Finance Wanted.

By Terry Sprouse

This is a real estate investment book that not only covers the basics with exceptional style and insight, but also brings new wrinkles to the table. "Upside Up" is just such a book. Not surprisingly, the book is written with depth and insight by an investor who has a profound knowledge of his field.

For example, when most investors apply for loans, we only have a foggy idea of all the machinations going on behind the scenes, much less do we know anything about how much money the loan officer actually makes from our loan. Like Dorothy in the "Wizard of Oz," we are generally instructed to "pay no attention the man behind the curtain."

In "Upside Up," the author describes the process of how the loan agents make their money, and how some abuse the system and make exorbitant amounts at the expense of the applicant. The author suggests facing the issue head-on by asking the agent point-blank "how much money will you make on this loan?". A fair-minded loan agent will openly answer the question. Two first-rate chapters are devoted to this oft overlooked topic of loans.

I really like the author's approach to investing. He doesn't buy an investment property and just hope that equity goes up (although it generally does) over time. Rather, he takes the proactive approach of making improvements to the property by converting a garage into a separate rental apartment, adding onto a house, or building a second separate unit on the property. This forces an increase in the property's equity. Through his thorough description of the process, we see exactly how he does it. I appreciate how he provides plenty of detail to show us all the components of his bread-and-butter technique.

There are valuable tips throughout the book. One that stands out is how the author minimizes the amount of cash that he invests in a property by the way he structures the offer. He does this by raising the purchase offer so that the seller makes more money, and asking the seller pay the buyer's closing costs and repairs.

This reduces the amount the buyer has to pay at closing, and it doesn't cost the seller anything extra because both of these costs are paid at the closing table with the additional money the seller will receive.

This is a book that both beginning and advanced real estate investors will find invaluable. It holds a place in my investing library among my favorite reference works.

Terry Sprouse is author of the book "Fix 'em Up, Rent 'em Out: How to Start Your Own House Fix-Up and Rental Business in Your Spare Time."

Terry's blogs:
http://www.fixemup.org
http://www.squidoo.com/fixerupper