This ebook is all about Rich Dad’s fundamental formula: Look for properties with cash flow AND with a potential for capital gains. People always ask, “What about foreclosures? What about nothing-down deals?†These are certainly valid real estate approaches to investing, and we’ll discuss them briefly in this ebook.
It’s really about “value investing.†What’s the true value of the property? That value includes both cash flow and potential capital gains—and a number of other factors we’ll examine. For now, keep this in mind about the difference between a value investor and a speculator. A value investor buys a property based on its overall value, both today and in the future. A speculator buys with one hope in mind: that the price of the property will increase.
