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Steve
02-18-2008, 04:11 PM
Gopher-preneur book of the month, Feb '08
Rich Dad Poor Dad
by Robert Kiyosaki

I am currently reading Rich Dad / Poor Dad. One of the things the author talks about in the book is that rich people buy assets while poor and middle class buy liabilities.

Why do you think that is the case? Is it just when you are poor or middle class, you just don't have enough to purchase real estate investment properties, so you figure you might as well just spend it on something fun, like a car, even if it is a liability?



See previous books of the month here. (http://www.gophergraphics.com/forum/cgi-bin/ikonboard.cgi?act=ST;f=1;t=792;r=1)

FourSeasons
02-18-2008, 04:43 PM
Quote[/b] ]Is it just when you are poor or middle class, you just don't have enough to purchase real estate investment properties, so you figure you might as well just spend it on something fun, like a car, even if it is a liability?

If you pay to go to one of their seminars or 3 day classes they will show you how to do it whether you are rich or not.
I've been to their sales presentation and its very powerful. It costs about $500 I think. There was people lined up to sign up. I wanted to but the timing isn't right for me now.

Anyways they seem to have a very good proven method that can work. They teach you how to do it through borrowing.

Steve
02-19-2008, 04:35 PM
Rob,

What would you like to do ideally with all of this?

What would be the plan?

FourSeasons
02-20-2008, 10:07 AM
I was real close to purchasing the 3-day class. But I decided to wait. They say if you wait then you will probably never do it and to take action now. But they kind of get you caught up in the moment.
I would like to do it but I have some things going on where I will have to wait until they clear before I start on something like this.

I havent read the whole book yet. I need to. I hate trying to read books though. I start to fall asleep every time I start to read a book.

Steve
02-20-2008, 12:30 PM
I can understand. It would be interesting to see what they have to say.

What do you think you were looking to get out of the conference? Did you want to learn how to get into real estate?

FourSeasons
02-20-2008, 12:55 PM
Quote[/b] ]What do you think you were looking to get out of the conference? Did you want to learn how to get into real estate?


I didnt even really know what it was about until I went.
Have you ever been up late watching TV and seen any of those real estate infomercials? Thats pretty much what it was like but about 3 times better.
Plus Robert Kyosaki is kind of a trusted and proven person in this area.

But I would definitaley be interested in using his methods to my benefit.

Steve
02-20-2008, 01:42 PM
How did you find out about the seminar in the first place? Did you see it or did someone bring you along?

FourSeasons
02-20-2008, 05:30 PM
My friend found out about it and asked me if I wanted to go.

But they are having another one here in Seattle and its probably the same one I went to.
They are advertising for it on photobucket, yahoo, and some other sites.
So if they are going to be in your area you probably see it somewhere advertised.

Steve
02-20-2008, 05:55 PM
I'd like to know from those who went to it, what they gained from it. What did they do with that information once they sat through the course.

Steve
02-20-2008, 07:21 PM
As I am going through this book. I don't think this is going to do anything for the average person who is living paycheck to paycheck.

If you are going to invest in real estate and have no money saved up and have $0 positive cash flow, I think it's a bad idea.

I am not even sure why people look to this. Even if you were able to get a loan for a piece of property with no money down, you would most likely still not make anything each month if you had a renter. With a single renter, it's not going to help you climb out of a financial hole. I think the best thing to do would be to start a small service business where you could provide the service in your area. I don't care if it was a dog walking service. Just something that allowed you to get a positive cash flow and then you would have to learn to curtail your spending. That is probably the hugest problem to overcome.

JaredfromIndiana
02-20-2008, 07:50 PM
I'll throw my two cents in here. Rich Dad Poor Dad was a great eye opener to me. It really taught me to look at money differently, also to see assets and liabilities for what they reallyl are. If something you own takes money out of your pockets it is a liability. We're talking cars, boats, primary residences, anything you make payments on. It took me a while to understand what he was saying there. How could my home be a liability? Isn't that the American Dream... to own a home?? He also says that things that put money in your pocket are assets, such as a CASH FLOWING rental property, a website, etc.

