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I haven't followed the guy in several years, but I do credit rich dad poor dad book as one of the books that changed my mindset on personal finance and investing. The other was your money or your life. After reading RDPD I went down a rabbit hole of other RE books and bought an investment property in 2009. that was a great cash flowing rental for 10 years and I'm not living in it with a super low mortgage.
I have no idea what he's evolved into these days.
On the other hand Your Money of Your Life is my all time favorite personal finance book. Happy to learn Vicki Robin lives on an island in my area. Less than two hour drive. I know the village too... I could afford a home there and be her neighbor!
... We're going to be joining syndications and I need to have a least a passing understanding of the deals.
I too am eager to join the syndicate. As Milo Minderbinder explains, what's good for the syndicate, is good for the country; and everyone gets a share.
I too am eager to join the syndicate. As Milo Minderbinder explains, what's good for the syndicate, is good for the country; and everyone gets a share.
Great connection. Our "mentors" do seem like profiteers waiting to pounce at the next trauma hitting the country. Do I really want to join them? Well, I kinda do want my "share".
Like many, I found Robert Kiyosaki's book "Rich Dad Poor Dad" very helpful in changing my thinking from as an employee to an investor. But that's where it ends. Since then, I followed his books and YouTube channels but find he's basically repeating the same thing. He's high on concept but short on the "how-to", maybe he's trying to selling seminars on the how-to's, but so far I've found his theory highly questionable.
Recently he's all but lost credibility with me when he predicted the biggest stock market crash in October. Well, this is November and we have not seen the crash yet.
Strictly speaking, even his claim on buying his very first Condo with "no-money down" is incorrect. He paid the 10% down payment using his credit cards, so he claimed it's zero down payment therefore achieved an "infinite return" on investment. Well, that's just moving a pot of money from one account to another. He stilled need to pay back the credit card EVERY MONTH. If I recalled, this was in the late 70's where credit card interest rate was as high as 30%! So it maybe in fact he was losing money on this investment.
The reason "Rich Dad, Poor Dad" echoes with me because it reminded me of childhood experience in real estate. I grew up in the 70's, the decade of high inflation, but because Mom bought a house for us to live in and later bought a rental, we were able to build wealth. So I've seen it in my own eyes how real estate can build wealth and the book just reminded me of that. It was not because of the book has some persuasive power.
Like many, I found Robert Kiyosaki's book "Rich Dad Poor Dad" very helpful in changing my thinking from as an employee to an investor.
I see no tension between the two. Well-compensated employees save most of their income and invest it. As the returns on their portfolio come to overtake their earned-income, they naturally segue from employee to investor. Meanwhile, one gets a well-compensated job via good studying, formal education and pedigree of degrees from "the right" schools... precisely the sort of practice that Kiyosaki decried as the stuff of banal suckers headed for poverty.
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Originally Posted by HB2HSV
I grew up in the 70's, the decade of high inflation, but because Mom bought a house for us to live in and later bought a rental, we were able to build wealth. So I've seen it in my own eyes how real estate can build wealth and the book just reminded me of that.
We're all the products of our childhood/teenage/youth influences. Mine were Louis Rukeyser and his "Wall Street Week" show. The 1980s were a volatile time, but also one of substantial growth in the stock market, a taming of inflation, and towards decade's end a slowing of the real estate market.
Your story of your mother's real-estate reminds me of the mother-character in Tom Wolfe's "Look Homeward, Angel". She cornered the market in "Altamont", one modest hamlet at a time, her fortunes rising as the town's fortunes rose. But were she to have been just as successful, were the town to have been some less favored burg, but rather, a hapless victim of the de-industrialization and hollowing-out of the Heartland? Stocks are accessible alike, to dandies in uptown Manhattan, or goatherds in Ethiopia. But a boarding-house in Altamont would do much better, than one surrounded by abandoned coalmines.
I see no tension between the two. Well-compensated employees save most of their income and invest it. As the returns on their portfolio come to overtake their earned-income, they naturally segue from employee to investor. Meanwhile, one gets a well-compensated job via good studying, formal education and pedigree of degrees from "the right" schools... precisely the sort of practice that Kiyosaki decried as the stuff of banal suckers headed for poverty.
I've come to the same conclusion as well. Despite what Kiyosaki had called for quitting your job, I do see investing in residential real estate is a complement to a full time employment and not a in lieu of. First, you'll need your primary income to qualify for the loan in financing the rental properties. Second, you'll need to continue to save as the source for new down payments for expanding your acquisition.
Quote:
We're all the products of our childhood/teenage/youth influences. Mine were Louis Rukeyser and his "Wall Street Week" show. The 1980s were a volatile time, but also one of substantial growth in the stock market, a taming of inflation, and towards decade's end a slowing of the real estate market.
I remember Louis Rukeyser as well but I was not into the stock market at the time. After getting the first professional job in mid-80's, I became obsessed in wanting to buy my first house. Finally I was able to acquire my very first fixer upper in '87 then spending the next 6 months fixing the place up. I had a roommate and rented out half of garage space to a friend for storing his car, so I wasn't doing too terribly financially. 9 months later, I sold it for a 70% gain from my purchase price.
Location: Was Midvalley Oregon; Now Eastside Seattle area
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I liked the cash-flow quadrant illustration.
I enjoyed his board game.
There are worse self-help books.
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