Read the book: ‘Property Investing from A to Z’

Why do some people buy their third flat in ten years, while others can’t pay off their only mortgage for years?

If you’ve been wondering the same thing, we’re obviously on our way. And your reliable ^Sherpa1 on it will be this book. It will not only lead you to the right answer, not allowing you to get lost in the intricacies of financial transactions and maze of legal terms, but also show you where to go next to become the owner of a property that brings income. At the same time not necessarily residential.

A lyrical digression for those who like brevity and spoilers. The main secret is that buy property just the second of our sick question. Whereas the first – in it invest. And this seemingly insignificant difference – just one verb! – predetermines a huge difference in the result. In money it can be expressed as a sum with many zeros.

A logical question that arises immediately:

how does investing in property differ from buying it? Do not both cases are not concluded in outwardly similar purchase and sale transactions? The similarity is often deceptive. The main difference: the investor buys a source of future income, while the ordinary buyer – a new item of expenditure. Dozens of thick talmuds have been devoted to explaining this phenomenon. The classic and very good ^Sharpe2 textbook on investing

The result is a simple, understandable and, most importantly, accessible for everyone to use the concept of the three whales of property investment. Fusing three seemingly separate and independent types of operations in the real estate market into a single whole, it gives a clear idea of what, how and in what sequence to do to make the purchased square metres bring income. Understanding this will not only allow you to acquire a special investor’s view of a flat, house, garage or office, but will also help you to build your own strategy – how to make them work for you.

A clear concept, a clear strategy, and a realistic investment plan lay the foundation for success. But that’s only half the battle. Literally everything matters when it comes to realising your vision. There are no trifles. That is why in each of the ‘whales’ I have packed a lot of useful techniques, tricks, secrets and methods based on solid practical experience. These include:

• How to choose the best property to invest in.
• Where to look and how to find flats at below market prices.
• How to negotiate the price competently with the seller.
• How to turn an ordinary flat into an attractive investment property.
• How renting differs from leasing and how to apply this difference.
• What clauses in a tenant agreement are really important.
• How to attract the best tenants or renters.
• What six steps to take before a profitable sale.
• How to end one investment cycle so you can move straight into the next one

Investors or those wishing to become investors are not the only ones who will find this information useful. If you:

• want to buy a flat for yourself as safely, efficiently and profitably as possible;
• have inherited a property and choose what to do with it next;
• bought a home for children, but while they are growing up, you want to recoup some of the costs;
• looking for a way to improve living conditions without huge loans;
• you are considering options of reliable investments for a long time,
  Whales of Investing will help you find answers to many questions and successfully solve many problems. Because behind every line of the book, behind every technique, method or trick described in it is a quarter-century practice of transactions, agreements and solutions in the capacious and growing, competitive and still developing Russian property market. Which is only about thirty years old.
  And here another burning question arises with all its acuteness: ‘Who are you, the author, and why are you teaching us how to invest correctly?

Most investment books contain a story about the author. The reader has the right to know whose book he is going to read. And according to the canons of the genre, such stories should follow a clear, two-by-two pattern: ‘Guys, I’m just like you!’
I’m just an ordinary person. I didn’t grab stars from the sky, I didn’t get million-dollar inheritance, I learnt everything and achieved everything on my own. I made a lot of mistakes, lost a lot of money, grieved, suffered, unloaded wagons and ate horseradish without salt. But he kept believing in himself! And one day, just like Newton, fell asleep under an apple tree. That’s when my epiphany, insight and inspiration fell on me. I perked up, racked my brains, learnt Zen and discovered the world’s only formula for the most successful success. So now I’m all in the chocolate.

Five real estate myths you need to know to forget

I am writing this book from a hammock in Bali, where the hum of the sea pleases my ears and the red sun tenderises my body. While I create, my investments are working and money is flowing in (but I won’t show you the status report – just trust me). In short, if I, so simple, have achieved such incredible awesomeness, you will certainly achieve more. When you study my modest opus, bought at an immodest price: you should value yourself highly, right? And for the best assimilation of what you have read, my courses, seminars and video trainings are at your service. By the way, at the end of the book you will find a secret code for a discount if you want to buy everything at once.

Surprisingly enough, such schemes still work. And the author, for whom the book is just a way to sell a training course, may well achieve sales growth with this text. And on the course, he, of course, he will advertise his talmud: the author’s interest is not superfluous.
But all this is not about me. Seminars do not lead, courses do not sell, video training do not record and even consulting is not engaged in. My services cannot be bought, and there are no adverts in the book. There is only refined knowledge that I pass on to you, gained over 25+ years of investing in Russian property. On this note, let’s continue our acquaintance.

Just an ordinary guy from Moscow’s working-class suburbs.

