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Tanner Chidester

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Ok so i've been listening to a lot of audio books by robert kiyosaki.

I'm not sure I understand how he is acquiring his wealth. I get it's real estate but is he simply borrowing other peoples money and using it to make a profit?

It seems like he's doing the right things but I'm not clear. If someone could explain to me how he is prescribing to invest and if it's a good method.

My dad starts to get heated soon as I bring it up but he isn't an entrepreneur so I take everything with a grain of a salt. Any advice on this would be welcomed. I'm looking to go back and read the books in more depth and get off audio.
 
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Suggest an intro thread (if not already posted somewhere)....

Once that is out of the way ....... Then go back and review your question and rephrase / rewrite it. What specifically are you looking to get from your OP? Show what you have done / researched already. And ask specifically for what you need and have not been able to find yourself.
 

lewj24

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You need to read MJ's books. Kiyosaki is conning you. He didn't get rich selling real estate. He got rich selling the very books you are listening to! Oh the irony.

He has 26 books and has sold over 27 million copies. That's how he got rich.
 

The EL Maven

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Here's his method, step by step:
1. Work for a guru and learn the ropes
2. Invent a fictitious story to teach wealth platitudes to the multitude
3. Publish a book
4. Get on Oprah to sell said book
5. Promote MLM in said book and get MLM's to buy it en masse
6. Go around the country offering seminars, since now you're the guru

That's it. That's all there is to it!

And just so we're clear, this is in jest.
 

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Any advice on this would be welcomed.

Hi Tanner, welcome to the forum. I suggest you don't waste any more time on Kiyosaki, and instead focus on MJ's advice and other great resources you can learn about from the forum.

Robert's a hell of a great storyteller, brilliant with emotional hooks. He shakes up people's preconceptions. His quadrant of business types is a nice way to organize some thoughts about business.

Also, from people who've investigated the thin evidence of what he reports about his early life... he's almost certainly a big-time liar and scammer, who did NOT have many of the personal experiences he claims, and who did NOT get rich from practicing what he preaches. His storyline is in large part a fable. There probably was no Rich Dad. It's a fable that he is falsely passing off as a totally true story, when it isn't.

It would have been ethical to have marketed it as "a business novel" rather than a true story. For example, Eli Goldratt did that with "The Goal." The struggling business manager, Alex, was a composite of all the struggles Goldratt had seen in multiple clients. And what a coincidence, the wise advisor who solved all of Alex's problems, was a guru just like Goldratt and with the very same advice! It was sold as both "business" and "fiction" and nobody ever claimed to be the real Alex of the book.
 
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Kak

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Nothing groundbreaking has ever come out of someone following a step-by-step course or guide.

Kiyosaki made some money in real estate and then he decided it was more powerful to be a guru.
 
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Tanner Chidester

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Nothing groundbreaking has ever come out of someone following a step-by-step course or guide.

Kiyosaki made some money in real estate and then he decided it was more powerful to be a guru.
ok is there any truth to investing the way he prescribes in real estate? I think MJ mentions investing at the very end of unscripted but i'd have to go back.
 

Tanner Chidester

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Hi Tanner, welcome to the forum. I suggest you don't waste any more time on Kiyosaki, and instead focus on MJ's advice and other great resources you can learn about from the forum.

Robert's a hell of a great storyteller, brilliant with emotional hooks. He shakes up people's preconceptions. His quadrant of business types is a nice way to organize some thoughts about business.

Also, from people who've investigated the thin evidence of what he reports about his early life... he's almost certainly a big-time liar and scammer, who did NOT have many of the personal experiences he claims, and who did NOT get rich from practicing what he preaches. His storyline is in large part a fable. There probably was no Rich Dad. It's a fable that he is falsely passing off as a totally true story, when it isn't.

