Building Wealth One House at a Time

347 Pages·6.407 MB·English

PRAISE FOR JOHN SCHAUB AND
BUILDING WEALTH ONE HOUSE AT A TIME
The lessons and strategies in Building Wealth One House at a Time are
needed today more than ever. The book teaches that a simple portfolio of
houses bought one at a time is all you need. Instead of blindly following
the latest trend, the book shows timeless principles that will work in any
market. And more than anything, the author John Schaub’s own multi-
decade example of successful investing is living proof that the strategies
in this book work. This is the book I purchase as a gift for anyone I know
who is serious about real estate investing. It should be on every investor’s
bookshelf.
—CHAD CARSON, CoachCarson.com and author of
Retire Early with Real Estate
John Schaub is one of the most gifted educators I have ever known. Building
Wealth One House at a Time offers readers a step by step formula for build-
ing lifetime wealth and security. Perhaps the best test of all—thousands
have achieved financial independence following John’s advice.
—JAY P. DECIMA (Fixer Jay), author of Investing in
Fixer Uppers
John Schaub is the “pope” for real estate investors. Genuine, sincere, no
hype, no BS, and his methods and strategies are simple, proven and work
in all markets. John is my best mentor ever!
—MIKE BUTLER, author, Landlording on AutoPilot
For anyone seriously interested in investing in rental houses, John Schaub
has been a guru for many years. Not only has he taught thousands of stu-
dents how to “make it big on little deals,” but he has brought something
to real estate investment that we rarely see in this era of get-rich-quick,
flip-this-house-and-make-a-fortune-overnight self-promoters: an unusu-
ally strong ethical component that guides his entire approach. In Building
Wealth One House at a Time, one of Schaub’s core themes is that if you treat
people fairly—whether they are prospective tenants looking to rent a house
or fellow investors looking to do a joint venture—you will do better. You
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will prosper in both the long run and the short run. “When a deal is too
one sided,” he writes, “it will go bad.” There’s real financial wisdom in that
advice. When deals go bad, you usually don’t build wealth. Schaub’s book is
primarily about the nuts-and-bolts essentials that any small scale investor
needs to know.
—KENNETH R. HARNEY, nationally syndicated real estate
columnist, The Nation’s Housing
John Schaub’s steady-Eddie approach to building wealth has worked for his
students for over four decades. Here are the rules: (1) know the local mar-
ket; (2) buy a discounted property because you have the knowledge or cash
to solve the seller’s problem; (3) rent the property to renters who will stay
in the homes for years. In short, buy bargains and offer bargains. Wealth
builds, one paid-off mortgage at a time.
—DR. GARY NORTH, author of sixty-three books,
vice president, Ron Paul Curriculum, editor,
Tea Party Economist and Remnant Review
On my scale of one to ten, it rates an off-the-chart twelve.
—BOB BRUSS, nationally syndicated real estate columnist
John Schaub is the only real estate guru I know who has survived and pros-
pered for forty years in this wild and woolly market.
—MARK SKOUSEN, PhD, presidential fellow,
Chapman University, editor, Forecasts & Strategies
The great thing about this book is that it doesn’t promise to make you a
real estate millionaire overnight. John Schaub is the real deal! His approach
is simple yet effective. Thanks to thirty-five years of experience, John has
a consistent and practical approach to buying, financing, and managing
houses. If you follow what he teaches, you will enjoy true financial freedom.
—GARY JOHNSTON, author, Financial Freedom Principles
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BUILDING
WEALTH
ONE HOUSE AT A TIME
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BUILDING
WEALTH
ONE HOUSE AT A TIME
REVISED AND EXPANDED THIRD EDITION
JOHN W. SCHAUB
New York Chicago San Francisco Athens London
Madrid Mexico City Milan New Delhi
Singapore Sydney Toronto
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Copyright © 2023, 2016, 2005 by John W. Schaub. All rights reserved. Except as permitted under the United States Copy-
right Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in
a database or retrieval system, without the prior written permission of the publisher.
ISBN: 978-1-26-468057-3
MHID: 1-26-468057-0
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—From a Declaration of Principles Jointly Adopted by a Committee of the
American Bar Association and a Committee of Publishers and Associations
Library of Congress Cataloging-in-Publication Data
Name: Schaub, John, author.
Title: Building wealth one house at a time / John Schaub.
Description: Revised and expanded third edition. | New York : McGraw Hill, [2023] | Includes index.
Identifiers: LCCN 2022034705 (print) | LCCN 2022034706 (ebook) | ISBN 9781264679553 (hardback) | ISBN
9781264680573 (ebook)
Subjects: LCSH: Real estate investment.
Classification: LCC HD1382.5 .S328 2023 (print) | LCC HD1382.5 (ebook) | DDC 332.63/24—dc23/eng/20220721
LC record available at https://lccn.loc.gov/2022034705
LC ebook record available at https://lccn.loc.gov/2022034706
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This book is dedicated to my wife, Valerie,
and my family who have supported and encouraged me;
to the thousands of principled small landlords who invest their time
and money to provide decent affordable housing to millions of families;
and to the dedicated volunteers, staff, and homeowners of
the Fuller Center for Housing, who are working together
worldwide to eliminate poverty housing.
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CONTENTS
Introduction ix
PART ONE
BUYING HOUSES: YOUR PATH TO WEALTH
1 How Buying One House at a Time Can Make You Wealthy 3
2 Buying the House That Will Make You the Most Money 15
3 Finding Opportunities That Others Miss 27
4 Knowing What a House Is Worth Before You Make an Offer 41
PART TWO
GETTING THE MONEY YOU NEED
5 Know How You Are Going to Pay for a House Before You Buy 53
6 What Makes Some Debt Dangerous and How to Borrow Safely 67
7 Borrowing Without Going to a Bank 79
8 Investing with Others for Their Benefit and Yours 95
PART THREE
GETTING YOUR OFFER ACCEPTED
9 Making the Offer 109
10 Using a Real Estate Contract to Your Advantage 121
vii
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