Getting Started in Real Estate Investing (Great Interview with Robert Kiyosaki )
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Getting Started in Real Estate Investing (Great Interview with Robert Kiyosaki )

And do you think you have
a million dollar idea, but you don’t know how to
turn it into a million dollar payday. How do you become an
entrepreneur in this country? Well, our next guests have
joined forces to tell you just how to do that, it’s
their brand new book– you’ve got to go buy this–
it’s called More Important Than Money– An Entrepreneur’s Team. Go buy it right now on Amazon. Welcome to Robert Kiyosaki, you
know the great Robert Kiyosaki, Tom Wheelwright, Garrett Sutton,
Darren Weeks, and Ken McElroy. This is a powerhouse. I don’t know that we’ve
ever had this much brain power in one room and I’m not
including myself by the way. Good to see all of
you guys this morning. Robert, I want to
start with you, of course, the
author of Rich Dad, Poor Dad, the famous
book, the book that changed I think
so many American lives. If they haven’t read
it 20 years ago, you can still buy it
today, go out and read it. When you’re putting together
a team of entrepreneurs, when you’re thinking about
starting your own business, what do you look for
in a team of experts to surround yourself with? Well, number one
obviously is integrity, people actually do what they do,
they practice what they preach. But, like, you were talking
about President Trump, you know, he has a team
of advisors and all the entrepreneurs out
there, it is more important that money is your
team of advisers because nobody is
that smart, but you have a smart team you have
better chance of success. And so these are
all your advisers? Yeah and they’re
all entrepreneurs. I mean, they all have
their own businesses, so I’m very fortunate. And Tom Wheelwright,
one of the smartest tax minds in this country, you’ve
been a guest here on Fox and Friends before, author
of the book Tax-Free Wealth, teaches Americans
how to take advantage of this tax code, which is
written for entrepreneurs in this country. Most people– most Americans
cry about the– what seven pages of the tax code– Right. –where we send money
to the government. The rest of the tax
code is written for us to build businesses
in this country. Right. I mean, the tax laws
are really a series of incentives for
entrepreneurs and investors, that’s what it is. And if you’ve got a
million dollar idea, the tax code will
actually give you a tax deduction as a tax
break and a tax credit, it’s called the
research and development deduction and credit. So there’s lots
of things you can do if you’re an entrepreneur
to reduce your taxes, put money in your pocket. And most people make the mistake
if they’re a small business owner– they’re a plumber– they’ll take a check
in their own name and they’re leaving
money on the table. Oh, my [INAUDIBLE]. Absolutely. And have it written out to
your business, your LLC instead of your own personal name. Well, as you know it’s very
easy to reduce your taxes just by understanding
how the tax law works. Read Tax-Free
Wealth, by the way. That’s another great
book you need to read. Garrett Sutton, as
a legal advisor, how do you recommend an
entrepreneur just starting out protect their assets. This is another big problem,
people put all their eggs in one basket and
they don’t realize you need to protect yourself. It is, Clayton. We live in a very
litigious society and you need to use a
corporation or an LLC– if you’re starting a business,
investing in real estate and then once you make the
decision which entity to use, you have to set
it up right away. The longer that you conduct
business in your personal name, the longer all of
your personal assets are exposed to a claim
against the business. So you want to get that entity
set up right at the start. And if you don’t you’re putting
your own personal assets at risk– your house, your home,
the thing– in your own bank account, right? Right. It’s very easy to
get started and you think you’ll set up
the entity later, too many people then
forget to set it up and everything’s exposed. Darren Weeks, you’re
raising capital advisor. One of the big issues
that people have is they think, I can’t become
an entrepreneur, I can’t start in my own business
because I don’t have money. I can’t do it. Well, a lot of entrepreneurs
start with zero money, they don’t have any
of their own money. How do you raise capital when
you’re starting a business? Well, to raise capital,
I mean, first of all, you need to, in my opinion,
have some skills that they don’t teach in school. You know, one of the things
I learned in business school was they didn’t teach how
to sell, for instance, or how to communicate
my idea to investors, how to share with my
investors that, you know, mission is very
important and also what’s in it for the
investor– so don’t teach these types of
skills and unfortunately most entrepreneurs
dreams die because they don’t have the finances. So I teach people how
to raise the capital, so they can live their
dreams with their business. And actually rubbing
elbows with people, sitting down and getting
advice from people– nothing happens with you sitting on
the couch behind a computer, you’ve got to get out and
actually have lunch and coffee and develop those relationships. Absolutely, so your
network is your net worth as I’ve been taught
and unfortunately most people just
think the bank is the only answer and to me that’s
unfortunately not the case. Well, something near
and dear to my heart is real estate investing– Ken McElroy, real estate
advisor on this team. What is the number one mistake
that you see with businesses when it comes to real estate,
real estate investing? So what I see is that they
don’t use debt properly. You know, there’s good debt and
there’s bad debt and, you know, of course, bad debt is
like credit card debt and that’s what a
lot of people do. It’s very expensive. Good debt is actually
using debt to buy assets. So the banks are set
up very interestingly, they take people’s
deposits and that’s actually what the poor does. The poor puts money
into a bank, the rich borrow it, that’s the system. And so if people understood that
they would borrow more money, and they would try to stay ahead
of inflation because inflation is killing people. You know, they have to– if you’re making 1%
in a savings account and your inflation’s at
4% you’re going backwards, it’s just that simple. Right, you have an investment,
Robert, we’ve heard– I know this is something you
talk about in the Rich Dad radio program all the time,
something you’ve written about, this idea that all debt
is bad and it’s not. Yeah. No, it’s not. I mean, debt is
money, but you have to use it appropriate– you
know, debt’s like a handgun. If you use it improperly,
you get killed, you use it properly,
you’re protected. So debt is very, very
important for the entrepreneur. The book is called More
Important Than Money: An Entrepreneur’s Team. I can’t wait to dive into it. Robert Kiyosaki, Tom
Wheelwright, Garrett Sutton, Darren Weeks, Ken
McElroy, an all-star team. Great to see you
guys this morning. Thank you. Thank you. Thanks, Clay–


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