Page 302 - Why We Want You To Be Rich - Donald Trump, Robert Kiyosaki.pdf

296 I CHAPTER TWENTy-SIX

Blue-chip companies that millions ofinvestors are counting on may not
be blue chips for much longer. New companies, run by kids with different
minds, will bring down the blue-chip companies oftoday. Just as GM Was
the powerhouse when I was a kid and is an aging monstrosity today, maybe
Microsoft or Dell or Google will be the GMs oftomorrow.
When I invest in real estate, I do not care ifthe tenant is GM or Googl e
or an old baby boomer or a new kid on the block, just as long as the bills get
paid.
And this is the secret reason why I like real estate: Real estate will take
awhile to become obsolete.

Who Owns Your Real Estate?

Just as a side note, I thought you might be interested in who really owns
real estate.
The term real estate comes from the Spanish word real, which means
royal. So real estate literally translates into royal estate. That is because during
the Agrarian Age, there really were only two classes ofpeople, royalty and
peasants. As mentioned earlier, the royals owned the land, and the peasants
lived on and worked the land. As payment for living on royal land, the
peasants paid a tax, in the form ofa percentage oftheir crops, to the royals.
Today, we still do not own our real estate. The government owns our
land. We allpay a tax, known asproperty tax to the government. Ifwe do not
pay this tax, we soon find out who really does own the land.
As you can tell, not much has changed.

Yahoo! Finance

Presently, I am a writer for Yahoo! Finance. Ifyou would like to keep
up to date with what is on my mind in the world ofmoney, go to this fine
Web site (http://finance.yahoo.com). It allows me to communicate quickly
- much more quickly than writing a book.
The following is an article about some ofthe other reasons why Donald
and I invest in real estate. It has to do with a favorite term ofWarren Buffett,
the term intrinsic value.

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