he’s an active and well-known real estate investor a large portion of his
estate investor a large portion of his
estate investor a large portion of his business empire and wealth is based in
business empire and wealth is based in
business empire and wealth is based in real estate investing he’s written books
real estate investing he’s written books
real estate investing he’s written books held seminars made videos and coaches
held seminars made videos and coaches
held seminars made videos and coaches people on how to be successful real
people on how to be successful real
people on how to be successful real estate investors mentor me Robert
one of the things that makes the rich
one of the things that makes the rich dead company different is most people
dead company different is most people
dead company different is most people think that savings is smart but my Rich
think that savings is smart but my Rich
think that savings is smart but my Rich Dad told me years ago that savers are
Dad told me years ago that savers are
Dad told me years ago that savers are losers now I know this goes against the
losers now I know this goes against the
losers now I know this goes against the grain what most people tell you you know
grain what most people tell you you know
grain what most people tell you you know save money save money save money but the
save money save money save money but the
save money save money save money but the reason savers are losers began back in
reason savers are losers began back in
reason savers are losers began back in 1971 and in 1971 President Nixon took
1971 and in 1971 President Nixon took
1971 and in 1971 President Nixon took the u.s. off the gold standard and made
the u.s. off the gold standard and made
the u.s. off the gold standard and made the US dollar the reserve currency of
the US dollar the reserve currency of
the US dollar the reserve currency of the world one of the reasons we have so
the world one of the reasons we have so
the world one of the reasons we have so much economic volatility in our economy
much economic volatility in our economy
much economic volatility in our economy today high gas prices high food prices
today high gas prices high food prices
today high gas prices high food prices stock market booms and busts as housing
stock market booms and busts as housing
stock market booms and busts as housing values going down all can be attributed
values going down all can be attributed
values going down all can be attributed back to 1971 plus there are other
back to 1971 plus there are other
back to 1971 plus there are other changes so what makes a Rich Dad company
changes so what makes a Rich Dad company
changes so what makes a Rich Dad company different is that we do not really
different is that we do not really
different is that we do not really subscribe to the idea of being a saver
subscribe to the idea of being a saver
subscribe to the idea of being a saver we think it’s more important you learn
we think it’s more important you learn
we think it’s more important you learn to being an investor you know like if
to being an investor you know like if
to being an investor you know like if you had invested in oil 10 years ago
you had invested in oil 10 years ago
you had invested in oil 10 years ago you’d be a rich person today even though
you’d be a rich person today even though
you’d be a rich person today even though savers are losers you vested in gold ten
savers are losers you vested in gold ten
savers are losers you vested in gold ten years ago you have been a lot better off
years ago you have been a lot better off
years ago you have been a lot better off if you had invested in rental real
if you had invested in rental real
if you had invested in rental real estate ten years ago it would been way
estate ten years ago it would been way
estate ten years ago it would been way ahead of the savers so if you want to
ahead of the savers so if you want to
ahead of the savers so if you want to get ahead you need to not be a saver but
get ahead you need to not be a saver but
get ahead you need to not be a saver but learn should be an entrepreneur or an
learn should be an entrepreneur or an
learn should be an entrepreneur or an investor so there’s four great
investor so there’s four great
investor so there’s four great advantages to real estate as an
advantages to real estate as an
advantages to real estate as an investment number one is you have income
investment number one is you have income
investment number one is you have income every month which means you can soon
every month which means you can soon
every month which means you can soon quit your job if you want to number two
quit your job if you want to number two
quit your job if you want to number two is that you have tax advantages you know
is that you have tax advantages you know
is that you have tax advantages you know there’s so many tax advantages to number
there’s so many tax advantages to number
there’s so many tax advantages to number three is you have depreciation right
three is you have depreciation right
three is you have depreciation right which is another form of tax tax
which is another form of tax tax
which is another form of tax tax advantage and number four is you have
advantage and number four is you have
advantage and number four is you have capital gates so you have money coming
capital gates so you have money coming
capital gates so you have money coming in government’s giving all these bonuses
in government’s giving all these bonuses
in government’s giving all these bonuses right you have all these gains are
right you have all these gains are
right you have all these gains are somewhat tax free and on top of all that
somewhat tax free and on top of all that
somewhat tax free and on top of all that is the banker will lend you money for
is the banker will lend you money for
is the banker will lend you money for real estate when I was just 9 years old
