I just finished watching the Rich Dad’s “On the Road” with Robert Kyoskai/Dolf deRoos.
They take a very boring and fairly witless couple and show them how to identify properties for investment.
Boy was I unimpressed. (and I am EASILY IMPRESSED). I don’t mind that the guy was all wrinkly (cuz I dress like slob). But he doesn’t even speak very well and he barely scratched the surface of real estate investing.
There has been so much hype about this guy. I think this DVD was a very bad example. I heard his books were good. Maybe he should have stopped there.
I’m more of a John T. Reed kind of guy.
I’e read at least 4 or 5 books by Robert Kiyosaki.
They tend to be general and not specific.
They seem to be mostly for motivation.
If his boods can cause someone to think differently, and make postivie changes, that’s good.
But that’s about as far as it will go.
‘Rich Dad, Poor Dad’ did hit on some disturbing key points about the American mentality and how people financially live. And I agree, that there is serious lack fo “financial education” in America. It’s up to us, to learn it on our own.
BTW, Rich Dad never existed and was a fictitious character.
I am an avid reader, and if you pick up one thing from a book that helps you, then it’s worth reading.
I have never read a Kiyosaki book, so I can’t comment. I might someday.
John Reed…I will rate him as high as I rate my ex when it comes to credibility…in other words, he rates a zero. He rates his competition, and he can’t possbly be objective.
I tried to get into Reed but I think he is way off on his No Money Down comments.
He claims most no-money down tactics are largely fraudulent or prey on the unaware home owner.
I have done many no money down transactions where the seller is completely aware of what they are doing.
They also realize thier low interest first or second mortgage is an attractive vehicle to sell a home in a slow market or possibly at a higer price than if financed through a conventional lender.
I do agree that not disclosing a seller second to a lender who would require it is fraud. That’s not a flaw in investing. It’s a flaw in the investor.
I think we have to find another word to replace ‘guru’ for these guys. I’m just not feeling the shock and awe from what they are peddling.
I own 2 Kiyosaki books and I find them to be motivational in nature. Motivation is not what I am looking for.
I have an old copy of the Reed book about buying properties at a 20% discount and I found it to be useful. The section on foreclosures contained some info which I did not know, and I have bought properties at the courthouse steps. There are detailed, factually presented descriptions of obscure ways to make money in real estate.
The problem (or strength) with Reed, depending upon how you look at it, is that he does not believe in the “get rich quick with no money or job so you can live in the house overlooking the ocean and fly around in your personal jet” real estate programs. Many people have the need to believe in the “get rich quick” gurus. I suppose there is nothing wrong with that, as long as you are not throwing away the rent money.
My theory is that the majority of critics of Reed have never owned one of his books. I have had books by Reed, LeGrand, Kiyosaki, Allen, Effros, Lowry and Cook, just off the top of my head. All of those books have at least some statements which I believe to be incorrect. Some suggest “techniques” which are fraudulent and/or unethical. IMO, the Reed book is the best of the group.
I personally dislike John Reed because he trashes his competition, and comes across as someone who wants to down his competition to make a sale. I’m sure his books might have a good thing or 2. And I’m sure some of his comments about certain “gurus” are legit. But he certainly can’t be biased enough to give an honest review…THAT is my problem with John Reed.
And that is what I am talking about. You dislike Reed personally but you have never read one of his books. I have formed opinions based upon the BOOKS of the various authors.
Steve, I understand your point. Maybe I wasn’t clear in my previous post. Even if I read his books and liked the material, I would still dislike how he rates his competition. He can’t possibly be unbiased. I compare it to asking pepsi to give an opinion of coke. If I read his material and liked it, I would compliment the material, but I would not change my views on him rating his competitors…simply because he can’t give an unbiased opinion. For that reason, I give his credibility a low mark.
I agree with Bobo. John T. Reed makes his money attacking the credibility and work of others. The man is on the Dark Side. He lives and thrives on negativity. He criticizes the methods, tactics and personal behavior of real estate gurus, and does not even invest in real estate himself.
Analogy: If I want to learn how to improve my golf game, I don’t go to some clown who has never played the game for advice, I go to a pro. Why would you seek someone’s advice who isn’t in the industry and has no experience in the industry, when you can get sage advice from those who have done or are doing it online and in this forum?
Kiyosaki is directional he is not how to. You shouldn’t follow his teaching exactly for 2 reasons, (1) he doesn’t give you enough information to do it successfully and (2) he is not totally right. He believes that a personal residence is a liability. It is not. He is right that you should look at your total life as “Me, Inc.” and evaluate your use of money as to net worth and earning potential, but taking his philosophy to the extreme, you would sell your kids into slavery and kill your parents for the life insurance. . dn
I think Robert provides some good general principles on how to think like a wealth builder, but he isn’t necessarily the best that’s out there in terms of exactly how to make money in real estate. He’s the reason I became an investor.
