How do I get started with investing in real estate??

Question

I have a low income and no money saved up. I have been talking to a coach with my husband and the RichDad PoorDad coach says that use OPM (other peoples money). We are goin to one of his seminars here in Las Vegas in a week.
Has anyone read the RichDad PoorDad book or Why we want you to be rich book?

Answer 1

It is extraordinarily difficult to buy real estate if you have no money for a down payment. There are many seminars and books you can pay for that will claim that it is easy, but they are usually liars trying to make money off you. I would not pay money to anyone for a seminar on this subject. See the first link.



If you don't believe me, go ask this question over on the "Renting and Real Estate" Section of Yahoo answers. They will tell you the same thing.



I have read Kiyosaki's book Rich Dad, Poor Dad and it is very inspirational, but what it teaches is frequently wrong. See the second link.

Answer 2

Hi,



I've read most of the general Rich Dad, Poor Dad books, and think a lot of them in many ways.



That said, I have a lot of reservations about real estate seminars.



Just what, specifically, does the coach mean by "Other People's Money?"



I once went to a seminar where they meant -- charge it on your credit card.



Not a good idea.



Under the current subprime mortgage mess, I think that legimate real estate financing from a financial institution will be hard to come by. Is the seminar going to answer how to deal with the current situation?



If the Rich Dad Poor Dad organization can line up financing for you, for deals you find, then maybe it's a good deal. But you better get such promises in writing.



These types of seminars have a history of making promises they don't keep.



I strongly suggest you first check out the books by John Reed. They're all priced affordably -- chances are, you can buy them all for less than you're going to pay to attend that seminar.



http://www.johntreed.com/realestate.html



And check out what he has to say about some of the gurus, including Kiyosaki and Dolf De Roos, who used to be connected with Rich Dad, Poor Dad.



http://www.johntreed.com/Reedgururating.html



I don't agree with everything criticism Reed makes of Kiyosaki. I understand that Kiyosaki has spun his life to fit into the Rich Dad, Poor Dad framework, so I don't really care that enlisting in the Merchant Marines is no way to learn about international trade.



Is your Rich Dad Poor Dad coach local? Is he investing in the Vegas market? Since a few years ago that was the hottest real estate market in the U.S., but now may be in decline due to subprime mortgage mess, how will that affect how you invest there? Better make sure they know your local market and how to deal with it, which is probably a lot different that my local staid St Louis real estate market.



(And Robert Allen had problems making helping people in St Louis get rich in real estate, though now he makes it sound as though he had more success than his book about it describes.)



I applaud your ambition. But you should be aware that there are many wolves out there who want to take advantage of the naive.



Reed's books are packed with information. That's where I'd start if I wanted to invest in real estate.



I like Kiyosaki for his teachings on how to think about money and business and investing, but for the details of real estate, try Reed.



NOTE: I've been reading Reed's comments on Kiyosaki, including a lot of information added in the past few years since I first read it.



Please read it all before you invest more money.



http://www.johntreed.com/Kiyosaki.html

Answer 3

Invest in truly property, so far as a location to are living - your condo. But rather then that, DON'T spend money on truly property when you consider that the "bubble" has popped and the values of truly property have dramatically dropped. Like I mentioned beforehand, spend money on truly property for a condo. If you may have to any extent further cash than that to spend money on, positioned your cash into Certificates Of Deposit at your financial institution - there the money can be trustworthy.

Answer 4

Real Estate Investment Basics



If market conditions have given you the itch to invest in real estate, treat it with education, market savvy and professional help



by Broderick Perkins



It could be a good time to invest in real estate. It could be a bad time to invest in real estate.



And there's the rub.



Just like buying a home to live in, taking the real estate investment plunge requires taking stock of your financial goals, planning and lifestyle before taking the plunge.



Pretty much like buying any property.



If you've got the time, the money and the lifestyle that lends itself to managing a real estate investment, you are just about half way there.



However, both halves are pretty big halves.



The National Real Estate Investors Association says you've still got a lot of work to do.



Here's what.



Buy your own home first. Buying a home will not only put a roof over your head, but also teach you the true cost of property ownership beyond the monthly mortgage payment; give you a primer on financing; school you on how location and changing market conditions affect property values; give you the angle on tax and other home-owning benefits; help you learn about property maintenance; introduce you to a host of professionals who could prove invaluable when you really get into investments; and otherwise get you grounded for higher studies in real estate investments.



Even before home ownership, the involved process of buying a home provides basic information that later could prove invaluable to you as an investor. What's more, your first home could later become your first investment property, a property in a market with which you are familiar.



Go back to school. A booming real estate market that pushes your home value up by double digit percentages in the first year doesn't make you a market mogul any more than a housing bust should scare you off. After you buy your own home, turn to the Internet, libraries of books by reputable authors, successful, credible investment groups, college and university level courses, even your state's real estate license program. Become your own expert. You aren't required to sell homes just because you have a real estate license, but what you'll learn getting one will certainly give you a leg up on your investment moves.



Individual real estate investors, salespeople and others who you met on the way to home ownership may also be valuable resources, both for information and perhaps as a mentor. Using more than one resource will help you cancel out the bad information and ferret out the good.



Get professional help. The same way you find any competent, trustworthy and honest professional is the same way to look for a mentor, investment partner with prior knowledge or investment group. Seek referrals from friends, family, professionals with whom you already conduct business, co-workers and others you trust who've recently had a satisfactory, successful experience investing in real estate.



Someone who already knows the ropes will come in handy when you are on the ropes.



And chances are, no matter how hard you study, you'll need professional help to acquire your investment and later, beyond the buying stage, when questions arise, property management issues surface or you get bogged down by your new endeavor.



That's particularly true if you invest from a distance and buy investments away from your primary residence.



Learn your investment market. One market's bubble could be one investor's boom and another investor's bust. A home in one market could give you vacation rental income in a half year sufficient to cover the cost of principal, interest, taxes, insurance, home owner association dues, upkeep and other costs, but still not appreciate. Another home in another market may not bring you sufficient rent in a year's time to cover the cost of owning the property, but might appreciate more than enough to make up for your carrying costs over the long term.



The variables are endless and you'll need to measure your capacity for risk against market conditions.



This is where education and professional help come in. Your education should teach you not only by rote, but also how to find the answers you need. The pro is your point person and backup to help you fill in the gaps with experienced guidance.