Page 280 - Why We Want You To Be Rich - Donald Trump, Robert Kiyosaki.pdf

274 I CHAPTER TWENTY-FOUR

investors lost most of their money. The good news is that some of
those who were in my oil company were also in my gold-mining
company in China.
2. Real estate partnerships: Kim and I are partners in several large
real estate projects - projects such as 300-unit apartment houses.
commercial buildings and office buildings. Kim and I are not real
estate developers like Donald Trump. We simply are the money
partners to developers. We have never lost money in any real estate
partnership ... knock on wood.

The key is to have honest and experienced partners.
3. Oil and gas partnerships: There are many reasons I personally like
oil and gas. They are:

Cash flow: Ifyou strike. you get paid every month just as you
do with real estate.
Tax advantages: If I invest $100,000 into an oil and gas
partnership, the IRS allows me to deduct approximately

$70,000 from my taxes. At the 50 percent tax bracket, that is
almost the same as receiving $35,000 from the government in
cash flow or to apply to my investment.

The other tax advantage is that for every dollar I receive from oil
and gas, the government allows me to deduct an additional 15
percent (known as depletion allowance). That means I pay taxes
on only 85 percent ofthe income I receive from oil and gas.
4. Private equity funds: These are mutual funds for the rich.
Generally. a private equity fund is built around an investment group
with an excellent track record. They invest in all manner ofthings.
such as businesses and large real estate acquisitions.

Generally, the cash requirements are much higher than those for
mutual funds. One I invested in required a million-dollar