Most Helpful Customer Reviews
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405 of 420 people found the following review helpful:
4.0 out of 5 stars
Re: Good Book, but keep your eyes open, August 26, 2002
By A Customer
I have read several books on real estate investing and I have even attended real estate licensing courses to learn the fundamentals of real estate. Having done all that my opinion of this book is generally good.The author doesn't promise instant riches or make it seem so easy that you can do it without any work, in fact, he advocates that this is a lot of work to do it right. The sections on prospecting for houses to buy and how to approach potential sellers is also very good. What I didn't like about the book, is his treatment of the infamous "due on sale clause" for those of you who don't know what this is, it is a clause in most mortgages that says if an owner sells you a house and he still owes money to the bank you can't just "assume" his loan, in other words you can't just take over the loan and start making the payments...at least legally. The authors advocate doing it anyways and hoping you don't get caught by the bank and making sure you explain it to the sellers, what he says is that if the bank is an out of state bank they will probably never know you have taken over the payments so don't worry about it. What he doesn't tell you is that if the bank does find out and they do decide to force the issue they can call the entire balance of the loan due at once, possibly putting the investor in a bad situation, which could also affect the original sellers since they are still listed on the loan. The second issue about the book is the creative financing aspects of the book, it is not that these techniques don't exist, becasue they do, but understand that only about 1 in every 100 people who agree to sell to you would be interested in some creative financing, especially if they are distressed buyers. Most distressed buyers will want out of a bad situation right now with all their money (if any is left). They need cash, not some payments over time. Second the zero percent interest situation will work, sometimes, but it is even more rare than the general creative financing techniques. Most houses you buy this way will require you put some cash into the deal (or find a partner who can) and finance the remainder through a private mortgage broker paying interst rates of about 15-18%. Most banks will not lend money on these types of property because they may need a lot of work. So your three options are creative financing or private mortgage lenders, or the third is put all the cash in yourself. The last comment is that the book doesn't discuss tax ramifications of doing flip deals at all. If you are successful and flip 3-4 properties in a year for 10-20K in profits you will be facing some mighty tall tax consequences and it would have been nice if the author had discussed this a little and some common techniques for dealing with this. This may sound like a negative review, but it's not meant to be. The book has some great information and the author's writing style is easy to understand, but it is just meant to let you know that there are clearly some down sides to the author's suggestions that you need to be aware of before rushing into this form of investment. I would recommend reading Kevin Meyers book "Buy it, Fix it, Sell it, Profit" This is fantastic book that will compliment this book very well. I would also recommend the real estate investor's tax guide, both would be needed to give this book a balanced view.
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90 of 95 people found the following review helpful:
5.0 out of 5 stars
From the book to the bank in 40 days!!!!, January 7, 2003
By A Customer
I have been investing in real estate since 1977 and for the most part have fixed up run down properties and then resold them for a profit. I did it the old-fashion way. I have read many books, listened to dozens of tapes, and attended numerous seminars trying to learn new and innovative techniques that would allow me to take my investing and my net worth to the next level and at the same time take some of the toll off my body. There are dozens of tips in this book and each one can save an investor at least 100 times the cost of the book. In the past I have worked foreclosures, lease-options, and estate sales at the courthouse steps just to name some of them. But the technique I found in this book that has changed my approach to investing is to take over the property "subject to" and then sell on a installment land contract. I get money up front, increased monthly cash flow for the period of time the contract is written for, and then money on the back end when the buyer refinances and puts the loan in his/her own name. I followed the books advice and found a motivated seller about 1/2 hour from my house. I was able to get the seller to tell me exactly what it would take to solve her problems and allow her to go on with her life. I took over the deed "subject to", made up all of her back payments to the lenders on both the first and second mortgages, paid off her well pump, paid for all the new windows she had put in after a hail storm knocked them out, pay for all of the closing costs, and put $20,000 dollars in her pocket. However, as the book said, I had found a buyer immediately for the property at a price that would allow me to do all of the above and still put $24,000 in my pocket. I went from the book to the bank in under 40 days. This book has put me on the path of least resistance to reaching my financial goals. I can now make just as much money or even more on each deal and I don't have to kill myself doing all the fix-up. Now I make the money using this very powerful technique to both acquire and sell the property. I use my mind and my negotiating skills instead of a hammer, crow-bar, and paint brush. If you are new at real estate investing I believe this book will be an invaluable addition to your library and can put you well on the path to increasing your net worth in a very short period of time. This book is not the end all, but it will certainly allow you to hit the ground running. Take the information and forms in this book, and then contact your local real estate broker, tax accountant, and other members of your team to see what if any adjustments must be made in your part of the country to do exactly the same thing I am doing. Just a little research on your part can and will pay for itself many times over. If you are a more experienced investor, this book may help you to achieve the same financial success without the wear and tear on your body. This book is a very good read and I highly recommend it.
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46 of 47 people found the following review helpful:
5.0 out of 5 stars
This stuff works and I'm living proof!, November 28, 2002
I received a copy of this book when I joined my local real estate investment group earlier this year. I read it cover to cover in 2 days, then went out and did exactly what it said in the chapter on marketing.I put out 1,500 flyers and door hangers with a "We Buy Houses" message, plus a few dozen plastic lawn signs with the same message. Within a month, I received about 15-18 calls and found a real motivated seller in foreclosure. I signed up a deal with the seller and flipped the property to another investor in my local real estate association for a [$$$] profit (I used the contract provided in the book, with a few modifications recommended by my local attorney). The closing process was a little more involved than I imagined, but the basic principles taught in the book are accurate. I am now working on my second deal and should make [$$$] or so when it closes. If you are looking to get started in real estate, this book will cover all of the basic fundamentals you need. I also recommend Robert Shemin's book, "Secrets of a Millionaire Real Estate Investor."
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