Rich Dad Poor Dad for Real Estate Investors

Rich Dad Poor Dad for Real Estate Investors


It’s time to revisit
Rich Dad Poor Dad for real estate investing. That’s today’s
video, let’s dive in. Hey there, I’m Clayton Morris. I’m the founder
of Morris Invest. I’ve rehabbed
thousands of homes. And we’re a turnkey
business, which means that we rehab the
homes, place a tenant, and do everything
for our clients. So today, we’re going to
talk about the foundation of everything that
I do in real estate, and that is Rich Dad Poor Dad. That is Robert Kiyosaki’s
landmark book, Rich Dad Poor Dad. I remember reading
this book back when I was young and ignorant,
driving around California, when I just moved out
there after college and didn’t know
what I was doing. I had grown up with a real fear
around money, a real poor dad philosophy on money. The idea that you
work for a paycheck, hope to save some
money, whether it’s a 401k, which I didn’t even
understand a 401k at the time. I didn’t even know
what that was. But that every year, you
would hope to get a raise, and that would make you wealthy. And then at the
end of your life, you hoped you had a little
bit saved up to live on, and you could coast
off into the sunset. So I grew up with– no fault of my parents,
that’s just the way that 95% of this
country is raised to think about money, to
think that they should be working for a paycheck. Robert Kiyosaki’s model in his
book talks about the other 5%. That 5% of the American economy
makes up 95% of the wealth. 5% of people own businesses,
invest in real estate, and create true wealth. And everyone else
works for those 5%. There’s a reason for it. It’s because, frankly,
there’s a lack of education I believe in this country
about wealth building, about money making. Most people, I think,
in my high school were taught just how
to balance a checkbook. That was it. That was all the
monetary training that we got growing up. And the beauty of the
Rich Dad Poor Dad model is in taking that paradigm
and totally shifting it away from working for
a paycheck and having, instead, money working for us. Robert Kiyosaki talks about four
ways, four asset classes that create wealth in this country. Number 1, the number 1
way is through businesses, when wealthy people
create businesses. And other people work
for those individuals, they have employees
working for them that are then
putting in the hours, and they’re trading
hours for dollars. The business owner isn’t
trading hours for dollars. They’re probably off
in Cancun somewhere because they’ve built
the infrastructure of their business in
order to work for them. Now what he talks about
in the second asset class is real estate. Now the beauty of this model,
Robert Kiyosaki explains, is that when you combine
starting a business with investing in
real estate, he says those are the two strongest
combinations for wealth creation in this country. Now I want you to think
about that for a minute. Because we talk about that here
on the channel all the time, the best legal entities in
which to buy real estate, how to set up your business entities
for real estate investing. We have a whole series
of videos right here on the channel that
you should check out. But starting a business
doesn’t necessarily just mean starting an Apple or
a Google or a Facebook, although it could. Start ups are very powerful,
and they make a lot of money. A friend of mine just started
a health care startup, and he’s doing fantastic. And he just started
it a year ago. That’s not necessarily
what he’s talking about. What he’s talking about
is creating an LLC, starting an S corp, and
then purchasing real estate using that business entity. Follow me? You might not have 30
employees, but you’re setting up a business in order
to become a smart real estate investor. Those two things combined help
you create enormous wealth, because his point
is, if you’re buying real estate in your
individual name, John Smith, you’re going to be taxed
at John Smith’s tax rate. And if you work for
Starbucks, you’re going to be taxed at
a much higher rate than it does Warren Buffett. Warren Buffett used to joke
that his secretary is taxed at a higher rate than he is. Why? Why do you think that is? I’ll tell you why it is, and
what Robert Kiyosaki points out in Rich Dad Poor Dad. It’s because she is
taxed as an employee. That is the 95% of
Americans– are employees. That tax rate is higher. The tax code in this
country benefits entrepreneurs and investors– the 5%. It’s just the way that it is. I didn’t write the tax law, but
we can take advantage of it. We can use it to our advantage. The tax code in this
country was written to encourage investment
and entrepreneurship. So the other 5% are
business owners, and their tax rate is lower
than an individual rate. Therefore, if I buy real
