The Real Estate Game: The Intelligent Guide To Decisionmaking And Investment

by William J. Poorvu, Jeffrey L. Cruikshank

The Real Estate Game is a comprehensive guide to successful real estate investment from one of the masters in the field. Drawing upon four decades of experience developing, owning, and managing properties and on almost thirty years of teaching at the Harvard Business School, William J. Poorvu offers an insider's perspective on how to make smart decisions about real estate.

The real estate “game” is played by people, and it’s the stories of real people that make Poorvu’s introduction to the industry colorful and interesting. You will meet players ranging from real estate moguls to small-scale developers to individual investors in exotic investment instruments. Their stories evolve throughout the book and illustrate how these people—with all their complicated needs, talents, and motives—fit into the larger process and context.

In clear and nontechnical language, Poorvu explains how variables—players, properties, capital markets, and the external environment—come together to influence the shape and outcome of a real estate deal. He explains the time frame for different kinds of real estate investments and walks the reader through the key “periods of play” in the real estate game: concept, commitment, development, operation, reward, and reinvestment.

The Real Estate Game introduces a simple but powerful “back-of-the-envelope” technique for analyzing the financial implications of a potential deal. Using this tool and others, Poorvu shows readers how to use direct investments, syndicates, and REITs to get into the real estate game across a broad range of property types: residential, office, hotel, industrial, and retail.

Offering unique insight into the ways that developers and investors can create value, The Real Estate Game is both a perfect introduction for the novice and an invaluable overview for the experienced professional.

Genres: Business, Finance, Nonfiction, Economics, Personal Development, Textbooks

336 pages, Hardcover

First published September 13, 1999

Reviews

[Mike Hohrath · Rating 5 out of 5]

Best real estate book around IMO. Written by founding partner in Baupost group and Harvard business professor, and long time real estate entrepreneur. Most examples are based in Boston and surrounding areas. Very wise and good advice, especially solid for commercial RE perspective but covers everything from partnership structures to capital markets to development to operations.

In addition, besides excellent perspectives on nearly all important functions of a real estate professional career, it includes great appendixes including a very detailed due diligence checklist, wonderful breakdown of the different asset classes, and a top notch glossary. This author does a fantastic job portraying the thought process and mindset of successful real estate entrepreneurs and the sort of creativity and grit it takes to succeed in the business. In addition, his analysis of the evolution of the commercial asset class space from the 70's to the early 2000's is par excellence. Very good breakdown of understanding of the game from the macro economy to the property level details. My only complaint is that the book was written in the early 2000's and that's where it ends. He calls trends he expects moving forward to varying degrees of success but without an updated version, we are left with a snapshot in time and are left to ourselves to understand the current market conditions.

The Boston based perspective is great as a Mass native. In fact, one of the founders of my company receives a 4 page case study in this book regarding a city that I grew up next door to and am very interested in. This was almost surreal to read in such a classic work of real estate.

This book now tops my best real estate book chart.

https://www.instagram.com/p/CAX9O8hgA93/

[John · Rating 5 out of 5]

My boss actually recommended I read this book. It is one of the best nonfiction books I've ever read. Not a wasted sentence let alone page. This conciseness and the author's expertise kept me fully engaged and enjoying every minute.

[Arturo · Rating 5 out of 5]

Ya hace tiempo que tenía ganas de leer un libro que me ayudara a entender algo del negocio inmobiliario. Este libro es perfecto para ese propósito. El autor desmenuza y ordena el texto que rezuma la simplicidad que caracteriza a los escritores que dominan magistralmente su campo. Es prácticamente un libro de texto, un manual de referencia y un tutorial todo a la vez. Se puede leer de seguido o acudir a él para ir consultando las partes que nos interesen.

El libro se articula como una introducción inicial, haciendo una analogía con los juegos de cartas, en la que se explican los distintos mazos que conforman el negocio inmobiliario, luego procede por las distintas fases en las que se puede incluir una inversión inmobiliaria (no necesariamente tenemos que participar en todas) y acaba ya con una especie de apoteosis en forma de sendos apéndices donde el autor clasifica y desarrolla los tipos de propiedades, describe los drivers de valoración para cada una de ellas y a continuación hace una lista pormenorizada de todos los puntos a considerar cuando hagamos la due diligence de nuestro "negocio" inmobiliario.

