How to Use Leverage to Maximize Your Real Estate Investment Return
by John T. Reed
I have been completely satisfied by all the books I've ordered previously from John Reed and am looking forward eagerly to reading his latest on protecting oneself from the coming financial crisis.
You've made me lots of money over the years. Aggressive tax avoidance was a beautiful read. How to Manage Real Estate For Maximum Profit wound it's way into my mind. I've used it consciously at first & increased income & the value of my property. The style of analysis you apply to real estate helps me get in that groove and make better decisions. I'd have to sit down and think of specifics, but you're books have helped me make tens of thousands of extra dollars over the years. I'm a smart guy, you are too. I would have made money. But I've found little ideas and broad themes where I said aha! For a $20 book (at the time), I increased the income from, as well as the value of, my property by $15,000 using the idea of converting underutilized space into an extra bedroom. Didn't make two tiny bedrooms. The guys that built this duplex, made one giant weird looking bedroom. $50 worth of sheet rock, $100 of lumber, a door, and voila-more or less, and I have converted a two bedroom that rented for $425 into a three bedroom that rents for $500. Just have completed splitting the water service to this duplex as well, which will allow me to let the tenants pay for their own water. That's another $5000 in added value + less hassle time paying the bill. If they ever get pissed off and flood my duplex, they'll do it on their nickel. Thanks So Much!
Thanks So Much!
All The Best,
Gary Scarborough
All The Best, Gary S.
John,
I very much have enjoyed the books and newsletter. You've definitely
saved me from making some bad mistakes and easily saved me the cost of all the
books I've purchased. Thanks again!
Mr. Reed,
In the early 1990's I purchased one of your books on maximizing return on real estate investing. I was 26, single, had a good job as an accountant, and I work hard. Anyway, I read your book and bought a triplex in Richmond VA in the historic district. You wrote a really great book with no BS. It did not teach me to work hard or take risks but in helped me understand how to calculated my return and understand the investment in real estate.
Well anyway, it is now 16 years later. I now personally own (through my partnerships which I own about 85%) around $300 million in real estate (mostly apartments in historic areas and some office space). I have achieved my financial dreams (but I'm not done because I like the business) and I now have a great family with wonderful children.
You don't know me Mr. Reed but you helped me understand a business in a complete sense. I know it cold. You helped me with your knowledge. Whatever I paid for your books (I think I bought 2 or 3) was the single best investment I ever made. This note is only to say THANK YOU.
Bill Jefferson
Reed note: Since Mr. Jefferson made so much money, I suggested that readers might be skeptical. Below is what he wrote back.]
Mr. Reed,
We do have a web site with most of our properties listed (photos too) that have a vacancy or an apartment coming available. That site is rivercityrealestate.net . We do it ourselves so it is not to sophisticated but it does rent our apartments.
If you haven't been to Richmond Va I would love to have you visit as my guest (bring your wife). The city and surrounding areas are filled with history and wonderful architecture. I live at [redacted].
I haven't seen any of your recent books but you could do a book on investing in structures that allow for historic tax rehabilitation credits. It is a little technical but you always seemed at ease with that. I have only invested/owned historic buildings and I have found it to be lucrative. My one caveat is that I have found I had to do almost everything through my own company. That is the managing, leasing, landscaping, construction, ....... everything. We do not manage other peoples properties. I only manage stuff that I own.
Thanks for the reply. Hope we get an opportunity to meet sometime.
Bill Jefferson
Another reader sent this link about a Billy Jefferson in Richmond, VA pleading guilty to fraud: http://www.richmondbizsense.com/2013/12/20/richmond-developer-faces-federal-charges/
“Every real estate investor would profit from reading your books and newsletter. You challenge a lot of commonly held investment and management assumptions and business practices. You are the most practical, down-to-earth, no nonsense, humble real estate investment advisor in the country, a unique voice of reason in an industry filled with both accidental and deliberate mis-information.
Your primary weapons are a heavy dose of common sense, creative problem-solving, logic, a unique ability to share both your personal successes and errors. I doubt many investors manage to do everything you recommend, but when I look at the successful investors I have known over the past 25 years, it's clear their business plans follow much of the same advice you give readers every month.
I have enjoyed reading your articles for the past twenty or more years, and although I prefer to give myself credit for my successes, I am sure your reasoning, month after month, has shaped my own investment strategy. Thank you.” Mike Scott Dupre + Scott Apartment Advisors
"One of the best books I have read on real estate and one of the very few that discusses 'proper' financing topics. Every real estate investor (advanced or novice) should lead this book!" Richard J. Woolley, Construction Project Manager, Peekskill, NY
"I just recently started reading several of your real estate books, and so far I think they are great! I've read many other books, including some you don't recommend via your web page---Robert Allen's Nothing Down and Carlton Sheets' No Down Payment. I wouldn't say these books were a complete waste---I gained some valuable knowledge. But your books certainly offer information of a much higher quality---and without the get-rich-quick gimmicks. They are refreshingly realistic and provide the practical knowledge (especially regarding financial concepts and analysis) which all other publications lacked." Adam Drozd, Park Ridge, IL
John T. Reed, a.k.a. John Reed, Jack Reed, 342 Bryan Drive, Alamo, CA 94507, Voice: 925-820-7262, Fax: 925-820-1259, Email: johnreed@johntreed.com