I also think that Kiyosaki's stuff is a great ENTRY to real estate investing, kind of like Ron Legrand. It opens your eyes and get's you fired up as ####, but then what?

As far as people living paycheck to paycheck trying to start in investing Steve... I say why not? Now, I'm not saying to quit your day job, but there are plenty of ways to invest without your own money being involved. With a decent credit score and good job you can get HML's or Hard Money Loans. The interest rates are high (up to 20% in some cases) but most HMLs will loan you what you need to buy a flip and the money to fix it up. I would advise that you really learn your market before you try something like this. I would also advise you read read and read some more to prepare yourself. Like the lawn care business, you wouldn't just jump in and buy all the expensive equipment if you didn't have a grasp on how a business works right? Same thing applies to real estate.

I want to throw one more thing out there (if ya don't mind [B] http://www.gophergraphics.com/forum/iB_html/non-cgi/emoticons/biggrin.gif )... those BS shows on tv.. the flip this/that/yourmomma's house shows.. it ain't that easy! Those shows are mostly glam and BS. I actually filmed two flips from last year to show people what really happens in flipping houses on a daily basis. What sucks is those two houses were the houses we have the most problems on... really got beat up. Anyway, those shows are entertainment, period. My two cents.. keep the change!! http://www.gophergraphics.com/forum/iB_html/non-cgi/emoticons/rock.gif

Steve
02-20-2008, 08:01 PM
Jared,

That is great insight.

What has been your reflection on buying and flipping a home versus buying and renting one out?

Which do you like better and what's your take on both of them.

Also, feel free to plug any of your products. That's what we are all
here for http://www.gophergraphics.com/forum/iB_html/non-cgi/emoticons/smile.gif

Here is another one of Jared's videos.

<object width="425" height="355"><param name="movie" value="http://www.youtube.com/v/-2wBuJEu3TI&rel=1"></param><param name="wmode" value="transparent"></param><embed src="http://www.youtube.com/v/-2wBuJEu3TI&rel=1" type="application/x-shockwave-flash" wmode="transparent" width="425" height="355"></embed></object>

JaredfromIndiana
02-20-2008, 08:48 PM
Steve...

I have never owned rentals. To be honest, when I do I will buy enough to justify hiring a property manager to take care of the rentals for me. My step dad owned apartment complexes and that is how I got my start. I have dealt with more than my share of angry tenants that throw crap on the wall!!

At this point I'll keep to flipping. I like the thrill of a big payday and the excitement of seeing something go to a huge pile of crap to a new beautiful home for somebody! There is a lot of money to be made with flipping if you know what your doing.

I hear the key to building wealth is to buy and hold. Think of it... you buy a house for very cheap, fix it up to rental standards, have somebody else pay the mortgage, and at the same time you make $200 a month positive cash flow! Then after about 10 years or so you have an $80,000 house completely paid off. Again, landlording comes with risks also, but once you figure it out it can be profitable and build long term wealth.

As far as products to plub. www.FLIPITBIG.com is the only product I want to push. We are a real estate community that is growing every day. Our goals are to help the new investor and keep the experienced investor sharp! We plan to be the biggest and friendliest real estate community on the net!!!! Stop by and say hello and push your business!! Thanks Steve....

FourSeasons
02-21-2008, 12:51 AM
Quote[/b] ]I want to throw one more thing out there (if ya don't mind [B] )... those BS shows on tv.. the flip this/that/yourmomma's house shows.. it ain't that easy! Those shows are mostly glam and BS. I actually filmed two flips from last year to show people what really happens in flipping houses on a daily basis. What sucks is those two houses were the houses we have the most problems on... really got beat up. Anyway, those shows are entertainment, period. My two cents.. keep the change!!

I did work for a guy flipping a house.
Man he seemed so stressed out. He was over budget and trying to cut corners and get free work out of me. I was hoping to be able to work with him some more in the beginning. But by the time I finished the job I didnt want to hear from him again. Him being all stressed out was stressing me out. I hated it.

