Book Review > The real deal

The real deal combines sensible and interesting investment principles with illustrations of real-life investors in residential real estate, who have been able to apply the points made and make decent profits. The 14 success stories included were drawn from the RESULTS mentoring programme that teams those wanting to use real estate to achieve financial freedom, with a paid and experienced property mentor, while providing substantial written training materials and other support. One of the authors claims to have personally coached over 600 people in real estate investing.

The book commences with introducing the reader to a number of different real estate investing strategies, and then in each chapter you hear from a real investor who has used that approach to create wealth for themselves. These are real people who got up every morning and trudged off to work so they could put food on the table and buy clothes and petrol. And they also dreamed of something more.

Initially, discussions on financial freedom and goal setting are followed by choosing the right strategy. Are you a hands on versus hands off person? What are the pros and cons of lump-sum gain versus cash flow, cost versus complexity and risk? This is the start of the property investing journey and is followed by the five specific named parts of the book.

Part 1 is buy and hold, short term growth, and flips. Chapter 1 is titled “Negative gearing for long – term growth” and introduces the reader to Amanda who purchased a cyclone damaged house in far North Queensland. Chapter 2 covers “Positive cashflow properties”, Chapter 3 “Positive cashflow properties and add value”, with Rachel a surfie investor from coastal NSW, then Chapter 4 “Flips, short-term growth and quick-turn deals”. Matt is the investor we meet in Chapter 4 and his investment in a 6 unit complex made him $108,000 in three months.

Part 2 covers Renovations, Part 3 Subdivisions plus, Part 4 Construction and Part 5 Systemisation. The real life subjects of each chapter together emphasise to me the importance of a huge amount of thorough background research prior to purchasing property. Once you have determined why you are investing, have clarity around your finances and borrowing capacity, are clear on your strengths and weaknesses, know a little about the economic environment you are investing in, and have chosen your strategy, your job is to determine the ideal property relative to your strategy and personal circumstances. This helps you buy with confidence knowing that you will yield the required profit. All of the subjects did detailed and extensive research prior to purchase. Each of the 14 investors tells their very different story on a resultsmentoring.com website.

I was impressed by the detailed planning and homework done by each investor, and particularly by Colleen, a Melbourne housewife who looked at close to 100 properties prior to purchasing one at auction. Her renovate and subdivide project made her a 30% profit. In Chapter 11 Steve gives a great insight into the extensive homework and research needed for a subdivision investment, before making a $260000 profit in 11 months.

Conclusion: This is a very interesting and thorough book for prospective residential property investors. It provides great background into the thought processes, decision making, and systems required for successful property investment.

Peter Keys is a member of the AIA.