RK vs. GC (Interesting "chat" about RE investing in today's market)

[Kung Fu Steve]

I know both of these guys (RK less so)... they are both goofy as the day is long... but I trust Grant. He's a standup guy. I don't trust Robert. He's not.

But I just thought this was an interesting listen. It really feels like the Kiyosakis keep going back to what worked in the past. Grant's talking about how cash is worthless, don't save - invest. Small properties are the riskiest.

He all but said "guys, you didn't get rich by buying single-family homes. Stop telling people to do that."

 

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[Mathuin]

I trust Grant. He's a standup guy. I don't trust Robert. He's not.

No trust is a level of trust

 

[Andy Black]

I know both of these guys (RK less so)... they are both goofy as the day is long... but I trust Grant. He's a standup guy. I don't trust Robert. He's not.

But I just thought this was an interesting listen. It really feels like the Kiyosakis keep going back to what worked in the past. Grant's talking about how cash is worthless, don't save - invest. Small properties are the riskiest.

He all but said "guys, you didn't get rich by buying single-family homes. Stop telling people to do that."

It was mentioned in this chat which I enjoyed:

View: https://youtu.be/vsr2FXMTHyc

 

[Guest-5ty5s4]

I know both of these guys (RK less so)... they are both goofy as the day is long... but I trust Grant. He's a standup guy. I don't trust Robert. He's not.

But I just thought this was an interesting listen. It really feels like the Kiyosakis keep going back to what worked in the past. Grant's talking about how cash is worthless, don't save - invest. Small properties are the riskiest.

He all but said "guys, you didn't get rich by buying single-family homes. Stop telling people to do that."

I have the opposite view of them. Grant seems to be telling everyone they can’t do it themselves, just buy into his fund.

It is lame, and very slowlane, to be investing in cardone capital

 

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[Andy Black]

I have the opposite view of them. Grant seems to be telling everyone they can’t do it themselves, just buy into his fund.

It is lame, and very slowlane, to be investing in cardone capital

Lol. I thought that was their plan with that call I linked to as well. But it was interesting nonetheless.

 

[Mathuin]

I have the opposite view of them. Grant seems to be telling everyone they can’t do it themselves, just buy into his fund.

It is lame, and very slowlane, to be investing in cardone capital

I hate them both.

I dont like Grant bragging about selling a $800 sales training product to a customer then selling a VERY similar product to a business for $80k, Cardone Capital returns claims and his social media content.

I don't like Robert Kiyosaki for his sleazy seminars and endless upsells.

Michael Zuber seems to be a pretty legit dude for Real Estate mentoring based on what I've seen. He does single family and small multi-family, flips and rentals. Sells a book and pretty low ticket course but seems to be one of the few not relying on courses for primary income.

View: https://www.youtube.com/watch?v=NYvF6w1dHKw

 

[Antifragile]

I hate them both.

I don’t hate… but I’m with you. Useless shit advertising for their own benefit.

That said, I appreciate very selective messages and use them. For example: 10x to me means thinking Big. Effort to create a small business is similar to medium or large. Why not go for a bigger business? That’s why I have an office, staff, partners, investors and growing. And focusing on RE is a good idea too. Especially development, has been around a long time and will be around long into the future.

 

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[Mathuin]

That said, I appreciate very selective messages and use them. For example: 10x to me means thinking Big. Effort to create a small business is similar to medium or large. Why not go for a bigger business? That’s why I have an office, staff, partners, investors and growing. And focusing on RE is a good idea too. Especially development, has been around a long time and will be around long into the future.

That's true, I read 10x back in 2017 and I still got value from it as well as some of his YT videos.

"10X" is a good saying but I prefer "Kill Bigger"

 

[Andy Black]

10x to me means Dan Sullivan:

View: https://youtu.be/eR3ARVWlxv4

 

[Kung Fu Steve]

No trust is a level of trust

Bwahaha

 

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[Kung Fu Steve]

Again, they are both super goofy.

