Real Estate -Part C (A Book Review on Real Estate Investing)

While researching this topic, I read a book by Frank Gallinelli called “MASTERING REAL ESTATE INVESTMENT”, Published by RealData Inc, 2008.  This book has extensive definitions and example problems (with answers) along with real life case studies.  This topic is one that requires much knowledge and experience to master, but this book  is a quick way to short-cut some of that and reveal to you whether this is something you would want to do for your career or avocation.  The book is an easy read and you can find it under our Recommendation Products Tab, above, under the Wealth Section.

To master the wealth building area of Real Estate Investment, you will need to be savvy, detail minded and committed to working hard.  This is not a “get rich quick” endeavor, but it can produce for you a way to live comfortably or be an implement in your wealth building plan.

Mr Gallinelli produced this book in two parts.

Part One is entitled “37 Key Real Estate Measures-Examples and Metrics”.  Each chapter addresses a key Real Estate Measure, defines it, provides sample problems and, gives answers to those problems.

The Key Real Estate Measures covered are:

  1. Simple Interest
  2. Compound Interest
  3. Rule of 72s
  4. Present Value of a Future Cash Flow
  5. Gross Rent Multiplier
  6. Gross Scheduled Income (Potential Gross Income)
  7. Vacancy and Credit Loss Allowance
  8. Gross Operating Income (Effective Gross Income)
  9. Net Operating Income
  10. Capitalization Rate
  11. Net Income Multiplier
  12. Taxable Income
  13. Cash Flow
  14. Cash-on-Cash Return
  15. Sales Proceeds
  16. Discounted Cash Flow
  17. Net Present Value
  18. Profitability Index
  19. Internal Rate of Return
  20. Price, Income, and Expenses per Unit
  21. Price, Income, and Expenses per Square Foot
  22. Operating Expense Ratio
  23. Debt Coverage Ratio
  24. Break-Even Ratio
  25. Return on Equity
  26. Loan-to-Value Ratio
  27. Points
  28. Mortgage Payment / Mortgage Constant
  29. Principal Balance / Balloon Payment
  30. Principal and Interest per Period
  31. Maximum Loan Amount
  32. Assessed Value, Property Taxes, and Value Indicated by Assessment
  33. Adjusted Basis
  34. Depreciation
  35. Gain on Sale
  36. Land Measurements
  37. Building Measurement

Part Two is entitled “Case Studies” and takes you step-by-step through the investment process for four types of real estate investments.  These Case Studies are:

  1. The Single-Family House
  2. The Single Family, Redeveloped
  3. The Apartment Complex
  4. The Shopping Center

Mr. Gallinelli takes you through facts, strategies, what-ifs, things to consider and recommendations.

This is a well written book and highly recommended by this writer.  If you are considering Real Estate as an investment, I highly urge you to read his book.

A quote from the Introduction:  “Real estate is a competitive business.  Success in real estate – or in anything worthwhile – is not automatic or guaranteed.  I believe, however, that if you take the material in this book to heart, you’ll develop a sound and analytical approach to your investing.  It’s an approach that requires some effort, discipline and commitment, but one that will help you make the best and most informed investment choices.  Frank Gallinelli”

Gary

About Gary

I am retired, but not tired. I still want to be valuable to others. I know that others are valuable to me. After looking back on six decades, I have asked myself this question: “What do I believe?” My mind filled up. My heart started beating faster. My spirit soared. I post blogs to share what my mind is working on, what my heart believes would help others and, what my spirit is communicating to me. What do I believe, you ask? Decisions dictate your path In love, not hate In tolerance, not prejudice In health, not sickness In wealth, not poverty In kindness, rudeness In happiness, not sadness In encouragement, not discouragement In faith, not doubt In courage, not fear I have been and will be challenged in each one of these beliefs, but the biggest belief is to stay positive and not turn negative. This belief helps me maintain all of the others.

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