New York Times best-selling author and real estate investor Robert Kiyosaki is known for turning traditional money advice on its head. The “Rich Dad Poor Dad” creator believes in the power of real estate as a foundation of wealth. Here are his best pieces of advice for investing in real estate.
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Don’t Work for Money
If you follow Kiyosaki either by attending a seminar, listening to his podcast, or reading one of his best-selling financial books, then you have likely heard him say, “Don’t work for money.” In an episode of “The Rich Dad Channel,” Kiyosaki said that this is lesson number one for people hoping to build wealth. The real estate investment expert explained that he doesn’t have a paycheck and doesn’t pay taxes. Instead, he said people should focus on being entrepreneurs.
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Use Other People’s Money (OPM)
A second tip commonly given by Kiyosaki is that people should use other people’s money. On another episode, he spoke with Ken McElroy, a Rich Dad advisor and property manager, about how to use other people’s money by raising capital and noted “only lazy people use their own money.” The guru explained that he uses debt to buy property and doesn’t sell or flip those properties, but manages them instead.
Build the Best Team
In one of his blog posts, he said assembling the right team is the most important step when it comes to becoming a successful investor. The team of advisors and investors may include a broker, lender, real estate attorney, bookkeeper, accountants and more. A good team, Kiyosaki explained, will help investors avoid making huge mistakes.
Trade Up
Another principle promoted by Kiyosaki is trading up. In another blog post, he said that hopeful investors should sell smaller properties and use the money to trade up or buy bigger properties that generate more income. He also explained that people can avoid capital gains by taking advantage of a “1031 exchange.”
It is important to note that novice investors should always seek advice from a licensed professional before making any investments and consult with a tax specialist about any proposed strategies. Real estate investing at any level can be complex and should not be entered into without considerable research.
Get Educated
Finally, Kiyosaki recommends getting educated. On his website, he laid out a “30-Day Wealth Building Challenge” which included reading a personal finance book, watching wealth-building content, taking an online course and joining a wealth-building community. He offered a number of different courses, books and other products through his Rich Dad website. Digital products include things like a five-part Beginner’s Real Estate Investment Course and the Deal Finder Academy.
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This article originally appeared on GOBankingRates.com: Robert Kiyosaki’s Best Real Estate Investing Advice To Help You Build Wealth
