Real Estate Investing With No Money -Robert Kiyosaki
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Real Estate Investing With No Money -Robert Kiyosaki


(uplifting music) – So what makes Rich
Dad Poor Dad different is that, as you know, my poor
dad was a PhD in education, but what does school
teach you about money? Did you learn anything
about money at school? Most people don’t. So that’s why I had my rich dad, who was my best friend’s father, and he was teaching me
what the rich teach me. So look ladies and gentlemen, if you wanna be poor, I hate to say this, you can go to school (chuckling) but you still won’t learn
anything about money. And education’s more important today, but what do you learn about money? Most kids now going to school, they’re coming out of
school deeply in debt with student loans, still not learning anything about money. Look at the middle class. You know, they may have high-paying jobs, but the jobs are going away. And what makes Rich Dad different is we teach what the rich teach people. – Hey everyone, welcome back to Advanced Lessons in Millennial Money, featuring Robert Kiyosaki. I’m Alexandra Gonzales. In this episode, we have a very special
guest, Shane Caniglia. He is the CEO and president of Rich Dad, real estate investor and business partners of Robert and Kim. Thank you for joining us Shane. – Thank you Alex, happy to be here. – Thank you. So everything so far
has been very valuable and my main question too,
after all this information and my financial education, is if I can barely afford
(chuckling) my avocado toast, how can I get enough money for a capital for a down payment for the investment? – Okay first, we’re gonna have
to cut the avocado toast out, no I’m just kidding.
(Alexandra laughing) So the first thing is, is
OPM, other people’s money. So let’s look at this from
a big picture point of view. I get this question a lot. Trillions of dollars move hands every day throughout the stock market,
throughout bank loans, throughout personal loans, car
purchases, retail purchases, so on and so forth. The reason I’m starting with that is is you have to get
the concept in your brain that the money is out there. And other people who have money, they wanna find good investments, but they don’t wanna put the
work into finding the deal. So once you learn how to find the deal, and you get a good deal,
and the numbers make sense, and you can give somebody a
return on their investment, it would be foolish to get into what a good return would be because each deal is on
a case-by-case basis, there’s not a magic number where you have to hit X% every time, so don’t fall into that trap, but you have to get a good return. So once you set that return up, you’d be quite surprised, once you start within your network, your family, your friends
and so on and so forth, how much other people’s money is out there that is looking for a good deal. They don’t have to do
a lot of work for it, they get a return on it and they also own part
of the physical asset, that physical asset being the
property you’ve purchased. These are things that a lot of
people actually get scared of and I find it interesting because actually, that’s
the most exciting part. That’s where you have to focus
on your financial education. You have to understand what
does other people’s money mean and how do you present that good deal? That’s why, at Rich Dad, we
preach financial education. – So Robert actually
explains OPM perfectly, so let’s watch a clip
of what he has to say. – You see the beauty about real estate is you learn to use debt to get rich. I’ll give you another tip. If you’re gonna be rich, you
have to learn to use debt. It’s called other people’s money. So when I hear poor people say to me, “I don’t have any money,” I say, “‘Cause you’re
an idiot, that’s why.” (audience laughing) You’re not supposed to use your money! You’re supposed to use
other people’s money. “But that’s debt, I don’t wanna do that,” and so they stay poor. (swishing)
– So OPM is something we’re not
taught about in school. Now I would like to pick your brain about the major considerations
investors need to look at, and look for, when they are
searching for a property. – ‘Kay, great, so, these
are the key questions that the considerations are, arguably, some of the most important things that you have to, not only address, but you have to make sure
that they’re in line. So, when we talk about considerations, the first one is you gotta look
at the top line of the deal, you gotta make sure your
numbers roll out and make sense. And in those numbers, you have to make sure
you’re considering things such as taxes, property
taxes won’t go away, you have to consider things such as a percentage of
potential loss from non-rentals, so empty, right, or
vacancies, that’s a big one. The next one would be
your maintenance issues, anything that’s gonna happen
