An investor shares tips for generating income from rental properties.
In this debut business book, Chammas guides readers through the basics of developing a real estate portfolio, with the narrative mirroring his own process of learning the ropes. The author channels several of his mentors, particularly his wife, Joyce, a banker, and Papa Joe, a Lebanese-American businessman with real estate holdings around the world. The volume’s lessons—how to calculate returns, the value of strong professional relationships, the mechanics of a mortgage—are often presented as conversations with these mentors. Each chapter ends with concrete action steps for readers, and most include sample worksheets and formulas. Chammas encourages readers to rely on loans to purchase income-generating real estate (“He explained that if I want to receive $1 million in the future, I need to borrow $1 million in good debt”); to buy properties below their appraised value (“by following clear and strict investment criteria and finding motivated sellers”); and to rent to highly screened tenants using detailed leases. He also argues that people need to adopt a new mindset in order to become wealthy (“People who have accumulated wealth have let go of an incredible number of misconceptions and limiting beliefs”). The book is at its strongest when it sticks to the mechanics of real estate investing, with solid recommendations for evaluating a property’s earning potential, sample letters of intent and purchase agreements, and closing checklists. Financial concepts are explained clearly, with equations and multiple examples to add to readers’ understanding. The emphasis on learning from experts in the field is another strength—using the example of a beautician who got advice from a woman whose nails she painted, Chammas shows that although luck is a factor in developing relationships with mentors, it can be done by those without professional connections. Readers interested in exploring real estate investing should find the work a useful primer covering the fundamentals of the industry in detail and with clarity.
A solid introduction to real estate investment.