real estate when I was just 9 years old
real estate when I was just 9 years old my rich dad began to teach me how to
my rich dad began to teach me how to
my rich dad began to teach me how to become a real estate investor
become a real estate investor
become a real estate investor and the way he taught me was through
and the way he taught me was through
and the way he taught me was through that game most of us know about the game
that game most of us know about the game
that game most of us know about the game called Monopoly and he said son on this
called Monopoly and he said son on this
called Monopoly and he said son on this game board Monopoly is a formula for
game board Monopoly is a formula for
game board Monopoly is a formula for great wealth and most of us know that
great wealth and most of us know that
great wealth and most of us know that formula it’s for green houses one red
formula it’s for green houses one red
formula it’s for green houses one red hotel for green houses one red hotel and
hotel for green houses one red hotel and
hotel for green houses one red hotel and that’s how my real estate investment
that’s how my real estate investment
that’s how my real estate investment career began with that simple education
career began with that simple education
career began with that simple education and lessons for my rich debt and that is
and lessons for my rich debt and that is
and lessons for my rich debt and that is why I was able to retire in 1994 at a
why I was able to retire in 1994 at a
why I was able to retire in 1994 at a relatively young age of 47 because of
relatively young age of 47 because of
relatively young age of 47 because of the simple investments test my rich dad
the simple investments test my rich dad
the simple investments test my rich dad taught me in any market markets move up
taught me in any market markets move up
taught me in any market markets move up markets move down and markets move
markets move down and markets move
markets move down and markets move sideways they’re called trends so what
sideways they’re called trends so what
sideways they’re called trends so what you want to look for is the area
you want to look for is the area
you want to look for is the area hopefully that’s moving up would you
hopefully that’s moving up would you
hopefully that’s moving up would you agree with that title II yes we you know
agree with that title II yes we you know
agree with that title II yes we you know like we always talked about the some
like we always talked about the some
like we always talked about the some cities where people are moving out of
cities where people are moving out of
cities where people are moving out of there any decline right and people are
there any decline right and people are
there any decline right and people are moving into right and generally where
moving into right and generally where
moving into right and generally where would you rather invest what obviously
would you rather invest what obviously
would you rather invest what obviously where people are moving into but the
where people are moving into but the
where people are moving into but the interesting thing is unlike the stock
interesting thing is unlike the stock
interesting thing is unlike the stock market where it’s very difficult to know
market where it’s very difficult to know
market where it’s very difficult to know which markets are going to go up in
which markets are going to go up in
which markets are going to go up in which areas of that market are going to
which areas of that market are going to
which areas of that market are going to go down with real estate you can follow
go down with real estate you can follow
go down with real estate you can follow the trends because they’re slow so that
the trends because they’re slow so that
the trends because they’re slow so that they’re so slow to evolve a city that’s
they’re so slow to evolve a city that’s
they’re so slow to evolve a city that’s had high growth or one year as likely to
had high growth or one year as likely to
had high growth or one year as likely to have had high growth the year before and
have had high growth the year before and
have had high growth the year before and will have high growth the following year
will have high growth the following year
will have high growth the following year and similarly those with with slow
and similarly those with with slow
and similarly those with with slow growth so it’s very easy to figure out
growth so it’s very easy to figure out
growth so it’s very easy to figure out which cities and which suburbs within
which cities and which suburbs within
which cities and which suburbs within cities and which clusters of streets
cities and which clusters of streets
cities and which clusters of streets within suburbs are likely to do well in
within suburbs are likely to do well in
within suburbs are likely to do well in the future just by watching the past and
the future just by watching the past and
the future just by watching the past and you don’t get that luxury of many other
you don’t get that luxury of many other
you don’t get that luxury of many other markets they’re far more fickle and
markets they’re far more fickle and
markets they’re far more fickle and volatile right so in any market any
volatile right so in any market any
volatile right so in any market any investment you have to watch a trends
investment you have to watch a trends
investment you have to watch a trends there’s always three trends up down and
there’s always three trends up down and
there’s always three trends up down and sideways another way people become very
sideways another way people become very
sideways another way people become very successful in choosing the area first is
successful in choosing the area first is
successful in choosing the area first is sometimes you look for an area that’s
sometimes you look for an area that’s
