Buy & Hold 2004-2005: 7 Steps to a Real Estate Fortune [Paperback]

David Schumacher (Author)

Book Description

Publication Date: May 14, 2004

3rd print version of Buy & Hold. Updated for 2004 -2005 and includes a new Chapter on the Alameda Corridor and its impact on real estate values and future growth of the economy of the United States.

2 awards in 2002 were as follows:- Industry of Writers In The News award for the most inspirational campaign from the Book Publicists of Southern California.

North American Bookdealers Exchange, Oregon. Pinnacle Achievement award for the Business category.

Editorial Reviews

Review

Enjoyable, informative, and reliable advice. If you haven't read it you should. -- Robert J. Bruss , Nationally Syndicated Real Estate Columnist

From the Publisher

Selected one of the 10 best real estate books by Robert Bruss,

Nationally Syndicated Real Estate Columnist now on 4 cassette tapes, approx 6 hours of great listening.

Reader is Ralph Lowenstein, a prominent TV and radio personality in New York. --This text refers to an out of print or unavailable edition of this title.

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Product Details

• Paperback: 351 pages
• Publisher: Schumacher Enterprises; Revised edition (May 14, 2004)
• Language: English
• ISBN-10: 0970116225
• ISBN-13: 978-0970116222
• Product Dimensions: 8.5 x 5.5 x 0.9 inches
• Shipping Weight: 1.1 pounds (View shipping rates and policies)
• Average Customer Review: 4.1 out of 5 stars  See all reviews (27 customer reviews)
• Amazon Best Sellers Rank: #299,572 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

38 of 39 people found the following review helpful:

2.0 out of 5 stars Had High Hopes, Very Disappointed, July 17, 2001

By A Customer

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This review is from: Buy and Hold : 7 Steps to a Real Estate Fortune (Paperback)

I couldn't make it more than half way through this book before giving up. It provides little in the way of useful information and doesn't live up to its title (try finding the "Seven Steps"). It is a rambling recollection of what worked for the author. Recounting personal anecdotes may make interesting reading, but in terms of providing any solid, structured and disciplined approach to real estate investment, this falls short. The author retells a series of personal experiences about his success if real estate. Great, a guy buys waterfront property in California 30-40 years ago and makes a killing. That's no surprise. I'd hoped for a primer on real estate strategies that consider an investor's personal and environmental situations and how to maximize opportunities and mitigate risk. Other than the most cursory overview of these topics, the author provides virtually nothing that hasn't already been written before. In fact, it may have been written by him, as there are several instances in the book where it appears material was taken from a previous effort (e.g., referring to airlines that have been defucnt for 15-20 years). I'm 43, and have been buying and selling real estate for about eighteen years. Not by design as an investment, but out of necessity, as I am a career naval officer and move about every three years. My experience has been mixed, although I'd never considered my real estate purchases as an investment. After my current home (in Metro Washington, DC) appreciated $150,000 in three years, I came to the realization that there might be something to this. As I close in on retirement, I'm considering real estate as a second career. Any readers with recommendations on well-written, real estate investmant books would be appreciated. Thanks

34 of 35 people found the following review helpful:

5.0 out of 5 stars Buy and Hold has my HIGHEST recommendation!, February 9, 2003

By 

Real Estate Investor (USA) - See all my reviews

This review is from: Buy and Hold : 7 Steps to a Real Estate Fortune (Paperback)

This is one of the best real estate books ever written. I have read over 200 books on the subject of real estate and this one is in my top ten. I also read the earlier 1992 version called "The Buy & Hold Real Estate Strategy" which sometimes sells for hundreds of dollars. The later 2000 version is just as good if not better and costs ... on Amazon. It would be a bargain at many times that price! Today the author, David T. Schumacher, Ph.D owns approximately 66 units worth about $15 million. While he owns his property in Hermosa Beach and Orange County, California, the principles apply to all areas of the country. He has certainly benefited by the great appreciation rates in California, and while other areas have not appreciated as much, given a long enough period appreciation will build your real estate wealth. He started buying Hermosa Beach in 1960, so he has had the luxury of 40 years or nearly as many years of appreciation on some building.

He shares the real estate stories of himself, his brother, mother and father as well as other friends and associates. This vast wealth of 40+ years of real estate experience comes through in Dr. Schumacher's books. He relates about a real estate investment that his parents made in 1939, buying a single family house with a garage and apartment for $7,000 with $500 down. And his first real estate purchase on his own in 1956 of a 4 unit building in Hollywood for $20,000 with $1,000 down. Some people might look at these deals done long ago as a negative and not relevant to today. That is just not so. The author is still an active investor and lecturer today and the principles of his book make sense now. He had worked as a real estate appraiser for many years and relays in his book how to value a property. In this book his 7 step approach includes:

1. Finding the Location
2. Buy
3. Long-term Financing
4. Hold for 20 years
5. Appreciation
6. Sell
7. Attain Your Fortune

Schumacher is strongly against short term financing and balloon notes, feeling that they are time bomb waiting to exploded for the investor. He prefers long term financing both from conventional institutions as well as owner financing. He writes in his book about making personal sacrifices to ensure the comfort of his tenants as well as at earlier times
to make up for negative cash flow. He is willing to accept a negative cash flow if the property is a sound property located in a growth area.

One of his strong principles is to figure out what the value will be in 20 years. By studying government planning, building trends, and growth patterns, he feels that you can become proficient in determining what areas will have growth in 20 years and which areas will not.

The author writes that he likes to charge maybe 10% below the market rent to attract and keep the best tenants. He states that a vacancy is better than a bad tenant. His mother would bend over backwards for her tenants and would even lower the rent to keep a tenant. He doesn't do a lot of re-financing and prefers to keep existing financing in place.
He advocates not paying off a mortgage early for example.

In his book he advocates buying rental properties with a good prospect of future growth.
And while he suggests trying to negotiate the most favorable price, that is not the biggest issue. Schumacher relates of negotiating on one property for 9 months, so he is not suggesting buying at any price. However, when you have a long term prospective of 20 years or more, the price you pay is not that large an issue. If you pay $105,000 instead of $100,000, it won't make any difference in 20 years if the property is now worth $400,000. Or in the case of Schumacher, he bought a six unit in Hermosa Beach in 1960 for $85,000 with $3,000 down, that is now worth more than $1million. Buy and never sell, or seldom sell is one technique that this book explores in detail and that you can learn to grow wealth over a long term. This is not get rich quick, but more get rich slow. In a way this book reminds me of William Nickerson's "How I turned $1,000 into $5 Million in Real Estate in my Spare Time", which just might be the first if not the best real estate book. (Nickerson's book is out of print and can cost hundreds of dollars.) I highly recommend both of these books.

21 of 22 people found the following review helpful:

5.0 out of 5 stars Excellent Approach to Investment, August 18, 2001

By 

"rjennett" (Los Angeles) - See all my reviews

This review is from: Buy and Hold : 7 Steps to a Real Estate Fortune (Paperback)

With all the "0-Down" "Make quick Profits" "Be a Real estate Millionaire" etc. stuff clogging the book shelves out there this author's sober buy-and-hold approach is salutary, insightful and refreshing. This is not a book for complete beginners and assumes some knowledge of real estate investment. This fact, as well as its complete absence of hype may be a turn off to some wannabe investors; but persons serious about entering and sticking with the real estate game will find it very instructive. And its actually fun to read with lots of anicdotes.