School buses are making their rounds and we can’t help but notice it’s the start of a new academic year.
Much like going back to school, entering the world of real estate is a journey of continuous learning—whether you’re a first-time homebuyer engrossed in ‘Real Estate 101’, a seasoned investor jotting down the arithmetic of your next big deal, or a family penning a new chapter in a dream home. This September issue is packed with enlightening articles and market updates that celebrate this back-to-school season, offering tips and insights that are as fundamental as reading, writing, and arithmetic.
So, grab your notebook and let’s dive in!
Sometimes simple stories are the most effective way to teach a lesson. One of my favorites is a short book titled “Rich Dad, Poor Dad” by Robert Kiyosaki.
Poor Dad makes a nice salary, buys nice things, but fails to properly invest for the future. Rich Dad, albeit starting on a lower salary, lives off less money and invests regularly. The story does a great job of showing how their disposable incomes change over time.
This book has topped the charts for over 20 years and has sold over 32 million copies. That’s even better than George R.R, Martin’s first Game of Thrones book!
I read it years ago, and even as a former CPA, it added helpful insights on how to create wealth and build for a financial future. It is a bit controversial in that it has a different take on what is an asset and what is a liability. In the book, the house you live in is a liability because you have to pay to own. I know that sounds a bit strange, especially coming from a Realtor, as our homes tend to appreciate and become our largest assets.
This book goes on to explain that things “you pay” to own are liabilities. Things that “pay you” are assets. Financial freedom comes when your investments pay you more than you spend on your lifestyle.
Rich Dad Poor Dad is a great book for a beginner. For those more seasoned, that want a blueprint to grow wealth through rental properties, the best book is “The Millionaire Real Estate Investor” by Gary Keller.
A bit of homework: A few years ago I gave a 20 minute presentation on building wealth through real estate. The video is not perfect, but it’s good enough if you, or your kids, want a high level overview of how wealth is created in real estate. Scan the to code to watch!