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Author Topic: Yeah if you don't know anything, you would say real estate is not an investment  (Read 806 times)

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Offline theking

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"real estate investment produced the most millionaires"

Over the last two centuries, about 90 percent of the world's millionaires have been created by investing in real estate. For the average investor, real estate offers the best way to develop significant wealth.



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Offline theking

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That's how my eldest sister did it. She may have less schooling due to her age but she had a drive and worked really hard to reach her goal. She works the hardest but is also the most successful out of us siblings.



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Offline lilly

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Yup, real estate investment can give the quickest and best returns sometimes.  It really depends on the market when you buy and when you sell.  You have to be smart about the timing and the location.  Right now is not the right time to buy at all because you'll be buying at high prices.  You're not going to make a huge profit if you plan to sell in 2-3 years.  Sometimes I get mad that I wasn't in a position to buy back in the days when house prices were so much cheaper.  LOL



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Offline hmgROCK

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lol

Only noobie buy real estate
Fall for those get rich by flipping houses and etc...
Why they selling book instead of homes???

Ok sure...

You buy $200k and it double to $400k
A 100% gain

What if i told you im up 500%????
Stock can 5x fast and in short time

Dogecoin up 50,000%+++ just this one year



Worth a read if you hot time

Written by Robert Kiyosaki
Read time: 6 min
Last updated: September 24, 2019
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An uptick in adjustable-rate mortgages and being doomed to repeat the past

A cultural right of passage is buying your own home. Many people dream of the day when they get the keys to their own front door, imagining the joy that will come with the monumental achievement of taking on hundreds of thousands of dollars in personal debt.

I’m, of course, only being slightly tongue in cheek.
Is a house an asset?

The reality is that many people desire to buy a home because they think of it as a good investment. In terms of a financial statement, they think of their house as an asset. Because of this, in many cases, homeowners expect their house to be a big part of their retirement plan.

For instance, as Rob Carrick writes for the Canadian “The Globe and Mail,” “In a recent study commissioned by the Investor Office of the Ontario Securities Commission, retirement-related issues topped the list of financial concerns of Ontario residents who were 45 and older. Three-quarters of the 1,516 people in the survey own their own home. Within this group, 37 per cent said they are counting on increases in the value of their home to provide for their retirement.”

The sentiment I’m sure is the same here in the US, and in many places throughout the world.

The problem with this thinking is that many people simply do not know the difference between an asset and a liability.

My rich dad, my best friend’s dad, taught me the simple definition of an asset and a liability. An asset puts money in your pocket. A liability takes money out. To illustrate this, he played the game of “Monopoly” with us because he believed games often are the best teachers (which is also why I invented my financial education board game, CASHFLOW).

The simple premise of “Monopoly” is that you want to buy as much property as possible, place rental houses on those properties (and eventually hotels), and collect rent to become richer than anyone else in the game. The formula was simple, four green houses and then a red hotel. It was a mini-picture of the power of velocity of money as you create more wealth from higher rent to buy bigger assets. It was also the perfect picture of how a house can be an asset—by putting money in your pocket as a rental property investment.
A house is often not an asset but instead a liability

The problem is the majority of people who buy houses do so as a primary residence, not as a rental property. So let’s break down what that looks like financially.

On a given month for your personal residence, you need to pay for your mortgage, utilities, maintenance, taxes, insurance, and possibly more. Sometimes these can turn out to be huge costs, for instance, if you need to replace a roof or your main plumbing line collapses.

All of these are things that take money out of your pocket. And as rich dad taught, a liability is something that takes money out of your pocket.

Many so-called experts will point to things like paying down principle, tax breaks from mortgage interest, and appreciation as reasons why the house is an asset, but paying down principle is simply saving and savers are losers, the tax breaks for your mortgage do not offset the costs that go out of your pocket each month, and if you’re banking on appreciation, you’re basically gambling, as homeowners in the Great Recession painfully discovered.

