I love the idea of Multiple Streams of Income, by Robert Allen. Income that is both passive and residual is very interesting and I was curious where Allen would take his readers. Though Allen gives some great money making advice, I would pick and choose what to believe. Here are some of Allen's money making ideas I found intriguing:
- Tax Lien Certificate's
- Life Story through Book
- Turn Expertise into Book, Seminars, Consulting, etc.
- Internet Ideas
- Basic Saving Ideas
First of all, it's outdated. The last version was released in 2005, before the crash of our economy in 2008. And because of this, there are areas where I strongly DISAGREE with Allen:
- Savings Accounts that acquire 20% Interest Rates
- Buying Investment Property with NO Money Down
- Flipping Property
With no job and no cash, many of these people defaulted on their mortgages. Others who kept their job are stuck with an "underwater home," which means the home is valued for far less than the owners mortgage amount.
On the other hand, I like Allen's ideas of what to look for in an investment property - foreclosure, short sale and estate sale are on the top of his list. Investment properties are a fantastic idea IF you have the cash to back it up.
Also, flipping is no longer possible. In the past, many "flipping" transactions turned out to be fraudulent. Now, if you own a home for less than 2 years, the owner will be slapped with a capitol gains tax for any profit on the home. So, the idea of "flipping" no longer really exists. So, plan on owning the home for at least two years before selling.
I think the book has some really good ideas and it certainly gets you thinking. I just wish Allen would update his information and make it more applicable to today. It's still worth a read, but double check the information before seriously preceding with any of his income stream ideas.