[net.invest] Nothing Down Seminar

mayer@hamstr.DEC (06/04/85)

My husband and I just spent a fantastic weekend at one of the Robert G. Allen NOTH
NOTHING DOWN seminars.  If anyone else out there has attended one, what
did you think of it and have you had any real estate successes using any
of the techniques?  At present, we own two investment properties in Man-
chester, NH.

Thanks!

Nancy Mayer

klein@ucbcad.UUCP (Mike Klein) (06/05/85)

The Wall Street Journal carried a major article just a few days ago on
this subject; I will guess that it was either Friday 5/31 or Monday 6/3.
It was one of their front-page-of-part-two articles.  Their assessment
of these deals is overall quite negative in the current real estate market.
You should definitely find the issue and read it to get the details.

In general, nothing-down deals are riskier than something-down deals
(why would the seller be willing to give you something for nothing down?).
In previous years, some people made a lot of money on these because
appreciation of real estate was considerable and virtually certain.
This is certainly not the case any more.  Many of these deals require
more cash during the term of the investment than conventional deals,
and if your income from the investment or your appreciation is not
sufficient, you lose.  The Journal interviewed several people who had
gone to these ``Nothing-Down'' seminars; essentially no attendees had
been able to buy under these terms.  The few that had were in large
part stuck because they in turn could not re-sell the property, ran into
large negative cash flow problems, or had other comparable problems.
Most would not do it again.  There were, of course, a few exceptions.

The article's conclusion was that you must realize that the real estate market
today is different than when most of these people like Robert Allen
made their money (that's why they are giving seminars now), and that
if you can afford at least a small down payment, you will find
investments that entail far less risk.
-- 

		-Mike Klein
		...!ucbvax!ucbmerlin:klein	(UUCP)
		klein%ucbmerlin@berkeley	(ARPA)

john@hp-pcd.UUCP (john) (06/08/85)

<<<<

  Remember the old saying:


   NOTHING Ventured, NOTHING Gained





  John Eaton
!hplabs!Hp-pcd!john

mayer@hamstr.DEC (06/10/85)

I've been getting some replies to my question pertaining to the experience of others
others with, specifically, Robt. G. Allen's seminars.  Naturally, something
of this nature is going to be very controversial depending on personal
experiences, skeptics in the press, etc., so my husband and I can only
really speak from our own viewpoint and ONLY in regard to Robt. G. Allen's
seminars--I see now that there are others out there being offered.  We found
the seminar to be extremely informative in regard to real estate in general
as well as the learning of specific techniques employing creative fi-
nancing.  There will only be, perhaps, a small percentage of those attend-
ing such a seminar who will have the creativity to put to use the tech-
niques taught, and we are so busy now that I must leave my 40-hour per week



job to assist my husband with his investments--he has an incredible grasp
of the techniques and is involved in several negotiations at this point.
At present we own two investment properties already which are doing very
well.  One other thing--this seminar does not stress becoming overnight
millionaires but, on the contrary, the slow, steady building of in-
vestment properties (recommended:  one property per year).  We antici-
pate acquiring at least 3 - 4 per year using what we have learned.  This
seminar has already earned back for us the cost of the two days.  I will
keep you posted of further activities/failures/successes.