Table Of Content

ffirs.qxd 9/20/04 11:30 AM Page i REAL ESTATE RICHES ffirs.qxd 9/20/04 11:30 AM Page ii ffirs.qxd 9/20/04 11:30 AM Page iii REAL ESTATE RICHES How to Become Rich Using Your Banker’s Money Dolf de Roos, Ph.D. John Wiley & Sons, Inc. ffirs.qxd 9/20/04 11:30 AM Page iv Copyright © 2005 by Dolf de Roos, Ph.D. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the web at www.copyright.com. 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HD1382.5.D47 2004 332.63'24—dc22 2004058398 Printed in the United States of America. 10 9 8 7 6 5 4 3 2 1 ftoc.qxd 9/20/04 11:31 AM Page v Contents Foreword by Alex Rodriguez vii Praise for Real Estate Riches ix Acknowledgments xiii Preface: I Don’t Have a Job. Shame! xv PART ONE Why Is Property So Good? 1 CHAPTER1 Four Magic Questions 3 CHAPTER2 Conspiracy Theory 19 CHAPTER3 A Taxing Issue 27 CHAPTER4 Beating the Averages Easily 33 CHAPTER5 Yes, But . . . 63 CHAPTER6 Summary: Why Invest in Real Estate? 69 PART TWO Okay! Show Me How to Do It! 71 CHAPTER7 The 100:10:3:1 Rule 73 CHAPTER8 Finding Properties 81 CHAPTER9 Analyzing Deals 101 CHAPTER10 Negotiations and Submitting Offers 109 CHAPTER11 Getting High on Opium (aka OPM) 119 CHAPTER12 Massively Increase the Value of Your Properties (Without Spending Much Money) 129 CHAPTER13 Managing Your Properties 137 PART THREE Liftoff! 149 CHAPTER14 Residential versus Commercial Property 151 CHAPTER15 Government Interference 169 v ftoc.qxd 9/20/04 11:31 AM Page vi vi CONTENTS CHAPTER16 The Eight Golden Rules of Property 173 CHAPTER17 The World Is Your Oyster 181 Appendix: Other Books by Dolf de Roos 187 About the Author 189 Index 191 fbetw.qxd 9/20/04 11:31 AM Page vii Foreword Baseball has blessed me with a sensational career and an avenue to reap rich financial rewards. However, the hard work does not stop in the baseball diamond, nor does it end with the paychecks. I am acutely aware that many professional athletes are paid well for their talents but, sadly, are victims of poor financial planning. When I landed my well-publicized 10-year, $252 million con- tract, I set about finding an investment vehicle that would ensure my financial fitness long after baseball. I read many books on wealth, entrepreneurship, and investing, as well as biographies of successful individuals, but nothing inspired or captivated me as much as Real Estate Riches by Dolf de Roos. Dolf makes real estate investing simple and accessible to anyone who has the will to succeed. He is an All Star in his field! On my journey to verify the opportunities available in real estate, I met with Joanne Mitchell, a good friend and local real estate advisor who owns and operates several thousand apart- ments in Miami. She immediately recognized the copy of Real Estate Richesunder my arm and consequently pulled her copy out from her desk. Her book had been highlighted, and notes had been scribbled in the margins—it had been an inspiration to her as well. This book holds powerful recipes for prosperity. I had to meet this wizard of real estate called Dolf de Roos. After great effort due to scheduling conflicts, we met in Dallas. To his surprise I was a baseball player and not a basketball player, and to my surprise he was accessible and eager to teach a newcomer his strategies. Clearly whether you are on the baseball field or a field slated for real estate investing, life is a numbers game. Some days you score big, and others, well ... vii fbetw.qxd 9/20/04 11:31 AM Page viii viii FOREWORD you don’t; but if you practice hard, learn from your mistakes, stay focused, and above all have passion, then the numbers start to work in your favor and your success fuels even more success. I credit Real Estate Riches and Dolf de Roos as valuable guides that helped give me the confidence to form Newport Property Ventures. I began by investing in a small duplex in an emerging area of South Florida, which led to the acquisition of several other income-producing properties. With hard work and determination my projects and portfolio continue to grow with phenomenal returns. Dolf’s principles are working strong! That Dolf has passion is apparent from the first few pages of this book. This passion and enthusiasm for his game is even more apparent when you meet him in person. Recently we met in New York where we once again reviewed the principles that lead to great success in a newfound sport from which I will never have to retire! —Alex Rodriguez, #13 M.L.B. American League MVP Founder and CEO, Newport Property Ventures August 2004 fbetw.qxd 9/20/04 11:31 AM Page ix Praise for Real Estate Riches “I have always been interested in property but have never had the courage to admit to myself that property is in fact a passion of mine and not just an interest. Your book, Real Estate Riches, has helped me make that final leap and as a result I have de- cided to pursue my passion and restructure my life to make more time for real estate investment.” —Paul Dinis, South Africa “I read your book, Real Estate Riches, and I loved it. Thanks for breaking things down in such a simple fashion. I am now look- ing to get into real estate investing.” —Mike Desroches, New York “I just closed my first Las Vegas property last week and want to thank you for pointing me in the right direction and giving me the tools to begin my investing. I feel like I have begun building my real estate dynasty! I am very happy; thank you so much!!!!!!!!” —Pamela, California “Thank you so much for the great book Real Estate Riches.” —Moshe Mizrachi, California “I have read Dr. Dolf de Roos’ book titled Real Estate Riches. Two weeks ago I bought my first rental flat, then a week later my first rental building (six flats). It’s magic to create wealth out of thin air. Thank you for your inspiring books.” —L.C., France ix