I would not invest in Cardone Capital. But I WOULD gather some folks on this forum and go buy some properties.

Robert was just a douche to several of my friends and then (surprise surprise) he was a complete douche to me.

His wife is awesome. Not sure why they're married.

Grant is quite the character but what you see is what you get. I may or may not have been offered roles with them but I didn't want to become a scientologist so I turned them down

Neither are perfect. I bought Grants sales trainings and they are downright awful.

The Rich Dad products are outstanding but they were created by Sharon.

Either way I just find it grating when someone says "oh yeah, YOU can do it. But these normal idiots who listen to this are dumb and irresponsible so don't give them that advice."

 

[Guest-5ty5s4]

But I WOULD gather some folks on this forum and go buy some properties.

A smart fastlaner would do their due diligence and potentially buy in if the upside is there, and the returns are going to be more like a partnership and less like buying an REIT or other fund

Correct me if I'm wrong but that's the way I see it.

 

[Kung Fu Steve]

A smart fastlaner would do their due diligence and potentially buy in if the upside is there, and the returns are going to be more like a partnership and less like buying an REIT or other fund

Correct me if I'm wrong but that's the way I see it.

Well there's some EXTREMELY successful RE investors here. Some have/have had thousands and thousands of doors.

I just need to buy them some nice whiskey and beg and plead for them to take my tens of dollars

 

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[Raoul Duke]

They both suck. No go for me, chief.

 

[Johnny boy]

"Do you guys like Raspberry Guru, or Banana Guru? I prefer Raspberry Guru. It tastes better"

"Yeah, I like Raspberry Guru too. I don't trust Banana Guru"

"Actually I enjoy Strawberry Guru. It's less "guru-y" than the other flavors and more legit. By far my favorite guru flavor. All the other flavors are just a sales funnel to a course. Strawberry guru offers a course too but I just trust it more you know?"

 

[starttoday123]

The way you're using the word "goofy" can mean scam or eclectic person which are two really different meanings. I believe if you're more clear about your message you'll make more of an impact on readers.

 

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[Johnny boy]

The way you're using the word "goofy" can mean scam or eclectic person which are two really different meanings. I believe if you're more clear about your message you'll make more of an impact on readers.

you're goofy

 

[MitchC]

Grant’s entertaining and some of his advice is pretty good.

Unlike a lot of other gurus he’s done what he tells people to do.

Young Hustlers was a super entertaining podcast and listening to the episodes you kind of obsorb his whole philosophy and way of thinking without buying anything.

Some of his main philosophies that I got from him:
Fill your pipeline up, don’t be reliant on one deal or one lead. Keep your pipeline full.

Find out who has money and get around them, get in front of them, figure out how to get their money. Who’s got my money?

Don’t cut your friends off, add new ones and the old ones will naturally fall away.

Once you have another income stream don’t quit your first one because now you’re back to one.

Put your money where you can’t touch it, then look for an opportunity, when the opportunity comes and you’ve done your diligence go all in, go broke again.

Debt is good. Get as much debt as possible. Only broke people have no debt.

Do the maths.

He has a little 1 hour audiobook booklet lead magnet thing called “the millionaire booklet”. It’s actually really good. Almost like a 1 hour millionaire fastlane summary.

 

[Kung Fu Steve]

you're goofy

Seconded.

 

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[Kung Fu Steve]

Grant’s entertaining and some of his advice is pretty good.

Unlike a lot of other gurus he’s done what he tells people to do.

Young Hustlers was a super entertaining podcast and listening to the episodes you kind of obsorb his whole philosophy and way of thinking without buying anything.

I don't listen to a lot of his stuff but I know he's got some young guys on his team that are doing well.

Some of his main philosophies that I got from him:
Fill your pipeline up, don’t be reliant on one deal or one lead. Keep your pipeline full.

Full calendar = Full bank account. Empty calendar = Empty bank account.

Find out who has money and get around them, get in front of them, figure out how to get their money. Who’s got my money?