His father was an economist, his mother was a kindergarten teacher, and his grandfather ‘ploughed the land’ like Turgenev’s Bazarov. Both grandfathers, to be precise. I inherited nothing from my parents, who had become ordinary pensioners by the early 1990s, but an analytical mind and a desire for self-education. For what I am very grateful to them. And my overseas uncle on my father’s side did not endow me with a million dollars. I had to create my capital on my own and from scratch – on investments, as you have probably already realised. And it’s wonderful!

This background allowed me to learn the nuances and tricks, secrets and subtleties of investing in profitable property step by step and year by year over the course of a quarter of a century. Now, having accumulated both knowledge and experience, I can confirm that there is no ‘Golden Grail’ walled up in concrete walls, finding which you can rest on your laurels or get high in the Seychelles. And it is useless to sleep under the apple tree, as no intuitive insights and spontaneous epiphanies work in investments. Whereas a clear concept, correctly chosen strategy and competent application of techniques, methods and tricks verified by practice really increase the profitability of investments. Sometimes – in times. All this in a convenient book format I share with you now.

Yes, but the books ‘about property’ today published not just a lot, but a lot. For every taste and purse. A lot of different – ‘legal’ and samizdatovskogo, paper and electronic, domestic and translated. It would seem – choose, read, learn, apply and get rich on property deals, like Trump.

First things first about this book: why do you need it?

Alas, there is a catch. Most of these books are written by either realtors or of training courses. It is with a parody of the latter that this little chapter began. You can even sincerely sympathise with such people – many of them know how to motivate to accomplish things. But the only benefit from their books is about the same as watching a hundred commercials. Even if the authors have some experience in the market, they will not reveal the most valuable information to you. Because they don’t know it themselves

Realtors’ books can do more good. Their authors, as a rule, are real pros with vast experience who love their business. They know exactly and well understand how to structure any deal, avoiding pitfalls. And many will even tell you if it has ‘investment potential’ in terms of current market realities. But even the most experienced realtor will not help you to create a long-term property investment strategy that suits you and is based on your risk profile, covering the entire life cycle of your investment – from entry to purchase to exit.
But the conceptual approach that I offer you in this book brings together all three points of support: the strategic vision of a long-term investor, the professional experience of a competent realtor and the motivational kick of a passionate coach. Exactly what you need for property investment success.

Why would I want to do that? Firstly, by sharing my experience, I pay a moral debt to those who helped me become a successful investor. Many of them are gone, so the book is a way of honouring their memory by passing on to you bits of their wisdom. Secondly, the more efficient, broader and more honest the property market in Russia becomes, the better off everyone will be. And that includes me.

A clever man said once, but all remembered for centuries that ‘the road of a thousand li begins with the first step ’⁷. You have already made it by reading up to this point. So let’s move on – to new pages and profitable property investments.

‘Invest in what you understand,’ said multi-billionaire Warren Buffett. In the case of property investment, it is appropriate to draw a parallel with building a house. Even before the excavator or a couple of diggers start working, you need to dismantle the ruins, remove rubbish, uproot stumps, removing everything that will interfere with the future construction. So too, we need to get rid of popular but harmful myths regarding property investment to create a plan that works.

In general, it really happens. The Egyptian pyramids stood for thousands of years and survived untold numbers of revolts and wars. Greek acropolises and Roman coliseums have also survived quite well in some places. In the Japanese city of Komatsu there is a hotel Hoshi Ryokan, which has been continuously owned by 46 generations of one family since 717. The oldest stone house in Europe, in which you can still live, dates back to about XIII century AD and is located in the French Averon. In the Faroes, the wooden hut , also known as ‘The King’s Farm’, stands safely in the village of , where people have lived since the 11th century.

But there are many more examples of buildings that have not survived their age. Even if we limit ourselves to the active life horizon of the average twenty-first century person, we can remember Beirut 1976, Isfahan

Floods in Russia damage, if not destroy, several thousand houses every year. Tens of thousands of dwellings in cities and towns burn out in fires. Up to two dozen ‘domestic gas explosions’ occur every year, leading to the complete or partial destruction of buildings. Woe to those who decided to save money on full-fledged insurance.

Myth Two. Real estate is protected by the state: property is sacred and inviolable, and a building is not a wallet – it cannot be discreetly taken out of the owner’s pocket.

Indeed, Article 35 of the Russian Constitution declares that ‘the right of private property shall be protected by law’ and that ‘no one may be deprived of his property except by court decision.’ This rule of law protects you from quite obvious lawlessness, when your neighbour kicks you out of the house.

However, there are nuances. There are many of them, but one point is important to understand. Your property is not really yours unconditionally, but only until it is recognised as yours by the where it is located, and exactly on the terms that it has established.