Buying a property for no or little money down is possible, and this book shows the principals and strategy for making alot of money from the property market using this strategy.It's money well spent in comparison to the Sunday morning info-mercials on this topic.There is NOT good coverage of the RISKS.Allen is suggesting the most highly leveraged transactions you clould ever enter (short of buying futures on margin).Win, win big.Loose - you are Bankrupt (if your starting with minimum assets).
This is a good way to make money, there are risks and you must understand them.As well as knowing your market.
If you buy with no money down AND the market is going up you can't really loose.The things that spoil this, are:
* Macro economics - interest rates go out of control.
* Local markets.E.g. what is going to happen to the property market in Florida after the sting of hurricans?
The author brings home the power of leverage (this is pivotal to growing your net worth, whatever your strategy).He doesn't cover off the risks so well.Must have for prospective real estate investor; but underplays the downside.
Post Script: Clearly the people who wrote the next couple of reviews really don't like any critique of Allen's work.I wrote this book "UNDERPLAYS" the downside, I didn't argue the book ignores it.For example, the medium and long term impact on Florida's real estate values can't be determined yet - insurance increases and coverage issues wont surface for at least a few months, when they do, it will impact premiums.The damage and loss will also act as a detterant to potential buyers considering a move.
The exit strategies outlined in the book are superficial.Also, in the simplest of terms, getting rid of don't want property in a down market is very hard work (it isn't always possible).
This book addresses the risks of the last property crash quite well, and is not a get rich quick book.It does not, however,(IMHO)address SYSTEMIC or MARKET risk adequately. As pointed out, it was on the NY times best seller list for weeks (btw you can now pick it up really cheaply new or secondhand on Amazon, $8 off list price, cheaper than Barnes & Noble - mine will be listed shortly; this is a great service Amazon provides).
Timing the market is great in theory, but buy high sell higher is very hard work in a crash!!!!!Of course, we aren't heading for one .... there is no need to worry.Buy high sell higher can be fools gold - in particular if the market is a BUBBLE (for a good account of every market bubble since the Sixteenth Century read 'Devil take the hindmost: A history of financial speculation, Edward Chancellor.
I still think this is a good book, but want a better one? My suggestions would be Managing Rental Properties for Maximum Profit, or Investing in Real Estate 4th edition (very good coverage of leverage).I'm looking to buy my second US investment property (my previous realestate experience has been overseas) and I am researching my next steps.
Although this is an interesting and good book, the advice in these alternatives appears much more realistic and sound.
Click Here to see more reviews about: Nothing Down for the 2000s: Dynamic New Wealth Strategies in Real Estate (Hardcover)
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