[#Investment]. Asset Class #4: Real Estate Real estate is a favorite #investment class for many—including Robert and Kim—be-cause it fits a tried and true formula for financial freedom. Real estate investments either provide cash flow from rental properties or capital gains from buying and selling (flip-ping) a property. As an investor, you can choose from four different types of property: residential, in-dustrial, commercial, and undeveloped land. When choosing one of these investment vehicles, you should be knowledgeable about the local real estate market, general economic forecasts, and tax realities. If you are getting started, working with a Rich Dad Coach can help you not only know how to find this information, but know how to decipher it. The Pros and Cons of Real Estate Like any investment, real estate possesses its own set of risks that you need to ac-count for in order to be successful. To begin with, real estate isn’t liquid. Selling a prop-erty takes time. However, if you have purchased wisely and the property is producing a positive cash flow, you probably won’t want to sell it. Many people will tell you to stay away from real estate because of having to deal with bad tenants and property repairs. (It should be noted that the majority of these naysay-ers have never actually invested themselves.) While these types of risks are real, there are ways to help minimize their impact. A good property manager can help you screen for and find the type of tenants you want to rent your properties. In addition, a trusted property manager can help stay on top of needed repairs all while minimizing your day-to-day involvement with the property. One of the biggest pros of real estate is that you can use leverage, or the ability to use other people’s money (OPM) to purchase the asset. For a relatively small amount of money, you can end up buying more real estate than you could with any of the other asset classes. For instance, if you had $10,000, you could buy $10,000 of stock or you could use that same amount as a down payment for a $100,000 investment property and use the bank’s money to fund the rest. Granted you’ll be taking on a $90,000 liabil-ity to purchase the investment property, but when you consider that rents from the real estate purchase will help pay down the mortgage, real estate keeps looking better. What Assets Will Give You Financial Freedom? When it comes to choosing investments for your financial freedom, it’s a personal choice that depends on your specific goals in life. And while it might be overwhelming at first, start small. Set your goals, research and increase your financial education and then take action. Many people have changed their life for the better by investing in as-sets, and you can too. What one-step are you going to take today on your journey to financial freedom? Special Offer: Increase Your Cash Flow by Working With a Certified Rich Dad Coach –ACT NOW and Receive 6 months of Coaching Absolutely Free! Discover the power of working one-on-one with your own certified Rich Dad Coach to help you invest smarter, build and protect your wealth, and create the cash flow you need to live the life you desire. Remember, Robert’s Rich Dad was his first coach and helped him become successful by teaching him how to make his money work for him, who’s helping you? Get your free introduction to Rich Dad Coaching and learn how a Rich Dad Coach can help you do the same. Call 1-800-240-0434 and mention extension 5469 to receive your FREE introduction to Rich Dad Coaching and to get 6-months of FREE Coaching with any new program.
Posted on: Tue, 05 Nov 2013 14:51:26 +0000
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