sometimes you look for an area that’s been down for years and all suddenly it
been down for years and all suddenly it
been down for years and all suddenly it comes back to life again those are
comes back to life again those are
comes back to life again those are really good aren’t that great and then
really good aren’t that great and then
really good aren’t that great and then the trick is finding when it’s at the
the trick is finding when it’s at the
the trick is finding when it’s at the bottom because then it’s about to take
bottom because then it’s about to take
bottom because then it’s about to take off and the prices are really low prices
off and the prices are really low prices
off and the prices are really low prices alone most people make the mistake of
alone most people make the mistake of
alone most people make the mistake of buying when it’s at the top the thing
buying when it’s at the top the thing
buying when it’s at the top the thing while this is going really well and they
while this is going really well and they
while this is going really well and they buy at that peak and then the only way
buy at that peak and then the only way
buy at that peak and then the only way to go along as sideways or down again
to go along as sideways or down again
to go along as sideways or down again right and if you’re just starting out
right and if you’re just starting out
right and if you’re just starting out let me give you one more tip that I
let me give you one more tip that I
let me give you one more tip that I learned the hard way my first investment
learned the hard way my first investment
learned the hard way my first investment property I bought on another
property I bought on another
property I bought on another Allanon Island from Hawaii so I had a
Allanon Island from Hawaii so I had a
Allanon Island from Hawaii so I had a problem in this piece of property I
problem in this piece of property I
problem in this piece of property I meant I had to catch a plane fly there
meant I had to catch a plane fly there
meant I had to catch a plane fly there rent a car and go check my property and
rent a car and go check my property and
rent a car and go check my property and so this problem persisted for a while
so this problem persisted for a while
so this problem persisted for a while and so for two days a week I was getting
and so for two days a week I was getting
and so for two days a week I was getting on a plane flying to another island
on a plane flying to another island
on a plane flying to another island renting a car look at this property so
renting a car look at this property so
renting a car look at this property so that added to the next thing if you’re
that added to the next thing if you’re
that added to the next thing if you’re going to find an area make sure it’s
going to find an area make sure it’s
going to find an area make sure it’s close to your house and so I would
close to your house and so I would
close to your house and so I would recommend this is find an area that’s
recommend this is find an area that’s
recommend this is find an area that’s you can even walk to you know in some of
you can even walk to you know in some of
you can even walk to you know in some of my in my book I talk about how the first
my in my book I talk about how the first
my in my book I talk about how the first investment property that Kim and I
investment property that Kim and I
investment property that Kim and I bought together I used to jog pass this
bought together I used to jog pass this
bought together I used to jog pass this neighborhoods so if it’s close enough to
neighborhoods so if it’s close enough to
neighborhoods so if it’s close enough to jog to it’s close enough it’s a great
jog to it’s close enough it’s a great
jog to it’s close enough it’s a great area or find an area that you can drive
area or find an area that you can drive
area or find an area that you can drive when you’re you know going back and
when you’re you know going back and
when you’re you know going back and forth to work the reason is when you’re
forth to work the reason is when you’re
forth to work the reason is when you’re first starting out you’re bound to make
first starting out you’re bound to make
first starting out you’re bound to make a few mistakes so make sure the area is
a few mistakes so make sure the area is
a few mistakes so make sure the area is close by it’s a little good this good
close by it’s a little good this good
close by it’s a little good this good choice well I’ll say it again in 1973 I
choice well I’ll say it again in 1973 I
choice well I’ll say it again in 1973 I came back from Vietnam and I was a pilot
came back from Vietnam and I was a pilot
came back from Vietnam and I was a pilot up there and I took a real estate course
up there and I took a real estate course
up there and I took a real estate course it was $385 three days long and that’s a
it was $385 three days long and that’s a
it was $385 three days long and that’s a lot of money back that I was only making
lot of money back that I was only making
lot of money back that I was only making $500 a month so 385 was all I had and
$500 a month so 385 was all I had and
$500 a month so 385 was all I had and the instructor the end of the program
the instructor the end of the program
the instructor the end of the program said to me he said what did the whole
said to me he said what did the whole
said to me he said what did the whole class full of 30 of us he says your
class full of 30 of us he says your
class full of 30 of us he says your education begins now that you leave the
education begins now that you leave the
education begins now that you leave the class even get educate Wilder class so
class even get educate Wilder class so
class even get educate Wilder class so his assignment was that everybody or
his assignment was that everybody or
his assignment was that everybody or thirty of us with the Parapan team get