from air conditioners, to toilet to plumbing
and so on and so forth. The other one would be
basic type of udpates that you have to do when a tenant moves in and out. So for example, anything from
the cleaning of the carpet, to the replacement of the carpet, to dishwasher, appliances,
things of that nature, and then everything else
starts to drill down to, now there are other things. If we get into ’em all,
this video will be too long, but these will get you thinking. And then the next level is when you start getting into
back to the top of the line, in terms of that mortgage
payment, the interest rate, how long is the note gonna be carried. And you also have to include a percentage, if you’re not going to
manage the property yourself, then you have to have some feel, or some concrete number to use, that you’re gonna pay a property manager that’s gonna take care of all these issues that could pop up. – In 1997, when I released
Rich Dad Poor Dad, that booked caused a bit of an upset because I said, “Your
house is not an asset.” So in today’s world, if you wanna be rich, you have to know this, between
assets versus liabilities. One of the reasons so many people are struggling financially today, is simply because they’re calling
their liabilities, assets. Such as, your house is not an asset, your car is not an asset
and things like that. So very simply, when I was a young boy, my rich dad taught me, he says, “You have to understand
a financial statement.” So this is an income statement,
this is a balance sheet. Now this is overly simplified. He says, “What creates
something to be an asset “is very simply assets cashflow money “into your pocket. “And a liability takes
money from your pocket.” So for most people, their
houses are not assets, they’re liabilities, ’cause every month it takes
money to live in that house. Even those who say, “Well I don’t have any debt
on my house, I paid it off.” Look, you still have
insurance, still have upkeep, you still have maintenance. – So recently, over the summer, I planned to practice
the Rich Dad philosophy and I searched for my investment property so I could be prepared for the future, just like we’ve been taught here. – That’s awesome.
– Doing the real thing. And I just realized that the numbers really didn’t make sense and I did go through
that emotional attachment that you talked about, which was what was really hard for me when I tried to separate from the deal. But I realized that if the
numbers don’t make sense, at least I went through
the process, learned, and now I’m prepared if there is a crash then I can go in and take advantage of the
education I received from this. – Right. So the great thing you said there is that you put into practice the Rich Dad education. So you took what you learned and you actually practically
applied it to a real deal, and that deal, at the end of
the day, did not make sense. That’s just as important
as making the deal itself, because you didn’t make a mistake. Now we don’t wanna be
caught into the space of being too afraid to make a mistake. That we have to be really careful of because eventually, you’re gonna have to sign on the
dotted line, as they say. But I just wanna repeat,
you have to take action. You can only do so many things and learn so many things before you take it, and you apply it and you learn what the
actual world is really like. So, I’m gonna say it just one more time, doing the real thing, is
where you will really learn and making sure you are
emotionally responsible and strong to walk away, like you did, if the deal doesn’t make sense. Very important. – I agree 100%. And one thing that you
mentioned very valuable was the best deal is the
one that you walk away from. – Exactly.
– And that was crucial for me because I would’ve been
stuck with an investment that had negative numbers because of the emotional attachment. – The negative numbers, now stop you from going on to deal two,
three, four, so on and so forth. And it doesn’t just stop you emotionally because you’re gonna be
stressed out about it, but it stops you at the bank.
The bank’s gonna look at that and say, “Hey, you’ve gotta “straighten out this first property, “or you won’t be able to
use that first property “on your list of assets “when you try to get
approved for the next loan.” And you just don’t want that to happen. So being emotionally
responsible is very important, but again, can’t say it enough, you gotta get at it, you
gotta do the real thing, you gotta apply your education. – Thank you so much Shane for teaching us all about
financial education, OPN, and the pros and cons of
renting versus buying. – You’re welcome, happy to do it. – Thank you. Join us next time for Advanced
Lessons in Millennial Money. Don’t forget to subscribe,
hit the like button and comment below. (Alexandra speaking in foreign language) (uplifting music)

