How To Make Millions In Real Estate In Three Years Starting With No Cash

by Dual Income No Kids on November 30, 2008 · 0 comments

While browsing around Powells Books in Portland, Oregon, we picked up a copy of Tyler G. Hick‘s “How to Make Millions in Real Estate in Three Years Starting With No Cash“. After leafing through it, we decided to give it some ink.
The main idea behind Hicks book is that no money down real estate can accelerate your wealth building processes. The book has 15 chapters, but the bulk of the discussion is devoted to locating money making multifamily properties and buying them using no cash down purchasing techniques.
These techniques include: taking seller financing, organizing first, second and third mortgages, scoring a gift downpayment or renting collateral.

Something for nothing…sounds bogus, right? Well, not so fast. Acquiring streams of passive income is a sound financial strategy. Its essentially the strategy that Warren Buffet follows when he buys profitable businesses. Indeed all landlords use this same strategy. Hicks argues that for his approach you need to be cash flow positive – your rents from real estate should cover ALL expenses before taxes. Thus under the right conditions, you should be able to leverage yourself into a money making situation.

There are some serious problems with the idea, but they center on practicality. In any event, more debt means less profit. Today, current economic conditions make a no money down strategy exceptionally difficult. After the sub prime mess many banks won’t lend unless a 20% down payment is evident. Also, the housing boom has inflated prices to the point where many investment properties are not cash flow positive. So, the underlying idea isn’t so problematic as is the feasibility of the method under current economic conditions.

Finally, many people condemn get-rich-quick-in-real-estate types as fraudulent. There is a lot of truth to this, but what How to Make Millions does is sell inspiration as much as teach one how to make money in apartment buildings. This means the work touches on themes that are a quintessential part of American dream – social mobility and financial security. In this regard, you might pick up a copy of the book, but do it to refresh your faith in the wealth building processes, not for a study of technique.

Check out Tyler Hick at Powells.com

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