rich-dad-poor-dad-pdf

Rich Dad Poor Dad

were paid, I put a little less than $40 in my pocket at the end of each
month. Hardly exciting.
A year later, the depressed Oregon real estate market had begun
to pick up. California investors, flush with money from their still
booming real estate market, were moving north and buying up Oregon
and Washington. I sold that little house for $95,000 to a young
couple from California who thought it was a bargain. My capital
gains of approximately $40,000 were placed into a 1031 tax-deferred
exchange, and I went shopping for a place to put my money. In about
a month, I found a 12-unit apartment house right next to the Intel
plant in Beaverton, Oregon. The owners lived in Germany, had no idea
what the place was worth, and again,
just wanted to get out of it. I offered
$275,000 for a $450,000 building.
They agreed to $300,000. I bought it
and held it for two years. Utilizing the
same 1031-exchange process, we sold
the building for $495,000 and bought a
30-unit apartment building in Phoenix,
Arizona. We had moved to Phoenix by then to get out of the rain, and
needed to sell anyway. Like the former Oregon market, the real estate
market in Phoenix was depressed. The price of the 30-unit apartment
building in Phoenix was $875,000, with $225,000 down. The cash
flow from the 30 units was a little over $5,000 a month.

The Arizona market began moving up and, a few years later, a
Colorado investor offered us $1.2 million for the property.

The point of this example is how a small amount can grow into
a large amount. Again, it is a matter of understanding financial
statements, investment strategies, a sense of the market, and the laws.

If people are not versed in these subjects, then obviously they must
follow standard dogma, which is to play it safe, diversify, and only
invest in secure investments. The problem with “secure” investments is
that they are often sanitized, that is, made so safe that the gains are less.

The problem with

“secure” investments

is that they are often

sanitized, that is,

made so safe that the

gains are less.