This is not to say you shouldn’t buy a house. I’m simply trying to help you see that it is not an asset. Rather it is your home, and should be enjoyed for that, not as your ticket to a secure retirement. Look elsewhere for that. Truth sets people free, and the truth that your home is not an asset but instead a liability is one of the most important truths you can know.
ARMs Dealers

Unfortunately, most people simply don’t understand this fundamental truth. This is why I’m not surprised to read that now that housing prices have gone up steadily since 2012. We have a short memory, and the Great Recession is all but erased from the consumer consciousness. This is evidenced by the fact that we started to see people take on riskier mortgages starting in 2017 and continued to do so in 2018 .

As CNBC reported in 2017, “The number of adjustable-rate mortgage originations jumped just over 40 percent from the first quarter of this year to the second, according to analysis by Inside Mortgage Finance.”

For those needing a refresher, an adjustable-rate mortgage, or ARM, allows potential homeowners to purchase more expensive houses by having lower interest rates than a traditional 30-year fixed-rate mortgage. ARMs are usually offered at one, three, or five years, meaning the interest rate will adjust to market rates after that period. In essence, it’s betting that interest rates will be as low or lower down the road…and that you’ll be in a better financial position to pay more, should the need arise.

You might not be surprised to hear that defaults on ARMs were a big part of why we faced the great recession from 2008 to 2011. And while there are new safeguards in place to ensure that ARMs aren’t given to sub-prime borrowers, there is something of a frenzy that is building around buying homes in the US again. This, again, is because people inherently think they are assets. After all, don’t housing prices always go up?

That’s what you’d believe if you followed most conventional financial advice.
Bad financial advice is also a liability

Rich dad believed that people struggled financially because they make decisions handed down from parent to child, and most people don’t come from financially sound families. He often said that most bad financial advice was handed out at home, which is one reason I am an advocate for financial education in the home.

Of course, for most people, while financial advice starts in the home with old rules like go to school, get a good job, save your money, buy a house, and invest for the long term in a diverse portfolio of stocks, bonds, and mutual funds; it doesn’t end there. Many people also take the bad advice their parents give them and compound it with bad advice from financial advisors as they get older.

Many financial advisors will tell you that your house is an asset, but that is untrue. As such, this financial advice becomes a liability because it causes you to make bad assumptions and decisions about your personal wealth and your financial future.

The fact is that when financial advisors say a house is an asset, they are not really lying, but they aren’t telling the whole truth either. Your house is technically an asset, they just don’t say whose asset it really is.
Is a house an asset? Yes, the bank’s

If you look at a bank statement, it becomes easy to see just whose asset your house really is—the bank’s asset.

Most people do not own a home…they own a mortgage. Those who are financially educated understand that a mortgage doesn’t show up in the asset column on the financial statement. It shows up as a liability. But it does show up on your banker’s balance sheet as an asset as you pay the bank interest every month.

Remember rich dad’s definition of an asset, “Anything that puts money in your pocket. A liability is anything that takes money out of your pocket.”

As I mentioned earlier, if you look at your bank statement every month, you’ll see that your home puts no money in your pocket and takes a heck of a lot of it out. This is true even if your house is paid off. Even after you pay off your mortgage, you still have to pay money every month in the form of maintenance costs, taxes, and utilities. And if you don’t pay your property taxes, guess what can happen? The government can take your home. So, who owns your house really?
Don’t let thinking your house is an asset be your liability

Interested in Real Estate?

Download your copy of Rich Dad‘s eBook, How To Buy Your First Investment Property... for free!

robert kiyosakis how to buy your first investment property
Download Your eBook Here

Again, am I saying don’t buy a house? No. I own a home myself, but I didn’t buy it as an asset or think of it as an investment. I bought it because I wanted to live in it and was willing to pay for the privilege of doing so. Could it appreciate in value? Maybe. But it could also lose me money in the end. I don’t really care.

What I am saying is don’t buy a home and think of it as an asset or investment. That’s just simply a lie. Unfortunately, that lie continues to perpetuate here in the US and around the world. And until it’s finally put to rest, we’ll continue to see booms and b



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Offline theking

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Yup, real estate investment can give the quickest and best returns sometimes.  It really depends on the market when you buy and when you sell.

