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In our December 11th 2007 newsletter we did a review
of the book *"Why We Want You to be Rich", by Donald
Trump and Robert Kiyosaki (you can read the article
at our Newsletter archive at
www.redevgroup.com). In their book they share
their analysis of our economy and some steps we all
can take to be able to prosper. In the chapter "Why
Do You Invest In Real Estate?" they point out a
number of advantages to real estate investing. In
the next few newsletters I want to focus in on a few
of the advantages they mention. Here is a quote from
the book and the first advantage we will examine:
"In addition to control, real estate offers many
other advantages. If a piece of real estate is
purchased at the right price, is financed well, is
in a good area and is well managed - then some of
the advantages of real estate are the following:
1. Cash Flow: Checks come every month."
Why is cash flow so important to building wealth? If
you have read any of Robert Kiyosaki's "Rich Dad
Poor Dad" book series or played any of his
educational games you can see the importance of cash
flow. Robert demonstrated the benefit in his own
life. He would find a good rental property and
figure out all the expenses and loan payments and if
he was left with a decent cash flow after all
expenses he would buy the property. He would then
take that positive cash flow and use that to
purchase another property. As his holdings grew and
the positive cash flow increased it enabled him to
buy larger apartment buildings and further increase
his cash flow. As loans were paid off by the income
from the tenants then properties could be refinanced
and that equity returned and put in to more
property. One of the goals he encourages investors
to have is to build this passive income to the point
that the income is greater than all your
expenditures so you don't have to work but can live
off this passive income. You can then do what you
want to do with your life, not what you have to do.
There are many investments in the marketplace that
try to sell you on potential returns years down the
road but don't give you anything now. Robert
Kiyosaki has said that if an investment doesn't make
sense for today he doesn't buy it.
We talk to people all the time who had invested in
some new development that promised great returns
only to have it go bust and they lost all their
money. These bare land developments can have a large
potential upside down the road if they succeed but
they also have a very high failure rate too.
Those of you who have dealt with REDEV for a long
time will have undoubtedly seen the phrase "Cash
Flow is King" in our advertising material, seminar
presentations and radio programs. Our REIG (Real
Estate Income Gain) program is built on the
principle that cash flow is king.
As an example, with the current REIG program we are
offering you are able to get a tax refund for the
2008 tax year. You also start receiving
quarterly cash disbursements right away. The third
way you receive cash flow comes as a result of the
mortgage being paid down. Each month the mortgage
payment is made from the rental income which reduces
the amount of the prinipal and increases your
equity. At the end of five years when the mortgage
is up for renewal the plan is to put the mortgage
back at the original amount and return that equity
to the investors. The projected return from these
three income sources is 14.25% average annual
return.
The fourth way that you can be paid from this
investment is the capital appreciation you would
receive when the property sells in the future and
that amount is in addition to the 14.25% average I
have mentioned.
From our experience we see many of you who
understand the concepts that Robert Kiyosaki teaches
in his books and have put them into practice using
the REIG program. That is why we have such a high
reinvestment rate from our clients as they take cash
flow and return of equity and use that to purchase
more REIG investments as they come available.
*Why We Want You To Be Rich - Donald Trump & Robert
T. Kiyosaki
Copyright©2006 by Donald J. Trump and Robert T.
Kiyosaki.
Published by Rich Publishing, LLC.
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