estate as a business, as John Smith LLC
instead of John Smith, then I’m going to be
taxed at a lower rate than if I purchased that
property in my own name. Also, because I’m
a business, I’m getting all of the tax benefits
of real estate investing. I’m also getting all the
write-offs and the depreciation at a level. I’m also getting the legal
protection owning an LLC that I wouldn’t get if
I was a sole proprietor and owned it in my own name. He talks about those
two asset classes– having a business
and real estate. Combining the two is
like a freight train, it’s unstoppable. If you do it right, you
can create enormous wealth. The third way that
he talks about– mutual funds,
buying some stocks, making sure that
you’re diversified, OK. And the fourth way– commodities. He talks about gas and oil,
not investing in oil stocks, but actually owning the
real estate associated with the drilling rigs, which
you can then become a part of. That’s never something
that I’ve ever focused on, it’s not my specialty. But it’s definitely one
of his four asset classes that he says you should
be able to invest in. But his first two he lays
out are the two strongest and most powerful ways
of creating wealth– having a business and purchasing
real estate with that business. It’s unstoppable. The whole paradigm shift
in Rich Dad Poor Dad is really powerful,
the idea that if you can teach
your children not to think of earning a paycheck. My son the other day
to my wife and I said, I want to go to
college but you’re going to have to help
me pay for it because I don’t know how to make money. And we just looked at him,
and he’s six years old. And we said, oh buddy. We’re going to give him
the tools and the skill set in order to create wealth,
something that I never had as a kid, something
that I was never taught in school, that true wealth
comes from increasing our net worth and those assets
that are producing cash flow. And that’s what Robert Kiyosaki
talks about in Rich Dad Poor Dad, that the poor dad focused
on working hours for dollars. He would trade 10
hours of work a day for a certain amount
in return for dollars. That’s not scalable. You can’t expand beyond that. You can hope to get
a raise next year. And then the rich dad
philosophy is in trading money for cash flowing assets. As he calls them, the
golden geese, the geese that are producing those eggs. You don’t want the eggs,
you don’t want those eggs. You want the geese
that are going to continue to produce those
eggs month in and month out. And that’s the power
of rental real estate because, month in and
month out, your tenants are producing cash flow
for you so that you can hit a certain number. Maybe you want to cash
flow $5,000 a month? Well, that’s what,
10 rental properties? 10 rental properties
and you’re done. You’re now producing
that $5,000 a month. You don’t have to work
another day in your life, if you don’t want to. That’s what we talk
about on this channel. And we show you the videos. In fact, my ultimate
passive income guide is a video that’s pretty
long, but it’s so detailed and we go through
step by step by step how to create passive income. The Rich Dad Poor
Dad philosophy, if you haven’t read the book,
is the foundation of everything that I do in real
estate investing. Frankly, it’s the foundation
of all real estate investors because it’s that philosophy
of producing cash flow and increasing our net worth,
and not working for money, not working for dollars
and trading it for hours– hours for dollars,
hours or dollars. And I got to work overtime? Great, and maybe I
get time and a half. Uh-uh, no, done. I want you to change the way
you think about money, forever. If I give you nothing else
on watching this channel, please do that, try to shift
your thinking about money. I would love to hear your
feedback in the comments below. We have such a great
community here on the channel. Just go down there and leave
some comments, your thoughts. Maybe you read the
book for the first time and you’re taking action for
the first time in real estate investing, I’d love to hear it. Also, if you’re ready to
take action and pick up your first rental property
and you want it totally done for you where you don’t
have to get out a hammer, hire contractors, find
tenants, that’s what we do. That’s my whole company– we help you do it. Click on the link
below at Morris Invest. You can jump on the phone
with us for 30 minutes and we’ll help you pick up
your first rental property. That is our goal. And we work with
hundreds of investors around the world who have
many properties that cash flow every month. So go out there, everyone, take
action, become a real estate investor, and subscribe
to the channel, if you haven’t already. We’ll see you back here
next time, everyone.