100 Comments

  • chess747

    Robert always points out why people are poor, but never just says how to get rich, even his books go nowhere, other than pointing out the obvious.
    He seems to just keep everything still a secret.

  • chess747

    Debt is total shit, they print fucking money, it’s all a fucking scam, with laws, designed by the government, to basically blow smoke up your arse.

  • UroborosJayThink

    A common stake with Rob is that, how he makes money in rentals, he needs to sell the idea that buying a house is a bad idea, guess what, if you always rent, you're always gonna be poor, you know why? because you are going to be the eternal OPM to somebody else, in the moment you have your own house, yes you have to pay bills and stuff but it is a minimal amount of money, and you get empowered as a citizen, the people just need to be smart in the moment they buy / built their own house, and having an income or second income that alows to pay the loan, wich never be higher of the 40% of the total income.

  • Sankar G.L.

    Hi sir, I am from Trivandrum, capital of Kerala (southern State of India).
    In our country bank rate is 7% for FD. The price of land in India is too high for the last 22years.In 1990 in my area price of land was 10,000₹/cent.But now it's 8 lakhs.
    Suppose I brought 4 cent of land @ 8 lakhs/cent.My investment in land is 32 lakhs. I can build 1500 sqft building, which costs 22 lakhs minimum(2000₹/sqft)2000*1500=30 lakhs.My told cost is 32(land)+30(building)=62 lakhs.if I rent out the building to two families, I will get 30000₹/month ie 15000₹+15000(maximum*)+1.5 lakhs as advance.So my return for the investment is 6% per annum.
    If I put the money as FD in a highly secure bank, I will get more than 30,000₹/month.
    I don't have to think about ware and tare of the building.
    So I think real estate as an income generating asset is not true in our country.

  • Pramod Pillai

    So many of his videos, there is none which has clarity a. No methodology, no clear explanation, how to do what he preaches. Just vague talks . Just another you tuber hoping to make some big money through Google services .

  • Aryan Street

    Do you expect me to believe this child is going to find herself an investor so that she can buy her first investment property? Oh wait, her father is Robert Kiyosaki's friend LOL

  • Nina

    Poor people with bad credit or not enough money don’t get a good loan to invest properly…. poor people can’t pay themselves first because they have bills to pay & family to feed… Any more OPM advice ?

  • Michael Buffington

    I have been a Realtor for over 20 years. In the past 3 years I've been using OPM to buy and flip properties at a profit. They get 6% on their money in about 3 months. I get the profit of the flip. Robert Kiyosaki is right…. it works magically. I'm looking forward to learning how to use OPM when buying a rentals. I see negative comments on this post and they are obviously not educated, and not willing to open their mind to the education which they are practically tripping over. It works, I'm proof! Big Dog in Real Estate, NM/USA.

  • Jase - CEO

    I don't have any money but, as much as I'd like to get into debt for assets that pay me money into my pocket I still need to get past the banks who provide the money. If they they "NO" BECAUSE I can't "SERVICE" the loan. I know the money is out there but it's so bloody hard to get it.

  • The Piano Player

    How about rent your home and live in a caravan like a fucking gypsy. ? Mind you here in THE UK if the Council goons found out the council tax goon squad would come down on you like a ton of bricks and say you are living in this holiday caravan pay up or else!!. TWO WORDS- FUCK OFF!!.

  • sjeppesen9

    I have a business plan and will need an investor to make it happen! We should talk! I'm one of the leading experts in my field and it's highly profitable and highly specialized!

  • Michael Delanzo

    HEY Robert,.(thinking your so smart) the FACT is that " YOUR RICH DAD" is part of the CROOKS that CREATED the CROOKED system that you think makes you so FNN SMART,……LISTEN SMART ASS, When the Rich crooks buy the crooked politicians to create SECRET laws and grants, etc (AND DRAW THE CROOKED DIRECTIONS(LAWS)..like the Monopoly game, then any body on the planet can become a billionaire……NOW YOUR MAKING MORE MONEY SELLING YOUR POMPAS PROGRAM…….STOP ACTING SO POMPAS and smart …..AND TRY MAKING YOUR POOR DAD FINANCIALLY FREE!!!!!!!!!!!! ASS HOLE!!!!!!!GREEDY FC…classic.

  • Ana397 Aguirre

    Finally a video that tells me something… I feel like a lot of these videos just go around in circles and say nothing…

  • K st

    So I'm in the military. Where do I get this "other people's money"?
    Should I ask my subordinates or my CO.
    With all seriousness where do you get OPM?

  • James Stine

    I am tired of your negative crap about stupid teachers. How about actual ways to make money work for you!!!!

  • The Keene Team

    Great video and good tips! Thank you! When Robert talks about OPM he means borrowed capital like unsecured loans to use for investment.