thirty of us with the Parapan team get
thirty of us with the Parapan team get up in teams to two or three a team and
up in teams to two or three a team and
up in teams to two or three a team and we have to look at 100 properties in 90
we have to look at 100 properties in 90
we have to look at 100 properties in 90 days and he says don’t buy anything just
days and he says don’t buy anything just
days and he says don’t buy anything just look at 100 properties do an evaluation
look at 100 properties do an evaluation
look at 100 properties do an evaluation of each property write-up write a short
of each property write-up write a short
of each property write-up write a short blurb about it why it’s good why it’s
blurb about it why it’s good why it’s
blurb about it why it’s good why it’s bad and it’s at the end of 90 days and a
bad and it’s at the end of 90 days and a
bad and it’s at the end of 90 days and a hundred properties then you make up your
hundred properties then you make up your
hundred properties then you make up your mind if you’re going to buy something he
mind if you’re going to buy something he
mind if you’re going to buy something he says if you haven’t found a one property
says if you haven’t found a one property
says if you haven’t found a one property in 100 100 deals you start again you
in 100 100 deals you start again you
in 100 100 deals you start again you know you start again with another
know you start again with another
know you start again with another hundred and that’s what most that’s why
hundred and that’s what most that’s why
hundred and that’s what most that’s why most people are not rich they’re not
most people are not rich they’re not
most people are not rich they’re not willing to go through that process of
willing to go through that process of
willing to go through that process of looking at a hundred deals to find one
looking at a hundred deals to find one
looking at a hundred deals to find one deal and this sometimes in the
deal and this sometimes in the
deal and this sometimes in the and I know you look at a lot of frogs to
and I know you look at a lot of frogs to
and I know you look at a lot of frogs to find one princess you know but when you
find one princess you know but when you
find one princess you know but when you find that one princess everybody goes oh
find that one princess everybody goes oh
find that one princess everybody goes oh well how do you get so lucky well I
well how do you get so lucky well I
well how do you get so lucky well I looked at a lot of dirt dirt dogs out
looked at a lot of dirt dirt dogs out
looked at a lot of dirt dirt dogs out there you know and that’s like anything
there you know and that’s like anything
there you know and that’s like anything in life you don’t marry the first man or
in life you don’t marry the first man or
in life you don’t marry the first man or woman you meet
woman you meet
woman you meet hopefully you kiss a couple of old men
hopefully you kiss a couple of old men
hopefully you kiss a couple of old men before you do after you’ve identified
before you do after you’ve identified
before you do after you’ve identified the area that you want to invest in
the area that you want to invest in
the area that you want to invest in hopefully one that’s going up at that
hopefully one that’s going up at that
hopefully one that’s going up at that point you begin looking at properties
point you begin looking at properties
point you begin looking at properties the actual sticks and bricks as I call
the actual sticks and bricks as I call
the actual sticks and bricks as I call it now Dolph do you care if the
it now Dolph do you care if the
it now Dolph do you care if the property’s ugly not only do I not care I
property’s ugly not only do I not care I
property’s ugly not only do I not care I like it if the property is ugly you like
like it if the property is ugly you like
like it if the property is ugly you like problems right well they’re not problems
problems right well they’re not problems
problems right well they’re not problems between their challenges you see if
between their challenges you see if
between their challenges you see if there are problems they’re perceived
there are problems they’re perceived
there are problems they’re perceived problems and everyone else values that
problems and everyone else values that
problems and everyone else values that property very lowly right but I know
property very lowly right but I know
property very lowly right but I know that for a very small expenditure I can
that for a very small expenditure I can
that for a very small expenditure I can massively increase the value of that
massively increase the value of that
massively increase the value of that property so I love challenges right so
property so I love challenges right so
property so I love challenges right so that’s that’s why I say to people fall
that’s that’s why I say to people fall
that’s that’s why I say to people fall in love with the area but not
in love with the area but not
in love with the area but not necessarily the house in fact a lot of
necessarily the house in fact a lot of
necessarily the house in fact a lot of times I look for the best area with the
times I look for the best area with the
times I look for the best area with the ugliest house right and only at that
ugliest house right and only at that
ugliest house right and only at that point the way I start looking at
point the way I start looking at
point the way I start looking at multiple properties I don’t want to get
multiple properties I don’t want to get
multiple properties I don’t want to get attached to any ones that correct
attached to any ones that correct
attached to any ones that correct correct and you have to look at a lot of
correct and you have to look at a lot of
correct and you have to look at a lot of properties people make the mistake of
properties people make the mistake of