It would have been ethical to have marketed it as "a business novel" rather than a true story. For example, Eli Goldratt did that with "The Goal." The struggling business manager, Alex, was a composite of all the struggles Goldratt had seen in multiple clients. And what a coincidence, the wise advisor who solved all of Alex's problems, was a guru just like Goldratt and with the very same advice! It was sold as both "business" and "fiction" and nobody ever claimed to be the real Alex of the book.
Ok appreciate it. I had no clue. I thought everyone here would love him haha. As far as investing goes do you have any recommendations on where i could learn to try to have my money work for me as much as possible? Just trying to avoid learning through experience ha.
 

Late Bloomer

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Ok appreciate it. I had no clue. I thought everyone here would love him haha. As far as investing goes do you have any recommendations on where i could learn to try to have my money work for me as much as possible? Just trying to avoid learning through experience ha.

There's a real estate section on the forum here. If there's a particular technique that you're curious about, do a quick search to see if someone's already talking about it. If not, make a new post in the real estate section, eg "Flipping second mortgages Robert Kiyosaki style, is this a valid thing?" or whatever you have in mind.

Also... Either I'm way overdressed for the forum, or "business casual, come as you are" got a lot more informal since my last job :rofl:
 
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Tanner Chidester

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There's a real estate section on the forum here. If there's a particular technique that you're curious about, do a quick search to see if someone's already talking about it. If not, make a new post in the real estate section, eg "Flipping second mortgages Robert Kiyosaki style, is this a valid thing?" or whatever you have in mind.

Also... Either I'm way overdressed for the forum, or "business casual, come as you are" got a lot more informal since my last job :rofl:
haha lmao gotta keep people on their toes bro haha. ok thanks i appreciate it.
 

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ok is there any truth to investing the way he prescribes in real estate? I think MJ mentions investing at the very end of unscripted but i'd have to go back.

It’s been a while since I’ve read his books. What is the way he prescribes to invest in real estate? I don’t quite remember his methodology can you explain it here?
 

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ok is there any truth to investing the way he prescribes in real estate? I think MJ mentions investing at the very end of unscripted but i'd have to go back.

What are you referring to specifically?

Off the cuff... My answer will probably be yes, it's truthful.
 
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Tanner Chidester

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It’s been a while since I’ve read his books. What is the way he prescribes to invest in real estate? I don’t quite remember his methodology can you explain it here?
I believe he always uses the term "leveraging someone elses money." I don't know if I understood it correctly but sounded like he used other peoples money to invest in real estate and grow his wealth. I was only listening to it on audible and didn't understand it fully so i was hoping someone here might know what he was referring to and explain it better.
 

Tanner Chidester

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What are you referring to specifically?

Off the cuff... My answer will probably be yes, it's truthful.
I believe he always uses the term "leveraging someone elses money." I don't know if I understood it correctly but sounded like he used other peoples money to invest in real estate and grow his wealth. I was only listening to it on audible and didn't understand it fully so i was hoping someone here might know what he was referring to and explain it better.
 
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Late Bloomer

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"leveraging someone elses money." I don't know if I understood it correctly but sounded like he used other peoples money to invest in real estate

Yeah, that's just a catchy way to point out that the money for an investment might come from someone other than the person who put the deal together. If you find a deal, and you also find investors or maybe a bank who will loan with the property as collateral, you're using someone else's money.
 

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I believe he always uses the term "leveraging someone elses money." I don't know if I understood it correctly but sounded like he used other peoples money to invest in real estate and grow his wealth. I was only listening to it on audible and didn't understand it fully so i was hoping someone here might know what he was referring to and explain it better.

Yes... The word leverage in business/real estate usually means that the investor got a loan and was able to control a property worth much more than their "investment" (down payment).

Yes very common.

Other peoples money. Like investors?! Yes also very common.
 

biophase

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I believe he always uses the term "leveraging someone elses money." I don't know if I understood it correctly but sounded like he used other peoples money to invest in real estate and grow his wealth. I was only listening to it on audible and didn't understand it fully so i was hoping someone here might know what he was referring to and explain it better.

Well most people use other people's money, meaning that they get loans from banks. Few rarely pay cash. However to take that a step further, you can use other people's money for your downpayment by getting investors, hard money, family members, or try to put 0% down.
 
