A few names can be written along with Robert Kiyosaki that would extract the same amount of attention. Indeed, the Rich Dad Poor Dad author is a worldwide sensation. Translated into 51 languages worldwide (and perhaps only surpassed by the Bible), the book has sold over 40 million copies since it saw print. That’s amazing clout by any book by any account.
If you’re not too sure about his fame, just Google “best finance book,” and you’re highly likely to see the book title appear on top of the search results. For the uninitiated, Robert’s book is the story of how he was raised by two dads, one his biological father and the other a wealthy entrepreneur. His father, quite naturally, advised him to keep working a job to get ahead in life. The other one told him to buy assets and run a business. Of course, we know entrepreneurs get better results in time.
Now, Robert Kiyosaki is a success story in his own right; his estimated worth is about $100 million. What’s more, he has tons of useful advice to succeed in real estate investing. Here are three of them.
Think Big, Start Small
Robert points out that starting small is a wise decision early on. He recalls he had a small property in Oregon as his first investment. And it somehow rattled him. That’s because he felt reluctant to let go of several thousands of his hard-earned cash.
And that’s the good thing about starting small. You feel the ins and outs of the business without having to lose big time. That way, you gain knowledge to help you move up.
The world-renowned financial guru recommends you invest first in a property that you can live in. In this regard, choosing from a slew of dependable packages involving both house and land should be the best. That way, you get a one-time deal to settle down at a favourable location.
Take note that when you buy real estate to live in, you get a better deal right off the bat. First stop, you’ll need a far lesser down payment, and your interest rates are also lower than otherwise. Best of all, you get the most favourable tax write-offs.
But even when Mr. Kiyosaki bats for smaller investments, he is not saying you should think small. In fact, you should do the opposite and think big. You should already set your sight on bigger goals even when you start small. And from there, climb one step of the ladder at a time.
The good thing about starting small is that you gain experience and confidence as you go along without worrying much about failure. Robert started with just 800 square feet of property. Today he owns thousands of apartments just in America alone.
Rentals over Flipping or Selling
For the nth time, real estate pundits have shown us how flipping a house can selling it can give us hefty profits. While Robert sees nothing wrong with getting a handsome return from such a deal, he’s more inclined to have the property rented. As financial experts detail, the much sought-after financial guru earns as much as $1 million monthly just from his rentals.
Flipping an old property and selling means a one-time profit. However, turning it into a rental means that you’ll have ongoing cash flow every month for the rest of your life. It’s an income stream.
Patience Is Key
As a real estate investor, learning to play the long game should bid you well. That should mean buying but not selling outright. You should learn to hold the property for the best results.
And patience should also matter when you choose your investments. Oftentimes, those that rush to grab a once-in-a-lifetime opportunity are the ones that suffer most when it comes to real estate scams. Truth be told, real estate scams use social engineering to the hilt. Making you want to run after the property is part of the game.
In real estate investing, only fools rush in. Chances are when you do things hastily, you overlook what should have constituted as red flags. Worse, you forego your gut instincts.
It certainly takes time to arm yourself with the right knowledge and tools to be proficient in real estate investing. Just like other industries, you need time to develop the skills. But as you go along, you should be able to increase your know-how and confidence at the same time.
Patience is a virtue. In real estate, it can be your best shot at success, just like Robert Kiyosaki did.