  • kevlarbandit

    He has sold so many books, but still the info is so vague. Not good Robert, wont buy your extensive books if they dont give out info black and white

  • colonel wiliys

    my friend brother just went to jail tis year, bcoz of the same method used 'OPM" . the deal was to build Condotel (Condominum + hotel) but the project never happened, only groundbreaking & thats it. intruth the money was used to cover other debt he & his cronies had b4.

  • Car Boz

    So should I sell my house/car because they're a liability? Where can I go to learn how to apply what you're saying? I'm in my 50s, but I want/need to learn. Can a person, who's been poor all of their life (like me) learn how to become rich? I don't care about the bling (fancy houses, cars, jewelry). I just want to stop worrying about not having enough money. I've never gone to college and I'm lousy at advanced math, but I want to learn this stuff. Help!!!

  • DSG

    I work in industrial real estate sales.

    FACT:
    Everyone who is buying property here have over 50% equity.
    And if it's your first investment you will need 65% equity.

    It's called the LVR, a legal requirement from the reserve bank here in NZ.

    If Kiyosaki is saying get a second mortgage or mezzanine financing.
    The truth is Mezzanine financing affects the risk,interest rate and LVR of the original bank loan and it must be disclosed to the bank.
    Secondly there are very few people brave enough to run a finance company here because they don't want to go to prison for potentially misleading investors like they did after the 2008 crisis.

    Lastly the people I see buying in the market are all baby boomers who got in 40 years ago.
    Or they are the children of those people and now run the family investment business.
    Or you have a business that actually needs a location to operate from and have proven cashflow that pays the mortgage instead of rent, and you have sufficient equity to cover the banks lending criteria.

    Kiyosaki always says OPM, but the truth is he is vague because he wants to sell his books to the masses rather than the few people of a higher financial class.

  • Camila Wrod

    The self help gurus need to stop it with this bull shit story “what you don’t get thought in school” overrated comment has not impact

  • Murali Daran

    Under which category does personal life insurance with a money back option fall? Are they assests? Or are they liability?
    Under which category does all the sip(systematic investment plans) fall?

  • Magic Nomadic

    NONE of this means squat if you don't have a 700+ credit score and 3 years of tax returns. What do I need as a self employed person with no tax returns to get rolling?

  • Zack D

    How do you make profit if you have to pay back that loan you got for the down payment? You will make a little profit from the rental property but that little profit will be used to pay back the loan for the down payment. On top of that, you will have other expenses that come along with the property.

  • Ein Od Milevado

    Robert you are an arrogant person, today you are here and tomorrow you will be in a box , God helped you, just be humble

  • the anonymous truth

    you arrogant old motherfucker you think the banks will give you debts when you have no incomes and money ?

  • Anthony C

    This girl as host makes no sense.. what half brained millennial is going to listen to her?
    What kind of a market is this supposed to be attracting?
    5 year olds?

    (This is not a “negative comment”.. this is a realistic question/observation)

    Besides this, this kind of idea to just propagate the printing of money is not a solution.. it’s just making the situation worse.. what value is being given?
    Look at the Germans and their exemplary economy. They’re actually bringing value to the market and they look at debt as a bad thing.. a very bad thing.. lookup the words in German for debt and related words.

  • Anthony C

    this kind of idea to just propagate the printing of money is not a solution.. it’s just making the situation worse.. what value is being given?
    Look at the Germans and their exemplary economy. They’re actually bringing value to the market and they look at debt as a bad thing.. lookup the words in German for debt and related words.

    The only way a proper free market works in a society is if actual value is being given in fairness. Where decency is in play. Where actual work is being done and value created.. not just a bunch of schemes to simply “make money”. But rather where assets are being created, things of value being developed.. tools for others.. tools for the use of society.. inventions, innovations, useful products… and services.. where actual value is being transmitted from one person to another or one group of people to another… in fairness, in decency, in productive manner.

    Not in schemes and plots and cheatings like you see in America..
    Where greed and the love of money are rampant

  • aslam shaik

    Amalia mania… Her name.
    Iam i right ?
    Why does she speaks like that… Damn god. Need to adjust my video speed whenever she speaks.

