Robert Toru Kiyosaki, an American businessman and author of books on investments shares his insights on working with real estate, talks about the most common causes of failure and gives his expert advice on how to overcome these difficulties.

The power of education

In his book about real estate investing Robert Kiyosaki says that the first cause of poverty is lack of knowledge. He says that investing in real estate is pretty easy. But making money on real estate is a completely different matter. This requires knowledge. The house in which you live is not an asset, but a liability. But many people don’t realize that.

That is exactly why he emphasises the importance of education. Everyone knows that we live in an era of information. The whole problem is that there are too many. That is why education is gaining such importance. It allows you to exercise the brain so that it selectively relates to information and gives it specific meaning.

Professional education comes down to learning how to work well for money. Financial education provides knowledge on how to make money work for you. Therefore, the whole question is only who works more diligently — you or your money.

He also stresses the importance of working with others. That’s why Robert prefers to work in a team — each person perceives the world around us a little differently. Having listened to all points of view, he can come to some conclusions.

Laziness

The next important problem Robet describes is laziness. He says that for many people it is much easier to work hard than to do what is necessary. They often use excuses like “I’m busy,” or “I have too much work.” You can see such people everywhere. They are really just too lazy to become rich. He says that for too many people, self-justification becomes an obstacle to the life they dream of.

Fear of Failure

Fear is often explained by a combination of laziness and lack of knowledge. Feeling fear, many people are sure that ahead of them are only continuous failures. Lack of knowledge obscures their chances of success. Instead of thinking about investing in real estate and how it can change their lives for the better, they only see difficulties. They are more concerned about their fears.

Robert Kiyosaki gives ten recommendations to help overcome the fear of failure:

1. The mind is your most valuable capital. Invest in it first of all. Before you begin, sign up for courses or read literature. If you do not have money, go to the library.

2. Do not take advice from losers. Stay away from people who do not believe in success. Do not trust those who advise on investments, but do not invest in real estate.

3. Find yourself mentors, experienced people who can teach and guide you.

4. Review at least a hundred offers before buying anything. Returning from work home, get acquainted with the new district of the city. Observe what changes are taking place in it. When you find a property that generates income, the money will find you.

5. Start small. Know that you will make mistakes. Invest in real estate located no further than an hour from your place of residence.

6. Be humble. When making money, people often become overconfident. As soon as a person thinks too much about himself, he begins to make stupid mistakes. It is best to approach your successes and mistakes with humor. Do not take yourself too seriously.

7. Dream. The only difference between my very first and today’s investments is the number of zeros. I dreamed not of real estate, but financial freedom.

8. Remember that the world is full of poor people working sweaty faces. Many today have become slaves to money. Every day, remind yourself that you do not want to be one of them. Let money work for you, not you for the money.

9. There are no ideal investments. All investments contain problems. Each of them challenges you and teaches something new. If you do nothing, then do not learn anything.

10. Hire professionals. Hire good real estate agents, accountants who know how to achieve tax benefits, bankers who are versed in investments, lawyers who know the laws, managers who skillfully manage housing, contractors who are good at building and renovating, and other specialists who are familiar with a business like real estate.

Robert Kiyosaki says that real estate is not an asset. In itself, it does not make anyone rich. Investing in real estate only gives you the opportunity to become smarter. Your real asset is education, positive and negative experience, lessons learned, wisdom coming over the years and your team. If you do not have enough money for investments and you do not solve this problem, then you will not have them all your life.