Robert Kiyosaki's Rich Dad/ Poor Dad

[Chas863]

Originally Posted by HB2HSV

The real question is how do you proof you use the cash-out refinance for another investment property when you get audited?

Remember, in IRS's eyes, you are guilty until proven innocence. It is upto you to proof you did everything properly by the law.

In one of my link, it talks about this. The best way is to keep investment property income/expenses in a separate account and not to co-mingle with the personal account. This way you can clearly show where the money comes in and where do they go.

So if you're betting you will not get audited by the IRS then you can do whatever you want.

Very simple. As I stated in my post, you put money into that account and you take money out of that account. You don't use your business account to write a check for $20,000 for a vacation.

So, if you want to take a vacation that costs $20k, you first pull the money out of that business account and put it into your personal account. Then you take the vacation. You are simply spending the rental income that the account produced. THEN, you borrow money to do the remodeling and put it into the business account. After that, you spend the money that you borrowed for the remodeling.

At least, that's how I would do it. There's no law that says you can't take money out of your business account and use if for personal expenses. After all, that's what the business is for isn't it? I mean, if you can't take money from your business to use for your personal living expenses, then why have a business in the first place?

[oregon911]

I read that book and hated the guy's writing style. It takes him FOREVER to get to the point. He keeps repeating the same thing over and over and 2/3 of the book is just empty clichés and fluff even though it's a pretty short book.

[2011KTM530]

I’m just a little man that comes from a poor family and will not inherit anything. The only way I’ve made my money is to save, work for the government and be debt free. I’m now retired at 59, debt free, own an income producing farm with no mortgage. Have a six figure CD in a good bank making 3% annually. I live off of rent, interest and a government pension with lifetime medical paid. I lived well within my means all my working life and avoided drama as much as humanly possible. Even though I went through a divorce after a 30 year marriage. Getting married was the biggest financial mistake of my life. Let that sink in you single guys.

[Liledgy]

Originally Posted by oregon911

I read that book and hated the guy's writing style. It takes him FOREVER to get to the point. He keeps repeating the same thing over and over and 2/3 of the book is just empty clichés and fluff even though it's a pretty short book.

This and more. I read his book probably 17-18 years ago. As a landlord I never would’ve took his advice about buying a property 750 miles away as a rental. I believe he claimed to have one in Portland. Must of his stories are lies or half truths. I don’t think he ever had a “rich dad” as he portrayed in his book. Not only that but it was hard to believe the story that his friends dad (rich dad) had a construction company, but also happened to run a small convienance store. OPM, other people’s money. You can get in a whole lot of trouble if you leverage to much.
He makes his money buy selling books, games, public speaking (Tony Robbins).

[HB2HSV]

Originally Posted by Chas863

you borrow money to do the remodeling and put it into the business account. After that, you spend the money that you borrowed for the remodeling.

Looks like you're doing it according to the IRS rules.