I can't stop laughing "who's got my moonnneyyy, maaaannnn"

Once you have another income stream don’t quit your first one because now you’re back to one.

Had to learn this one the hard way a few times.

Debt is good. Get as much debt as possible. Only broke people have no debt.

I'll give RK a point on this one. "Good debt vs Bad debt"

 

[Guest-5ty5s4]

I just find it funny when a fund owner/manager is making 100%, even an infinite (divide by zero or approaching zero) return on the fund, and the investors are getting MAYBE 15% if they're lucky. And the fund manager/owner is preaching so heavily about why their asset class is the best, their fund is the greatest, this is the key to getting rich, etc.

It's precisely what MJ talks about with AUM and the slowlane.

So on the one hand you have these huge courses and seminars that are way overpriced, and on the other, you have this giant real estate fund with a guy telling everyone that giving him your money will make you a rich real estate investor...

clearly the key is to become a huge social media star and start a syndication fund.

 

[Kung Fu Steve]

I just find it funny when a fund owner/manager is making 100%, even an infinite (divide by zero or approaching zero) return on the fund, and the investors are getting MAYBE 15% if they're lucky. And the fund manager/owner is preaching so heavily about why their asset class is the best, their fund is the greatest, this is the key to getting rich, etc.

When I first read "How to Buy and Sell Apartment Buildings" -- they talked a lot about funding and money. And even someone who goes out digging for deals and presents it for a 5% ownership is getting an infinite return (besides sweat equity, of course).

But yeah -- the pitch of "this is the only way" is always GOOFY in my eyes (gonna start using that word every 5 seconds now). To play devil's advocate, people need education... but they should be educated on the other options, too.

It's precisely what MJ talks about with AUM and the slowlane.

So on the one hand you have these huge courses and seminars that are way overpriced, and on the other, you have this giant real estate fund with a guy telling everyone that giving him your money will make you a rich real estate investor...

I think his courses are cheap (and the quality reflects that). The conference is brutal. It's not a seminar, it's literally one pitch after another. My team and I were gifted quite a few tickets. None of us could stay.

clearly the key is to become a huge social media star and start a syndication fund.

Oooo... wanna buy into my fund?

 

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[Guest-5ty5s4]

When I first read "How to Buy and Sell Apartment Buildings" -- they talked a lot about funding and money. And even someone who goes out digging for deals and presents it for a 5% ownership is getting an infinite return (besides sweat equity, of course).

But yeah -- the pitch of "this is the only way" is always GOOFY in my eyes (gonna start using that word every 5 seconds now). To play devil's advocate, people need education... but they should be educated on the other options, too.



I think his courses are cheap (and the quality reflects that). The conference is brutal. It's not a seminar, it's literally one pitch after another. My team and I were gifted quite a few tickets. None of us could stay.



Oooo... wanna buy into my fund?

Haha Steve, you are great. I know you come from that coaching world. And I love your transparency and honesty.

 

[Kung Fu Steve]

Haha Steve, you are great. I know you come from that coaching world. And I love your transparency and honesty.

I always like calling it like it is (not worse, not better).

But I don't enjoy the "black and white, everything is right or wrong" mentality.

I'd like to discuss ideas again. What people are doing, what works, what doesn't, where there's value, where there isn't (and why).

Trying to get away from judgment and just trying to hear people again. Easier said than done.

 

[MTF]

Debt is good. Get as much debt as possible. Only broke people have no debt.

Lol maybe in the US. I don't get this crazy obsession with debt. And saying gets as much debt as possible is ridiculous. But I don't like GC at all (seems like a pushy salesman obsessed with money) so I'm biased.

To me debt = being broke.

I understand there are some business applications for debt but saying only broke people have no debt is idiotic. I guess I'm broke then even though I can do whatever I want.

 

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[Guest-5ty5s4]

Lol maybe in the US. I don't get this crazy obsession with debt. And saying gets as much debt as possible is ridiculous. But I don't like GC at all (seems like a pushy salesman obsessed with money) so I'm biased.