Yep, if one actually has finance and investment knowledge unlike the don't know anything folks, it becomes common knowledge that many have made very good or even "best returns" in real estate investments. Like other types of investments, it's not 100 percent but still better than many if you're willing to invest and put in the time.

There's a reason why real estate investments have produced the most millionaires..



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Offline hmgROCK

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Good read right here
Prove my point even more





Written by Robert Kiyosaki
Read time: 6 min
Last updated: September 24, 2019
AddThis Sharing Buttons
Share to Facebook
Share to TwitterShare to LinkedInShare to Reddit
An uptick in adjustable-rate mortgages and being doomed to repeat the past

A cultural right of passage is buying your own home. Many people dream of the day when they get the keys to their own front door, imagining the joy that will come with the monumental achievement of taking on hundreds of thousands of dollars in personal debt.

I’m, of course, only being slightly tongue in cheek.
Is a house an asset?

The reality is that many people desire to buy a home because they think of it as a good investment. In terms of a financial statement, they think of their house as an asset. Because of this, in many cases, homeowners expect their house to be a big part of their retirement plan.

For instance, as Rob Carrick writes for the Canadian “The Globe and Mail,” “In a recent study commissioned by the Investor Office of the Ontario Securities Commission, retirement-related issues topped the list of financial concerns of Ontario residents who were 45 and older. Three-quarters of the 1,516 people in the survey own their own home. Within this group, 37 per cent said they are counting on increases in the value of their home to provide for their retirement.”

The sentiment I’m sure is the same here in the US, and in many places throughout the world.

The problem with this thinking is that many people simply do not know the difference between an asset and a liability.

My rich dad, my best friend’s dad, taught me the simple definition of an asset and a liability. An asset puts money in your pocket. A liability takes money out. To illustrate this, he played the game of “Monopoly” with us because he believed games often are the best teachers (which is also why I invented my financial education board game, CASHFLOW).

The simple premise of “Monopoly” is that you want to buy as much property as possible, place rental houses on those properties (and eventually hotels), and collect rent to become richer than anyone else in the game. The formula was simple, four green houses and then a red hotel. It was a mini-picture of the power of velocity of money as you create more wealth from higher rent to buy bigger assets. It was also the perfect picture of how a house can be an asset—by putting money in your pocket as a rental property investment.
A house is often not an asset but instead a liability

The problem is the majority of people who buy houses do so as a primary residence, not as a rental property. So let’s break down what that looks like financially.

On a given month for your personal residence, you need to pay for your mortgage, utilities, maintenance, taxes, insurance, and possibly more. Sometimes these can turn out to be huge costs, for instance, if you need to replace a roof or your main plumbing line collapses.

All of these are things that take money out of your pocket. And as rich dad taught, a liability is something that takes money out of your pocket.

Many so-called experts will point to things like paying down principle, tax breaks from mortgage interest, and appreciation as reasons why the house is an asset, but paying down principle is simply saving and savers are losers, the tax breaks for your mortgage do not offset the costs that go out of your pocket each month, and if you’re banking on appreciation, you’re basically gambling, as homeowners in the Great Recession painfully discovered.

This is not to say you shouldn’t buy a house. I’m simply trying to help you see that it is not an asset. Rather it is your home, and should be enjoyed for that, not as your ticket to a secure retirement. Look elsewhere for that. Truth sets people free, and the truth that your home is not an asset but instead a liability is one of the most important truths you can know.
ARMs Dealers

Unfortunately, most people simply don’t understand this fundamental truth. This is why I’m not surprised to read that now that housing prices have gone up steadily since 2012. We have a short memory, and the Great Recession is all but erased from the consumer consciousness. This is evidenced by the fact that we started to see people take on riskier mortgages starting in 2017 and continued to do so in 2018 .

As CNBC reported in 2017, “The number of adjustable-rate mortgage originations jumped just over 40 percent from the first quarter of this year to the second, according to analysis by Inside Mortgage Finance.”

