Wednesday, November 01, 2006

Real Estate Riches

I just finished reading Real Estate Riches by Dolf De Roos, Ph.D. One of the Rich Dad's Advisor series books. I had a lot of doubts and thought that it would be very vague, but it turned out to be an excellent book for a beginner or someone interested in getting into Real Estate Investing. The book was very easy to read and motivational. It shows that REI is not rocket science, but it does take some work. I will be talking more about the book in other articles, but I wanted to include some of the thoughts he has on REI rentals. Whether to choose Commercial or Residential properties to rent out. Here are his pros and cons.

1. Residential Rentals are quoted monthly or weekly, while Commercial Rentals are quoted annually. Here he is talking about rental payments.

2. In rental property tenants don't have an interest in fixing up your property, while commercial tenants do have an interest in not only fixing the property, but also improving the property.

3. Leases are short for rental property, leases are long for commercial.

4. Capital required for rental property can be minimal, while commercial can require a large amount of capital.

These are just of the few pros and cons. I still think I would be interested in Residential Rentals, just to get started.