It definitely illustrates for me a difference in the buying patterns of new and seasoned investors, and kind of confirms my thoughts on the matter.

An example helps illustrate. 

I have no debt (thank the lord) and I would love nothing more than to develop enough cash flow to leave my big boring 9-5 and start working towards becoming an illustrator.

.- 12-month lease at $1,400/month- 30+ month least at $1,250While I know this puts your rent increasing, I want to illustrate what I'm doing to be a blessing to you.  

Once you have defined total cost, you should use an assumed rate of return you and your friends would like to receive in exchange for making the investment.The short pro forma below illustrates the comments above.

Here is a small clipping I used to illustrate my point. http://imgur.com/4XeayuSHTH,Tapan Trivediwww.sacramentorealestateclub.comSacramento - Where the Bay Area comes to cash flow !

Whether or not you buy a property turnkey or some other approach is a trade-off you can evaluate based on differences in money, time and risk.Below is a diagram illustrating the process.Below I will explain about each block in the illustration.Property ProfileThere are two parts to a property profile: where and what.Where• Choose a city which is experiencing sustained growth and is likely to have continued growth.

You acquire a note for say the 35k like Bob generously illustrated then sell the first 105 payments to another investor allowing you to take that capital and do it all over again.

I did notice that in my version of the epub, some the illustration (latter int he book) are not there.You can use Calibre (a free package available at https://calibre-ebook.com) to view the Epub format and convert it to different formats.  

This illustrates the power of compounding.It is compounding like this that I didn't see him touch on in his real estate investment deal analysis.