Andrew (Canada)'s Comments on two Real Estate Books

http://www.amazon.com/gp/cdp/member-reviews/A1YVGCFKYZU7N3/ref=cm_cr_auth/105-4767327-5039665


Andrew’s comment on

2 Years to a Million in Real Estate
by Matthew A. Martinez
Edition: Paperback

(5 of 5) Great Book, well worth the time and money, November 11, 2006Judging by all the positive reviews already in this section, Mr. Martinez certainly does not need my review as well. But with so many poor quality, basic almost usless books on real estate investment on the book shelves, when a book of this calibre is written the author should be congratulated (and thanked).

As a real estate investor of many years, it is wonderful to finally find an author that tells the true story of real estate investing. If you are considering buying your first income property, this book is MUST READ! In fact it should be your one of your main guiding resources. If you already have involvement with income properties, not only will you find many useful tips, you will probably also have a sense of deja vu and a laugh as you read Mr. Martinez's experiences.

Thanks again for a great book!



Comments on
The Automatic Millionaire Homeowner: A Powerful Plan to Finish Rich in Real Estate
by David BachEdition: Hardcover

(2 of 5)Poor Tax advice, May 22, 2006

This book was a disappointment. The author praises one couple who created wealth by keeping their principle residence and turning it into a rental property. Then they refinanced it bought a newer larger principle residence. The problem with this advice is, because the refinaced mortgage proceeds were NOT used for investment purposes, the mortgage interest CANNOT be claimed as a tax deduction.

Anyone with basic real estate investment knowledge knows the principle residence could have been sold (capital gains free), the majority of money from the sale could have be used to buy the new principle residence and the remainder of the proceeds from the sale used as a small down payment on another rental property. This would have minimized the size of the non tax deductible mortgage on the principle residence mortgage and maximized the size of the tax deductible mortgage on the rental property. This is basic information.


The author then praises another couple who does sell their principle residence and uses the proceeds as down payments on a new principle residence and two rental properties. He also says the couple were able to pay large enough down payments on the rental properties to create a significant positive cash flow from them.

Once again this is not efficient tax planning. The mortgage on the principle residence should have been minimized because it is not tax deductible and the mortgages on the rentals should have been made as large as possible to reduce positive cash flow (and income tax payable) and maximize the mortgage interest deductions to the couple.

I would expect someone writing a book on real estate investment to think this information would be valuable to their readers. Unfortunately the author also does not give completely accurate information on the first time buyers' RRSP plan. He states this plan is only available to people who have not owned a home in the last 5 years. This is not true. It is available to people who in the last five years, have not lived in a home they own. (you can be eligible for the plan and own a home). I know for a fact this is true because, I owned two rental properties (that I never lived in) and applied for, was eligible and used this plan to buy my first principle residence. I would expect an "expert" who gives financial advice to know this basic information. Mr.

Bach spends much of his book telling you that he will be telling you the secrets to financial success, instead of actually giving usefull information. I found no new information in it. I have to agree with the other reviews who say if you have read one of his other books, you should not spend your money on this one.