You Can Invest in Real Estate

Robert Kiyosaki, author of the Rich Dad book series, has said more than once that you don’t have to have money to make money. However, in the “Cash Flow Quadrant”, he reveals how much money he paid for his first condo investment. What if he wants to buy a condo but doesn’t have a few thousand dollars available to make it happen?

You can still make your purchase. The trick is that you just have to think about things a little differently.

If you haven’t seen the movie “Schindler’s List”, you probably should. Not only is he a fair amount of social awareness, his writers did a good enough job with Schindler’s character to give you an idea of ​​his business savvy. The man wanted to build a factory because he knew that he could make him a lot of money during the war. The thing was, he didn’t have the capital to build that factory.

But the Jewish community does.

He approached them and presented his idea on how, in exchange for their investment capital, they could take some of the goods produced and sell them on the black market. He talked to many investors. He raised a lot of money.

You can do the same, and in fact many people do. If you see a good deal on a building and don’t have the millions left over to buy it, form a cooperative to buy the property. Even if you receive only 10 percent of the property’s profits, it will still be a nice sum if it’s the right property.

That’s why you shouldn’t be content with starting too small.

According to Ken McElroy, author of Rich Dad’s “The ABC’s of Real Estate Investing,” there’s nothing wrong with small lots of real estate. He simply says that there’s no reason to relegate yourself to them for fear that you don’t have the skills to grow, because it doesn’t really require more skills. You end up outsourcing a lot anyway.

What a larger piece of real estate will do, however, is allow you to interest more investors, since they can make more money on the deal. It is also highly unlikely that a larger real estate property would fall at zero occupancy.

As McElroy says, if you rent a single-family unit and that family moves out, you have a zero occupancy rate and the property becomes a liability until you can rent it again. If you own an interest in a 50-family building and 10 families move out, you still have an occupancy rate of 80 percent. The property is still an asset. You are still making money. And you know you can get back to doing more when you renew those 10 units.

All of that doesn’t even begin to take into account the relative ease of obtaining a bank loan in order to purchase investment property. The bank knows that it can make money on that property if you don’t pay, regardless of your credit history.

Regardless of what you are trying to do in this life, you owe it to yourself to let go of your assumptions and figure out how to get around potential barriers. Real estate investing is no exception. Just stick your nose in and start learning. There is a way for you to do it.

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