im curretly reading "rich dad poor dad" im not sure if any of you are familiar wit it. he says in it "with realestate, start small and keep trading the properties up for bigger properties and; therefore, delaying paying taxes on the gain. this allows the value to increase dramatically..." what does this exactly mean? trading properties? and delaying taxes? thanks

You do not have to pay capital gains taxes on properties you have lived in for two out of the past 5 years.

By moving into a property and fixing it up over a two year time frame you can then sell and keep all the profits up to the limit of $250,000 for an individual or $500,000 for married couple.

While this can be an effective way of doing small time investing.. it really isn't for the true investor who would not what to live in the property the required two years to get the benefit.

You have to develop an investment plan and then look at the methods you know or want to learn and work your individual plan. Remember.. Rich Man Poor Man has been widely discredited for many of his personal claims and personal background. NEVER consider any single person the end word in anything and specifically real estate investing.

Trading properties may be in reference to 1031 exchanges. In a 1031 exchange, one would sell an investment property and purchase another investment property that is equal or greater in value than the property that is being sold. Any capital gains from the sale would be deferred (delayed) and used for purchasing the other investment property.

the rich dad series is pretty good for beginersi. i read my first one at 15 and have since collected all of them. IMO the abc of investing is the best one. it provides the most detail with out all the philsophical stuff that the others do.

to answer your question.

you buy a house then you sell it and buy a bigger house. but you dont have to pay taxes because the bigger house cost more. then you take that house and buy a muti-unit complex. and you dont have to pay taxes on that because it cost more.

so that is sorta how it works.. i went into a lot of detail but i changed it because i thought it would have confused you more.. that is basicly what he is sayng in his books.

if you still not understand then just ask some more questions and i or someone esle would love to help.

no i understand now it was my fault for asking so soon. because as i read on he explained a 1031 in detail. he also talks alot about the stock market about buying stock in small businesses that just got in to the stock market and are about to boom. then sell your stock after the businesses booms. he mentions a business goin from .65 a share to 3 dollars a share is this common does anyone have some advice for me about the stock market and where is the best place to start with only $1000

buy more books

i am going to today!

This was a great book. I am also reading it right now and I should be done reading it today!

Personally I knew mostly everything he explained but what i've gained from reading this book is a little more motivation that i was lacking to just get up and take action.

his third book the guide to investmets or something like that. i started reading it at the book store and i got to page 30 and didnt even realize how long i had been there!!!! that one is better then the first one!

Don't get hung up on a single writer, select a wider range of sources for a more realistic basis to work from.

ya i will. im goiog to the book store today to look at a couple other books.. any suggestions???

Chris,
go to Tom Lundstedt and check out his books and tapes. Tom has a CCIM and is also a GRI instructor on investment properties.

the best one is the abc of investing. its part of the rich dad series but is writen by ken mcelroy.

also go to johntreed.coma and go to the section on all the gurus and he has a list of the ones he thinks are good and bad. he gives lots of detail on why he thinks so.

also have you gone to creonline.com. it has the best info on investing.

also on the stock thing. i bought stock that was at $.30 then it went up to $2.50. also i have bought four more that have went way up; one tripleing two weeks after i bought it.
it easy to make money with penny stocks but it is also easy to lose money to.
also i did all this when i was 16 and got a job offer at a brokerage firm for when i turn 18.

if you want to learn how to make money in the stock market then you need to go buy some books on it.

The John T. Reed link is extremely useful! There is a wealth of information there. Thanks Reign for reviving that link!

I agree with Paul's recommendation. I purchase a set of (5) Tom Lundstedts books for each investor client on their first purchase with me as a closing gift. It just gets better and better as they continue to come back to me...looking for the next one.