hen Robert Kiyosaki, would soon be major construction
author of the Rich Dad near the site, which would hamper
book series, bought his access for quite some time. Who
first property he was, of course, would want to live there?
ecstatic. Finally, he had done
it. He had taken that first What saved Kiyosaki on that deal
important step in truly building was having a mentor like his rich
his wealth that the man he called dad, who made him go back and
his “rich dad” so often renegotiate the deal. The more
touted—investing. He knew it was experienced investor told him
very important to become an that you should never settle for
investor and make his money work losing money early in the deal,
for him. in the hopes that you will make
up for it later. That is a bad
The trouble was, the property he deal.
purchased was a losing deal for
him. He didn't see this at first, Rich dad made him go renegotiate
thanks to a smooth-talking real the contract and instead of
estate agent. But when he took losing money each month, he would
the contract to his rich dad, he be gaining $80 per month. His
learned what a mistake he had rich dad asked him how many of
made. According to that deal, he those losing deals he could
would be losing money each month. afford at that rate. You can do
He thought it would be all right the math. He couldn't even afford
because he had been told that the one. But at a gain of $80 per
lost money was an investment in month, Kiyosaki's reply to that
the future appreciation of the question was, as many as he could
property. get his hands on.
He also was not aware that there But many newbie investors fail to
put themselves in the hands of a if you're making money on the
mentor, which his a mistake. It deal and something like that
is good to have a trusted happens. If you start out losing
friend—not an advisor who stands money, you're almost guaranteeing
to make a buck off of you, but your own failure. Yet a
someone who truly wishes to smooth-talking professional can
educate you—to keep them from make it sound as though they are
making dire mistakes. doing you a favor by taking your
money.
Another mistake that rookies
often make is the very one that And finally, newbies often fail
Kiyosaki made—they allow to consider the environment
themselves to be talked into within which they are making
deals in which they lose money, their purchase, just as Kiyosaki
after getting bogged down in did. With real estate, unlike
mathematical “if's” that look with other investments, the local
really good on paper. “If the financial ecosystem can seriously
property appreciates at this affect your investment, and so
rate, then I can make up all the you have to stay on top of what
money I lost in the previous year is happening in the neighborhood
and...and...” That is, IF the and the rest of the city.
unit stays rented. IF the tenants
pay you on time. IF you don't The thing is to educate yourself
discover a significant flaw with and keep your head at the
the property. IF the tenants negotiating table. If you do
don't cause a significant flaw those two things then your deals
with the property... will likely be just that—deals.
For you.
The list goes on. It's bad enough
About the Author:
Investment Property Specialist - Alex Anderson Helps Beginning and Intermediate
Real Estate Investors To Build Wealth And Prepare For Retirement By Investing In
Real Estate. Enroll In Her Free/Educational "Investment Property Program" At: http://www.GreatInvestmentProperty.com
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Alex Anderson
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