When I start talking to people about Rich Dad and creating passive income to enable time and financial freedom, I immediately hear about people's plans for buying real estate. I try to listen patiently as I also believe that real estate can be a great investment vehicle ... but, as Robert Allen, Robert Kiyosaki, David Bach, and many, many more outline, having multiple streams of passive income is the true path to financial freedom.
So, what is RK's power investing principle?
1--Start a part-time business for the cashflow & tax advantages.
2--When the market is right invest in real estate. (Now is not the time.)
3-- Invest your excess cash from the real estate in paper assets.
Unfortunately, a lot of people are jumping into real estate without a lot of background knowledge about how to make that investment a lucrative one. Here's a clue, the property needs to generate passive income (that means it should be putting money into your pocket not taking money out).
When we were doing our personalized coaching program, one of the first steps was identifying how we were going to generate passive income from a number of sources; businesses, real estate and paper assets. The reason for this is to create a stable platform on which to build financial freedom you need all the elements ... and the first is to build a business.
Businesses provide the financial backing to support real estate investing. Makes sense right?
RK recommends learning a system, mastering it and then moving on to learning a new system. Start by learning the system of building a passive income business. (A passive income business is one that you could leave for a year and return to find it stronger than when you left.) Then, move into the business of real estate investing, learn the system, master it and then move on.
Taking it step by step will lead to prosperity and reduce your risks along the way.
About the Author:
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