I started reading the book because so many of you raved about it. I was just wondering besides your real estate do you have any other assets and if so what are they?
I’m also heavily invested in stocks and mutual funds
Outlook for US stock market is very good. Why? Because everybody is negative on it after getting their touches burned in 2000-2003.
I finally sold all stocks/funds by Oct 2000. Then I got back in August 2003. Been heavily invested ever since as I watch the cynics keep bashing the US stock market saying “it can’t possibly keep going higher.”
Oh yeah? Just watch…you ain’t seen nuttin yet! ;D
Rich Dad Poor Dad is focused on the mindset you need. It does not matter the investments, business, etc that you focus on, you have to have the same frame of mind.
Many people want to leave the Rat Race, so they open their own company. However, they don’t figure a way to hire people to work for them, they do all teh work themselves, and have essentially traded a 9-5 for a 8-8 or worse.
So, while I am sure many have other assets, such as myself, the key is to focus on your RE Investing and treat it as a business. Set up repeatable processes, outsource part of the work, etc.
Remember, isn’t the reason many of us got into investing was to have more free time to do what we want? While you still have to be connected and put in hours, make it so YOU CHOOSE the hours you work.
If you start acquiring more and more properties, you can think about creating a seperate property management business and hire professionals to run it (you would still own it). From there, you may think about doing hard money lending and open another business targeted for that industry. And so on. Create and control or buy and control. As 4R said, though, DO NOT create/buy and then try running it yourself. You will essentially be trading one 9-5 for another (or worse).
check out this company that practices the rich dad ways, the books are the basis of the theory, but these guys are the real deal http://www.tlcfl.com/realestate.asp
In my opinion, this whole idea that you can start a business and let someone else manage it is ridiculous. In the real world, the owner MUST manage his business or it will begin a descent toward failure. The best example of this is Robert Kyosaki himself. He says that being rich is having your passive income high enough to cover your expenses. Sounds great, but everytime I turn on the TV or hear about a new book, etc - guess who’s working? Robert Kyosaki!
I have absolutely no doubt that he’s rich and I really enjoyed his books. The point is that he’s still working and working hard. How long do you think his empire would last if he quit working? NOT LONG!
Donald Trump is also rich. How much does he work?
My point is that you don’t have to start a business and then hire out all the work. Dealing with employees can be a much bigger hassle than dealing with a drug dealing tenant. Believe me, I’ve done both.
I now have several dozen rentals and can easily manage them myself. I am chained to my business the first 4 days of each month (when I collect the rent). However, after that, I typically work 3 to 4 hours a day, mainly fixing up rentals that tenants have damaged. I am free to do what I like and frequently go on short vacations without any problem. I just got back a week ago from a 5 day skiing trip to Utah. During the time I was gone, I received two calls from tenants and they didn’t require any action before I got back.
As an alternative to doing things this way, I could hire a property management company and hire someone to do the maintenance. This would cost me about 15% of gross rents, WHICH WOULD BE A LARGE PART OF MY PROFIT. The good thing would be that I wouldn’t have to work that 3 or 4 hours each day. The bad thing is that I wouldn’t be able to afford to do anything with my free time - certainly not go skiing in Utah.
I’m not saying that there is anything wrong with hiring employees or contractors to do stuff. However, it is certainly not a panacea. My current goal is to have 100 rentals within the next two years and to manage and maintain them myself. I think I can do it and still have as much free time as I’d like.
Mike
“Dealing with employees can be a much bigger hassle than dealing with a drug dealing tenant.”
That’s basically what Thomas Lucier says. I’ve read his books and they are great. No nonsense KISS advice.
http://www.thomaslucier.com/thomaslucier.html
I got his books at Amazon for next to dirt.
Yeah i was thinking the same thing. Robert is always the one on t.v pushing his products.
In my opinion, this whole idea that you can start a business and let someone else manage it is ridiculous.
I disagree, but each of us have our own opinions as you said.
The point is that he’s still working and working hard.
So is Donald Trump, Oprah Winfrey, etc. I would like to be working this “hard”. 
I have a self-directed IRA and am running a real estate team. Gary Keller co-wrote the Millionaire Investor and Millionaire Agent. I’m following those paths, which teach us to use leverage.
Some employees can be a pain to some employers, but just like tenants who pay your mortgage, employees build your business. Not everyone is cut out to be a boss, but some of us love it. I plan on building several business ventures, all of which can send leads to my real estate agent team.