Creativity in investing

Well known investing/self help author, Robert Kiyosaki tends to preach real estate and cash flow type investments. He makes some interesting points about creativity in investing in the book he co-authored with Donald Trump. Quoting Kiyosaki from the book (and abbreviating):

“I find it interesting that the investments most people invest in – such as savings, stocks, bonds and mutual funds – do not require creativity.”

“Real estate and businesses on the other hand, are ideal for right brained people. In fact, the more creative you are, the better your chances of becoming rich.”

“If I were to save money or invest in bonds, it would be the bank that sets the interest rate. In real estate, there are many times I determine the amount of interest I collect.”

“When it comes to taxes, if I were to sell paper assets, I would have very little control over taxes. With real estate and business, I can control when I pay taxes, if ever, and how much I pay. The tax laws are written to support re-investment into one’s business or real estate.”

“I can change the use of a property asset. For example, if I look at 10 acres of land as a farmer, I might be willing to pay 1000 per acre. If I look at the same 10 acres of land as a developer, I can change the zoning, which would make the same piece of land worth $10,000 per acre.”

So basically, real estate is just as much a business as it is an investment. That’s why it allows for creativity. From our limited experience I know it’s a business, not just a passive investment. It takes so much work and even with an agency managing there is still a lot to attend to on our part from time to time.