Robert Kiyosaki’s Top Real Estate Tips
If you're a fan of Robert Kiyosaki, here are some of his top real estate tips.
If you were to ask people who the number one role model is when it comes to real estate investing, chances are the name Robert Kiyosaki would come up at least once. And while many may not know him by his given name, many will recognize his face as being on the cover of the Rich Dad, Poor Dad books. Robert Kiyosaki has been around for years. Teaching us about the importance of investing and getting out of the rat race. And so if you were wondering where to get solid advice about real estate, then concentrating on these top tips by Robert Kiyosaki is a good place to start.
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Who is Robert Kiyosaki, and what is he best known for?
While you yourself may not be entirely familiar with the name Robert Kiyosaki, or his work on Rich Dad, chances are that you will know someone who is. Robert Kiyosaki has been around since 1997 with his New York Times best selling book, Rich Dad, Poor Dad, and it is this work that he is most famous for. Smart Asset mentions that the original Rich Dad book was self-published. But since being picked up by Warner Books, it has remained on the best seller list for years. He has been featured on Oprah, and since his first success, he has published over 26 books on real estate investing and wealth. Today he is thought to be worth between $80 million and $100 million.
Robert Kiyosaki has devoted his life’s work to educating those around him about creating their own wealth. Not all of his financial tips are about investing in real estate and properties, but a lot are. In fact, much of his wealth comes from his real estate successes. Here are his top 3 real estate tips.
Tip 1. Buy your own property first
Robert Kiyosaki lists several real estate tips ion his own website, and the number one tip he offers is to buy your own property first. He states that if you are new to real estate investing, then it is always a good idea to purchase your own property first (if this is possible). Especially if this property is smaller, such as an apartment or single-family home.
There are a few reasons for this, but basically the process is much simpler. You will not need to worry about finding a tenant. Becoming a landlord is a whole lot of stress that you will not need to worry about. Also, financing is generally easier and cheaper. Many lenders will require less of a down payment and offer a lower interest rate for a property that is not considered a traditional investment.
Later on down the track you can move out and use it as an investment property to earn rental income. But in the meantime, you will be no longer paying rent, rather your payments will be going towards paying off your own property. This always feels better than having your money go towards paying for the property of your landlord.
Tip 2. Take advantage of market downturns
One of Robert Kiyosaki’s biggest and more important real estate tip is to simply buy low and sell high. According to Go Banking Rates, in a recent interview, Robert Kiyosaki was quoted as saying that the true investors make the most when the markets crash. However, you do not need to wait for an economic crash in order to make it big in the real estate market. Rather, keep an eye out for market downturns, and use these savings to your advantage. Buying a property low and then waiting for the market to rise can mean that you can gain a great deal of value in a short amount of time.
All too often, a market downturn will scare away investors. And this can mean that not only do property values crash, but the competition will be lower. In these circumstances, your chance of nabbing a really good deal is much higher. On the contrary, when the market is at its highest, this is a good opportunity to sell. Keeping an eye on the market trends can tell you whether it is a good time to grow your portfolio, or to sell and make some money.
Tip 3. Start small
The third tip offered by the famed Robert Kiyosaki is simply to start small. On his own website, Robert states that his own real estate investment started by an initial, small investment property. In fact, it was a 2-bedroom property in Oregon. It can be very daunting to purchase your first property. So starting small is a good way to get a feel of the process while minimizing risk. And there is nothing wrong with a smaller, cheaper investment property. Chances are your first investment is not going to make you into a millionaire. Rather consider it to be a learning experience.
Robert Kiyosaki makes it clear that while he does suggest starting small, he does not mean to stay small. Your goal should be to dream big, however everyone needs to start somewhere. And the biggest mistake that so many people make is jumping straight into the deep end of the real estate pool, where they find themselves instantly drowning.
There is no denying that Robert Kiyosaki is a successful man, and that he has made his fortune in the real estate market, and through other financial endeavors. If you are looking for a role model in the real estate world, then Robert is definitely someone you should consider. And by following his real estate tips, you will be well on your way to experiencing real estate success. No matter where you are in your real estate journey, there is a lot to learn from Robert Kiyosaki, and the teachings of his Rich Dad publications.
Charles is the founder of infoSpike.com. He enjoys real estate investing, marketing, and personal finance. Read more about Charles here.