The principles he teaches, such as “doodads vs. income-producing assets” and having a “job versus business” can be found in many resources. The Millionaire Real Estate Investor and The Millionaire Maker have very similar teachings.
I say you should read as much as possible, but don’t take what these people say as gospel. You’ll start finding themes in each lesson, which are often good guidelines.
I personally like the Kiyosaki books but I wouldn’t consider them specific enough to help anyone here really. Ultimately they are the first books I’d recommend to someone with almost no financial sense. I’d then recommend them to more specific books. It’s akin to someone reading Biology before Gray’s Anatomy before Cardiovascular Theory. It’s a process, but it doesn’t take away the importance of any of the books.
To the person that said your house isn’t a Liability, in the strictest sense it’s an expense in lay terms is a liabilty. On a balance sheet it would appear as an asset, but GAAP and real life aren’t the same. Accumulated depreciation is an expense for GAAP but in reality it’s not an expense at all, accounting isn’t the best way to view your house. Your house is one of the biggest liabilities you’ll have in your lifetime. Your house i a liability whether you own it outright or whether have a note your paying on. A Rental house on the other hand is an asset. You are liable for keeping up the insurance, maintenance, utilities, etc. for your personal residence. It’s a necessary expense, but it’s an expense either way.
We can get insight and learn from John T. Reed, Kiyosaki, and many others in the field.
And apply the points that are relevant to each of us, as we choose.
It’s nice to have options.
I agree that we can gain insight and facts from many of the so-called gurus, whether or not we subscribe to their methods. Many including Kiyosaki have good information to offer and we are lucky to be able to choose from a diverse group.
John T. Reed, however, is so blatanly out to discredit others that you better limit what you take from him to his insights. His facts are often not facts at all. Reading Bill Gatten’s point by point rebuttal of Reed’s article (the link is a couple of posts above) is very revealing as to how far from the truth that Reed will stray in order to try to discredit someone. Reed literally knew virtually nothing about Gatten’s program and sometimes even admitted he didn’t understand it, yet he accused him of racketeering. Gatten’s rebuttal is embarrassing to Reed in the extreme.
If that exchange were to occur in court, with all the misstatements and admissions by Reed that he really didn’t understand the facts, do you think they would accept anything Reed said as truth? Maybe I’m being hard on him but I have trouble accepting the works of a man whose income is based on discrediting others, many of whom are sincerely trying to help people. After reading that article and response, how can I believe what Reed says about Kiyosaki or Robert Allen, or anybody else?
Here’s another example: Carleton Sheets. Here’s a remark from Reed:
"I am bemused to note that some spell checkers suggest replacing “Carleton” with “charlatan.” Is that a mechanical result of the similarity of the two words—or is a guy in the spellchecking company an unhappy customer?
“A couple of people have told me they made a lot of money in real estate because of Sheets. I don’t believe it. I have read a considerable portion of his material and have yet to find any ideas that would lead to anyone making money.”
Do you use lease options? Here’s what Reed says:
“Lease options are explicitly named in numerous laws and legal documents as triggering events. They trigger almost all mortgage due-on-sale clauses. They trigger reassessment for property-tax purposes in California, thereby wiping out the protection California homeowners normally get from Proposition 13. I cannot give you the whole picture here because I am in business to sell this information, not give it away. To get all the details on lease options, you should read my special report, which is only $29.95.” CASE CLOSED.
Read as much as possible. There are many sources of great information available. John T. Reed is NOT one of them.
I think the Rich Dad, Poor Dad book serves it’s purpose…that is, to get otherwise stubborn people who consider anything besides working for 40yrs too “risky” to think “outside the box” about how to obtain wealth in America.
If your not big on motivation, or into changing your thought process to become wealthy, and to think like wealthy people, then you won’t like this book either. But I think the book, “Secrets of a Millionaire Mind” is ESSENTIAL to your success. Just my 2cents! 8)
I find Rich Dad’s books to be boring and not specific enough. The only advice I’m taking is the “mind your own business” part. As far as becoming more financially independent I like “The Automatic Millionaire” by David Bach and Suze Orman gives good advice on her show.
It is my belief that most people miss what John T. Reed is all about.
He is a master at marketing, what happened is he took a reverse in normal positive marketing and went negative to drive people to his site and sucessfully so.
If he had a site that said all Guru’s are great and posted why, not many folks would go there, because everyone would say he is just promoting Guru’s.
Not John T., he realized the value of going in a negative role, because he knows that not many folks who enter the creative real estate industry make it. Why not have a site where when someone fails they can go and say “see this is why I did not make it, look what John T. had to say about so and so.”, which is I Do Not Recommend.
Now he has the possibility to sell his material to those that “possibly” did not make it or at least has a shot at anyone who enters his site. If you notice he also gets his fair share of plugs from posters in just about every discussion board.
He carved a real niche web site and I am sure does very well with it, so give the Devil due, his marketing strategy is superb.
John $Cash$ Locke
A momentous occasion – Cash and I agree on something. I don’t like the man or his methods, but therein lies genius.