Chapter 12 Notes
Robert's Topics > Chapter 12 Notes > Capital Gains vs. Cash Flow
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sideways - 7/9/2009 11:11:26 PM
Share how you plan on investing for cash flow.
It is a good point to be able to invest for both capital gains and cash flow. That is, if the cash flow takes precidence.

When I started learning investing, I also started learning about asset protection. There are apparently quite a few asset protection scams, but there are also some legitimate and important things to know.

I was concerned about tax, debt, and inflation. I wanted to 'spend' wisely, or convert profits into a more secure form. Your book has helped me to view much of that in context, and to appreciate what you have shown as inherently complete in many ways.

My plan is to at least convert cash flow into passive income producing assets. Long term assets will have to pay for themselves. Thanks for the financial knowledge and education.
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Valued member
lalocfrogs - 7/10/2009 3:16:28 AM
investing for cashflow
hello all conspiracy of the rich readers,hello robert.
first I would like to give million thanks to you robert, and all your team for the good reading and lessons.
I truly hope you keep an education portal on line for everyone out there in needs of education or just to share new ways to beat the conspiracy.
now my plan to invest in cash flow>
try to buy couple more shares of the company were I work,till now it have been putting tax free money on my pocket from day one and every single month.(best stock out there but not listed on the market sorry.(thus it wont be easy and wont be guarantee)
buy more property that produce income (probably apartment building or family homes)but with different aproach since the cost of mortgagges is more expensive were I live and the country Im from.
rather than conventional mortgage pay in full so all the income it produces goes to my pocket and not to the pig bankers and their stupid interes rates>
12%to 15% interest rate in mexico(were Im from)8 to 9% in bahamas(were I live)can you belive that of course you do.
plus all their stupid and sucker closing fees.also that way no mather if ressecion hits and you get vacancy for couple months(wich it happens)you wont get to deal with the sucker bankers tryng to steal your property(legally).

also and probably invest some in capital gains, a big acreage in mayan riviera and let it sit for five to ten years,and then sale by the foot,on family home lots.
also I have think about buying a richdad franchise but not enough info available.
thanks again for all the good reading.
john Rainone - 7/10/2009 4:46:43 AM
investing for cash flow.
Basically I have to sit and wait for the conditions on investments to become positively geared. To be honest I’ve been waiting a long time and opportunities are still very limited, the last time I saw good investment opportunies was in the early nineties. I'm sure those conditions will come back, and investments should be based on
- look at the downside, if acceptable then proceed ( margin of safety)
- look to achieve an annual compound cash flow return of 20%
- be contrarian, in my case borrow money when no one else is and invest in stocks and property when no one else is.

Thankyou for sharing this book for free, you are an inspiration and your ability to sell and cross sell is truly amazing.

pollentes - 7/10/2009 5:08:48 AM
the whole concept has given a fresh outlook and approach as to the current state of our economy with the original touch of rich dad. I would love to see more mental conditioning as to one of your basic saying "fail faster" as the times are tough, the tough gets going. Thanks for all the lessons
norvan - 7/10/2009 7:07:22 AM
Buying properties in foreclosure
Hi Robert, I have started a process (started a year ago), where I sold my car that I was paying monthly installments on and started buying apartments in foreclosure. There is certain criteria that must be met when buying these apartments such as, it must be in a location where there's lots of jobs and the rental received must at least cover the bank loan + monthly expenses. I have thus far accumulated 11 of these apartments. I plan on accumulating another 19 by the end of 2010. I am currently 32 years old and plan to have a passive income equivalent to my monthly salary by age 37. I still do not have a plan on how to retire by 40. (I Read rich dad poor dad in 2006 - and that got the thoughts going, thanks for all the great books)
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Valued member
InfoLover - 7/10/2009 9:08:49 AM
Investing for cash flow . . .
With a focus upon real estate, I have a preference for a buy-and-hold strategy. With emphasis to the continual improvement of property management, my initial plans include lease optioning of quality single-family homes and acquiring a portfolio of smaller apartment buildings (duplexes through quads). As competencies increase I foresee syndicating into larger apartment buildings and other forms of commercial property types, as the economy permits.

Considering present economic circumstances, I anticipate the majority of my portfolio to consist of residential property types [from 1 to 100+ units] for a long time into the future.

While internet marketing offers many avenues to generate recurring streams of income, I have no immediate plans to explore any such opportunity. Through recent online exposure I have come to believe there to be numerous such opportunities capable of producing significant returns within a reasonable time. Real estate remains my preferred vehicle for the creation and maintenance of wealth, being the only reason for which I have not devised immediate plans for pursuing an internet marketing venture. It remains a viable option nonetheless.
maonunez - 7/10/2009 12:45:04 PM
My plan to invest for Cashflow: Real State, Cattle and Stocks
I'm setting things up to invest in real state, re-selling properties and renting properties having in mind as my priority to get a positive cashflow from every investment, and beeing well covered from risks.

In the other hand I'm just processing investing for cashflow, I'm struggling with the idea, I had always think in capital gains and had not even realized that I was doing so, or that there was and other way.

I was starting to invest in Cattle and Stocks, and thinking about the forex market. Maybe I have to re-think my strategy. having into account what you just made me realize. Thanks
avg2a - 7/10/2009 3:41:43 PM
Hi Robert. I've been building
Hi Robert.

I've been building a small business on the side. I realize entrepreneurship may not be in the cards for me as it's not really as enjoyable as I'd thought it be. I think my best choice would be to go into real estate. However, it's a good idea to continue building this venture, and in the process learn invaluable business skills that can come in hand no matter what I do.

Thanks again,

Advanced member
Advanced member
a_eritano - 7/10/2009 5:43:58 PM
Investing for cash flow

I was having a conversation with a very wealthy man who is extremly cheap. He asked me why I invested in real estate. I told him that I was investing for our future.
He said, " it is not much of profit if you look at the whole picture...."

I was quiet in the car as he was speaking, but my mind was racing. I was wondering whether I should explain the reason behind why I did what I did...

Well, I never opened my mouth to explain to him. He is a rich man, a stingy rich man. Why would he accept anything I say, since I am not rich, yet.

Well, he focused on capital gains. In the past 20 years, he was very seldom home. He has to work hard in order to make massive amount of money. His children don't have good relationship with him and he sort of has to buy their affection.

My rental properties are producing cash flow. When I received my rents for the month of July, my brother and sister were asking me questions. My daughter was happy to see me at home with her. My husband works harder to plan for our real estate investment. I am happy.

I thought about my friend because of his capital gain deals. I believe he is a good person and wants what is best for his family. He is not happy.

Now, I equate happiness as cash flow. It is life transforming for our family. We have the control of our future to trade 4 little green houses to 1 small red hotel.
smc6877 - 7/10/2009 5:45:02 PM
Why doesn't your balance sheet have equity on it? Balance sheets are Assets = Liabilities + Equity.
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