54 thoughts on “Rich Dad Poor Dad for Real Estate Investors

  1. Loved today's vid. I'm taking action on real estate and biz…Thank you Clayton!

  2. Great vid. Just listened to you on cashflow ninja. Awesome info. I want to cash flow 5k passively! Rich dad really made me change my mindset about money.

  3. You are awesome sir!!!

  4. Thanks so much for the information and guidance. I keep watching your videos to stay encouraged. I am not ready to purchase but I will be calling you in the near future on my 1st investment deal. Thanks so much

  5. This channel is killer! I'm looking forward to our call in May. I'm ready to take action! Thank you for all of this sage advice!

  6. Another great video. Thank you sir!

  7. I booked a call with you sir. I just wish we could speak with you sooner.

  8. Hey Morris, this is very intriguing.

  9. Another great video, thank you Clayton. Met with Dave a few weeks ago. We are so anxious to buy our first 3-4 properties almost immediately but heading out of the country so need to wait till we get back. If it wasn't for you I would still be unaware of the power of passive income. Have listened to every podcast and Youtube video! Would love to talk to you someday, you have been a favorite on F& F.

  10. Hey Clayton. When I started watching Robert Kiyosaki's videos on YouTube about the 4 quadrants of income, expense, liability and assests, that's what made me start thinking about investment properties.

  11. Great Vid Sir!
    In my country, there are no taxes for the individual real estate.
    In that case do u recommend to start investing directly in real estate? I'm an Employee, and I'm looking to shift to Investor in real estate.

  12. Nice job Clayton!!! another great episode, such a powerful message for kids and their education. I always share with my 6 and 9yr old daughters.

  13. Finally!! Someone who shares the same experience in paradigm shift!!!

  14. Hi Clayton, if you l already purchase a rental property in my name, can l now transfer to an llc?

  15. great information here, thanks!

  16. how much do we have to pay your team to get me started?

  17. Great vid!

  18. Great video! I loved Rich Dad Poor Dad and started following your channel after I heard your interview on BiggerPockets. I love the way you approach real estate investing with a clarity and focus on financial freedom. One of the things that the Rich Dad Poor Dad philosophy stresses is this idea of getting cash flow. For someone in a financial spot where the (bad) debt has been paid off (to less than $2K) and is getting ready to make the next move, would you advise correcting/cleaning up my credit score first to take advantage of low interest mortgage opportunities or should the focus be on saving/building up the capital for the first investment?

  19. Mr. Morris great insight on how to take business stand point and bring it with real estate to make it a business. I enjoyed the video. Thank you

  20. Thanks for your videos you do a great job I've been investing in real estate for about 3 years now and really starting to scale and you can really make some good passive income at it about ready to quit my job in less than 2 years

  21. Spot on! Great content.

  22. Hey Thanks for the vid
    what do you think of
    owning a small business like a grocery store or laundromat?

  23. Also how do you know when you are truly ready to buy your 1st property? what's some of the main things you need in order? Thanks again

  24. Just purchased the Book Rich Dad Poor Dad to read before my call on Monday afternoon~

  25. I'm not saying this to fluff your feathers, but as someone who just finished the book, I really feel like this video is an adequate replacement for it. The book is really more philosophical in nature and you pretty much nailed it.

  26. I'm in need of a real estate mentor for investing….HELP!!!

  27. Thanks for the video! I read his book many years ago before finishing school and it totally changed my perspective. Now I’m ready to take those principles to make it a reality.

  28. Within one year of listening to Rich Dad Poor Dad on Bluetooth audio while driving for
    “ the big cola company” , I have quit that career, started my real estate LLC, purchased my first investment property, wholesaled my first investment property!
    (different properties)
    Thanks for the knowledge Robert Kyosaki!
    I LOVE REAL ESTATE!!!!! 😀🤑
    I can’t wait to see whats next!

  29. I was a student of Rich U while I lived in Hawaii… We own & have played the cash flow game. 10 years later we own 5 units. I had a goal, a few months ago I came across Morris Invest and know with a fair amount of equity I'm looking to put it to work. I want my money to work for me, instead of me working for my money and I'm hoping Clayton and his team can help me achieve my new goals of financial freedom.

    Here to having the courage to work towards doubling my previous goal and putting it into action. Thank you for the motivation and the insight to help me on my way.

  30. This is all true! #MiamiKid

  31. Clayton
    I just found your videos. Miss seeing you on Fox. I have some things to ask but do I ask on this forum or is their another way. I probably missed something

  32. I am getting into real estate investing based on your terrific vides and podcasts.  I was wondering what bookkeeping software you or Natali can recommend to keep track of expenses, finances.

  33. so if I own a rental in my own name but as of now have dumped all profits back into the property as to not pay taxes on that income is there any reason to put it in an LLC or S corp to avoid paying taxes right now, or are there other benefits that I am missing out on by not owning it under an LLC. or S corp?

