Every time someone asks me what my favorite book is I tell them “Rich Dad Poor Dad”. That book is literally life changing. The ultimate paradigm shift. This is important because I have read over 200 books so this book stands above them all. Rich Dad is also considered the number one personal finance book in the world. I am reminded of its greatness because every single RE investor on the Bigger Pockets podcast cites this book as their favorite as well.
One quote that stands out to me is that “while poor dad struggled to save a few dollars, rich dad just created investments”. Later in the book he goes on to say that the wealthy invent money and he goes on to give examples of how. In the book “The Science of Getting Rich” he harps on the concept of wealth by creativity and not competition. I think these two authors are saying the same thing.
An example of wealth via creation is when someone spots a 2 bedroom property with an over sized bonus room or closet which they can turn into an additional bedroom or bathroom thus increasing the property value by 20-50k. Another, is the story of how Brandon Turner of bigger pockets discovered the BRRR strategy, by accident and was able to create a new strategy puts cash in his pocket while retaining his property as rentals. There is much more opportunity to be creative in real estate and that is what makes it lucrative.
The goal for the investment club as we grow is to start creating our own investments. It is good to purchase shares in ETFs and individual stocks but these limit our ability to influence our returns. With real estate you can paint and improve and increase your investment. With business as a going concern (buying a functioning business like a dry cleaner or grocery store) we can increase prices or decrease expenses. We become actual owners and not “fake owners” through purchasing shares and we become the executives. Keeping it 100% real, although we have been taught that shareholders are owners, in reality we are merely outside third parties. The real people getting rich off the company are the executives. They are in effect the owners. Most people wont say this because we are taught to believe that shareholders own the company. Nevertheless, there is still money to be made in equities (stocks).
The goal for this investment club is wealth and the more I learn about the possibilities the more excited I get. I know I sound like a broken record but stick with me. I am always striving to learn more through reading and it is my goal that we all see great returns through our combined efforts.
If you haven’t yet joined the club, join today by emailing email@example.com