Creating Wealth

Rating:
Summary: Creating Wealth is still a winner.
Review: After the phenomenal success of "Nothing Down" in 1980, Robert Allen's second real estate book "Creating Wealth" published is 1983 was a big disappointment. Even when I read it for the first time in 1983 I was let down. Reading it again in 2003 "Creating Wealth" is even a bigger disappointment. The chapter on Federal Income Taxes is totally obsolete having been written before the tax changes of both 1987 and 1997. The introduction of the Alternate Minimum Tax makes the paying of zero taxes, as proposed by this book even more difficult if not impossible. The ... cap on passive rental losses and the extension of depreciation schedules to 27.5 years for residential properties also has effectively limited a taxpayer's ability to pay zero taxes. The chapter on coin collecting seems to be out of place in this book. Those 16 pages in a 300 page book on real estate seem to serve little purpose except as a failed attempt to show that the author is not one dimensional. The chapter on where to put your cash is also extremely out of date when banks, CDs, and money markets are paying such low current interest. Additionally the book was written before the savings and loan bailout. The chapter on asset protection is weak and was written pre-LLCs. And the chapter of Limited Partnerships is also dated.

Some of the content is a repeat of what was in "Nothing Down" and some of the content is repeated in later books by the author. The story of "Acres of Diamonds" and of the LA Times challenge are later written about in other Allen books. There are some excellent points made in the book, one of my favorites is that the buying of real estate is the most exciting aspect of real estate, while the rental management is boring and a hassle. In that chapter entitled "I Hate Real Estate", the author says that despite the hassles he buys real estate "because the good points far outweigh the bad ones." That does sum it up, real estate is a way for an average person to make some money, increase your assets, and retire early. Also included in the book is his automatic pilot program, whereby real estate throws off cash with little time investment. The chapter on the "Lazy Man's Method" also is worth while and explains his idea of advertising for sellers to call you. There are interesting tips and his "Property Selection Grid" will help to distinguish a good purchase from a bad purchase, and an excellent purchase from a marginal one. The 5 categories on the grid are seller motivation, location, financing, price, and property condition. By evaluating each property on a scale of 1 to 3 for each category you can determine if a property is worth pursuing. Allen says only buy property scoring 12 or above. Overall the book is not as good as "Nothing Down" and several chapters are out of date, therefore I can only rate it 2 stars.

Rating:
Summary: Extremely out dated
Review: Although the cover of the book reads "Completely revised and updated" this book is painfully out of date. Allen's references are all in the 1980's. $39K for a single family home, interest rates at 18%. I don't care what city you live in or near these references simply don't make sense in todays climate. I had to stop reading it.

Rating:
Summary: A Thoughtful Book
Review: Creating Wealth is a thoughtful book. It presents a lot of "How-to" techniques that teaches you how to create wealth in real estate, collectible coins, all the way to using corporations to your advantage. The Real Estate section is particular well done and i really like the charts and diagrams he used to demonstrate what to look for, how to look for it, what to buy, what not to buy. The author also provides a series of negotiation scripts to demonstrate how the whole process works. Compare with some of Robert Allen's later books, i think this one is more complete, more thought out and less on self bravados. I would suggest that you should read/study this book with an open mind and a critical eye. This book is about establishing a different thinking process, but you'll still need to have the technical know-hows to fully protect yourself from any Real Estate Pitfalls.

Rating:
Summary: Still works in the new millenium
Review: I bought this book in the mid 1980's and it worked. During the 90's, I switched to stock market investing and put real estate investing on hold.

With the bear market that started during the Clinton years, I started to move back into real estate and discounted mortgages and other securities as espoused by Allen such as Gold and Gold Stocks and mutual funds.

Creating Wealth was an excellent book back in the 80's and it is an even better book today. The advice is timeless and is based on what really works in the real world, not just some writers opinion as is the case with too many other books out there today.

If you are serious about real estate investing and creating wealth, I highly recommend this book along with "Nothing Down for the 90's."

Rating:
Summary: Creating Wealth is still a winner.
Review: I just picked up a copy of Creating Wealth earlier today after having bought other books by the author like Multiple Streams of Income and The 1-Minute Millionaire.

In chapter 1 "We were programmed to fail from the moment we were born" Allen discusses 9 major misconceptions about money and why it prevents us from becoming successful. Interesting is that number 1 misconception is "Having a job is good and leads ultimately to wealth." That was originally written back in the 80's and certaintly no one will argue that having a job will lead to wealth is an incredible misconeception.

