| In his Rich Dad book series, Robert Kiyosaki trumpets | | | | money off the sheer appreciation of undeveloped land |
| the benefits of investing, especially those of real estate | | | | itself. This is a good bet because of high growth |
| investing. Those include tax benefits, and the ability to | | | | potential and tax benefits (shelter). |
| have your money go to work for you without your | | | | The rental of vacation property is pretty |
| lifting a finger. It sounds wonderful, doesn't it? The idea | | | | self-explanatory. Your vacation property is one that is |
| that you can turn a dollar into two just by placing it in | | | | used for recreational purposes and is not your primary |
| what can seem like a magical realm can seem very | | | | residence. (Define primary residence.) |
| enticing. | | | | Rental property is another almost self-explanatory |
| In order to actually turn a good idea into money in your | | | | concept, as we have all done business with landlords |
| bank account, however, you have to know a little | | | | at some point in our lives. However, there may be a |
| something about how the magic works. It is a good | | | | difference between residential and business rental |
| idea, for instance, to take apart this term "real estate." | | | | property. |
| Just what is real estate, and what are the types of | | | | You may also invest in raw, or undeveloped, land. |
| real estate investing that are open to you? | | | | It is a good idea to learn about each type of real |
| "Real estate" is a term that refers to a piece of land | | | | estate investment to determine which yields the |
| and everything that sits on it, usually meaning | | | | greatest benefits, determined by your particular needs. |
| structures. In terms of investment, its value is affected | | | | Kiyosaki named tax benefits as a good reason to |
| by local market conditions more than global conditions. | | | | become a real estate investor. After all, money you |
| There are several different ways to invest in real | | | | keep in your pocket is just as good as money earned. |
| estate. | | | | If you are particularly interested in pursuing real estate |
| Real Estate Investment Trusts (REITs) allow you to | | | | investment because of tax benefits, you may even |
| make money by investing in real estate, either by | | | | wish to become a real estate professional, as the IRS |
| owning the properties themselves or by owning the | | | | allows people who spend at least 750 hours a year to |
| mortgages on them, or to do a combination of both. | | | | have nearly unlimited tax deductions. If you are not |
| The benefits of this type of investing are high yields | | | | considered a professional, and your salary is high, that |
| and tax considerations. This is also a highly liquid type | | | | can actually cost you deductions on your real estate. |
| of investing, which means that it is easily converted to | | | | You must have the time to participate in your real |
| cash. | | | | estate activities yourself, even if you have hired |
| In a real estate partnership, you are pairing with (who | | | | another real estate professional, to qualify for all tax |
| or what?) in order to make money from existing | | | | benefits. |
| structures or to build new ones. You can even make | | | | |