Summary: How to Make It When You're Cash Poor

Review and Analysis of Norton's Book

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• Publisher: Must Read Summaries
• Year: 2016
• eBook ISBN: 9782806246882
• Topic: Personal Development
• Subtopic: Personal Finance

The must-read summary of Hollis Norton's book: `How to Make It When You're Cash Poor: Strategies for Buying Real Estate With Little or No Cash`. 

This summary of the ideas from Hollis Norton's book `How to Make It When You're Cash Poor` shows that despite the property meltdown of recent years, anyone can still make big money in real estate, even if they don’t have much cash to put down. The key is to solve a problem for the sellers, creating a win/win situation – they win by getting a problem solved and you win financially by being creative. Investment in property still remains the safest, most secure and profitable way to go about building a fortune. This summary takes the reader through every aspect of buying, renovating, maintaining and selling. It explains how to invest when you have no money, how to research your market, how to calculate real market value and how to talk intelligently to sellers. It tackles possible problems and most importantly of all, it sets out a long-term strategy whereby property can become your most profitable pension. In short, real estate management and wealth creation isn’t complicated, even in today’s climate. Anyone can learn how to create a steady, long-term income.

Added-value of this summary: 
• Save time
• Understand the key concepts
• Develop your business knowledge

To learn more, read `How to Make It When You're Cash Poor` and discover a comprehensive guide to succeed in real estate management and create wealth.

Summary of How To Make It When You’re Cash Poor (Hollis Norton)

1. What Are You Waiting For?

Main Idea

Anyone who wants to can be financially independent within five years or less through investing in real estate.

Supporting Ideas

This is not a lazy man’s way to wealth. It takes study, work and the application of spare time that might otherwise be frittered away or spent on leisure activities. However, there is no magic or mystery about the technique. It simply involves borrowing money to purchase real estate that will be worth even more money later on. And servicing the debt in the meantime.

To build wealth, you have to do things differently to how the herd operates. It requires you to follow new paths and new directions rather than plodding mindlessly onwards because that is what everyone else around you is doing. It requires clear thinking and the ability to make decisions coupled with resourcefulness and creativity. But the rewards are worth it.

Once you understand how wealth is created, you never lose your ability to create it. Safety is not in material things. It is a state of mind, and the knowledge to know how to achieve things no matter what conditions are around you. And the ability to apply your knowledge effectively.

Your biggest enemy in creating wealth through real estate is inertia. Whether or not you get out of a rut depends on how badly you want it. If your desire for happiness and financial freedom is strong, you’ll stop making excuses and get to work.

A real estate investment program can be run in your spare time if you like - about five to ten hours every week. Remember, nobody else cares about you financially. The only way to make sure your income will continue into old age when you can no longer work is to take matters into your own hands and build wealth.

Here are your first steps in real estate investment;

1. Buy a simple, cheap diary and start writing down;
   - Your financial goals.
   - How much time each day you are spending on your wealth building program.
   - How many actual written offers to purchase real estate you have made each week.
2. Quit watching television completely. Promise you can start watching TV again when your net worth reaches a predetermined level.
3. Plan a reward for yourself. Pick something you have always wanted to do and decide for what achievement you can reward yourself that way. Then go to work.
4. Don’t buy anything that depreciates in value. Rent or lease things for the period you need them rather than buying them. Save all your cash for investment in assets that will appreciate in value.

2. How To Eat A Cow

Main Idea

Start real estate investing at a level you find comfortable and go from there.

Supporting Ideas

If someone gave you a cow and told you to eat it, you’d think they were crazy. However, if they gave you a couple of steaks at a time, over a period of time you’d happily eat an entire cow.

Approach real estate investment with a similar frame of reference. Don’t try and take on complex deals right from the start (eating an entire cow). Instead, start with investing in houses and build up from there. In reality, you can do extremely well sticking to purchasing houses alone, and may never desire to go into investment in other types of real estate. You will be surprised how easy it is and how little capital can actually be required to commence real estate investment.

The good thing about real estate is there is no such thing as standard practice. Many people looking at real estate simply assume you have to have at least 25% deposit and make regular payments to purchase a house or other piece of real estate. In reality, there are no guidelines whatsoever. Whatever a buyer and a seller agree to as the terms of purchase are completely suitable and legally correct.

Never be afraid to make an offer on a property simply because it may be turned down. Also don’t accept the advice of others who tell you the type of deal you are looking to structure is impossible. This includes brokers who are, after all, simply looking for the easiest way for them to get a commission out of organizing a sale.

You need to build a team around you of key people who can assist your wealth building efforts. This will include an accountant who understands what you are trying to do, a lawyer with experience in contract matters as they apply to real estate, bankers who have come to know and trust you, property appraisers or valuers you are comfortable working with and others as required.

3. What You Need To Know
About Real-Estate Investing

Main Idea

Real estate is still...

Table of contents

• Title page
• Book Presentation
• Summary of How To Make It When You’re Cash Poor (Hollis Norton)
• About the Summary Publisher
• Copyright