Does anyone know how does real estate work?

eleanorchang

Hi all,

Been reading this book called "RichDad, PoorDad by Robert T. Kiyosaki" and how rich people teach their kids about money, and how people work for money... but never learn to have money work for them. ( Highly recommend this international best seller !)

Anyhow, one of the topics was about Real Estate. Does anyone know anything about how real estate works? The basic concept or point me in the right direction to find information on this topic?

Many thanks in advance to those who can advise.

Ellie.

JayS_3

Isn't 'real estate' american for 'property', as in 'the property market'?

Buying houses to sell, or buying to let etc.

eleanorchang

Ahhhh thanks, goes to show how much I know!!!

loanranger_4

My partner bought me this book a couple of years ago for my birthday, it's an excellent book. I haven't benefitted from any of his advice though, as spending money is toooo easy.

You might want to take a look his forums for more info.
http://forum.richdad.com/forums/

The rest of the site is about making Richard Kiyosaki richer!

eleanorchang

Hi loneranger,

Thanks for the link. Had some interesting ideas there that I never had thought of, i.e exchanging my time volunteering to work for bare min wage in exchange for knowledge of how the property market works or whatever making money industry you want to suceed in.

Now I have to make time inorder to kick start this, even though it seems a along journey and so easy to say I don't have the time. ( if you know what I mean) Yet when I am ill and needs to see the doctor I am willing to make the time to make an appointment. ~(going off topic abit) I suppose this is true what ever you want to accomplish, whether to have your own business, get out of a debt rut. Its need alot of determination and discipline to fullfil your dreams. Then your dreams become reality. I have learnt about keeping an eye out for opportunites and just this week something has come my way. All legal !! Prior to reading "RDPD" I would have normally dismissed this opportunity with a "bothered" attitude BUT and I am not going to give this one a miss. I do hope you one day find your opportunity.

Many thanks
Ellie

dippy

It depends whether you've got capital and were thinking of getting into property development or whether you want to become an estate agent. Lately, I know a lot of people who've switched jobs to become estate agents. Quite a few IT graduates have done just that. I'm willing to bet that your typical high street already has quite a few estate agents but there are news that a few have started to close shop in the last few months.

loanranger_4

Thanks eleanorchang. I hope you all the best with your opportunity, you're so lucky to have spotted it.

RDPD does change your perspective, I've read some of his other books ("Cashflow Quadrant") it makes so much sense and it's so simple.

Interesting for this forum is that he argues that while most of us think of our house as an 'Asset', it is actually a liability!

Personally I'm thinking about becoming an estate agent along with all the other IT graduates, NOT.

budgetflyer

I've just finished this book. Am now on a second reading to fully digest the info. The diagrams showing how the different cash flows work make it so easy for blue collar, non financial orientated types like myself to understand.Its fully revolutionised my thinking .Now I just have to put some of the lessons into practice :-)

dippy

loanranger wrote:

Personally I'm thinking about becoming an estate agent along with all the other IT graduates, NOT.

As long as there is no crash, the estate agents are sorted, aren't they? The agency gets 2.5% commission in the South, on average house prices of £200k. How much of that do the top agents personally get? All for driving people around in flashy sports cars, making a few phone calls, filling a few forms. It's a good day's work, isn't it?

bridiej

That's probably why more and more people are going down the "self sell" route...

loanranger_4

With the phenomenal increase in house prices, the estate agents revenues are sharply up, with their costs relatively static, so someone is making a killing.

The next few months are going to be more testing and they will be shutting down as quickly as they opened.