properties people make the mistake of looking at two or three and trying to
looking at two or three and trying to
looking at two or three and trying to make a decision you’ve got to look at
make a decision you’ve got to look at
make a decision you’ve got to look at dozens and dozens and all of a sudden
dozens and dozens and all of a sudden
dozens and dozens and all of a sudden one more pop out as being spectacular
one more pop out as being spectacular
one more pop out as being spectacular yeah sometimes you walk into a property
yeah sometimes you walk into a property
yeah sometimes you walk into a property that’s not even listed because because
that’s not even listed because because
that’s not even listed because because you’re looking around right right it
you’re looking around right right it
you’re looking around right right it might be for sale by owner or something
might be for sale by owner or something
might be for sale by owner or something like that or people here that you’re
like that or people here that you’re
like that or people here that you’re looking to say well actually my cousin’s
looking to say well actually my cousin’s
looking to say well actually my cousin’s got one for sale I wonder what he wants
got one for sale I wonder what he wants
got one for sale I wonder what he wants for it right so after you find this area
for it right so after you find this area
for it right so after you find this area you become this expert and once you
you become this expert and once you
you become this expert and once you become this expert let’s say you’re
become this expert let’s say you’re
become this expert let’s say you’re jogging or riding your bike around that
jogging or riding your bike around that
jogging or riding your bike around that everybody knows you’re looking for
everybody knows you’re looking for
everybody knows you’re looking for investments suddenly people start giving
investments suddenly people start giving
investments suddenly people start giving all these great deals and these
all these great deals and these
all these great deals and these properties so that’s the next step after
properties so that’s the next step after
properties so that’s the next step after you’ve identified the area then you
you’ve identified the area then you
you’ve identified the area then you start looking for the properties and
start looking for the properties and
start looking for the properties and oftentimes I don’t really care if
oftentimes I don’t really care if
oftentimes I don’t really care if they’re bad in fact you know some of
they’re bad in fact you know some of
they’re bad in fact you know some of them can be too bad
them can be too bad
them can be too bad or too broken but you’re looking for
or too broken but you’re looking for
or too broken but you’re looking for problems sometimes or sometimes they
problems sometimes or sometimes they
problems sometimes or sometimes they don’t have to be a problem is just great
don’t have to be a problem is just great
don’t have to be a problem is just great deals one of the most famous ways people
deals one of the most famous ways people
deals one of the most famous ways people use options is a down payment so let’s
use options is a down payment so let’s
use options is a down payment so let’s sing on it buy a house for let’s say
sing on it buy a house for let’s say
sing on it buy a house for let’s say $100,000 and I go and I put $10,000 down
$100,000 and I go and I put $10,000 down
$100,000 and I go and I put $10,000 down some people call this a down payment but
some people call this a down payment but
some people call this a down payment but what this
what this
what this 10,000 means to know and then the bank
10,000 means to know and then the bank
10,000 means to know and then the bank gives me 90,000 going to use the bankers
gives me 90,000 going to use the bankers
gives me 90,000 going to use the bankers money to get rich the reason I look at
money to get rich the reason I look at
money to get rich the reason I look at this as a doubt as an option by anything
this as a doubt as an option by anything
this as a doubt as an option by anything else is because if the price goes to
else is because if the price goes to
else is because if the price goes to $120,000 I know the option to sell it
$120,000 I know the option to sell it
$120,000 I know the option to sell it for a higher price the risk is if it
for a higher price the risk is if it
for a higher price the risk is if it goes down then I can’t get in trouble as
goes down then I can’t get in trouble as
goes down then I can’t get in trouble as that’s true with any kind of option so
that’s true with any kind of option so
that’s true with any kind of option so that’s one of the ways that options are
that’s one of the ways that options are
that’s one of the ways that options are used in real estate and again for me
used in real estate and again for me
used in real estate and again for me from my perspective on it they down a
from my perspective on it they down a
from my perspective on it they down a real estate down payment is an option to
real estate down payment is an option to
real estate down payment is an option to either buy this property later on or
either buy this property later on or
either buy this property later on or refinance it or and then the beauty of
refinance it or and then the beauty of
refinance it or and then the beauty of real estate is this if the price of this
real estate is this if the price of this
real estate is this if the price of this property goes up the bank still only
property goes up the bank still only
property goes up the bank still only gets $90,000 let’s say it goes to
gets $90,000 let’s say it goes to
gets $90,000 let’s say it goes to $150,000 you get the $50,000 but the
$150,000 you get the $50,000 but the
$150,000 you get the $50,000 but the banks still gets a 90,000 that’s why I
banks still gets a 90,000 that’s why I
