If we use the definition of an asset by Robert Kiyosaki in his book Rich Dad, Poor Dad, an asset is something that makes you money.  Conversely, a liability is something that costs you money.  Therefore, an investment in a real estate asset is something that makes you money. If you are buying something that makes you money, how do you come up with a price you are willing to pay for that investment?    In today’s current state of the market, prices are going up very fast.  Why? In my opinion a few different forces are at work.  Our real estate market crashed in 2008.  This caused most people to distrust many investments, including real estate.  The resulting crash also wiped out many individuals’ savings and any equity they may have in their real estate assets.  The government and the Fed created a stimulus by injecting billions of dollars into the…