Bread & Butter Properties

Bread & Butter Properties
Generate passive rental income

The Unemployed Millionaire - Matt Morris

This book tells you how to retire from the rat race, fire your boss and live life on your own terms. The bulk of the discussion centers around's the internet as a vehicle to achieve financial freedom. But funnily, there is a chapter about the benefits of owning real estate. And the chapter is actually quite good: contains messages which are simple and succint. (chapter 12)

The 3 best things I learned from this chapter.
1) Real estate investing principle No. 1: don't buy property at market price and expecting it to go up quickly, thus making capital gains. Instead, buy with the option of being able to rent it out while you wait for appreciation. This fits in nicely with buying rental properties.
2) How to buy real estate prices at wholesale price? they say in real estate, you make money when you buy. So, buy at wholesale price i.e. below market price. That way you have a buffer should the price go down and more likely to make a profit when it goes up!
3) The power of asking: Morris talks about the power of asking; just because the owner wants $X you shouldn't have to pay that amount. If you offer lower price he/she may refuse - but, it doesn't cost you anything and you just move on to the next. Best case, you will find a bargain, and if you do enough of these offers, you will accumulate properties at below market price.