For those needing a refresher, an adjustable-rate mortgage, or ARM, allows potential homeowners to purchase more expensive houses by having lower interest rates than a traditional 30-year fixed-rate mortgage. ARMs are usually offered at one, three, or five years, meaning the interest rate will adjust to market rates after that period. In essence, it’s betting that interest rates will be as low or lower down the road…and that you’ll be in a better financial position to pay more, should the need arise.

You might not be surprised to hear that defaults on ARMs were a big part of why we faced the great recession from 2008 to 2011. And while there are new safeguards in place to ensure that ARMs aren’t given to sub-prime borrowers, there is something of a frenzy that is building around buying homes in the US again. This, again, is because people inherently think they are assets. After all, don’t housing prices always go up?

That’s what you’d believe if you followed most conventional financial advice.
Bad financial advice is also a liability

Rich dad believed that people struggled financially because they make decisions handed down from parent to child, and most people don’t come from financially sound families. He often said that most bad financial advice was handed out at home, which is one reason I am an advocate for financial education in the home.

Of course, for most people, while financial advice starts in the home with old rules like go to school, get a good job, save your money, buy a house, and invest for the long term in a diverse portfolio of stocks, bonds, and mutual funds; it doesn’t end there. Many people also take the bad advice their parents give them and compound it with bad advice from financial advisors as they get older.

Many financial advisors will tell you that your house is an asset, but that is untrue. As such, this financial advice becomes a liability because it causes you to make bad assumptions and decisions about your personal wealth and your financial future.

The fact is that when financial advisors say a house is an asset, they are not really lying, but they aren’t telling the whole truth either. Your house is technically an asset, they just don’t say whose asset it really is.
Is a house an asset? Yes, the bank’s

If you look at a bank statement, it becomes easy to see just whose asset your house really is—the bank’s asset.

Most people do not own a home…they own a mortgage. Those who are financially educated understand that a mortgage doesn’t show up in the asset column on the financial statement. It shows up as a liability. But it does show up on your banker’s balance sheet as an asset as you pay the bank interest every month.

Remember rich dad’s definition of an asset, “Anything that puts money in your pocket. A liability is anything that takes money out of your pocket.”

As I mentioned earlier, if you look at your bank statement every month, you’ll see that your home puts no money in your pocket and takes a heck of a lot of it out. This is true even if your house is paid off. Even after you pay off your mortgage, you still have to pay money every month in the form of maintenance costs, taxes, and utilities. And if you don’t pay your property taxes, guess what can happen? The government can take your home. So, who owns your house really?
Don’t let thinking your house is an asset be your liability

Interested in Real Estate?

Download your copy of Rich Dad‘s eBook, How To Buy Your First Investment Property... for free!

robert kiyosakis how to buy your first investment property
Download Your eBook Here

Again, am I saying don’t buy a house? No. I own a home myself, but I didn’t buy it as an asset or think of it as an investment. I bought it because I wanted to live in it and was willing to pay for the privilege of doing so. Could it appreciate in value? Maybe. But it could also lose me money in the end. I don’t really care.

What I am saying is don’t buy a home and think of it as an asset or investment. That’s just simply a lie. Unfortunately, that lie continues to perpetuate here in the US and around the world. And until it’s finally put to rest, we’ll continue to see booms and b



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Offline theking

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There are variables like other types of investments but here's what they're saying:

Quote
https://www.cnbc.com/2019/10/01/real-estate-is-still-the-best-investment-you-can-make-today-millionaires-say.html

Real estate is still the best investment you can make today, millionaires say—here’s why

Billionaire Andrew Carnegie famously said that 90% of millionaires got their wealth by investing in real estate. We wanted to know: Is this still true? Is investing in real estate still a good idea?

According to these nine Advisors in The Oracles, who made millions by investing in real estate, the answer is a resounding yes.



