Robert Kiyosaki is an American entrepreneur known as the founder of the Rich Dad Company. He’s also the best-selling author of “Rich Dad, Poor Dad,” among over 15 books on financial literacy, all of which have sold 26 million copies all over the world. In the DVD series of “Rich Dad, Poor Dad,” Kiyosaki shares the “6 Steps to Investing in Real Estate,” a basic formula followed in real estate investment.
Check out the six steps below:
Step 1: Decide to become an investor
It all begins with commitment. Stick to the decision. According to Kiyosaki, your first and foremost investment is your education. Study the industry and learn to be financially literate.
Step 2: Find an area
“Areas go up, areas go down, and areas go sideways. The area is more important than the property,” says Kiyosaki. Kiyosaki says “location, location, location” is of prime importance. The property itself can go up or down, depending on its location.
Step 3: Identify properties
Once you’ve zeroed in on a lucrative neighborhood, it’s time to look for the property itself. This is a comprehensive process. You’ll have to do some house-hunting, compare property rates, and consult realtors and other property experts.
Step 4: Analyze, offer, negotiate
This stage of the investment will determine how much you’re going to have to spend on the property and the conditions of its turnover. Study, discuss, and negotiate the agreement between you and the seller. Consult professionals such as a realtor and a lawyer to get the most out of the negotiations.
Step 5: Put together the deal
This step covers due diligence, financing, and reaching an agreement. Inspect the property and its deeds. Study the fine print and the technical details with a keen eye. Make sure that the paperwork is authentic.
Step 6: Manage the property
Investors have multiple options for property management. You can opt to manage the property yourself, serving as its landlord. Alternatively, you can hire an individual, a company, or a property management service to attend to the practical, hands-on necessities of maintaining a property.
Aspiring investors have to stick to the six steps. “If you only have 4, the real estate deal falls apart. The 6 steps works in any city all over the world,” says Kiyosaki.