Since the time in Form5 secondary school, I have read the book “Rich Dad, Poor Dad”. With the Financial education of this book, it change my world. I am not an excellent in academic world, and a feel scare at them time with poor result. but after reading the book, I know there is another chance for me to move to another world, which Rich People World.
Along reading the Rich Dad series, it highly recommended involve in real estate investment. But I am still can not find how it works? Visit many houses, apartments but I still not get the way to invest and get rich. Finally, the book Rich Dad’s Conspiracy of The Rich, a book opened the easy and short way to tell you, How it work to invest in Real Estate.
Here I am sharing with you after I read the book:
pick from the book Rich Dad’s Conspiracy of The Rich page 209 and 210.
Purchase: We buy a two-bedroom, one-bath house in a great neighborhood for $100,000.
Financing: We pay $20,000 as a down payment and borrow $100,000 for the house and extra money for improvements from a bank and/or investors.
Improve property: We improve the property by adding on an extra bedroom and a bathroom.
Increase rents reflecting increased property value: We raise the rent from $600 a month (what two-bedroom, one-bath houses rent for in the market) to $1,200 a month (the market rent for three-bedroom, two-bathroom houses).
Refinance property at new appraised value of $150,000: When we refinance the house, the banker gives us a loan of $120,000 (80 percent of new value). We get back $20,000, plus get an extra $20,000 to invest in a new property.
Cost: The loan interest at 6% costs approximately $600 a month. Expenses are another $360 a month, which puts a net $300 a month in our pocket in the form of cash flow.
Key: The new loan and expenses are financed by rent from the tenant.
Wow, how cool is it?
Lets continue the main tips:
The keys to real estate investment working are:
1. Improvements to the property
2. A good location – Real Estate is only valuable if there are jobs nearby
3. Good financing and/or investors
4. Good property management
These are keys for success investing in Real Estate. I will continue learning the method. Thanks Robert for the best financial education 
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