Robert Kiyosaki: Raising REI Money Is Easy, But Do You Know How To Get Rich Off It?
Written by
Yaël Bizouati-Kennedy
Edited by
Rebekah Evans
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Robert Kiyosaki, the bestselling author of “Rich Dad Poor Dad,” argued that real estate investing — while profitable — requires grit and patience.
In a YouTube video on The Rich Dad channel, Kiyosaki explained that he started his investing journey with small, single-family homes in the 1980s and then moved on to larger, multi-family units.
Also see how you can get rich through real estate investing.
The Step After You Raise Funds Is Hard
Yet, he said that while raising the money is easy, it’s what ensues that can become tricky.
“But to me, it’s the management of the property and making it turn a profit is the hard part to do,” Kiyosaki said. “Raising the money is easy. There’s a lot of financing for it, people are gonna throw the money at you.”
His guest on the show was Grant Cardone, speaker, entrepreneur and CEO of Cardone Capital, and he argued on the other hand that for him, real estate investing is not easy.
“You still [have to] manage people [and] phone calls,” Cardone said. “The hard part for me…is getting the deal.”
Part of the issue, Cardone said, is that it’s only “a handful of names,” who are getting the deals.
“AIG, Blackstone, JP, Goldman — like these are big, monster, trillion-dollar companies,” he said.
Real estate investing is Kiyosaki’s “favorite” asset, as explained in a Rich Dad article.
Using Tax Advantages to Your Advantage
As the article noted, real estate can provide significant cash flow — it appreciates, investors have more control over these investments compared to others and last (but not least) there are significant tax advantages with real-estate investments.
This is a point Kiyosaki has reiterated several times, arguing in another Rich Dad article, for instance, that one of the most powerful — “and my favorite” — ways of using taxes to get richer is through real estate, as GOBankingRates previously reported.
And in terms of deriving money from certain tax advantages, these include deductions, pass-through entities deductions and low-income housing tax credit.
In addition, Kiyosaki popularized one strategy in his book — the so-called BRRRR method (buy, rehab, rent, refinance and repeat) to get rich with real estate investing, as Darren Nix, founder of Steadily explained in a blog post.
“It’s a property investment strategy where investors buy low-priced properties at auctions or off the MLS [multiple listing real estate database],” Nix explained. “The BRRRR method is one of many real estate investing strategies that can help you build wealth over time.”
On the other hand, he also noted that real estate investing might not be a good fit for everyone as it’s often illiquid and it’s very time-consuming.
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