Atlanta Music TV

Robert Kiyosaki likes real estate investing is because real estate touches each part of his financial statement. Starting with his best-selling book Rich Dad Poor Dad and continued in many of his subsequent books, Robert explains how real estategives cash flow to his income statement and on the expense side of the income statement he’s able to deduct the property’s depreciation as an expense. When seen from the balance sheet, he’s able to gain appreciation on the asset side and the leverage provided by the bank rounds out the liability side of the balance sheet. Through a property management company you can also access the four parts of the financial statement. Here’s how: Balance Sheet: Asset-side Every property producing monthly rent is an asset. It is possible to sell the rights to ma bonita fat burner nage the property to another property manager for a lump sum of money. Balance Sheet: Liability-side Robert uses his banker’s money aka leverage in order to purchase a large property with only a small percentage as a down payment. When the property goes up in value he is able to keep the entire appreciation amount without having to share it with the bank. He can use leverage and still get the benefit of 100% of the appreciation. In the property management business, leverage is achieved through controlling the income of a property. A property that is producing $500/month in rent gives a property manager $50 in income. If the property manager feels that $500 is too low for the area, the manager can increase the rents by 10% to $550 and the management company’s income will go up 10% accordingly.