Another misconception that Allen covers is "Saving your money is a good investment." Is there anyone who really thinks that a savings account is an investment? Only those who are broke.

In chapter 2 Allen shows us "How to develop a wealthy mindset." This chapter includes Allens 5 steps some are familiar like affirmations, goal setting and a 30-second commercial (from Dr. Schwartz's book)

Chapter 3 "A fool and his money are soon parted." Allen offers his 7 wealth principles and where to put your money.

In chapter 4 "Launching yourself into financial self reliance", ALLEN outlines the three stages to wealth building;

1) The Pre-launch Stage
2) The liftoff or struggling stage
3) The Powerful pre orbit stage

In this section Allen discusses what to do if the economy goes bad. Where to put your money and what to do with your real estate holdings.

In chapter 5, Allen introduces the fourth stage to wealth--"the Automatic Pilot Principle." Allen then covers strategies for this fourth stage of wealth.

The next 6 chapters deal specifically with real estate (no surprise here), how to buy it, finding the bet deals, even making the deals come to you, scripts to call ads from the newspaper, real estate contracts, a property grid to help you select the best property and a property analysis form. I found this section more complete than Allen's earlier book "Nothing Down." One similiarity were the "Nothing Down" techniques which were in "Nothing Down" but were presented in a a different way here.

In section 4, chapter 12 Allen discusses Discounted Mortgages and the enormous profits from investing in that segment of real estate. He again offers scripts to use to call on mortgage holders and how to determine the yield and potential profits.

In chapter 13, Allen discusses investing in precious metals. Chapter 14 "Liquid Money and Where to Pour it" and Chapter 15 "Why the rich pay little or nothing in taxes" round out the Creating Wealth program.

Reading the book in 2003 is interesting as Allen refers to prices based on 1980's real estate. So readers will have to check local prices and not go by the prices Allen mentions. That is not a reason to knock the book.

Likewise the tax information is 1980's based but the principles haven't changed. Just get a new tax guide. Tax rules are changing constantly.

Finally Allen discusses how to avoid lawsuits, but better, newer information is in "Multiple Streams of Income."

Overall, Creating Wealth is a excellent book and a great supplement to "Nothing Down" and "Multiple Streams of Income."
I also recommend "The 1-Minute Millionaire" which is inspirational and motivational.

Disregard the negative reviewers who seem to be more concerned with nit picking on minor points, what Dr. Schwartz would call "Detailitis", stepping over dollars trying to save pennies.

Creating Wealth is a good book and a must read for anyone aspiring to create and keep wealth.

Rating:
Summary: Perhaps Allens best Real Estate Book.
Review: I used the technique in "Creating Wealth" coupled with "Nothing Down" to buy my first home with NOTHING DOWN.

Further, my investing in real estate properties, I was able to earn enough money to pay off my home in under 5 years and replace my salary from my job of 20 years.

Some of the information in "Creating Wealth" is duplicated from "Nothing Down" but there is also much newer information as well.

For example, Allen shows you the traps to avoid in buying properties with Nothing Down that most other authors ignore. HE ALSO offers scripts to use when calling home owners.

While I don't expect to become a millionaire (wasn't my goals anyway) I have achieved financial independence in that I am debt free and live very well on the income generated from Mr. Allen's strategies.

I also recommend "Multiple Streams of Income" and "Multiple Streams of Internet Income."

Rating:
Summary: An enlightening novel
Review: This book is great. It has given me the plan to apply to my motivation. The advantages of investing in real estate are amazing and this book shows many of them. I read this book after reading four of the Rich Dad Poor Dad series, and must say I enjoyed the change. While Robert T. Kiyosaki gives reasons for getting wealth and motivation to gain wealth, Robert Allen actually puts forth a plan for gaining wealth. This book is about strategy. Allen has a plan that worked for him, and he shares it with us. Buy real estate, three bedroom houses, and rent them. After ten years, buying two houses a year, one could have a million dollars in equity. I also like the way he writes. His style is entertaining and exciting. He loves what he does, and it comes across in his writing. Additionally, he gives tips on finding the right houses, the right neighborhoods, the right sellers, the right financing, and the right tenants. I encourage you to buy and read this book, because I think you will read it more than once.