banks still gets a 90,000 that’s why I actually love real estate I love the
actually love real estate I love the
actually love real estate I love the idea of options in it another way an
idea of options in it another way an
idea of options in it another way an option can be used is you can go up to a
option can be used is you can go up to a
option can be used is you can go up to a seller and somebody as a house and say
seller and somebody as a house and say
seller and somebody as a house and say look in three years I want to buy your
look in three years I want to buy your
look in three years I want to buy your house for ten thousand dollars or
house for ten thousand dollars or
house for ten thousand dollars or something like you know ten thousand
something like you know ten thousand
something like you know ten thousand dollars more than you all right now and
dollars more than you all right now and
dollars more than you all right now and here’s my paper but just give me the
here’s my paper but just give me the
here’s my paper but just give me the first right to buy it and generally
first right to buy it and generally
first right to buy it and generally generally have to give them something
generally have to give them something
generally have to give them something like $1,000 for that right for that
like $1,000 for that right for that
like $1,000 for that right for that option that’s not the way it’s used
option that’s not the way it’s used
option that’s not the way it’s used another way options are used in real
another way options are used in real
another way options are used in real estate which I use quite often is let’s
estate which I use quite often is let’s
estate which I use quite often is let’s say I go up to a project and they say
say I go up to a project and they say
say I go up to a project and they say we’re going to break ground in one year
we’re going to break ground in one year
we’re going to break ground in one year on this apartment condominium project
on this apartment condominium project
on this apartment condominium project and you can buy a condominium right now
and you can buy a condominium right now
and you can buy a condominium right now before it’s even built so it’s called a
before it’s even built so it’s called a
before it’s even built so it’s called a pre-construction purchase it’s also
pre-construction purchase it’s also
pre-construction purchase it’s also called buying off the plants in other
called buying off the plants in other
called buying off the plants in other words and I don’t recommend this
words and I don’t recommend this
words and I don’t recommend this wholeheartedly but off the plans means
wholeheartedly but off the plans means
wholeheartedly but off the plans means the building’s not even built yet but
the building’s not even built yet but
the building’s not even built yet but you go up to the developer because they
you go up to the developer because they
you go up to the developer because they have to sell so many of these projects
have to sell so many of these projects
have to sell so many of these projects they have to sell so many units or get
they have to sell so many units or get
they have to sell so many units or get so many buyers committed to them so
so many buyers committed to them so
so many buyers committed to them so let’s say I give them $1,000 down the
let’s say I give them $1,000 down the
let’s say I give them $1,000 down the price is $50,000 today and three years
price is $50,000 today and three years
price is $50,000 today and three years from now when the project is completed
from now when the project is completed
from now when the project is completed the project’s worth $150,000 at that
the project’s worth $150,000 at that
the project’s worth $150,000 at that point I don’t have to buy the project I
point I don’t have to buy the project I
point I don’t have to buy the project I don’t have to finance this hundred
don’t have to finance this hundred
don’t have to finance this hundred $50,000
$50,000
$50,000 what I can do is just basically sell my
what I can do is just basically sell my
what I can do is just basically sell my position my option to somebody else for
position my option to somebody else for
position my option to somebody else for the hundred thousand dollars and they
the hundred thousand dollars and they
the hundred thousand dollars and they can buy the property also so I do all I
can buy the property also so I do all I
can buy the property also so I do all I do all these types of options and real
do all these types of options and real
do all these types of options and real estates and even at right now I’m buying
estates and even at right now I’m buying
estates and even at right now I’m buying six units off the plans the buildings
six units off the plans the buildings
six units off the plans the buildings aren’t even built yet but I’m putting an
aren’t even built yet but I’m putting an
aren’t even built yet but I’m putting an option down in three years hopefully
option down in three years hopefully
option down in three years hopefully into skull speculation not investing
into skull speculation not investing
into skull speculation not investing because then speckling the price will go
because then speckling the price will go
because then speckling the price will go up the option just assures me that’s a
up the option just assures me that’s a
up the option just assures me that’s a certain price today and I’m hope I’m
certain price today and I’m hope I’m
certain price today and I’m hope I’m betting that the price will be higher in
betting that the price will be higher in
betting that the price will be higher in the future so these are the types of
the future so these are the types of
the future so these are the types of ways options are used in real estate
ways options are used in real estate
ways options are used in real estate also as an additional point I’d like to
also as an additional point I’d like to
