Rich Dad Poor Dad

[CafeMonkey]

You know, I agree that it's not step-by-step, and you don't get any "real estate" advice out of it, but it wasn't meant to be a real estate book... It is a book to help the "average joe" get into the millionaire mindset. And it does a good job of reaching that group.

The problem is that many people have taken it way too far. They say "Robert says buy real estate, so I'm gonna buy some real estate, dammit!" Take for example the guy in the above message:

2) Rehab: Get a shell house for 10-20k and add another 20k for repairs, house will appraise for 40-50k+. Cash out refinance and turn it into a cash flow deal similar to above. As a result you have practically no money in the deal anymore and a possibly an infinite ROI.

<sigh> This is just not any way to make money. First of all... GOOD LUCK getting a cash out refinance on INVESTMENT property in a $40k neighborhood. Seriously.

Next... $20k rehab on a $40k house is significant work. The kind of work that hides structural problems. That makes it easy to run into $40k worth of rehab. Yay.

Also, it seems like this letter might ba aimed at newbies. Newbies that probably don't have $20k for rehab, much less the know-how to get a contractor to do the work. Now, I love contractors, but managing a complete rehab from 4 hours away is not my idea of a good "breaking-in".

Where was I going with this? I don't even remember. I invest, and hanging out in an agent's forum hasn't given me much time to talk Real Estate.

Alex: If you want to get started in Investing, start with the Library. You should be able to get Bronchick's Flipping Properties, and Meyer's Buy it Fix it Sell it Profit. After you read a few good books, the only thing left is to go make a deal. Don't "get stuff ready" or "work yourself up to" it... Just go make some money!

[Jade456]

I read it, it was an interesting read. But he does mention things that give you residuals, like books! I agree with Matt though, that the biggest thing is that when most people get a raise, instead of investing that extra money, they just blow it to keep up with the jones. I was the same way when I was younger, but then realized I didn't want to live on SS when I'm older so I better make my own retirement fund. Thankfully, my younger brother listened to me. He just bought his first house and is already planning on buying another as a rental property.

I think the biggest problem is that most people want instant gratification. So if something isn't going to immediately make them a ton of money, they won't do it. IHMO

[The Broker]

I read somewhere he didn't even have a rich dad and poor dad, that its all made up to mix in with the idea of his books.

[CafeMonkey]

I read somewhere he didn't even have a rich dad and poor dad, that its all made up to mix in with the idea of his books.

I heard that too... But does that change the message any?

[The Broker]

Of course not, but Tom Vu had a good system too :P

[kensmith]

To most people if they actually used the general ideas of his books would be in a much better position in 5 years. First off he says not to do ANY investing until your finances are in order, including paying off credit cards and other bad debt. The books are perfect for getting a message out that americans need to spend less on junk and invest in our futures. All of the books are easy reading and have a point.

No where in the books does it say investing in RE is easy and most of the ideas can be put into place somewhere. Maybe not in your market, but somewhere it can be done. Nobody says you have to buy RE in the same neighborhood that you live. Many speak of absolutes that are only absolute today and in your market area.

My vote is that the books are good and I wish more people would at least take step one and start living w/i their means.

[Jade456]

I wish more people would at least take step one and start living w/i their means.

That would be nice, wouldn't it? Of course, the credit card companies wouldn't like it very much.

[ResaleBroker]

I didn't read the books.

Have you read any of the William Nickerson books?