Creating Wealth Book Review

Robert Allen is one of the key experts of American property investing.

His investment techniques spark allot of controversy, just look at John T Reeds site, but I consider him a genius, his writing style is simple and understandable.

Like many books these days Allen starts with the "Wealthy Mind-Set" (P11). He suggests you become programmed with the conversations around you. To loosen its grip start noticing the conversations around you. I can certainly relate, after coming back from a property investment meeting I talked to a relative about the guy teaching us having 80 properties. Her reaction was "Wow, think of all the land tax he pays!". Certainly not the reaction I expected. Another is "Replace luck thinking with probability thinking" (P 15).

Robert breaks down "The seven wealth principles" (P 22) . These involve taking notice of tax, appreciation, focusing your efforts, making offensive actions, investment stability, leverage & control. Well explained, this guy is the real deal.

The power of the book now appears, a 10 year plan. With an order at every stage. Pre-launch: time to learn like you have never learned before. Liftoff: buy a property a year at 10% off its real value. These are the years of sacrifice, keeping the focus. Pre-orbit: (year 5) Time for insurance incase of mishap. Year 10, Jettison some debt, diversify, and enjoy!

Allen provides a number of methods for buying property to work the plan. the one I like is the buy low and don't sell. My own plans is to buy low add value though renovation sell two to three near the end of the cycle. I find myself in the enviable position of waiting for a big property wave that my research suggests Sydney (Australia), is about to experience. I'm planning to stack my properties and ride the wave.

Now Robert tantalizes us with some creative financing. This is discussed more in his amazing book Nothing Down for the 2000s. Much of this is written for the American property market, though I know of people that have converted some of this successfully in the Australian market.

Tax, diversification with other forms of investment, and property management is devoted to all but the last chapters. Oh hum, yet essential.

Lastly Allen talks of the need for the "right kind of education" (P 234). Which is learning from people that have already done it. With the ending of the book, he stresses that "Wealth is Thoughts, not things" (P239). If wiped out, Armed with the right knowledge Robert feels it would take him no time to make his way up the ladder.

This book is a must have. 9/10. Have it on your shelf within arms reach of when you need it.

What did I get out of this?

• Allot of sensible reasons of why property is a good investment or wealth building vehicle. When the doubts come, and they will if your like me, this is the stuff that will put you back on track.
• A 10 year plan! with multiple entry and exit strategies. No one can work without a plan!
• Several methods of buying property.
• Creative financing methods.
• The realization that this applied knowledge used diligently separates the successful property investor from the unsuccessful.

Ian's Spin

There are certain books that are essential reading for property investing. I think this is one of them. Clever, informative, packed with a well thought out plan with multiple entry and exit strategies. The only thing you could complain about is that it is so packed it might overwhelm you with options.

The book is a must, as is his other best seller Nothing down for the 2000s.