also as an additional point I’d like to add that when you find in your area in
add that when you find in your area in
add that when you find in your area in identifying pieces of real estate this
identifying pieces of real estate this
identifying pieces of real estate this is where your broker becomes very
is where your broker becomes very
is where your broker becomes very important not all brokers are equal not
important not all brokers are equal not
important not all brokers are equal not all brokers are the same intelligence as
all brokers are the same intelligence as
all brokers are the same intelligence as you’re going through the area and
you’re going through the area and
you’re going through the area and looking at different properties you’ll
looking at different properties you’ll
looking at different properties you’ll soon find out the brokers you like and
soon find out the brokers you like and
soon find out the brokers you like and brokers who like you right right and
brokers who like you right right and
brokers who like you right right and then also not all brokers work with
then also not all brokers work with
then also not all brokers work with investors most of them work with home
investors most of them work with home
investors most of them work with home buyers especially the first time you
buyers especially the first time you
buyers especially the first time you know so there’s you know the kitchen is
know so there’s you know the kitchen is
know so there’s you know the kitchen is important you know how pretty is the
important you know how pretty is the
important you know how pretty is the paint and all that what we don’t care
paint and all that what we don’t care
paint and all that what we don’t care about that so on top of finding the
about that so on top of finding the
about that so on top of finding the right broker yet the find one that
right broker yet the find one that
right broker yet the find one that understands you and hopefully is an
understands you and hopefully is an
understands you and hopefully is an investor himself or herself right most
investor himself or herself right most
investor himself or herself right most brokers that understand you that have
brokers that understand you that have
brokers that understand you that have the same mentality our investors and
the same mentality our investors and
the same mentality our investors and don’t ever be put off by a broker who is
don’t ever be put off by a broker who is
don’t ever be put off by a broker who is an investor don’t think well if there’s
an investor don’t think well if there’s
an investor don’t think well if there’s any good deal that comes along he’ll
any good deal that comes along he’ll
any good deal that comes along he’ll take it for himself
take it for himself
take it for himself no broker can buy every deal that comes
no broker can buy every deal that comes
no broker can buy every deal that comes across as desk yeah the advantage of a
across as desk yeah the advantage of a
across as desk yeah the advantage of a broker that does invest as he
broker that does invest as he
broker that does invest as he understands the mentality understands
understands the mentality understands
understands the mentality understands what we’re after that we don’t care
what we’re after that we don’t care
what we’re after that we don’t care whether the deli on the corner is good
whether the deli on the corner is good
whether the deli on the corner is good or not
or not
or not we just want a good deal yeah investors
we just want a good deal yeah investors
we just want a good deal yeah investors think different than homebuyers real
think different than homebuyers real
think different than homebuyers real estate agents focus on the house and not
estate agents focus on the house and not
estate agents focus on the house and not the market so what I’m watching for or
the market so what I’m watching for or
the market so what I’m watching for or listening for hoping to hear is we I
listening for hoping to hear is we I
listening for hoping to hear is we I have a real estate broker who is the
have a real estate broker who is the
have a real estate broker who is the same thing with me is it looking at the
same thing with me is it looking at the
same thing with me is it looking at the area first the property second exactly
area first the property second exactly
area first the property second exactly and when you find a good broker pay them
and when you find a good broker pay them
and when you find a good broker pay them well I meet so many people who will tip
well I meet so many people who will tip
well I meet so many people who will tip their waiter 20% but try and stuff the
their waiter 20% but try and stuff the
their waiter 20% but try and stuff the broker 6% or whatever the Commission is
broker 6% or whatever the Commission is
broker 6% or whatever the Commission is you know that’s tipping somebody who’s
you know that’s tipping somebody who’s
you know that’s tipping somebody who’s costing you money rather than tipping of
costing you money rather than tipping of
costing you money rather than tipping of somebody who can make your
somebody who can make your
somebody who can make your I like to pay my brokers everything I
I like to pay my brokers everything I
I like to pay my brokers everything I mean I like making them rich because
mean I like making them rich because
mean I like making them rich because they making me rich to what I do what
they making me rich to what I do what
they making me rich to what I do what real estate guys do is opposite of what
real estate guys do is opposite of what
real estate guys do is opposite of what stock and currency guys do right so I
stock and currency guys do right so I
stock and currency guys do right so I don’t save money you know I used it
don’t save money you know I used it
don’t save money you know I used it right and in 2007 when the US market
