Real Opportunities

Did you make a fortune in real estate during the past 15 years? If not, you may have missed out on one of the biggest real estate booms in history. That’s the bad news. But this begs another question: Are you ready for the next boom? And if not, why?

Successful entrepreneurs see opportunity where others don’t. Throughout history, the rich often made their money by building successful businesses and then holding and accelerating that wealth through real estate investments. 

While the talking heads are painting pictures of housing doom and gloom, entrepreneurs and real estate investors, like Donald Trump and myself, are celebrating. We see opportunity where others only fear loss. This is a great time to be looking for real estate investments. 

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The tax laws reward entrepreneurs for creating economic development and employing people. In addition, tax laws offer benefits to real estate investors providing housing for employees and buying commercial property. Why not reap the benefits of the tax laws as both a business owner and a real estate investor? When investing in real estate, you receive not just one type of income, but four--income from:

• Your tenant’s rent, less operating expenses (cash flow from real estate or net operating income)
• Depreciation deductions that offset income (called paper losses or phantom income)
• Amortization (your tenant paying down your mortgage debt)
• Appreciation (capital gain or increase in value of real estate over time)

Do you pay rent for your business’s location? Both Donald and I own the buildings that house our companies. Maybe you should, too. As tax time approaches, entrepreneurs become more aware of how taxes affect their bottom line. You may want to consider real estate an investment opportunity to increase your business success and accelerate your wealth. If you missed out on the last real estate boom, don’t miss the next one.

Author’s Note: I’m thrilled by the feedback on Rich Dad’s Real Estate Advantages. It’s the first book co-written by an accountant (my partner, Sharon Lechter) and an attorney (Garrett Sutton) that highlights the opportunities for wealth by minimizing your taxes and maximizing your legal protection through real estate investing.

Robert Kiyosaki, author of the Rich Dad series of books, is an investor, entrepreneur and educator whose perspectives have changed the way people think about money and investing.