Creating Wealth by Robert Allen

This book is about being able to retire in 10 years using Robert Allen's 7 principles of wealth. It took me 1.5 months to finish this book. Not that it is a difficult read, but its methods are interesting and I have not been having much time to read any books at all during this period of time. Nevertheless, I have been hoping to read a couple of Robert Allen's books and I'm glad to have finished this one.

Robert is the author who have been challenged to buy a piece of property with nothing down, and with only $100 as living expenses in 72 hours. In 57 hrs, he signed agreements to purchase not 1 but 7 properties with a total value of $722,715.

This book starts with some thinking foundations on how to develop a wealthy mindset, which is a 5 steps process, namely;

1) Set realistic goals and write them down,
2) Visualize your goal,
3) Affirm yourself,
4) Replace luck thinking with probability thinking and
5) Take action.

His 7 wealth principles are:

1) Don't count your dollars until they have passed through the strainers of taxes and inflation.
2) Make maximum use of your assets and sacrifice to invest in things that go up in value.
3) Don't diversify! Concentrate all of your eggs in the right basket.
4) Wealth seekers are always on the offensive, not on the defensive.
5) Money must multiply at wealth-producing rates of return.
6) Choose investments that are both powerful and stable.
7) Control is essential.

The main sections are able being able to buy properties at very little down and how to determine if the property is of the value that you would like to buy at. Various methods and factors are discussed and it would be very beneficial to an American. In Singapore, where I am a resident, it is not possible to buy a property with less than 10% down and most of the methods are unable to be practise here.

The last sections are about education and the mindset of people. I agree totally with Robert that we should always be learning in order to improve our financial intelligence. There is a part which I am extremely enlightened. He says that one should be an expert in creating wealth and the best way to become an expert is to write a book on that expertise. In order to write a book, one has to do research, train one's discipline and network with similar minded people. For me, an added advantage in writing a book is that it will also improve my writing skills.

This book ends with a chapter on 52 insight thoughts, ie quotes from famous and successful people.

This is a good book on real estate investment, though it does touch on other investments such a precious metals and collectibles (art and coins). Personally, i have learned quite a bit on how the American real estate works.