Rich Dad Live! You won't believe this . . . - Posted by Steve-WA

Posted by js-Indianapolis on September 29, 2003 at 16:38:31:

He had that nervous laugh after everything he said, too. Almost as annoying hearing that, as seeing him make the interviewer in his infomercial run on an imaginary treadmill. Just what I want; financial advice from two dorks operating an imaginary financial treadmill.

Rich Dad Live! You won’t believe this . . . - Posted by Steve-WA

Posted by Steve-WA on September 29, 2003 at 14:02:38:

Went to see Robert Kiyosaki in Seattle yesterday.

At the very beginning, I saw an endorsement for CREOnline on the program, and the CEO of Rich Dad Seminars (PJ), who gave the 2 minute introduction, also endorsed CREOnline.

RK gave most of the 3 1/2 hour presentation himself - good stuff, but I was very surprised that much of his flavor promoted a big-time investor mentality. Well, duh - he is one.

But he would scrunch his face, and trash-talk “flippers and wrappers” - “That’s being a dealer, that’s not investing”.

He walked all over negotiating: “Why lowball somebody? Any moron can lowball a seller.” (makes thumb-and-forefinger ‘L’ on forehead)

Moron. Loser. His words exactly.

“When you can take their 10 acres of farmland and turn it into a high rise condo, or a shopping mall, then give the seller their asking! Write them a check!”

Trash talked foreclosures, flipping, lease options, etc.

Don’t get me wrong, he puts on a good program, and MAN was there a lot of purple books on those tables! but I saw no respect for the average RE folks, like us, trying to start somewhere and progress to bigger and better things.

He mentioned at one point that when he bought one real estate course, that was enough for him to get going. I wanted to shout out (and I could have - I was in the second row - spitting distance) “What was your first deal?” I’m betting he negotiated price, and probably flipped it, or wholesaled it, or rehabbed it, or . . .

He brought his wife, Kim, on stage, and one of the things of which she spoke was her first deal, at his encouragement, of a $30K SFH that cashflowed $25 monthly. Think she negotiated? I do.

Seven and a half on a scale of ten - but shame on you RK for aligning with CREOnline, and then disrespecting those core principles followed by its members.

Re: Rich Dad Live! You won’t believe this . . . - Posted by eric-fl

Posted by eric-fl on September 29, 2003 at 23:03:22:

None of this is that surprising. There was a thread on here, about a year ago, about an article on RK’s real history, published in money magazine. Basically, he tried & failed several times (like most successful businesspeople), did ok on velcro wallets for a little while (merchandising them), and then got into publishing after that went south.

RK, like many gurus, happened to strike a chord with his book “Rich Dad, Poor Dad”. I believe, when the dust settles, that Rich Dad’s (‘Rich Dad’ is a fictitional allegory by the way, by Kiyosaki’s own tacit admission) greatest contribution will be, that it underscored the importance of cash flow to the average Joe. Taken at a more metaphysical level, it taught people to consider the income stream aspects of an investment, vs. merely the capital gain implications.

That, plus the book, is probably all that 98% of people are ever going to need to know about RK. But, like many gurus, his publisher understandably wants another best-seller, and offered him a ton of money to do it. What follows, is a string of mediocre sequels. RK isn’t unique in this category. A cursory survey of my bookshelves shows many others who’ve crossed the path of continuing to rehash their original work:

Robert Allen (Nothing Down)
Steven Covey (Seven Habits)
Jay Conrad Levinson) (Guerrilla Marketing)
David Allen (Getting things done)
Stanley/Danko (Millionaire Next Door)
Harvey Mackay (Swim with the Sharks)
Peter Lynch (One up on Wall Street)
Michael Gerber (E-myth)

… and so on. While I would not hesitate to recommend all of the above as excellent, I would hesitate to recommend their follow-on books, all of which I found to be wanting in comparison with their predecessors. Though to be fair, I don’t think any of them subsequently called their readers Morons & Losers.

Honestly, I don’t care what RK calls me, or thinks of me, as long as he’s got something new to teach me. But I think that, he hasn’t had anything new to say for a long time now. Don’t take my word for it; read the reviews of the subsequent “Rich Dad” series of books on Amazon, which are not even written by him. Not exactly flattering.

Understand, RK is just trying to make a point. And his central point is that, it’s better to be an investor, with other people doing the work for you, than to be self-employed, working for yourself. I agree with this, but I think it is disingenuous at best, and arrogant at worst, to presume that anyone who cannot make the leap is a loser, or to act as if there is not a logical path of progression in order to get to that point.

thanks Kristine-CA; edit - Posted by Steve-WA

Posted by Steve-WA on September 29, 2003 at 16:45:38:

core tactics rather than core principles.

Re: Rich Dad Live! You won’t believe this . . . - Posted by John V, FL

Posted by John V, FL on September 29, 2003 at 16:23:58:

I think Robert K subscribes to the principle of making your money work for you rather than you work for your money. Passive tax sheltered versus active flipping and constant taxes. It is true only as your net worth gets to a certain point. If you take your net worth outside of your residence times 10% and you can pay your living expenses and some luxuries on that 10% income you are already there.

Re: Rich Dad Live! You won’t believe this . . . - Posted by Marcos

Posted by Marcos on September 29, 2003 at 15:21:06:

I found his interview right here on Creonline Radio to be incredibly arrogant. Whatever, still enjoyed his books.


Re: Rich Dad Live! You won’t believe this . . . - Posted by Kristine-CA

Posted by Kristine-CA on September 29, 2003 at 15:09:49:

Steve: Thanks for sharing your experience with RK. You know, I’m a flipper and I have to stay that, in some ways, I agree with RK. I’m making some money and learning lots of things, but it is much like having a job in many ways. I haven’t created any passive income (if there really is such a thing–metaphysically speaking), I have to keep the marketing going to keep the deals coming. I have a business to run. I don’t have investments–I keep selling them to pay the rent. So that is like being a dealer.

Wraps and l/os and subject-2s warrant some criticism now and then. There is such heavy selling of these techniques to get into real estate without any money or credit. And it creates a pool of inexperienced people trying to pull off deals, often with properties with little or no equity. How would you feel about the guy with no credit or cash but with a copy of Get the Deed on his shelf taking over your mortgage.?

Also, I don’t think that wraps and flips and l/os are “core principals” of members of CREOnline or anyone else. They are just techniques, stepping stones for building wealth. Core principals are a little more idiosyncratic. :slight_smile:

Sincerely, Kristine

Re: Rich Dad Live! You won’t believe this . . . - Posted by kris (wi)

Posted by kris (wi) on September 29, 2003 at 14:28:39:

Doesn’t he go into detail about a flip he did in one of his books?

Robert Kiyosaki has his angle … - Posted by Robert Campbell

Posted by Robert Campbell on September 30, 2003 at 19:49:04:

Hi Eric,

From your post it’s easy to see that you’ve got a brain, and a good one.

You and I both know that RK has his own “angle” on real estate investing. This makes him controversial at times (“your home is not an investment”) and he ruffles feathers.

Right or wrong - and who knows for sure, right? – from a business standpoint this makes RK a very effective (maybe even brilliant) marketeer.

You may be more familiar with everything RK is doing and saying than I. I’ve read RDPD and The Cashflow Quadrant. It’s very good material. And even if it is all made up, the principles RK preaches - at least the ones I know of - will indeed steer a person toward a more financially secure life.

Best wishes and I look forward to reading more of your lucent posts.

Robert Campbell

Good point. - NTXT - Posted by Brent_IL

Posted by Brent_IL on September 30, 2003 at 15:54:08: