How Realistic is This? - Robert Kiyosaki Article

[Matt D'Arco]

Hi BP community.

I’ve just read an article written by Robert Kiyosaki about 3 steps to owning real estate with very little money down.

A little background on myself, I am a real estate agent in MA. It is my full time job and I have been doing this for a little over a year now. It’s been slow to start but I’m getting there. I got into this because of the opportunity to make money to buy investment properties and to learn as much as I can about the local markets I plan to invest in and learn as much as I can about real estate in general.

My plan has been to save up my commissions and buy a 2 or 3 family rental. If I buy a 3 family I'd like to use a MA Housing loan, similar to FHA and house hack. Down payment is 3%. If I find a 2 unit home, I'd rather use a portfolio loan with a down payment of 11% so I can rent out both units. I won't invest unless there's positive, strong cash flow.

So that’s been my plan and needless to say it’s been frustrating not being able to start. I’m 27 now, going on 28 in August. I was 24 when I discovered real estate investing and have had setbacks and probably could have made better choices to get myself an investment property sooner.

The article I just read by Robert Kiyosaki is here: https://www.richdad.com/how-to-get-rich-in-real-estate?feed=blogs

Rich Dad Poor Dad is what completely changed my perspective on money and investing/real estate. So I definitely soak up whatever he says. But sometimes his stuff can be a bit vague.

In this article he talks about finding a great investment property that isn't living up to its full potential, starting an LLC for the property and then selling shares of that LLC to investors in order to acquire the property Basically, nearly a no money down scenario or at least a lot less money than you'd need if you were going down my route. Here in MA in order to get a property, I'll need anywhere from $20-$60k down.

So my question, is what RK says in this article realistic? Has anyone here ever done this? How could this be done? I’m looking for a more detailed and in depth explanation than what he gives in the article.