting
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THE WORST PROPERTY IN THE BEST LOCATION.

hehe, the book tells exactly what you have been doing..

hehe! where can I find this book?

HAHA,靈犀,I AM SURE YOU CAN DO AND MAKE IT, YOU ARE SMART AND HANDY AS WELL. NOTHING ELSE, JUST SPENT YOUR TIME.

BLUE IVY, IT IS EASY AND SIMPLE, (1) FIND A HOUSE WHICH IS IN RUN-DOWN CONDITION IN A GOOD LOCATION (2) FIX IT BASED ON YOUR NEEDS (3) SALE IT OR RENT IT OUT (4) DO IT ONE BY ONE. ONLY ONE THING IS IMPORTANT, DON'T DO IT IF YOU ARE IN CHINA ( THERE ARE A LOT OF THING S YOU ARE UNEXPECTED, AND ALSO, YOU DO NOT OWN LAND ANYWAY).

I think it is easy and good way to win your life.

呵呵，向空手學習，向空手致敬～～ 咱們慢慢學

想買書的可以到 www.amazon.com 去看看，查查書名 「START SMALL, PROFIT BIG IN REAL ESTATE」

靈犀給大家介紹了篇好東西,這也是理財投資的一大高著,投入少,最大限度的運用了個人的能力,產出高,...這種玩法,很適合於我們這些人,而且比較容易HANDLE.