Author Topic: This David Bach Real Estate Book is Hilarious--or Maybe Nuts  (Read 4068 times)

oldtoyota

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The advice in this book says to buy a house, live in it, and buy another house. Bach shares the story of a couple who became millionaires with this method. He mentioned a different couple that borrowed money from a 401K and used money from a credit card for a down payment. Then, their house went up in price by $500K. The story is: Do what they do and you will be rich!

I thought this was nuts, so I looked at the copyright date. 2005.

No wonder. He wrote this as the housing market was on the way up. I wonder what he'd say now that the bubble popped?


arebelspy

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Re: This David Bach Real Estate Book is Hilarious--or Maybe Nuts
« Reply #1 on: May 20, 2013, 12:26:20 PM »
Would that book be The Automatic Millionaire Homeowner?

Definitely some books that were written in the housing bubble that are just flat out bad.

Lots of other good books though.  Check out Gary Keller's Millionaire Real Estate Investor, for example.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
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tryan

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Re: This David Bach Real Estate Book is Hilarious--or Maybe Nuts
« Reply #2 on: May 21, 2013, 06:28:09 AM »
I like when they rerun real estate info-mercials from the late 80's with the dates on the checks they flash blurred-out.  Very informative ... over stocked books and tapes they can only NOW move.  TIME TO SELL!

honobob

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Re: This David Bach Real Estate Book is Hilarious--or Maybe Nuts
« Reply #3 on: May 21, 2013, 11:01:04 AM »
  The story is: Do what they do and you will be rich!
 No wonder. He wrote this as the housing market was on the way up. I wonder what he'd say now that the bubble popped?
I would imagine the exact same thing, as the market is on the way up, again, just like it always does.  Of course, the non book buyers bought when the market was down instead of sitting around lamenting that the recovery would take decades. 

daverobev

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Re: This David Bach Real Estate Book is Hilarious--or Maybe Nuts
« Reply #4 on: May 21, 2013, 11:59:52 AM »
It's not JUST the housing boom that does it. It's forced saving, and getting someone else to pay for your assets. It *can* go horribly wrong if you over-extend but... people DO have to live somewhere.

It's also leverage - you can borrow to buy a house a lot easier than you can to buy stocks. IF rents are stable, and you can get a long-term fixed mortgage (lucky Americans!)... you can have a , virtually, free house in 20 years. Multiply by 3, 4... little risk to you. Ok, after a few houses it gets harder, but still. Who needs more than one $300k house paying them every month to live on, really?!