The systematic acquisition of real estate properties over time is unquestion-
ably one of the surest means of accumulating wealth. While building a
respectable real estate portfolio is a process that can take months, or even
years, the patient and diligent investor enjoys a high probability of earning
above-average returns for his or her efforts. Careful analysis, however, is
required for each and every property considered. Proper analysis is not lim-
ited to a simple review of the property’s condition and location. To be suc-
cessful in this business requires a more exhaustive approach.
This book is intended as a guide to developing a format for a thorough
examination of each and every property you are considering. This format,
when properly applied, will provide you with a significant competitive edge.
It is my intent that by following the guidelines in this book, you will no longer arbitrarily determine value as it applies to real estate; rather, you will
truly understand it. By the time you are finished reading this book, you will
know why a multifamily complex, for example, is worth only $700,000 in-
stead of the $950,000 the seller is asking. Proper understanding of this sin-
gle principle can be the difference between success and failure.
While readers of this book are likely to have broad and diverse backgrounds,
you do share one thing in common—your interest in real estate. I will
attempt to be as thorough as possible, because some readers are likely to
have little to no experience, while others are seasoned professionals search-
ing for that edge. This being the case, those readers who have a great deal of
experience may find some of the material to be a bit basic. It is crucial, how-
ever, to lay the proper foundation for those who are not as experienced.
Many readers have most likely purchased single-family houses at one time
or another and have at least a minimal degree of rental property experience.