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Offline theking

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Even celebs that don't really need the money participate because to them, it works and it's easy money..  ??? ;D:

Quote
10 Famous People Making a Fortune in Real Estate

ROGER STAUBACH
Roger Staubach—better known as “Captain Comeback” to NFL fans—was the second-highest-rated passer of all time, an MVP winner, and Super Bowl Champion in the NFL. Despite his talents, Staubach didn’t make his millions in football. He retired and picked up a passion for real estate, founding The Staubach Company. The firm helped tenants find office, retail and industrial space for over 30 years. It grew to 50 offices in North America and 1,100 employees before Staubach sold it to Jones Lang LaSalle for $640 million.

EMMITT SMITH
During his football heyday, Emmitt Smith broke records, earned titles, and won multiple Super Bowl championships. But like all NFL greats, his football career ended. When it did, he followed Staubach’s footsteps into real estate and closed a $45 million deal on his first try. Smith went on to found ESmith Legacy, a real estate development and asset management firm. He also founded a national commercial real estate services company and a commercial real estate equity / debt financing company. It seems Smith can score in real estate, too.

ELLEN DEGENERES AND PORTIA DE ROSSI
Comedian Ellen DeGeneres and her wife, actress Portia De Rossi, are two of the biggest players in the real estate game. And they know how to take home quick cash. A few months after they purchased the nearly $40 million Brody House, the power couple sold it for a profit of $15 million. And their real estate portfolio doesn’t end there. The couple has also bought and sold homes throughout Southern California in Santa Barbara and Hidden Valley. Clearly the couple has a knack for making money in real estate.

PATRICK DEMPSEY
Grey's Anatomy's McDreamy made a McFortune when he sold his Malibu, home known as the Tin House. Once featured in Architectural Digest, Dempsey bought the home for $7 million and sold it for $15 million. Not only was the selling price more than double what he bought it for, it was also $500,000 over the asking price. McDreamy knows how to cut a deal.

JENNIFER ANISTON
This Friends alum knows timing is everything. When she bought her midcentury Beverly Hills mansion for $13.5 million she saw an opportunity. Aniston spent time with an architect overhauling the property, and after featuring the masterpiece in Architectural Digest, sold it for $35 million. Her passion for pouring money into home renovations didn’t end there. She and husband Justin Theroux spent $21 million on the purchase of their Bel Aire home, only to spend a few years renting something nearby before their dream home was move-in ready.

ELIZABETH BANKS
What do real estate and comedy have in common? Actress Elizabeth Banks. Hired by Realtor.com to put the real back in real estate, Banks is part of a $30 million campaign to raise awareness of the brand and sell more homes. She may not be out in the field wheeling and dealing with homebuyers, but she is bringing creativity and laughter to the industry and taking home big bucks for her jokes.

BRAD PITT AND ANGELINA JOLIE
Real estate can be a big investment, especially when you’re Brad Pitt and Angelina Jolie. Since Brangelina is the definition of Hollywood royalty, it came as no surprise when the couple purchased a home fit for a king and queen. 1,200 acres, 35 bedrooms and $60 million later, Brad and Angelina were calling the Château Miraval in France home. While this is the biggest of all the Pitt-Jolie real estate investments, it is not the only one. The couple’s portfolio spans from Los Angeles to Turkey.



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Offline hmgROCK

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LMAO

just ask kong vang
He want to drive for UBER to meet ends need

 ;D ;D ;D



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God did not created man...man created god

Offline Cali Guy

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LMAO

just ask kong vang
He want to drive for UBER to meet ends need

 ;D ;D ;D

Why you looking down on Kong Vang when you had no job for a long time? Better go kiss the ground your wife walking on so that she’ll keep your belly full.



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Offline hmgROCK

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Just talk to kong vang
He barely evening it out like i say in my previous post
Dude Wants to drive for UBER

Yeahhh that deseperated
 ;D ;D :D




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Offline theking

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LMAO

just ask kong vang
He want to drive for UBER to meet ends need

 ;D ;D ;D

So this is the promise you made to yourself ("new year, turn new leaf, nothing but love resolution") by making fun of "kong vang"? ???



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Offline theking

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Why you looking down on Kong Vang when you had no job for a long time? Better go kiss the ground your wife walking on so that she’ll keep your belly full.

The truth is he has none to kiss, just like this fake investment accounts, "job", "RAV4", etc... ;D:




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