Robert Kiyosaki – New Rules of Money, Part 5/7: Good Debt Vs. Bad Debt
Posted by admin | Under bad credit mortgage Sunday Jul 25, 2010
Robert Kiyosaki – New Rules of Money
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this should be …
this should be shown in econ classes
@GrandPatzer …
@GrandPatzer Philosophies do not win arguments. Facts do.
Making a profit is his point. All the other details are summarized in this video. Reading the book series will provide elaboration on those details as this exact example comes up several times in his literature.
To elaborate on your questions in your defense, “You get rich when you give people [who don't know better] something they need.”. It is a very sound policy to bet in the ignorance of others.
I love this
I love this
so you say, instead …
so you say, instead of renting house, renting place for parking. I do not know whether you are right. if i own a hotel, or a dozen of hotels it is by far different from renting a house. hotels charge very much by the night. hotels are great investment, thank you very much. if you rent houses by the month, then you only get a fraction of your investment. Robert says big words with no value. I almost bought 3 of his books, but i canceled my order.
Thats why Donald …
Thats why Donald Trump only owns property that makes more money than it seems. A hotel makes money by collecting mini-rents. A casino on the other hand does the same, but also includes venues that include several income streams, therefore the gap is not only covered, but always cashflow possitive. This is why most hotels in the world today are not just rooms to let, which is wrong as ANY single-income-stream based business. If it goes bust, there is no counterbalance from other income streams.
Your argument …
Your argument although true does not always apply in real life. There are MANY exceptions. Say I get a construction loan. I build a parking lot, it is SUPER CHEAP property to own, and I collect RENT, every single HOUR, every week, every month, by the hundreds. The mistake most people do, is that they get a loan, build a 3 story house, live in one of the 3 apartments, pay the loan+expenses+repairs with the rest 2 rents, so they barely break even. Scaling while keeping costs down is the key
@bookskamaki I …
@bookskamaki I agree with robert for the most part, but in this case i agree with you, the mortgage of a house is at least 900 plus so its about 1300 a month, how can anyone make money of that, you would have to rent out your house for like 2000 to make any money, most people cannot afford that. the only way i see robert’s point is if i bought 10,000 in silver and put it on my credit union at 5% interest, then yea i could make some money of that, but not of a house.
the rents are …
the rents are usually average price. The prices of houses do usually go up. The rents (profit after taxes and house repairs) are usually 1/900 to the price of the house. How are you going to pay the mortgage with the rent you are getting? it is insane.
I know many people who invested on rents. The got broke in 20 years. Because you cannot expand with rents .
This guy sell books to people who do not have microsoft excel. A simple test to excel proves him very wrong
@GrandPatzer if i …
@GrandPatzer if i was rich already , i wouldnt go to youtube and learn how to be rich. You think i am Bill Gates?But i did one simple thing. I wrote down what he said and calculated . It is not hard. All you need is an office excel. Calculate the mortgage and the rents and they are quite un even. You may get rich this way after 30 years. If after 30 years do not need to work , it is not so good strategy.
Really? Are you …
Really? Are you rich? How did you become rich? What is your philosophy to refute his? Please share.
if his good soul …
if his good soul who is giving rent was a little more clever than a monkey he would have bought the house and pay the mortgage and own the house. this is stupid philosophy he is teaching. “you get rich when you give to people something that they need.” Thats the rule. He is deceiving us with programs that do not work.
by the way iam so …
by the way iam so happy i just got my free amazon voucher at FreeAccZ[dot]info
Here are a couple …
Here are a couple examples of good debt:
1) I took out a student loan for my higher-education in order to learn a skill/trade that will pay me for the rest of my life.
2) I use credit to purchase products for my business that I will resell at a later date for profits.
Bad Debt:
1) Take out a bank loan for a vacation or jet skis (liability)
2) Buying a house thinking that when it appreciates in value you will become wealthier. A house can be good debt if you use it for a home business or rent
can someone please …
can someone please explain the point of this Bad Debt vs good debt concept? I understood the assets and liabillites video before this.
