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  • Rich Dad / Poor Dad - Saving vs. Spending

    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?



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  • #2
    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.
    Rob
    Green Image Lawn & Landscape

    \"If you don't feel the same way about Friday nights as you do Sunday nights, then you are not doing the right thing.\"

    Comment


    • #3
      Rob,

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

      What would be the plan?
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      • #4
        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.
        Rob
        Green Image Lawn & Landscape

        \"If you don't feel the same way about Friday nights as you do Sunday nights, then you are not doing the right thing.\"

        Comment


        • #5
          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?
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          • #6
            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.
            Rob
            Green Image Lawn & Landscape

            \"If you don't feel the same way about Friday nights as you do Sunday nights, then you are not doing the right thing.\"

            Comment


            • #7
              How did you find out about the seminar in the first place? Did you see it or did someone bring you along?
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              • #8
                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.
                Rob
                Green Image Lawn & Landscape

                \"If you don't feel the same way about Friday nights as you do Sunday nights, then you are not doing the right thing.\"

                Comment


                • #9
                  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.
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                  • #10
                    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.
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                    • #11
                      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] )... 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!!
                      www.FLIPITBIG.com
                      A friendly real estate investing community

                      Comment


                      • #12
                        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

                        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>
                        - Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
                        Download your Free trial of Gopher Lawn Care Software.

                        Comment


                        • #13
                          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&#33;&#33;

                          At this point I&#39;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&#33; 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 &#036;200 a month positive cash flow&#33; Then after about 10 years or so you have an &#036;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&#33; We plan to be the biggest and friendliest real estate community on the net&#33;&#33;&#33;&#33; Stop by and say hello and push your business&#33;&#33; Thanks Steve....
                          www.FLIPITBIG.com
                          A friendly real estate investing community

                          Comment


                          • #14
                            Quote[/b] ]I want to throw one more thing out there (if ya don&#39;t mind [B] )... those BS shows on tv.. the flip this/that/yourmomma&#39;s house shows.. it ain&#39;t that easy&#33; 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&#33;&#33;
                            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.
                            Rob
                            Green Image Lawn & Landscape

                            \"If you don't feel the same way about Friday nights as you do Sunday nights, then you are not doing the right thing.\"

                            Comment


                            • #15
                              Quote[/b] ]As I am going through this book. I don&#39;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 &#036;0 positive cash flow, I think it&#39;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&#39;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&#39;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.
                              Rob
                              Green Image Lawn & Landscape

                              \"If you don't feel the same way about Friday nights as you do Sunday nights, then you are not doing the right thing.\"

                              Comment

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