Robert Kiyosaki - New Rules of Money, Part 5/7: Good Debt Vs. Bad Debt

Robert Kiyosaki - New Rules of Money

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[KiraPepelu]

Thank you very much Mr. Robert. I deeply appreciate your teachings.

[chadgresham]

Thankyou Robert

[roniepao]

@drf7at1

your genius. you should write a book.

[roniepao]

mortgage came from the word morgue

debt came from the world death

[don6119]

@drf7at1 i think what he was trying to say is that he has $30,000 NET income after the mortage and all other expenses are paid. so he actually is making money

[kktech04]

@drf7at1 You don't get it. First, the 10% isn't realistic. 5% before fees is closer to reality. Second, the hidden fees will eat your margin. You're left with 1% And third, you will then have to pay taxes on your capital gains. Now you have 0.5%. And fourth, stocks can go down too. Kiyosaki's thinking is different: the focus in cash flow, not in the value of the asset. No matter if the stock goes up or down, the asset must generate a positive cash flow to support itself.

[drf7at1]

Also, anything that is highly leveraged (borrow everything with no money down) as he is suggesting is obviously highly risky. Another thing he should teach is risk versus return. Obviously, the more leveraged and more money you borrow, the higher the expected return because if e.g. the GFC happens, then you are left with didly squat stuck with an nonincome producing asset where no one is renting and worth half the value.

[drf7at1]

@equanimousgray I swear these videos are made for idiots. $30 000 income in his pocket from a $7 million investment? not only is that a 0.42% rate of return (Shares in the good times as this video is suppose to be in were 10%) , his "investment property" is now probably worth $3 million. Inflation is at 3.6% in the US which is eating $252 000 a year. if he earns less than that, he is actually loosing money.

[Bowzer19]

We should teach this is schools man!!!



[hongkongstyleable]

l would like to know where r u gonna live if u only hold one property and that property is in mortgage and u have rent to a tenant?

[bolognadetector]

6:20 So his 'rental rates went up' after the real estate crash because people who lost their homes needed to rent so badly that he was able to stick it to them and raise his rents? I really hope that is not what he just said.