A No Nonsense Guide to investing in Real Estate

Book Review
By Robert J. Bruss

Whether you are a novice or a long time realty investor, "The Reality of Real Estate Investing" by Allen Watkins will teach you new ways of looking at property investments. This is not an ordinary "how to get rich in real estate" book. Instead, it explains specific techniques that have worked for the author.

This no-nonsense book shares property acquisition methods that have been effective for Watkins in the Chicago area, where he acquires investment real estate.

The book is so good, readers can overlook the minor grammatical errors (the author admits he dropped out of high school, enlisted in the Navy, and later got his G.E.D.).

What I especially like about Watkins style is he begins with the basics of realty investing, starting with the first chapter on why real estate can be a profitable investment. The author then concentrates on buying distress properties, especially foreclosures, and explains the details along the way. Although he relates to Illinois foreclosure procedure, readers in other states can easily adapt to procedures in their states.

Watkins realty investment career began in 1983. At the end of his book he shares 25 real life, personal experiences he calls "Cases in Point". They make fascinating reading as specific ones are referred to throughout the chapters to emphasize points he is making.

Starting from scratch, after five years in the Navy, Watkins explains how he left his civilian paramedic job to work for a real estate broker who was profiled in the Chicago Tribune. That's how Watkins learned the basics. "He discovered that "you do not need money to get started in this business; nor do you need a great amount of education. You just need desire and the willingness to put forth the effort to make it happen."

The author explains the true meaning of no money down and how to acquire real estate with no money out of your pocket. He doesn't mind borrowing the down payment money from investors, even paying up to 20% interest, if he can see a profit opportunity in a property. He has also borrowed on credit cards, bank credit lines, and from partners.

Along the way, Watkins explains that some properties he acquired were for fast fix-up and resale while others were for long-term investment. That leads to his philosophy on tenant management. He's tough! He even inspects prospective tenant's current residence to see how they will probably maintain his dwelling. And he insist on substantial security deposit too. But he likes Section 8 subsidized housing tenants.

This book is no literary gem. But it is a practical guidebook explaining how to earn real estate investment profits.