Page 307 - Why We Want You To Be Rich - Donald Trump, Robert Kiyosaki.pdf

WHY Do You INVEST IN REAL ESTATE? I 301

Over More Than 40 Years•••

Mutual Fund Company You

80% ofthe returns 20% ofthe returns
0% ofthe risk 100% ofthe risk
0% ofthe capital 100% ofthe capital

The mutual fund company receives 80 percent of the returns because
the mutual fund company is always collecting fees over the life of the
relationship between the fund and investors. The investor takes 100 percent
ofthe risk and puts up 100 percent ofthe capital. Now do you understand
why banks do not lend money to buy mutual funds and insurance
companies do not insure them against losses?

Not All Investments Are Equal

The job ofa leader or a teacher isto teach people to see. Since our school
system does not teach much about money, most people, even those who are
t well educated, cannot see why some investments are better than others.
r Now that you have seen the differences between real estate and mutual

funds, you should be better able to decide which investment is best for you.

·U£

Donald's Response

When I am asked why I like investing in real estate, I always feel
like answering, "Because I like breathing." To me, real estate is like
oxygen. It keeps me going when I'm awake, and it keeps me going
when I'm asleep.
Aside from the fact that I was raised around the real estate
business, I probably would have found my way to real estate
investment and development anyway because I like so many things
about it. I'm a builder by nature. I remember building very tall
structures with my building blocks as a child. I would borrow my

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