Sep 27

Build Business, Buy Property

There is an interesting business advice taught by Robert T. Kiyosaki, author of “Rich Dad, Poor Dad”, who became Best Seller. Advice was sound, “After we successfully build a business then do not forget to buy the property. In addition we have an income from what we are doing, we will also gain a profit from rising property values ​​”. I think, right Kiyosaki. Advice was actually a keyword is the cause, why the rich get richer. Because rich people are smart always buy properties at all times will continue to multiply in value, that’s what makes it even richer.

However, long before reading the book, as an entrepreneur I have been practicing it since the first. Therefore, there is additional advice I can give to you in buying properties from the profits that you build a successful business. Business proposition reads, “If you intend to purchase the property, not according to the ability of the funds available. Even better buy a property with bank debt. Therefore, the less money you spend to buy the property, the greater your advantage. ”

Clearly, if we had a fund of Rp 400 million, do not buy a property fund worth fitting that we have. Do not buy a property does not have cash. Could the credit. So should you solve RP 400 million for four properties, each instance you enough to pay an advance purchase of USD 100 million, the remaining $ 300 million from the bank. Well, if you only buy one property valued at USD 400 million, then five years later you will only receive the benefit doubled the price of one property only. But if the four properties, five years later one of you that has doubled its original 400 million to Rp 2 billion. So the 4 properties to be 8 billion.

Perhaps you ask, why buy a property with more favorable debt? There we see good business advice from Dolf De Roos, consultants rich dad Robert T. Kiyosaki in his book, “Real Estate Riches” Dolf wrote, “I do not buy a property to buy land, because of that unproductive. I do not buy property for buildings because it needed maintenance. And, I do not buy a rental property due to the need of management. My strongest reason for buying the property is debt. The reason is simple, “The amount of debt is always the same, but the value of the assets continue to soar”.

By picking the business, I suggest we should not be afraid to owe to the bank to buy the property. Change your mindset, that debt would be inviting trouble for you. It is to learn to foster confidence in the indebted so-so start with a small value. But, once you succeed you are not looking for a debt to the banks, but banks would be looking to take your debt.

Not wrong when he appeared among entrepreneur joked that, “if you dare debt of Rp 50 million, you have a problem. But if you dare debt of Rp 50 billion. Banks are going to have a problem. Believe me, the more often we dare debt, banks will increasingly believe in our business. “You dare to try?