Real Estate Investing - Earn Money Without Working For It

There seem to be two types of people in the world?office slaves who very nearly treat work as a religion and who are in danger of neglecting the very families for whom they work so hard to provide; and people who have adopted more of a slacker mentality, convincing themselves that money isn’t important because they don’t want to be slaves to the workaday world.

Robert Kiyosaki, author of the Rich Dad book series, has money and he doesn’t agree. ?Anyone who says money isn’t important obviously has not been without it long,? he says in his book ?Cash Flow Quadrant.?

He knows because he has been in both situations. For several weeks in 1985, he and his wife were so destitute, they were actually forced to live in their car, after which they moved into a friend’s basement for nearly a year. They took only odd jobs, because wealth, not job security, was what they were after.

Four years later, they were millionaires.

While money is important, it isn’t important in and of itself, and that is why Kiyosaki and his wife didn’t rush out to look for the ?good? jobs they both could have gotten. It’s important because it provides for your basic needs and, if you have enough of it, it can give you time to be with your loved ones and do the things in life that truly make you happy.

One thing a job will never give you is extra time with loved ones. In fact, it will take away as much of that precious time as you allow it to.

Everyone sees the Catch 22, worrying that if they spend the time working to make enough money to do the things they want to do, they won’t have time to do those things. That is true. Working is not the answer. Making your money work, preferably in a solid investment like real estate, is the answer.

Kiyosaki seen been at that crossroads himself. ?Money is important, but I did not want to spend my life working for it,? he says in his Rich Dad series. Luckily he had the benefit of that rich dad’s knowledge of how the financial world works to see him through.

He knew that there was a way to be a responsible provider for his family without spending most of his waking life working. He knew the secret was become an investor.

When you become an investor, you are simply getting your money from a different place. What you want to do is take the money you get from your job, and put it into the I quadrant. That means that you now have money working for you. Your money is making money and you didn’t have to lift a finger for those extra dollars.

That is how you can have your cake and eat it too?because the money you make no longer represents hours of your life spent away in pursuit of a living, you can take those hours and reinvest them in spending actual time with your family, in pursuing hobbies, hanging out with friends. In short, you can reinvest them in your life.

10 Important Tips to Successful Real Estate Investing

Raja” Ahluwalia

When it comes to investing, everybody has certain goals and aspirations. However, we have found that there are certain guidelines every aspiring real estate investor needs to know:

When it comes to investing, everybody has certain goals and aspirations. However, we have found that there are certain guidelines every aspiring real estate investor needs to know:

1. Compare Property Values and Rents

Financial statistics only go so far; the best measure of a property’s market value is often the sale prices of nearby properties. The same holds true for area rents. A low price can often be justified by a reasonable rent; renters who can afford a high rent can afford to buy instead, so reasonably priced rent is a need.

2. Be Careful - Tax Laws May Change

Don’t base your tax investment on current tax laws. The tax code is constantly changing, and a good investment is a good investment regardless of the tax code. The right property with the right financing is what you should look for as an investor.

3. Specialize In Something You Know

Start in a market segment you know. Whether you focus on fixer-uppers, foreclosures, starter homes, low-down payment properties, condominiums, or small apartment buildings, you’ll benefit from experience by specializing in one aspect of investment real estate properties.

4. Know The Costs Going In!

Know the financial statements inside out. What are operating expenses? What are loan payments? Vacancy costs? Taxes? What does the cash flow statement look like? These are key issues that must be addressed before making a solid investment.

5. Know Where Your Tenants Are Coming From

If the last rent increase was recent, your tenants may be considering a move. If tenants have a short-term lease, they may be living there simply to attract unsuspecting buyers. It is also important to collect the tenants’ security deposits at closing.

6. Assess The Tax Situation

Taxes are an integral part of successful real estate investing, and they often make the difference between a positive cash flow and a negative one. Know the tax situation, and see how it can be manipulated to your advantage. It may be a good idea to consult a tax advisor.
7. Investigate Insurance Coverage

If seller’s coverage is based on lower-than-current replacement value, your insurance cost may increase when you pay a higher purchase price.

8. Confirm Utility Costs

Ask the local utilities to verify recent utility expenses, especially if any of these costs are included in your tenant’s rent.

9. Consult Your Accountant

Taxation is a key element of successful real estate investing, so be sure to find an accountant who is well-versed with the constantly evolving tax code.

10. Inspect!

Make sure that you always perform a thorough inspection of the property before buying it. Never, ever buy any property without at least examining the site. In some cases, hiring professional inspectors to examine the structural mechanical system may be a sound investment.

(c) Copyright 2005 Madan Ahluwalia. All rights reserved.

ABOUT THE AUTHOR

Real Estate Investing - Earn Money Without Working For It

There seem to be two types of people in the world?office slaves who very nearly treat work as a religion and who are in danger of neglecting the very families for whom they work so hard to provide; and people who have adopted more of a slacker mentality, convincing themselves that money isn’t important because they don’t want to be slaves to the workaday world.

Robert Kiyosaki, author of the Rich Dad book series, has money and he doesn’t agree. ?Anyone who says money isn’t important obviously has not been without it long,? he says in his book ?Cash Flow Quadrant.?

He knows because he has been in both situations. For several weeks in 1985, he and his wife were so destitute, they were actually forced to live in their car, after which they moved into a friend’s basement for nearly a year. They took only odd jobs, because wealth, not job security, was what they were after.

Four years later, they were millionaires.

While money is important, it isn’t important in and of itself, and that is why Kiyosaki and his wife didn’t rush out to look for the ?good? jobs they both could have gotten. It’s important because it provides for your basic needs and, if you have enough of it, it can give you time to be with your loved ones and do the things in life that truly make you happy.