FourSeasons
02-21-2008, 01:04 AM
Quote[/b] ]As I am going through this book. I don't think this is going to do anything for the average person who is living paycheck to paycheck.

If you are going to invest in real estate and have no money saved up and have $0 positive cash flow, I think it's a bad idea.

I am not even sure why people look to this. Even if you were able to get a loan for a piece of property with no money down, you would most likely still not make anything each month if you had a renter. With a single renter, it's not going to help you climb out of a financial hole. I think the best thing to do would be to start a small service business where you could provide the service in your area. I don't care if it was a dog walking service. Just something that allowed you to get a positive cash flow and then you would have to learn to curtail your spending. That is probably the hugest problem to overcome.


Steve- I think the idea is to get you money to work for you not work so much for your money. Would that be a lot of peoples goal. Its one of mine.

Alot of people today are in BAD debt. There can be good debt. I think the first and most important step would be to get out of debt. Listen to Dave Ramsey. Have you listened to just a little of his show. If people can just have some self discipline and buckle down for a few years to get out of debt you will open up so much money.

A&amp;Llandscape
02-24-2008, 09:45 PM
Detroit is having a seminar for free by him does it help or is it just to get you to sign up for the class i am thinking about going but i want to see if it is worth it?

FourSeasons
02-24-2008, 10:58 PM
They give you just enough to want some more.

They present the possibilties and its up to you to Take Action.

Looking Good Lawn service
02-24-2008, 11:39 PM
the Rich dad poor dad series is an inspirational series, done to promote education reform as well as give you the ability to know what you are aiming for. having read rich dad poor dad several times, it begins to take on a whole new meaning with what you rediscover, take notes from it. I usually can read the book within two days. I do recommend reading the following books in his series, cashflow quadrant and guide to investing. They provide alot of good advise and general mindset to get you to where you need to start and that is to get educated and learn first. These books and others like it motivated me to go back to school to get another bachelors in Business admin and management and get my MBA, I will be done with both in 2 years. Also, I am re-structuring my landscaping company aswell. Motivation and open willingness to learn and never stop learning is one of the key points. Good Luck

Steve
02-25-2008, 01:10 PM
Well it seems that if there is one thing we all can use more of is motivation. I don't think you can ever get enough of that.

I have never been to the seminars. I thought the book was ok. After reading it, I would say I actually prefer reading more business biographies to see how people actually did things. The Rich Dad Poor Dad book was filled with a lot of generalities.

It's my view that you aren't going to read that book and go out tomorrow and do something different with your life.

For me, when I read the story on Nike and how Phil Knight started Nike by first selling sneakers out of the back of his trunk at track meets, then it made my eyes widen! It made me think, you can actually start a business like that! WOW!

That book meant more to me than Robert Kiyosaki telling me to buy assets and not liabilities. But ultimately, I guess both books have their place and I am better for reading both of them.

mschlotter
09-12-2011, 05:04 PM
Nothing like bringing a old thread back- That is a great book! I read it when I was 13.

mark123
09-12-2011, 06:34 PM
It's a good story and has a few points but it's fiction. The book, along with its sequels, is a marketing plan to sell his board game called "Cashflow".

The one book I have in front of me called "Rich Dad's Guide to Investing" states on the copyright page "Although based on a true story, certain events in the book have been fictionalized for educational content and impact."

The truth of the matter is that rich people do what rich people do and if poor people would do what rich people do they'd be rich, too. A better book would be "The Millionaire Next Door" or "The Richest Man in Babylon".

Steve
09-15-2011, 10:08 AM
A better book would be "The Millionaire Next Door" or "The Richest Man in Babylon".
What did you like more about them?

mark123
09-15-2011, 06:07 PM
What did you like more about them?

Real world research and applicable advice. "The Richest Man in Babylon" is $3.99 for the kindle edition. I really can't think of a reason to not download a copy.

Steve
09-16-2011, 11:24 AM
For those who haven't read it yet, do any parts of that book stand out as far as advice you could share with us?