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Property Investing: Not As Hard As You Might Think January 26, 2009

Posted by minnesotarealty in MN Realty.
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Many people think that Minnesota real estate investment is beyond them. It has such a mysterious sound. Surely, successful real estate investors like Donald Trump were born with a tip sheet in their hand and prospects in the back pocket of their baby jumpers. But the fact is, even those who were born into families of real estate moguls had to start from scratch to learn the family business. They just got an early start.

In fact, now is a great time to start investing in real estate.

Willingness to learn is the other key to success when it comes to real estate investing. In truth, it’s just like any other specialized task you must become familiar with in order to perform well at, but that anybody who is ready to devote time and mental energy can become proficient at. A good example is that of piloting an airplane; the process seems complex, but as long as your eyesight is decent and you don’t have an insurmountable fear of heights, you could learn to pilot an aircraft, and, given time, you could probably develop the skills necessary to work for a commercial airline.

Real estate investing is exactly like flying an airplane. In the beginning, it is a mysterious thing. You may look at the experts and be absolutely awed by what they have accomplished. But as you begin to learn the language of finance and as you begin to learn the markets, you start to understand what those guys are doing. If you make that sort of learning a habit, you will eventually be an expert yourself.

If you start investing in properties, and do it wisely (by learning as you go and by getting advice from the experts) you will soon find yourself making a little bit of money at it. Then you will find yourself making more money at it. Eventually you will make a lot of money from it and wonder when exactly you stopped being a novice and started being an expert. It is a gradual process, like anything else.

If you don’t believe it, take a look at the Rich Dad book series by Robert Kiyosaki. He explains just how easy it is to learn about real estate investing. His adviser and fellow Rich Dad author Ken McElroy, actually outlines a step-by-step process to follow in “The ABCs of Real Estate Investing.”

Investing is definitely easier than you think, if you follow one simple rule. That rule is simply to approach MN real estate investing as something you can learn, not as something you think you should have innate ability at. The moguls like Donalt Trump only seem to have an innate ability because they’ve spent so much time and energy learning the business. If you put the same time and energy into learning it, you can make money at it too.

After all, you wouldn’t want to climb into the cockpit of an airplane, fire it up and hope for the best, would you? Of course not. That would be suicide. On the other hand, you would expect to become a good pilot if you went through a prescribed program and logged enough hours behind the wheel. Approach real estate investing in the same way and the sky’s the limit.

Property Investing – The Secret Path To Wealth January 12, 2009

Posted by minnesotarealty in MN Realty.
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Taxes are a necessary evil in our society, and for many it seems natural to grouse about having to pay a large percentage of our earnings to the government while those who have more money seem to be bearing less of the burden than they ought. It’s certainly disheartening that it works this way – as the fortunate shirk their obligations through legal loopholes, the rest have to pick up their slack. It’s frustrating and unfair, and there’s no question that many of the complaints against the upper class are quite legitimate.

Unfortunately, simply recognizing injustices and complaining about them isn’t sufficient to change the ways of the world. The rich will inevitably have money and therefore power, and they will use this power to stack the deck in their favor, particularly when it comes to using tax breaks to keep their money. They will claim that there simply isn’t enough money for everyone to get what they need, all the while cutting corners and keeping their spoils for themselves. This extends to elected officials as well – how many poor politicians have you heard of?

In order to not be one of the many who are getting the short end of the stick, you’re going to have to step up and take the advantage for yourself. It’s true – you can get tax breaks like the rich do. You simply need to know how, and put forth the effort to get them.

Robert Kiyosaki, author of the “Rich Dad, Poor Dad” books, makes the sensible suggestion that those who are not rich but would like to be should watch what the rich do, and then do the same. You don’t really need to watch too closely, however, to learn the open secret of the wealthy – that secret is real estate.

In his book “Cash Flow Quadrant,” Kiyosaki says “One of the reasons I chose to work predominantly in the B and I quadrants are the tax advantages,” The aforementioned “quadrant” is an invention of “Rich Dad,” a diagram consisting on a square divided into quarters, each representing the different ways in which different people relate to money. It’s an unavoidable fact that an individual’s personal philosophy and perspective on the world will affect the way in which he or she behaves with money, and this behavior will,, in turn, decide his or her ultimate financial success or failure.

According to Robert Kiyosaki, the real money is in the business and investment quadrants of the Cash Flow Quadrant.

You know the saying, “If you can’t beat ’em, join ’em.” That is good advice, especially if the guys you want to beat are the rich. It’s actually great news that they are getting so many tax breaks. That means that, when you become one of them, you will get those same tax breaks, IF you know how.

The path to riches is actually very simple; all you’ve got to do is start investing, or join the ‘I’ quadrant. If you have a high-paying job, you may be able to do this without leaving the ‘E’ (employee) or ‘S’ (self-employed) quadrants, but Robert Kiyosaki advises that you move into the ‘B’ or business quadrant, devising a system that will make you money regardless of whether you are putting time into it or not.

So, invest – invest in apartments, condos, vacation homes, whatever suits your fancy. This is the true, time-tested road to wealth.

Realtor and Author Alexandria P. Anderson uses the Plymouth Real Estate Listings to help her MN realty clients find Plymouth Condos in Minnesota.