One thing a job will never give you is extra time with loved ones. In fact, it will take away as much of that precious time as you allow it to.

Everyone sees the Catch 22, worrying that if they spend the time working to make enough money to do the things they want to do, they won’t have time to do those things. That is true. Working is not the answer. Making your money work, preferably in a solid investment like real estate, is the answer.

Kiyosaki seen been at that crossroads himself. ?Money is important, but I did not want to spend my life working for it,? he says in his Rich Dad series. Luckily he had the benefit of that rich dad’s knowledge of how the financial world works to see him through.

He knew that there was a way to be a responsible provider for his family without spending most of his waking life working. He knew the secret was become an investor.

When you become an investor, you are simply getting your money from a different place. What you want to do is take the money you get from your job, and put it into the I quadrant. That means that you now have money working for you. Your money is making money and you didn’t have to lift a finger for those extra dollars.

That is how you can have your cake and eat it too?because the money you make no longer represents hours of your life spent away in pursuit of a living, you can take those hours and reinvest them in spending actual time with your family, in pursuing hobbies, hanging out with friends. In short, you can reinvest them in your life.

10 Important Tips to Successful Real Estate Investing

Raja” Ahluwalia

When it comes to investing, everybody has certain goals and aspirations. However, we have found that there are certain guidelines every aspiring real estate investor needs to know:

When it comes to investing, everybody has certain goals and aspirations. However, we have found that there are certain guidelines every aspiring real estate investor needs to know:

1. Compare Property Values and Rents

Financial statistics only go so far; the best measure of a property’s market value is often the sale prices of nearby properties. The same holds true for area rents. A low price can often be justified by a reasonable rent; renters who can afford a high rent can afford to buy instead, so reasonably priced rent is a need.

2. Be Careful - Tax Laws May Change

Don’t base your tax investment on current tax laws. The tax code is constantly changing, and a good investment is a good investment regardless of the tax code. The right property with the right financing is what you should look for as an investor.

3. Specialize In Something You Know

Start in a market segment you know. Whether you focus on fixer-uppers, foreclosures, starter homes, low-down payment properties, condominiums, or small apartment buildings, you’ll benefit from experience by specializing in one aspect of investment real estate properties.

4. Know The Costs Going In!

Know the financial statements inside out. What are operating expenses? What are loan payments? Vacancy costs? Taxes? What does the cash flow statement look like? These are key issues that must be addressed before making a solid investment.

5. Know Where Your Tenants Are Coming From

If the last rent increase was recent, your tenants may be considering a move. If tenants have a short-term lease, they may be living there simply to attract unsuspecting buyers. It is also important to collect the tenants’ security deposits at closing.

6. Assess The Tax Situation

Taxes are an integral part of successful real estate investing, and they often make the difference between a positive cash flow and a negative one. Know the tax situation, and see how it can be manipulated to your advantage. It may be a good idea to consult a tax advisor.
7. Investigate Insurance Coverage

If seller’s coverage is based on lower-than-current replacement value, your insurance cost may increase when you pay a higher purchase price.

8. Confirm Utility Costs

Ask the local utilities to verify recent utility expenses, especially if any of these costs are included in your tenant’s rent.

9. Consult Your Accountant

Taxation is a key element of successful real estate investing, so be sure to find an accountant who is well-versed with the constantly evolving tax code.

10. Inspect!

Make sure that you always perform a thorough inspection of the property before buying it. Never, ever buy any property without at least examining the site. In some cases, hiring professional inspectors to examine the structural mechanical system may be a sound investment.

(c) Copyright 2005 Madan Ahluwalia. All rights reserved.

ABOUT THE AUTHOR

Real Estate Investing - Earn Money Without Working For It

There seem to be two types of people in the world?office slaves who very nearly treat work as a religion and who are in danger of neglecting the very families for whom they work so hard to provide; and people who have adopted more of a slacker mentality, convincing themselves that money isn’t important because they don’t want to be slaves to the workaday world.

Robert Kiyosaki, author of the Rich Dad book series, has money and he doesn’t agree. ?Anyone who says money isn’t important obviously has not been without it long,? he says in his book ?Cash Flow Quadrant.?

He knows because he has been in both situations. For several weeks in 1985, he and his wife were so destitute, they were actually forced to live in their car, after which they moved into a friend’s basement for nearly a year. They took only odd jobs, because wealth, not job security, was what they were after.

Four years later, they were millionaires.

While money is important, it isn’t important in and of itself, and that is why Kiyosaki and his wife didn’t rush out to look for the ?good? jobs they both could have gotten. It’s important because it provides for your basic needs and, if you have enough of it, it can give you time to be with your loved ones and do the things in life that truly make you happy.

One thing a job will never give you is extra time with loved ones. In fact, it will take away as much of that precious time as you allow it to.

Everyone sees the Catch 22, worrying that if they spend the time working to make enough money to do the things they want to do, they won’t have time to do those things. That is true. Working is not the answer. Making your money work, preferably in a solid investment like real estate, is the answer.

Kiyosaki seen been at that crossroads himself. ?Money is important, but I did not want to spend my life working for it,? he says in his Rich Dad series. Luckily he had the benefit of that rich dad’s knowledge of how the financial world works to see him through.

He knew that there was a way to be a responsible provider for his family without spending most of his waking life working. He knew the secret was become an investor.

When you become an investor, you are simply getting your money from a different place. What you want to do is take the money you get from your job, and put it into the I quadrant. That means that you now have money working for you. Your money is making money and you didn’t have to lift a finger for those extra dollars.

That is how you can have your cake and eat it too?because the money you make no longer represents hours of your life spent away in pursuit of a living, you can take those hours and reinvest them in spending actual time with your family, in pursuing hobbies, hanging out with friends. In short, you can reinvest them in your life.