Hello,
Listen, real estate investing has been very good to me. My investments have allowed me to get out of the Rat Race by creating great monthly cash flow and long-term wealth. Ultimately, my investing has given me freedom in a way that I wish for you all.
That said, you shouldn't jump into real estate investing without understanding the game. Today, let's think about the reason you should consider real estate as an investment vehicle.
I came up with 6 major advantages to investing in real estate.
- Using other people's money. When investing in real estate, most of the money is the banks. Typically, only a small percentage is your own, and of course there are many ways to leverage other sources of money that you can learn about later.
- Cash flow. If you purchase and manage real-estate properties wisely, they can provide consistent and significant cash flow each month.
- Appreciation. This isn't guaranteed of course, but over time rents and property values can increase so that while you are acquiring cash flow, the value of your asset is simultaneously growing.
- Control. I find real estate gives you more control over income and expenses than any other type of investing. When I invest, I don't like to gamble. Control is important.
- Stability. Although all investments can go up and down depending upon the economy and other factors, cash-flowing properties are generally less subject to daily ups and downs. Many people just dump their money into the stock market and hope it turns out well, but I prefer the stability of real estate.
- Tax Advantages. There are significant tax advantages to real estate, including depreciation and write-offs, that are not available in other forms of investing.
Real estate investing, like other forms of investing, has some factors that make it not right for everyone. Don't march blindly ahead without understanding a few of the trade-offs. A few factors you should keep in mind.
- Due diligence. Other than perhaps investing in businesses, real estate requires more time-consuming upfront due diligence than other forms of investing. Getting educated and surrounding yourself with the right team can help a great deal.
- Liquidity. The ability to turn your asset into cash is a consideration. For real estate it could take weeks or months to move your money into and out of real estate.
- Management. Investing in real estate can require more time-consuming management than other forms of investing. Depending on your preference here, you can also get help with this area.
I hope this review is helpful for you. Real estate has created more millionaires than any other form of investing, but you must understand what you are doing. That said, don't be intimidated or get stuck behind a wall of fear.
I suggest you start small, learn fast, and then grow when you are ready.
To help you increase your financial education when it comes to real estate investing, my team has prepared two free resources for you.
First, our monthly LIVESTREAM event is one you shouldn't miss if you are considering investing in real estate or want to improve your results. There will be an entire section dedicated to sharing strategies and answering questions that new real estate investors should be aware of. In addition, Kim and I, along with some other surprise guests will share our stories of how we got started. This event is free for you and members of the Rich Dad Community.
Second, we've prepared a useful guide to help you choose the right real estate investing strategy. The guide will walk you through the Pros and Cons of some of the most popular types of real estate investing.
Both of these free resources are available to you here.
To making life better,
João
P.S. Another reason to see this free online event? Besides Kim and I, there are 6 other experts that will join us and share their experience and strategies with you. It's going to be very worthwhile.
Robert Kiyosaki
P.S. Another reason to see this free online event? Besides Kim and I, there are 6 other experts that will join us and share their experience and strategies with you. It's going to be very worthwhile.
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