To me debt = being broke.

I understand there are some business applications for debt but saying only broke people have no debt is idiotic. I guess I'm broke then even though I can do whatever I want.

there's more than one way to do it! Lots of types of leverage exist.
- Financial, OPM
- People/human resources
- Marketing and attention
- Technology, software, automation

The biggest players use all of them. You can do very well with 1, but to reach the top of the world you'd need all 4.

These are all systems of a business, and the entrepreneur is like the WD-40 that goes between all the parts.

 

[Kung Fu Steve]

Lol maybe in the US. I don't get this crazy obsession with debt. And saying gets as much debt as possible is ridiculous. But I don't like GC at all (seems like a pushy salesman obsessed with money) so I'm biased.

To me debt = being broke.

I understand there are some business applications for debt but saying only broke people have no debt is idiotic. I guess I'm broke then even though I can do whatever I want.

I guess the better word is leverage.

"Other people's money"

I don't like the word debt, either. But think about this situation:

When buying a car, it's (almost always) a liability. It costs you money. The "smart" thing to do would be to own a car and not have a monthly payment.

But if you had the money to buy a new Tesla, should you just pay for it outright in cash?

It depends... what if you can get 0 interest for 48 months? Now you have debt and a monthly payment, but the cash you would have used to pay for the car is available for other things. I know this is a GOOFY example. But that would be an intelligent use of debt, right?

Or if you were to buy a business that produces cashflow. You could use the cashflow to pay off the debt.

 

[MTF]

there's more than one way to do it! Lots of types of leverage exist.
- Financial, OPM
- People/human resources
- Marketing and attention
- Technology, software, automation

The biggest players use all of them. You can do very well with 1, but to reach the top of the world you'd need all 4.

These are all systems of a business, and the entrepreneur is like the WD-40 that goes between all the parts.

Whenever I hear a story of someone going completely broke and ending up in terrible financial situation (not merely not having anything but owing a lot of money), it was after taking on debt. That's why I'm very risk averse in this aspect.

That said, I don't want to reach the top of the world so I guess a potential billionaire is wired a different way.

 

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[MTF]

I guess the better word is leverage.

"Other people's money"

I don't like the word debt, either. But think about this situation:

When buying a car, it's (almost always) a liability. It costs you money. The "smart" thing to do would be to own a car and not have a monthly payment.

But if you had the money to buy a new Tesla, should you just pay for it outright in cash?

It depends... what if you can get 0 interest for 48 months? Now you have debt and a monthly payment, but the cash you would have used to pay for the car is available for other things. I know this is a GOOFY example. But that would be an intelligent use of debt, right?

Or if you were to buy a business that produces cashflow. You could use the cashflow to pay off the debt.

You're a goofy guy, Steve.

Lol.

Just kidding.

I understand the mathematical reason for it. Still, I prefer peace of mind over financial gains.

When I bought my car, I was forced to lease it due to tax reasons (otherwise it would have been ridiculously expensive and I'm not a guy who gifts the government tax money).

I paid as much as I could in advance to owe as little as possible. For 3 years, I absolutely F*cking hated paying the monthly payments and actually regretted not paying in cash (even though it would have meant losing a lot of money).

As for business - I myself would never buy a business if I couldn't afford it. I understand there might be a huge upside... but there might also be a huge downside and a lot of pain for many years.

 

[Guest-5ty5s4]

Whenever I hear a story of someone going completely broke and ending up in terrible financial situation (not merely not having anything but owing a lot of money), it was after taking on debt. That's why I'm very risk averse in this aspect.

That said, I don't want to reach the top of the world so I guess a potential billionaire is wired a different way.

Well, maybe you just want to reach financial freedom faster! Debt is a beast, and it has to be monitored and battled, but it can be done. It is done all the time by all sorts of people.

There's certainly good debt and bad debt.