I have read all of Kiyosakis books (except the new one with Donald Trump, but I want to read that one!)
I have read Dolph DeLaRoos (sic?) and I have also read a couple of Sales books, which really help in all aspects of life, IE you seel yourself to your boss, to your customers (“I am the best man for the job because…”) and you buy and sell real estate. Even bargaining for items at the markets is a form of selling. Oh and of course if you want to buy a car you need to be able to negotiate.
anyway that was off topic a little. I am currently looking into my first IP and ALL these books have helped. I have wokred at a Kiyosaki seminar here in Brisbane a couple of years ago, shook his hand and got his and Kims autographs. He really is living proof of what can be achieved, and to anyone who doubts this, i just walk away, you can’t argue with someone who is 110% convinced that “there is no such thing as +ve cashflow” or that “real estate is no good” or of course “shares are the only way to go”
hope this helped (?)
Russ
OOPS, I almost forgot, Steves books are awesome too, (no I am not just saying that). The first one was basically a “how me and Dave did it” and the second one (“1million in property in one year”) was a great inspiration of other people and what/how they did. The third book I just devoured, more practical examples and also the thoughts and ideas behind succesful investing in real estate. for example the divide and conquer methodology – where you sell one property nad use the money to buy two more (read the book for more) while it sounds simple and obvious, It’s suprising how many people (I think) wouldn’t think of it. Also the eqiuty graphs are a good visualisation. basically talks about paying off your principal as a means for increasing equity, as well as taking whatever capital gians come tyour way. I can’t recall the terminology right now (books at home, Im at work) but its a good read for sure!!

Last week I sat thru an information session on salary sacrificing.

it doesnt matter how much you earn or what car you buy. also, you can lease your own current, paid for car.

basically I am trying to figure out if its worth it. i paid 15 grand for my new car 3 years ago, market value is 8 grand now. If I take a novated lease on it, I baasically sell it to the leasing company and get a cheque for 8 grand. the residual is set around 2 grand, so I pay 6 grand over three years, but from PRE-tax dollars (its basically a tax deduction, i’d be negatively gearing my own current car). I would then take that 8 grand and pay off one of my credit cards (and close the account) and pay off half my other credit card (and reduce the limit). The money saved on interest payments and minimum payments on the credit cards would cover the car lease payments, and the lease payments would include servicing, tyres, petrol ,all the running costs.

my borrowing capacity would then go UP because i just blew away 8 grand in credit card debt, i could then redirect all my extra money into wiping out my other credit card (further reducing the limit so i would then use it for living expenses and keep a zero balance each payday).

I am consulting a tax accountant/financial advisor as soon as I get the quote from the lease company.

if, at the end of the month, i end up with more “disposable” income, then I will seriously consider doing it, so i can then pay off my personal debts and a chunk of my home loan, then use the equity and my now massive (well ok, increased) borrowing capacity to get into my first IP.

Anyone else inspired by the webinars about developing? having had a bit of a hand in the building of my own residence last year, I almost feel I could tackle a small residential development. using TOC finance Im sure i could get thru it with no money down. as I said to Steve this afternoon (via email) there are vacant blocks in the estate where I live now, and the area has experienced at least 10% increase in prices since I bought.

Anyway that was a bit off topic, I appologise.

Now for those of you who cry “FBT”, the leasing company does all the calulations, and you pay a portion of the lease payments with after tax dollars, which wipes out your FBT liability. and all is well.

The other benefit of salary sacrificing is the chance to get a laptop for 1/3 to 1/2 off, by paying for it in pretax dollars. I work in the IT industry to start with, and Im going to want to take my laptop with me to do deal comparisons etc. my current laptop is old and the battery lasts about 10 minutes before it dies. by paying for it from pre tax income it just may benefit me to upgrade now, then its another three years before i need (or want) a new laptop and/or car.

hopefully in three years my IP income would cover the payments on a replacement car anyway (and in 10 years, my IP income will cover the cost of buying a Porsche, hopefully for cash

cheers

Russ