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do you want to buy an apartment but your income doesn’t allow you to no need to worry the way out is already here by watching this video you will learn about Robert kiyosaki’s plan which will help you not only buy a cherished home but also invest profitably providing yourself with passive income welcome to the main channel on finance subscribe right now if you want to find out about all the money secrets [Music] so what is kiyosaki’s approach to investing in real estate based on his experience Robert recommends buying real estate with borrowed money from the bank and renting it out at a price that will cover monthly loan repayments and additional real estate expenses by creating this kind of cash flow you will come to the point where your real estate will pay for itself investing in real estate provides four returns at once rental income depreciation appreciation and tax advantages rides Kiyosaki in his book the real book of real estate this approach is quite risky because in an unstable economic situation in the world it is difficult to make calculations for the future so there may be such a situation that it will be difficult to pay back the money you borrowed from the bank at interest but if you assess all the risks correctly and approach the Kiyosaki plan wisely you are likely to succeed and become richer so let’s break down the basic principles of Robert kiyosaki’s method and then look at specific examples Robert Kiyosaki started investing in real estate with an initial capital of 300 today he was able to earn over 100 million dollars in real estate you may ask what is the secret to such success he was the person who managed to invent and Implement a formula that allows you to make money on real estate investing in it’s the minimum amount of your own funds you can buy an apartment today in several ways on credit by installments with a mortgage with borrowed funds from a bank and for 100 payment according to the method of Kiyosaki the most correct way would be to buy residential or commercial real estate on credit for its full value thus you have the opportunity to buy an apartment from a developer as if for free and to have income from this kind of investment indefinitely currently there is a real way out of this situation some financial institutions provide mortgages if you have absolutely no money at the time of signing the contract thus you can implement the Kiyosaki method it is only worth noting that the annual interest from such a deal is rather high so an example of the scheme itself figures are conditional the object’s price one hundred forty thousand dollars registration cost ten thousand dollars initial payment forty thousand dollars costs C ten thousand plus forty thousand equals fifty thousand loan L one hundred forty thousand minus forty thousand equals one hundred thousand loan term LT 100 months loan rate LR one percent per month loan payments body B which equals one hundred thousand to one hundred or one thousand dollars a month interest I equals loan times loan rate which is one hundred percent which equals one hundred thousand times one percent one hundred percent works out to one thousand dollars a month loan free equals loan body plus interest equals one thousand plus one thousand equals two thousand a month taxes utilities and other expenses equals five hundred rental income R equals three thousand net income n equals income minus loan payments minus utilities equals 3 1000 minus two thousand minus five hundred which equals five hundred so we get the following by spending fifty thousand we have purchased a property worth one hundred forty thousand plus a source of constant income of five hundred dollars a month in this case that’s one percent per month it seems small because without the two thousand dollar a month credit payments we would have received five times that but no not five times because the twenty five hundred a month income would have had to be divided by the full 150 000 in expenses and that would have been about one point seven percent per month but we just didn’t have that amount and even if we did we would have been better off buying three similar properties on credit and getting a combined three percent per month versus one point seven percent per month it’s not easy to get a ratio like this but it’s possible the main thing is to put aside some empty and trash offers which are on the market and take perhaps a one-of-a-kind gem among them it is unlikely to be in the residential real estate sector first and foremost we should consider office retail and warehouse space there are many factors that influence our choice and since they are not the main topic of this video we will not talk too much about it obviously the final income could be improved by reducing the price of the property the cost of registration the loan rates the size of the down payment taxes and utilities as well as by increasing the term of the loan and the cost of rent each of these parameters can be improved modified and put in the right direction this too is a separate and quite a big topic when the loan ends we will be able to get 2500 a month but our costs remain at fifty thousand because all the rest has paid our rent the income will be five percent per month which is really five times more than during the loan but the most interesting thing comes next let’s say 50 of our 100 months have passed 50 000 of the required one hundred thousand have already been paid off let’s say the market value of our property has not changed we come to our bank with an offer we have a property worth 140 000 and that generates 2500 net income each month and for which we owe you fifty thousand they can see that you are a good borrower able to meet your loan obligations and your income level allows you to do that so why not refinance our property to its full value they will give us a loan of 140 000 of which we will pay off our debt of fifty thousand and use the remaining money to renovate the property which will increase rent payments to four thousand a month net and for a down payment to buy a new rental property for which we will again take a loan from the bank giving your impeccable credit history you ask to reduce the rate of the new loan and increase its term the rate Banks dream about such borrowers and within reasonable limits agree to meet them however the situation in the credit sector is tense the borrowers do not trust the banks the banks do not trust the borrowers each side is cheating and looking for one-sided benefits in such conditions it is harder to get a good reputation but harder does not mean impossible that’s why you need to prepare for the Kiyosaki team well in advance what does this mean have a positive credit history learn to evaluate and select properties learn to make and calculate business plans for the rental business learn the principles of banking for different types of lending know the rental situation in the real estate sector as you have already realized it is quite possible to buy an apartment and earn some good money the main thing is not to be afraid to take small risks for a large profit because real estate is one of the assets which determine our wealth in the long term and we should treat it accordingly share this video with your friends or just post it in your socials if you found this topic interesting also do not forget to subscribe to our Channel and ring the bell to get new updates first that’s all I have it’s the main channel on finance subscribe and get rich [Music] thank you