  34. Whats an LLC in Canada ? I'm canadian from Montreal and i am not sure this will work. I own a condo and its almost paid off and rented. And planning to get another one. Can i switch my almost paid off condo in LLC ?

  35. I am Kiyosaki follower and I feel, After kiyosaki, you impressed me with your good presentation

  36. I love your channel. I'm watching all your videos. Thank you. I'm going to be rich. I know it. I'm ready so many books. Ur helping me so much

  37. ❤❤❤

  38. This is a great and informative channel!! Thank you!

  39. What’s your take on owning real estate properties that are older than 30+ years?

  40. Hi Clayton, any thoughts or opinions about the Rich Dad 3-day seminar? Worth it for $700, or …?! I appreciate any advice you are able to offer. Thanks!
    PS: I enjoy your show very much!

  41. 3 comments..I have a condo in Calif to sell that I am planning on using to buy some rentals from a turnkey. After seeing some reviews online that were negative, I am a little unsure as to which turnkey to 'turn' to. …

    When I repaired my condos on my own, I made a name for my future company as a little joke. After learning about needing an LLC, it really surprised me that my little biz existed beforehand and was actually going to become a real boy. lol. so proud.

    There is a Rich dad/PD speech coming to my area next week and I'll definitely be there.

  42. Great vid and tips on taxes/ real estate 👌👌

  43. I just finished Robert's book and I have always been convinced this was the way to go. I tried in the past and actually do have one rental now but I am ready to scale up.

  44. I love it!!! you fire me up!!!

  45. Totally agree, personal finance is a powerful tool for life..

  46. Hi Mr. Morris,
    According to your video, I need to create an LLC and buy properties under that LLC. However, I am usually using the traditional bank and they won’t allow me to buy rental properties under LLC. I watched some of your video and know we can put those rental properties in the LLC after close on the properties. If I first purchase the property in my name then place it in the LLC, will I have the same the tax benefits and the protection as I purchase it under LLC in the first. How can do the refinance in the future? (Take it out of LLC, refinance, and put it back in the LLC?) Furthermore, I know the limit for one person to own the property under their own name is 10 properties. For example: If I own 10 properties under my name, and then put it in LLC, will it consider that I am not owning any properties in my name and I can still purchase another 10 difference properties in my name and repeat that process.
    One more question, how many holding company/ LLC can be formed in one person name?
    (I want to ask because I want to open one holding company for myself and another one for my brother and I).
    Thanks!

  47. Why the clock in background is not ticking, it's showing 10:10 in whole vdo…. 😊

  48. Everyone can’t be rich

  49. thank you! so helpful!

  50. Its not just lack of education. Information is out there, a lot of it for free. I am a former college professor, and I could watch students and pretty much tell the ones who would wash out. Yes, you could see it in their grades, but their grades were only an outward manifestation. You could see it in their deportment. None of these washouts were stupid. Most were just lazy. I think the majority of society is this way. The old adage "The creme floats to the top" is very true. The beauty is each of us can CHOOSE to be that creme…or not.

  51. Awesome, I m a new real estate investor. And a new fan and listener to your show. You guys are always spot on. What really love about your show is. You are very Factual and, right to the point. I'm a late comer to real estate. Investing. But once I learned about Robert Kiyosaki, I haven't looked back. I started my son reading Robert Kiyosaki Rich Dad Poor Dad. Cashflow quadrant and everything in between I started him at 11 years old. and he reads every night before he goes to bed. One of my goals is to, fund my son's college tuition with the funds from rental property real estate. while he learns real estate investing so that he can one day continue On.

  52. The book has changed my view without a doubt. But a warning, the rich dad Corp offers expensive train g starting with a free seminar I just attended. It's a horrific sales pitch that I am absolutley disgusted with. I'd rather keep my Integrity than make it rich by hurting others. looking at the reviews and seeing the law suits against the rich dad Corp training I hope nobody else is hurt by them again.
    I have a lot of respect for YouTube channels like this though, ur doing a great job and I'm learning a huge amount from you. Thank you.

  53. Excelent advice

  54. Rich Dad Poor Dad and The Richest Man in Babylon are my 2 favorite books. I wish I could have read them when I was much younger.

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