Real estate investment is one of the most popular ways to invest your money, with approximately $1.2 trillion dollars invested globally. But what do you need to know before getting started? Learn about investing in real estate from some of the best investors and experts in this field: Robert Kiyosaki, author of “Rich Dad, Poor Dad” (read excerpt).
The “rich dad poor dad real estate pdf” is a book written by Robert Kiyosaki. It is about how people can invest in real estate and make money with it.
The basis of Robert Kiyosaki’s popular book Rich Dad, Poor Dad is the notion of real estate investing. According to the author, a real estate investment’s passive income – the concept of having your money generate additional income for you – makes it one of the most potent vehicles for wealth creation.
Rich Dad, Poor Dad is the best-selling personal finance book of all time, having been translated into 59 languages and sold in 109 countries. When asked which book motivated them the most to start investing in real estate, many investors cite this one as a trigger for their success. This book provides helpful information with its anecdotal lessons about labor, money, time, skill, and investment.
Kiyosaki discusses the fundamental factors that play into our financial desires and mentality as well as defying common thinking. If you haven’t already, you should read this book as soon as possible. Reread it if you haven’t already. This book will transform the way you think and change the trajectory of your life if you follow its concepts.
Here are eight crucial concepts from the first eight chapters of the book that will have a direct influence on your real estate investment mentality and behaviors.
1. The wealthy do not labor for money; instead, they allow money to work for them.
People’s life are controlled by either fear or greed. People sometimes labor long hours in jobs they dislike because they are afraid of running out of money. When they get a paycheck, their greed takes over and they start thinking about how they can spend it.
If you want to be successful in real estate investment, you must conquer your worries and greed. If you give in to your fear, you might prevent yourself from ever beginning. You may even begin, but when you meet a stumbling block, you quit up. If you’re thinking about investing, you’ve probably already started putting greed to rest.
Hopefully, you understand that investing involves sacrifice and the ability to resist the need for quick satisfaction.
In the industry of real estate investment, a person who behaves greedily in their real estate deals is frequently seen as greedy. You should surround oneself with competent, pleasant people if you want to be successful. If you’re greedy, they’re not going to stick around.
Almost everyone who claims they are uninterested in money also complains about having to work eight or more hours every day to make money.
People who claim they are unconcerned about money are delusory, since money is a requirement of existence.
Apathy (a negative trait) varies from contentment (a positive one) (a good quality). We all want to be able to provide for our families and have a fulfilling life, whatever that is defined. When you have this drive, you may analyze your existing income-generating system and start looking for more efficient ways to develop money.
2. Rather than how much money you make, it’s about how much money you retain.
To begin, you must be familiar with (real estate) tax legislation.
People in the middle and lower classes mistake obligations, such as homes, for assets.
Assets and liabilities must be distinguished, and assets must be purchased. Real estate is an excellent investment for a variety of reasons:
Through forced appreciation and cash flow, a good rental property may earn you money (rent).
Real estate investors may avoid paying taxes on assets they sell for a capital gain if they exchange them for a more expensive property under tax regulations like the 1031 exchange. If you continue to trade up in value, you will not be taxed on your investment gains.
When you invest in real estate, you are not merely working harder for the benefit of others, as is the case in most occupations. If you gain assets rather than merely a larger wage, you may avoid the financial challenges of working for someone else.
3. While the rest of the world examines their income accounts, the wealthy concentrate on their asset columns.
Ray Kroc, the creator of McDonald’s, famously said that he was in the real estate business, not the hamburger industry. Croc knew that the property and location were the most critical factors in his franchise’s success.
To maximize earnings, keep expenses low, reduce liabilities, and methodically construct a portfolio of income-producing rental properties.
4. Corporations’ power and tax history
When you work for a living, you relinquish authority to your boss. You keep control when you labor for money.
You need be knowledgeable in the following four areas to have a high financial IQ:
- The ability to read and comprehend numbers is essential in accounting.
- Investing is the process of using money to create more money.
- Understanding markets entails a thorough examination of supply and demand. A $75,000 home was offered for $60,000 at a cost of $20,000 as a consequence of taking advantage of a market opportunity.
- Accounting knowledge of company, state, a