Today we reviewed two financial advice books; one on real estate acquisition, a Monopoly Project like strategy; and the other, a ‘self-help’ book.

Both were recommended by our TMP, TMP2 partner, Jeff.

Today is Super Bowl Sunday, February 12th, 2023. The game is going on now, but we are out doing book reviews. Our team was the 49ers since we grew up in Northern California and especially this year were following the Cinderella story of Brock Purdy. Purdy is from Gilbert and his family attends Rock Point Church in Queen Creek as does our daughter, Katie. So, when the 49ers faded, we somewhat lost interest. Between the Chiefs and the Eagles we don’t have a dog in that fight. [Note added later: We did watch the second half and it was a GREAT game.]

“HOLD”

  1. HOLD: How to Find, Buy, and Rent Houses for Wealth” (320 pages, paperback, 2012) by Steve Chader, Jennice Doty, Jim McKissack, Linda McKissack, Jay Papasan, Gary Keller: Recommended by my TMP2 partner, Jeff. This is similar to Gary Keller’s book “The Millionaire Real Estate Investor” which we reviewed in October 2019.  Not surprising since Keller is a co-author and wrote the forward. The Amazon description is: “Take HOLD of your financial future! Learn how to obtain financial freedom through real estate. The final book in Gary Keller’s national best-selling Millionaire Real Estate Investor trilogy teaches the proven, reliable real estate investing process to achieve financial wealth: 1. Find – the right property for the right terms and at the right price. 2. Analyze – an offer to make sure the numbers and terms make sense. 3. Buy – an investment property where you make money going in. 4. Manage – a property until it’s paid for, or you have a large amount of equity to leverage. 5. Grow – your way to wealth and financial freedom.”

GOOD:

-p xv: “HOLD is not about getting rich quick”. Agree, very monopoly project like

REVIEW:

-about acquiring property (slowly, hence the title “HOLD” as in ‘buy and hold’ strategy to real estate success) using the six stages: FIND, ANALYZE, BUY, MANAGE, GROW

https://www.fortunebuilders.com/a-beginners-guide-to-buy-hold-real-estate/

https://realwealth.com/learn/how-to-buy-and-hold-real-estate/

https://www.biggerpockets.com/guides/buy-and-hold-rental-property

https://www.investopedia.com/terms/b/buyandhold.asp

https://www.investopedia.com/articles/mortgages-real-estate/08/flipping-flip-properties.asp

BEST BUY AND HOLD BOOK: https://www.biggerpockets.com/forums/79/topics/118180-best-buy-and-hold-book

-p xxxi, he does go into the ‘real estate team’ concept. Not a fan. Important later, will happen organically, but initially it is an excuse, an impediment. You need to learn by doing it on your own, making mistakes when things are still relatively ‘small’. Not to say that you don’t have a mentor; either a literal person, or a book, or a strategy…

-formulas: rule of 72, appreciation, cash flow, debt pay down… Yes, but…

– p xxvi, ‘negotiate a 10 % discount’; one of my pet peeves, who is going to “give” you 10 % of their asset? Cheat a widow? Be dishonest? Note that this is different than seeing an alternate or higher use for the property. FMV is for it’s current use. If you buy something at FMV and have a better use, that is not a discount on FMV. Two personal, immediate examples: bought commercial property knowing that one tenant had to be replaced because they were not economically able to afford that space and their current rent (which they couldn’t pay) was below market value. Replaced them with a tenant who could successfully operate in that space at 10% higher rent. We bought the property for FMV assuming the current tenant. Now it is worth 1.x FMV because of a better tenant. TWO: our recent acquisition of an assisted living facility is based on using a different

– p 11, chap 2: location criteria is way too complicated, ‘close by’ is good enough to start…

TIP FROM MICHELLE on hiring maintenance man: check his hands (or hers, we once did have a female maintenance man). It they are rough he is a real maintenance man. This works also for hiring people to work around your house. If their hands are smooth and manicured, they are salesmen.

  • Book is about SFH, suggests strategies for going on to multifamily, or other commercial real estate. Can do, but you can end up comfortable with SFH portfolio…

OVERALL:

– I won’t go into any more detail than the above, since this is a fairly standard book on this subject. Nothing bad (although the 10% discount and ‘build a team’ set off my senses); nothing really NEW.

  • Comment on ‘buy and hold’ strategy, view video.

“THE 10X RULE”

  1. The 10X Rule” (240 pages, hardback, 2012) by Grant Cardone: Recommended by my TMP2 partner, Jeff. This is a motivational, self-help book. The Amazon description is: “The 10 X Rule unveils the principle of “Massive Action,” allowing you to blast through business clichŽs and risk-aversion while taking concrete steps to reach your dreams. It also demonstrates why people get stuck in the first three actions and how to move into making the 10X Rule a discipline. Find out exactly where to start, what to do, and how to follow up each action you take with more action to achieve Massive Action results.”

GOOD:

-no shortage of success; live is not a zero-sum game; especially business

-take responsibility

-his “story”, chap 23, how he hustled to get a TV show and more; entertaining and more

-customer satisfaction is not the right/first target, customer acquisition is.

-chapter 22, p 159 – 186: start here, skip the motivational stuff to first do this practical advice, almost all good

REVIEW:

-the first half is motivational; work 10X (ten times…) what you think it will take. He applies this to EVERYTHING in life: business, marriage, raising kids, even ‘religion/church’.

-four degrees of action: nothing, retreaters, normal/always an excuse, 10X = MASSIVE ACTION\

-chap 9: goal seting, this is good, but I like scott adam’s ‘systems not goals’ better

-Chap 10: competition is for sissies; unrealistic. MASSIVE

-chap 14: expand, never contract

-ch 17: the myth of time management: unrealistic, most/virtually all of us can’t do everything, all the time. I’m not doubting that Grant can. It’s just not transferable.

-ch 20: omnipresence: unrealistic, as above

OVERALL:

-my good friend Dave, common sense, “all diets work”, dave, “you just can’t stay on them”. You can’t run your 10X. Even he admits he has only recently been doing this

-what is the meaning/purpose of life? To Grant, it is “SUCCESS” in any endeavor; business, marriage, children, spiritual.

-there are good parts, NUGGETS, but only Grant can run his life like this…

p 188: where is he now, written 12 yrs ago, he was in his 50s, first child… Now older. Is his view of life the same?

Here’s Jeff on Are you Renting? The Top 3 Steps to Buying a Home!