  • randomish84

    I really liked this video ! It was shirt and to the point !! Alexandra did much better !!! Can’t wait to try my first deal !!

  • Robert Schuster

    I like Robert i listened to his audio books its just real estate isnt my thing but his basics are good although im in stock market. thanks for your general advice.

  • JMR

    Which Rich dad course did this girl take to “do the numbers” for a deal and know when to walk away.

    I would also like to know how renting a home for 20-30 years and being subjected to rental increases is better than purchasing? How the hell does that work?

    What’s are the tax benefits of owning rental property?

  • A. B.

    So for the initial down payment and renovation of a rental property, you are using your own money, then refinancing, and cashing out your initial investment correct? So you do need some starting capital, maybe 60k for the first deal? I am in Scottsdale also Robert. Sorry i am a neophyte with this path but eager to be educated and begin.

  • DragoNate

    I'm curious if all of this real estate advice is only for the U.S. or if the same things apply in Canada.
    Also, is it even viable for someone who has no current income? As far as I'm aware (from researching) banks, nor other places, will give someone a loan without any credit history or income. I have neither.

  • AnitaCock

    Rich Dad / Poor Dad Robert Kiyosaki is expo$ed in this 3 PART  investigative report. It clearly shows how Robert is merely a front for Russ Whitney and his Whitney Information Network; https://www.youtube.com/watch?v=HE6nT0oyPt8  This perpetuates the myth of high cost = great benefit.  Everything KIyosaki "teaches" is widely available.  For free.  Mo$t of his book$ are online for free. Rich dad organization went broke a few years back. I just came from the 3 day $iminar and let me break it down to you guys who are thinking about joining. I'm not paid by anyone to write this. This is exactly what happened.

    50% of it is the "trainer" talking about how rich he is
    40% of it is selling you the damn "ELITE training" (COST $12,000 – $40,000)
    10% is actual real estate material which is STUPID cause its so common sense.

    Its funny how all the trainers are PASTORS too.

  • Joshua Alvarado

    I'm brand new to this industry (idk what other terminology to use) what would be the first step for someone who doesn't have a single incling about opm or real estate

  • stickshiftt

    What exactly is a "good ROI"? I don't want specific numbers …. I want to know the specific parameters (such as time, percentage etc)

  • Raj Arian

    May be you can share your experiences about trying out other properties and did it worked out …. its been 6 months since posting of this video …

  • SAMPSON LEEVON

    Karatbars is the standard for using other people's money I think. I need other peoples money to buy a couple person I know who work but homeless…it will give me purpose and curb my depression. Please help. I have access to Gold. I just need funding…I will use profit to go to the holistic dentist, so I can feel better. Then I'll buy a building to house and pay the homeless to pick up trash and clean city, if they have a talent I will make sure they get paid to do what they can and love to do…or get the help they need. The other day I wanted to lay on train tracks…do you understand? I need to give life to have one, because I feel close to death…but I can't…My talent is car design, school was too expensive…but I need to go…I have 50 car designs I want to see in the flesh before I die…depression takes your passions slowly and the will to live but I want to house myself and others even more. In thinking, if all had gold would he steal? Rob? Or kill? Be racist? Just having money is not enough for some. Gold is cleaner. Anyway…I just wanna be a Golden Talon.

  • Gala

    I had a rental apartment in Dubai. Then there's was a crush of 2008…Prices drastically went down. In 2014 they went up again and I managed to sell it with some good profit. Now it makes me feel good as the prices down there again and I made right decision that specific moment. No regrets any more after wanting this video. I must be easily able to walk away from your non profitable investments..

  • PRANJEET

    Hlo….I AM PRANJIT FRM INDIA COUNTRY….I khoj money investor parson in this site….ANY PARSON INVEST $dollar With COURT AGREEMENT IN MY COUNTRY bcz esaly convert big amount in my country rupee….After double Profit ..Quickly contact +918638762052

  • Liz Lewis

    but the bank and the second tier lenders want to our weekly income to service the loan we want? so we do need that weekly income to get other people money??

  • New America Tow Guy

    Ok… I understand using other people's money… my question is…. how do you present a plan to get others to take a chance on you and loan you the money that you need?

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