Page 164 - Why We Want You To Be Rich - Donald Trump, Robert Kiyosaki.pdf

158 I CHAPTER THIRTEEN

for $5 and holds it until it gets to $12 to
sellit, he or she isselling for appreciation
It requires-both sides'
or capital gains. The same is true for
of your brain to
people who flip real estate.
be successfuI. I put appreciation last also because

it is taxed income, capital gains. The one
Taking control
blessing real estate has is the 1031
and beingcreative exchange, which lets the investor defer

requires both the tax on capital gains - sometimes
financial education forever, if you plan well. To me, this
ability to avoid capital gains makes real
and experience:
estate a far superior investment
- Robert T. Kiyosaki compared to paper assets such as stocks,
bonds, mutual funds and especially
"iW ';!"
" ""' iit savings. If you would like to know more
about why real estate is legally the best investment ofall, you may want to
get Rich Dad's Real Estate Advantages, written by Sharon Lechter, my
partner and C.P.A., and Garrett Sutton, an attorney and Rich Dad's Advisor.
I want you to notice that a C.P.A. and an attorney wrote this book. There
is a reason for this.
Again, I stress that this example ofreal estate and paying less in taxes is
completely predictable.
In 1996, the year I came out of retirement, I created my board game
CASHFLOWand wrote Rich Dad PoorDad. I had no idea how successful
The Rich Dad Company would become. But I chose the right team starting
with Sharon and Michael Lechter, Having the right team is the best form of
leverage. In the same year, I also started an oil company, a gold-mining
company and a silver-mining company. While the oil company failed, the
mining companies went on to become public companies via IPOs and a
merger. The companies are listed on the Canadian Stock Exchanges. Both
companies have made me millions ofdollars.
Many people said starting oil, gold and silver-mining companies was
risky.While there was some risk, to me it was very little. I could mitigate

WHY WE WANT You To BE RICH
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