Read Engelo Rumora's new book "The Raw Truth to Success..."

[Andrew Fidler]

Happy New Year! I am surprised I haven't seen any forum activity yet on Engelo Rumora's recently published book The Raw Truth to Success In Real Estate, available on Amazon. I'm going to post the sections of the book that spoke to me, a fellow real estate professional with over a decade's worth of experience in the Toledo rental property market. There are a hundred other ideas that are waiting to resonate with the reader, regardless of experience level!

This book starts with the classic Engelo disclaimer that you will be told the TRUTH and most people, especially in today's society, are going to get their feathers ruffled. Having spent many hours with Engelo in person I can honestly say that the book is a very professional version of Engelo and you have to be pretty thin skinned to take umbrage. Great Job, @Engelo Rumora 

Don't Be A Lazy A-Hole­
This concept is crucial to success in the business and the reason I read the book on Christmas Eve and am posting the review on January 1st... successful people have a habit of being quite busy! My gold nugget here (I'm paraphrasing): "It's a numbers Game. Spend 14 hours a day, seven days a week, for two years... only THEN will you begin to master real estate. You have to put the hours in!" This is something I wish the professional realtor classes taught. You can't excel in any area of life whether hobby fly fishing or as an electrician without putting the hours in to learn. (See also Outliers - The 10,000 Hour Rule by Malcolm Gladwell)

Cash Is King
I think it's because I started my investment in Toledo rental properties (2009) when banks weren't loaning, prices were crazy-low, and CASH WAS KING that I have always stuck to that method for purchase. I buy properties as-is with quick 7 day closings at prices that reflect a good discount. Be aware that the infamous BRRRRR method has its value in better neighborhoods provided the investor settle down the number of refinance events, or their cashflow will be eviscerated by closing costs and the associated fees. Especially in a hot market; offering a seller simple and speedy terms will move my offer to the front of the pile and always commands a discount. (See also the chapter: "Leverage is for peasants")

Cashflow is Queen
If your portfolio is bringing in cash each month, then you can survive minor expenses and even a few major ones without coming out of pocket, provided the cash isn't withdrawn every month. A BIG lesson is "Have $50-100k saved up before you buy your first property." This saves you from over-buying and being strangled when two major repairs happen at the same time. I assure you, if you allow your cash reserves to dwindle, that's when a sustained cold snap in January ruins two furnaces the same week.

Tell Friends and Family to Screw Off
This is the unspoken reality of the 10,000 hour rule and Engelo's Don't be a Lazy A-hole. Your social circle will change and truly it has to change. In 2009 when I immersed myself in the world of foreclosed real estate, it wasn't a golden age of excitement for me; it was a nose-to-the-grindstone time when the automotive industry laid off young project managers and the market wasn't hiring. Thus, I was choosing to spend effort rehabbing properties on my own faster than my bank accounts could run dry.

Middle-class salaried friends of mine (working normal jobs) who wanted to go out for beers at the pub, were completely mystified why I would buy real estate when the talking heads on the news were telling them the market had crashed and to run away. I quickly realized that my whole perspective changed to focus on my 10,000 hours. All I talked about was real estate (and for those of you who have spent any time with me, it's STILL all I talk about). The point is that I ended up distancing myself from the majority of my old friendships. Most couldn't understand working after the 9-5 grind and some were disdainful of self-managing tenants. You will change who you are as you evolve, it's normal. As Engelo and I can attest, this commitment may keep you pretty isolated outside of your team.

Why Most Realtors Suck
Speaking as a licensed broker who started out as a client of realtors for many purchases, I can attest to the truth in this concept. Successful realtors have their own 10,000 hours committed. This means they have defined their innate success and established the network that helps them become great. Chances are rental real estate isn't their focus, and requests from newbie investors seeking to use a "Million Dollar Club" agent will go unanswered or be marginalized... worse yet, if you are successful in having an agent with dozens of $250k plus SFH sales under their belt, they will be zero help advising the newbie on the purchase of a $60,000 SFH to be used as a rental.

This would be exactly why my brokerage LaPlante Real Estate focuses on investment properties as our core competency, and seeks to attract agents who are passionate about all types of investment properties (SFH, MFH, Commercial). It's difficult for agents in a typical brokerage to have enough of the resources to evaluate potential investments, let alone provide property management services and repairs after sale.

Thinking of getting your realtor's license because you are passionate about investment property??? Read this chapter… he extols it's a sales position with commissions and will require a separate 10,000 hours of focus! Some investors make amazing realtors; some realtors make amazing investors. I can personally say I am a far better investor than I am agent. That's why I co-lead a brokerage and head our division overseeing rehabs, repairs, and my fingerprints are on every challenging job we quote. You do not have to be an agent to be a successful investor. You will want an agent on your team, regardless!

Beware Of The Devil In Disguise
Property Managers Suck! Especially when that PM is the owner who doesn't have the skills to successfully walk the tight rope of Owner vs Tenant while balancing the public interest with fair housing and habitability standards!

A quality property manager can make or break your investment portfolio. I personally operated my portfolio out of necessity and spent the pre-requisite 10,000 hours to learn how to PROFITABLY walk the tight rope. It was after all, 2009, and that's what being broke signs you up for… the third or fourth 10,000 hour commitment. If you aren't going to commit the effort to creating a PM business complete with processes for rent collection, eviction, repair/rehab, and accounting, then spend some time choosing a CAPABLE and ETHICAL property management company!

In closing, Engelo has a solid outline for success in real estate with The Raw Truth. There are chapters on flipping, wholesaling, and negotiating that didn't resonate with me, but may with you! To channel my childhood favorite Reading Rainbow: "…but you don't take my word for it.” Grab yourself a copy! I look forward to hearing your own thoughts about the book and what spoke to you.