I’m a big Monopoly fan and I recently saw a sweet website that talked about something I have always wondered about: how to figure out how long it takes to return your investment in the various properties, houses and hotel purchases. I think that this is really the key to developing a winning strategy for Monopoly. Without this knowledge, how do you know whether to focus on putting hotels on Boardwalk or buying up all of the Railroads? Just like in life, you cannot do everything or be a specialist in everything. The key to winning is making the right purchases and decisions at the appropriate stages of the game. Are we still talking about Monopoly?
Robert Kiyosaki believes making money can be as simple as playing a game of Monopoly. He says the formula for winning the game — four green houses and one big red hotel — translates to real life prosperity. Rolling the dice in real life takes courage and sense of adventure, but it also leads investors to big pay-offs. What most RE investors fail to remember is simply this:
“four green houses; one red hotel”
When an experienced investor tells you to make money on the “buy”, understand that this is not double speech. Money, or better put, Wealth is created when you do the due diligence needed for a deal and execute. You acquire one more positive cash-flowing property, which gives you tax benefits and leverage for the next deal. And when the market gets better, you even make a little money on the appreciation of the property.
If this is still foreign to you, go play Monopoly. It’s a fun game and you will learn quite a bit about real estate and life.
-Richard – www.TheFlipBoard.com
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