Muy recomendado para los interesados en el tema.

[Sarah Sinclair]

Published in 1999, the examples refer to the real estate cycles of the 70s, 80s and 90s and the emergence of REITs and the CMBS market - this is an interesting look back, but an update to address the last 20 years in the real estate market would be very interesting

He explicitly predicts future risks of CMBSs: “Here’s a case, as implied above, where Wall Street deserves credit for its creativity. But we haven’t yet lived through a down market that could put CMBSs to the test. Were the tranches appropriately priced? How will the foreclosure mechanisms work? Price volatility for commercial properties has historically been much greater than for single-family residences. I, for one, think there’s cause for concern.” (p 124)

William Poorvu was a professor of real estate courses at HBS for 35 years and this is a great piece of writing to help explain the business to anyone interested

[Alex Wheeler · Rating 4 out of 5]

Really great info even 10 years after the publication! I wish there was an edition for a current publication. However, this was really interesting information and I took so many notes. Pages and pages of really good notes. I only didn't rate this a 5 because it did take me forever to finally get through it although when I did get into it, I was enthralled.

[William Chou · Rating 4 out of 5]

A very general but engaging introduction to the real estate world. It sheds light on all the of how the game is played, purchasing, operating, owning, developing etc.. I really enjoyed the world view Proovu presented on the philosophies in active investment. From taking on the role of a managing partner to investing in REIT, the teaching in this book is both ubiquitous and invaluable despite its age of 20+ years. The part where he enumerated the responsibility and due diligence in collaborating with different trades including architects was insightful to read. Although I didn't fully comprehend the analogy of playing cards, and the late explanations of the finance nomenclatures, the anecdotal yet anonymous storytelling left a lasting impression.

[Eric Bottern · Rating 4 out of 5]

Took me a while. Lands somewhere between a textbook and a collection of stories about real estate investments. Effectively communicated all that goes into an active investment in real estate, breaking it down through “the game”. People, properties, capital markets, and external forces are the cards that are dealt. You’re dealt one card and have to manage the other factors in order to be successful. Learned a lot, but wouldn’t classify it as a riveting read.

[Campbell PRENTISS · Rating 3 out of 5]

Not much to say here. 3/5? Basically a text book so informative but not on the must read list.

[Chris · Rating 4 out of 5]

The Skinny: Very useful and easy to read book that provides a large amount of advice on the many workings of the real estate investment world.

The Good: Very well written book by a highly experienced and knowledgeable author. There is a lot of wisdom imparted so there will be plenty of good nuggets to jot down across the lifecycle of real estate. Despite it's age, most of the information and knowledge is durable and this will be a great book to have around as a reference when you are working in your real estate pursuits. The addenda at the end are also real useful and thoughtful.

The Bad: The "game" is not really a thing throughout most of the book and almost seems like it was added by a publisher or something and the information was subsequently forced into the "game diamond". Book is slightly more apt for a non newbie. Only other con is that this book is now 20+ years old and could use a refresh despite it's overall timelessness.

[Matt · Rating 4 out of 5]

I had little knowledge of the real estate world coming in. It was a very thorough book and for my purposes a bit tediously thorough. Just the detailed stuff on leases for example I didn’t really need to know. That being said I think it was a useful overview and the math for back of envelope calculations for returns was helpful. Would bet that the author is a good allocator in the real estate world.

[Mike · Rating 4 out of 5]

Very interesting book. Great for beginners trying to learn about the real estate industry Note it is written in 1998 - so much of the cycles we've experienced in the 2000s are not touched upon. But many concepts still resonate.

[Mingyao · Rating 5 out of 5]

The value investing perspective for the whole cycle of real estate game. It’s the best entry level real estate book I’ve read, but I think years after I’m in the industry I’ll still find some wisdom valuable if I reread.

It addresses the fundamental question of why you are in the game? It needs to come from your value and mission. Real estate is more than just a way to make a living, it is also a way to express one’s most personal convictions - social, environmental, and aesthetic.

Think philosophically and think about people. Move from having smarts to having wisdom.

[Ken · Rating 3 out of 5]

The book was mainly based on the author’s experience. The “game” that was described in the book was at times confusing and lost it’s luster halfway through the book.

