Getting Started in Real Estate with Kim Kiyosaki.

Getting Started in Real Estate

Say goodbye to ‘analysis paralysis’ and hello to financial freedom — you just need to take the first step

Have you ever found yourself saying you’d like to try something — be it piano lessons, growing your own vegetables or learning a new language — only to immediately write it off once you find out how time and energy you’d need to dedicate to achieving it? It can be so easy to say you want something, but taking action is a completely different story. It’s never as glamorous as we think it will be, it probably doesn’t come naturally or easily, and it’s competing with dozens of other things in your life that also require your time and attention.

The same can be said for achieving financial independence. It’s pretty great to sit around daydreaming about what financial freedom looks like, and all the things you could be doing with your life if you weren’t beholden to your job and mortgage (and maybe your husband) — but for most people, that’s where it ends. It remains a dream.

When Dreams Become Reality

The thing is, there’s no magic fast-forward button you can hit to speed up the process of achieving a long-term goal. It takes dedication and hard work to get there. Of course, that won’t happen unless you’re willing to take the first step and go for it.

Something I hear a lot is, “Kim, I really do want to achieve my financial dreams, and I’m willing to put in the work, but I have absolutely no idea how where to start.” Well, from my perspective, the answer is always the same: Real estate. Why? Because of its potential for cash flow — an ongoing stream of income you receive from an investment. It’s what most buy-and-hold real estate investors are after.

When you buy and create assets that generate cash flow, it pays for your living expenses. Once your monthly cash flow from assets is equal to or greater than your monthly living expenses, you are financially free. It means your assets are cash flowing and are working for you.

Once you’ve seen this formula come to life, you no longer have to work for money. And to me, that perfectly defines the concept of financial independence.

One Giant Leap for (Wo)Mankind

This may come as a surprise, but most people who start out in real estate do so on a very small scale. There’s a ton to learn, which means you’re bound to make a few mistakes along the way. So, starting out small is actually for the best — it’s a lot easier to make mistakes on smaller properties with smaller amounts of money instead of jumping into a huge deal that could end with very costly mistakes.

For example, when my sister-in-law decided to begin investing in real estate, she gravitated toward an inexpensive option: mobile homes. She found that she could buy a used mobile home for about $3,000 and receive a positive cash flow of about $200 per month on it. That’s a pretty impressive return on her investment.

If she had made a mistake, it would have been much easier to bounce back from a $3,000 lesson than a $100,000 catastrophe. Never be ashamed to start small, you never know where it will take you.

The best place to begin the process is by reading everything you can (start with my book It’s Rising Time to get the ultimate crash course in real estate investing, but also read the newspaper and industry blogs), seeking advice from credible sources, and then pushing past the “analysis paralysis” that so many of us suffer from — that’s right, you have to take action.

Once you have dipped your toe in the water, you’ll become so much more comfortable with the entire process. You’ll become knowledgeable about the industry lingo, find some trusted advisers, learn how to choose the right investment opportunities (and which ones to turn down), and start seeing that almighty cash flowing into your bank account. Can you think of anything more empowering than knowing you’re building a future of financial freedom?

Original publish date: September 27, 2018