How to Invest in Condominiums : The Low-Risk Option for Long-Term Cash Flow

Rating:
Summary: Why didn't I read this 10 years ago?
Review: This book is so easy to read and understand. After watching my stocks loose all of their gains from the last 10 years almost over night, I determined to use this investment formula for my future. The plan is straight foreword and can be applied any where you live. I have already purchased my first rental and it is paying for itself.

Rating:
Summary: Great Guide & Good Success Story
Review: This book is very well organized and laid out, and stylistically written. And, it's an American success story, by an author who was able to retire while still young, and who generously shares his formula for success -- very worthwhile reading. The author uses simple averages (not compounded) from a five-year period to estimate a rate of return on investment of 20.8 percent. However, from the two properties he sold his ACTUAL REALIZED rate of return is SUPERIOR to his estimate. But, the author has buried this fact in the back of the book, in small print. Condominium no. 2 (see p. 177) over the whole life of the investment realized an Internal Rate of Return (IRR) of 26.4 percent (an IRR provides a greater yield than a simple average return on investment). Condominium no. 5 (see p. 179) over the whole life of the investment realized an IRR of 12.9 percent. The weighted average investment result for these two properties is an IRR of 21.2 percent! At first glance, the difference of only 0.4 percent between the simple average rate of return of 20.8 percent and the weighted average IRR of 21.2 percent may not seem significant. But, in reality the difference is very significant, because an IRR calculation takes into account the present value of future cash flows, and a simple average rate of return calculation does not. The author was apparently not aware that in the appendices in the back of his book he had a louder drum to beat.