This e-book 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 e-book.
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.