Numerous Lessons Learned From ‘Rich Dad, Poor Dad’

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One of my favorite books is “Rich Dad, Poor Dad,” written in 1997 by Robert T. Kiyosaki.

In a storybook-like fashion, Kiyosaki describes, quite simply, how to grow your nest egg.

You may be doing your children, grandchildren, and yourself a favor by getting them a copy of this book.

My kids read this book in their teens and became aware of “Rich Dad’s” investment principles and are applying them today.

Opportunities

In every market or economic structure, there always seems to be opportunities for those who seek them out.

Ask yourself a simple question: if today you could buy a home similar to your parents’ first home for the price they paid, would that be a good deal? A good investment?

The vast majority of you would probably reply with a resounding yes!

Mario Gabelli is a Wall Street investment guru that has made fortunes for investors by seeking out and buying interests in companies that are priced below asset value.

Would it be a good investment today if you could buy a property below the cost of replacement?

An essay in this month’s real estate trade publication has the chief economist of the National Association of Realtors questioning a future housing shortage even though there are currently more than 700,000 vacant units over normal levels.

His reasoning is that for the past three years we have seen an under-production of new housing units which may have to be reconciled in the future.

If the chief economist’s prognostication comes to pass, what would be the potential gain on a real estate investment at today’s below replacement cost price levels? A crystal ball would be handy.

REIT’s (Real Estate Investment Trusts) are a method of investing that offers an investor, even those with limited financial resources, a method of investing in real estate.

Buying into a REIT is similar to buying into a mutual fund or purchasing an equity investment. Your investment risk in a REIT may be lower than an individual housing unit because of the diversified pool of properties and the spreading of risk among many investors.

Many market contrarians, those who do not follow the pack, are formulating real estate investment strategies.

There is little profit to be made without some prospect of risk.

As my old boss used to say, “The turtle only gets ahead when he sticks his neck out.”

Be sure that you obtain qualified help with your investments so you don’t stick your neck out too far.

Ray Pugel is a designated broker for Coldwell Banker Bishop Realty. Contact him at (928) 474-2216.

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