right and in 2007 when the US market
right and in 2007 when the US market went down with the real estate market my
went down with the real estate market my
went down with the real estate market my partners and I borrowed a half a billion
partners and I borrowed a half a billion
partners and I borrowed a half a billion dollars not ran dollars right and we
dollars not ran dollars right and we
dollars not ran dollars right and we bought the best real estate possible and
bought the best real estate possible and
bought the best real estate possible and it was wonderful and then what happened
it was wonderful and then what happened
it was wonderful and then what happened in a few few months ago 2014-2015 they
in a few few months ago 2014-2015 they
in a few few months ago 2014-2015 they also re will refinance from five percent
also re will refinance from five percent
also re will refinance from five percent to two and a half percent well so
to two and a half percent well so
to two and a half percent well so imagine our debt service going down by
imagine our debt service going down by
imagine our debt service going down by 50 percent
50 percent
50 percent it’s our cash flow went up now when I
it’s our cash flow went up now when I
it’s our cash flow went up now when I talk to the average person I don’t care
talk to the average person I don’t care
talk to the average person I don’t care if there are PhD in economics I really
if there are PhD in economics I really
if there are PhD in economics I really don’t understand what I’m saying
don’t understand what I’m saying
don’t understand what I’m saying there so how can you make money off of
there so how can you make money off of
there so how can you make money off of debt absolutely and the reason is is
debt absolutely and the reason is is
debt absolutely and the reason is is because that’s what the rich really do
because that’s what the rich really do
because that’s what the rich really do is they use debt and taxes to get rich
is they use debt and taxes to get rich
is they use debt and taxes to get rich and the poor the middle class debt in
and the poor the middle class debt in
and the poor the middle class debt in taxes makes it poor how accessible
taxes makes it poor how accessible
taxes makes it poor how accessible really is real estate investing to the
really is real estate investing to the
really is real estate investing to the average Joe investor that wants to get
average Joe investor that wants to get
average Joe investor that wants to get away from the mainstream it’s always the
away from the mainstream it’s always the
away from the mainstream it’s always the same thing is that real estate is the
same thing is that real estate is the
same thing is that real estate is the best investment of all there’s two
best investment of all there’s two
best investment of all there’s two reasons why Real Estate’s the best
reasons why Real Estate’s the best
reasons why Real Estate’s the best investment time-honoured which you’re
investment time-honoured which you’re
investment time-honoured which you’re going to be smart at it then the number
going to be smart at it then the number
going to be smart at it then the number one reason for real estate is debt you
one reason for real estate is debt you
one reason for real estate is debt you know who else is going to give you money
know who else is going to give you money
know who else is going to give you money to buy you know they don’t give you
to buy you know they don’t give you
to buy you know they don’t give you money to start a business so they don’t
money to start a business so they don’t
money to start a business so they don’t give you money to invest in oil but they
give you money to invest in oil but they
give you money to invest in oil but they give you money to buy real estate so
give you money to buy real estate so
give you money to buy real estate so debt is the key so as I covered my book
debt is the key so as I covered my book
debt is the key so as I covered my book second-chance debt makes the rich richer
second-chance debt makes the rich richer
second-chance debt makes the rich richer and secondly taxes make the rich richer
and secondly taxes make the rich richer
and secondly taxes make the rich richer so when I buy real estate is the last
so when I buy real estate is the last
so when I buy real estate is the last investment where I can make millions of
investment where I can make millions of
investment where I can make millions of dollars and pay zero tax legally so the
dollars and pay zero tax legally so the
dollars and pay zero tax legally so the irony of it is these guys who are
irony of it is these guys who are
irony of it is these guys who are investing in the stock market
investing in the stock market
investing in the stock market they don’t really have any advantages
they don’t really have any advantages
they don’t really have any advantages for debt there’s some little bit and
for debt there’s some little bit and
for debt there’s some little bit and they have no real tax advantages that’s
they have no real tax advantages that’s
they have no real tax advantages that’s stupid
stupid
stupid so I don’t care what you say about good
so I don’t care what you say about good
so I don’t care what you say about good markets or bad markets good real estate
markets or bad markets good real estate
markets or bad markets good real estate bad real estate real estate is the last
bad real estate real estate is the last
bad real estate real estate is the last great investment number one for debt
great investment number one for debt
great investment number one for debt number two for taxes thank you so much
number two for taxes thank you so much
number two for taxes thank you so much for watching continue to believe and
for watching continue to believe and
for watching continue to believe and I’ll see you soon
”
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