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jlwilliams

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No question, buying property with borrowed money then selling or renting the property can make huge money. Many wealthy people got rich doing it. But.... there have also been a great many who went bankrupt doing it.
I lost a bunch of money in real estate in the '09 poop storm. That jaded my perspective in a way that (in retrospect) let me foolishly pass by great opportunities. I didn't go bankrupt, but the suck was harsh.
My advice is to take the enthusiasm that Kiyosaki sparked in you and let that build by digging deeper. Learn more, but don't get stuck on learn mode. Act. Build up a war chest of money doing whatever you can do, then put together a deal. Buy then rent out or sell, rinse and repeat.
 

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I believe he always uses the term "leveraging someone elses money." I don't know if I understood it correctly but sounded like he used other peoples money to invest in real estate and grow his wealth. I was only listening to it on audible and didn't understand it fully so i was hoping someone here might know what he was referring to and explain it better.
I have been in the RE business for 42 years.

He's talking about leverage -- that's taking OPM (other people money) along with your down payment to make your profits on the market value and/or income stream for the whole property -- not just the $ you put down. Yes, it can work and work well in an up market. Yes, you can pay your expenses and your mortgage payment out of your rental income stream -- if you buy right, plan it, manage the property well, and have enough equity to keep your mortgage payments down. (It's called house hacking.) Some good luck along the way helps too. If you know what you're doing, you make some awesome returns.

I rehab, manage and rent low-to-moderate-income mobile homes... and my annual returns on my rehab dollars are ranging from 30% to 100%. I can't do that anywhere else that I know of... The day to day property management demands can be brutal. It's a hands-on business. Sometimes I bellyache about it.

MJ asked me when I introduced myself to this forum -- why I don't sell out. The problem is that I have built a white elephant with pink toe nails. I have exceeded the investor market in my area. I came from a much larger RE market, not realizing how shallow it is here locally. It's not a bad life -- just not what I planned for my retirement years. Even an old-timer like me makes mistakes. So, I might as well get comfortable for ride!
www.wjkbusinessbuzz.com
 
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loop101

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Real Estate can work if you work it, but so can everything else. That's very different than being "Fastlane". Fastlane is about impacting massive numbers of people. John Sonmez did well by buying one house a year for 15 years, but not as well as MJ did in 10 years. Consider why.
 
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WJK

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Real Estate can work if you work it, but so can everything else. That's very different than being "Fastlane". Fastlane is about impacting massive numbers of people. John Sonmez did well by buying one house a year for 15 years, but not as well as MJ did in 10 years. Consider why.
It's oranges and apples -- Businesses create cash flow... which is used to buy assets... which create long-term wealth. McDonald's is in the real estate business -- buying and selling major commercial corner parcels. That's where their real corporate value is found. They sell hamburgers to support their real estate business. You're conflating two different business models.
www.wjkbusinessbuzz.com
 

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Kiyosaki is like this:

You know the old saying "give a man a fish and he eats for a day, teach a man to fish and he eats for a lifetime?" That's Kiyosaki. He is teaching people to fish and charging for it. Meh. He's ok.

Well there is a third part... Teach a man to SELL fish and he eats steak.

I add a fourth. Lead others to fish and sell fish for you and you get to eat whatever you want, on your own jet.
 
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loop101

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It's oranges and apples -- Businesses create cash flow... which is used to buy assets... which create long-term wealth. McDonald's is in the real estate business -- buying and selling major commercial corner parcels. That's where their real corporate value is found. They sell hamburgers to support their real estate business. You're conflating two different business models.
www.wjkbusinessbuzz.com

There is no cashflow to buy assets, if the business is not profitable. You are putting the cart before the horse.
 
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biophase

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Kiyosaki made some money in real estate and then he decided it was more powerful to be a guru.

He actually does say in one of his books, that under his name says Best Selling Author, not Best Selling Real Estate Investor. I don't think he ever tried to hide that part.
 

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