Many case studies but they weren’t technical enough to truly help its readers in real life situations.

The author at times sounded egotistical in describing his past experiences.

Overall, it’s a good book for beginners in real estate. If you’re a more experienced individual, you might want to look elsewhere.

[Patrick Braga · Rating 5 out of 5]

Very clear elucidation of the decision-making processes behind real estate development and investing. Having some industry experience can help make the concepts more memorable, but the storytelling is really compelling. After introducing core principles, several vignettes illustrate the concepts in real-life scenarios.

[Seth · Rating 2 out of 5]

reasonably informative and appropriately boring

[Evangelos · Rating 4 out of 5]

Only for those interested in the real estate game. Very good.

[Suki Swaroop · Rating 5 out of 5]

If you're new to Real Estate or curious about Real Estate, this book is a great look into the different facets of real estate (buying, selling, developing) without being too technical.

[Dan D · Rating 5 out of 5]

Great book to define your market and type of real estate.

[Bobby Wuertz · Rating 5 out of 5]

I have been in commercial real estate for 8 years. I wish i read this book when i was first getting started but still gleaned a lot of great insights about the industry.

[Nat · Rating 4 out of 5]

Great foundational reading for any real estate investor, public or private.

[Daniel Deptula · Rating 3 out of 5]

Would have liked more depth in exploration of financing/valuation and more detailed examples (ones provided were superficial)

[Max · Rating 5 out of 5]

Great intro to the real estate field. Very concise and clear format. Highly recommend!

[James Martere · Rating 3 out of 5]

Solid 7/10. Enjoyed a fair amount of it but some of the really in-depth stuff I just couldn’t fully grasp yet.

[Pogger G. · Rating 4 out of 5]

Good info, good intro, easy read.

[Sam · Rating 4 out of 5]

A bit outdated, but a solid primer on real estate investing

[Sherman Langford · Rating 3 out of 5]

A strong reco from an RETwit account I respect led me to this book by a Harvard professor / commercial real estate investor. There was a lot of solid perspective and advice in the book that will help build my expertise. It was definitely focused on bigger commercial types of projects. But the concepts will still be useful in my plans in the single family housing space. A bit dry in some spots, but a worthwhile educational reading experience.

[Diana · Rating 4 out of 5]

This was definitely more dense and technical than Timing the Real Estate Market. I think both are good to read if you are interested in real estate, but this one has more in-depth information and a structure that lends itself well to more comprehensive learning about the full cycle and picture of real estate development and investing.

[Matt Rose · Rating 5 out of 5]

Comprehensive, practical and clear. I'm sure there is a need for greater detail in some areas, but in terms of setting a framework for involvement in the real estate market, this is outstanding.

[David Wilusz · Rating 3 out of 5]

A decent overview of the real estate investment cycle, from concept to commitment to closing, operations, and finally harvest. There are also chapters on the high risk-reward potential in development, as well as a section on syndication and REITs. The book covers apartments, office, hotel, industrial, and retail, with some introductory info on analysis and the external factors that can affect investments.

The main problem with this book is that it was published in 1999, and to my knowledge there is no updated edition. That was a lifetime ago in real estate terms, and makes many of the examples highly dated, if not downright laughable. Some readers may find the textbook-like prose a bit dry as well. That said, the fundamentals of real estate investment and analysis don't change much over time, regardless of where one is in the cycle, so there are still some nuggets of wisdom to be found from someone who has clearly had success investing in a wide variety of projects.

[Jack Reid · Rating 2 out of 5]

Although dated, the Real Estate Game is a solid introductory read for those interested in the industry. However, I'd recommend skipping around to the chapters you find interesting. I almost gave up on the book in the envelope math section. I work in finance, so I found the numbers section, which I've always found the most straightforward aspect of real estate, mind-numbingly dull. I'd imagine it'll have some value for those less versed in finance than myself. The REIT discussion is also incredibly dated and irrelevant in 2020 (the book was initially published in 2000).

The book's real value came from the sections detailing development to asset management. Poorvu walks through characteristics that apply to almost every deal and sheds light on the less well-known development side of real estate. I learned plenty from these sections and gained a greater appreciation for the type of thinking and creativity necessary to succeed as a developer.