@lcbaudar The only …
@lcbaudar The only reason you can even get a mortgage on a house right now is because the FHA is guaranteeing it at mounting losses. 90% of the mortgage would otherwise be FROZEN and will be at the current rate of losses. Study the full scene. There is a symbiotic relationship with China that funds the US’ ability to issue credit to buy a home (via US Treasury’s). When consumers are not buying Chinese products, there isn’t a sufficient amount of dollars to recylce back into the US. The END.
@themuthasback Well …
@themuthasback Well I don’t know about you, but I’m a product of my generation. Just another guy who bought into the multi level marketing scheme of real estate and how reading ‘101 things rich people think’, won’t get you anywhere. Those people got rich selling books on ‘how to get rich’. Robert glazes over the true factors that strain our economy. The draining of capital from our labor into paper instruments that vanish in losses, creating no domestic investment in our standard of living.
Well, Ic, you seem …
Well, Ic, you seem to have all the answers. The great thing about that is you’ll be very attractive to “lost souls”… When you stated “What is financial freedom but a never ending dependence on money itself”, it let me know that you have decided to only see the side of living that you WANT to see. I need not to attempt to motivate or educated you any longer. As long as you’re ok with your situ, that’s all that matters. Yet, each day you’re alive on this earth, you have a chance… to “SEE”…
You see Rich Dad …
You see Rich Dad Poor Dad represented more than class struggle. It represented the glorification of money over ideals. Poor dad was a teacher helping educate. While Rich dad was a real estate developer. You want to INVEST in your community, build a school. Your profit – zero. Support your local church (Your profit – zero.). You want to make a PROFIT, lease out parking meters, give private loans at usury rates, out-source jobs to minimize overhead and escape emission regulations. Long live profit
@themuthasback, …
@themuthasback, Rofl. Yes I’ve heard of people on welfare expressing similar freedom, although I don’t exactly support the idea. What Robert is seeking to do is laudable given the few that will actually seek financial ‘gain’ from it. But he ignores the multitude of poor made poorer from it. This is best typified in his example of hedging gasoline costs by leveraging in oil. It might make him a profit, but it raises the gasoline price of every other user. How selfish. Poor dad would be ashamed.
…then, in the …
…then, in the mean time, you may find CREATIVE WAYS to exit your life (your desires, your needs, your dependencies) from the monetary slave game, and let the rest of the uninformed / undisciplined world play that game all around you. Worry about YOUR freedom! If they don’t care to do the necessary work to be free, let “them” slave!… Can you see your financial invincibility? I… I…. I said CAN YOU “SEE” YOUR FINANCIAL INVINCIBILITY???!!!
I once shared with …
I once shared with a professor of mine that both the rich man AND the poor man worries about money; the poor man worries about FINDING it, and the rich man worries about PROTECTING it. They are still both enslaved by the same game, experiencing the same “magnitude” of anxieties… Alas, do you know who’s FREE from the game in this kind of society??? The RETIREE (who keeps his daily “monetary expenses” LESS THAN his overall “monetary savings”). Kiyosaki, a RETIREE, attempts to show us how…
Yes, religious, but …
Yes, religious, but RIGHTEOUS!!!… Right on key!
@ themuthasback Yes …
@ themuthasback Yes, I wonder myself. In the end there will be the blue and red pill. What is financial freedom but a never ending dependence on money itself. Money to represent trade, money to fuel our goals & aspirations, money to define our social class. And yet it is but money, paper and metal assigned a notional value. These objects bear nor deliver love. Like all other classes of species, we need not abide by the rules of money to enjoy the natural freedom of life. Sounds religious, eh?
The ironic thing …
The ironic thing about this (that irks me) is that there is really, truly a solution to offset intentionally-constructed unequal markets. Of course, it doesn’t help to be the only one of a few of the entire socioeconomic population who’re willing to “LIVE” it. If you had the FINANCIAL POWER to get involved in these Permabull-like activities (if it meant your “financial freedom”), would you consider it??? We’d have to answer that on our own….
I get it… and you …
I get it… and you know what? This is something that is never advertised when people sell the notion of the “American Dream”. The reality of the economy is that it’s built off of scarcity (plus) pyramid schemes galore. In an unbalanced socioeconomic system, the idea of “anyone can do it” is only half of the notion. “Anyone can get jerked like a mugg” is the other part of it. lol. But you seem to know these things already…