'Rich Dad Poor Dad' author Robert Kiyosaki says Airbnb is set to spark a real estate market crash (2024)

FAQs

What does Rich Dad Poor Dad say about real estate? ›

Principle #1 – Your house is NOT an asset

Rich Dad Poor Dad says not so fast. He says that having a mortgage payment is actually a liability and NOT an asset. Instead, we should focus on investing in assets that put money in our pockets in order to grow our wealth.

The BRRRR method is a real estate investing strategy that involves buying properties, renting them out, and then selling them. The BRRRR method was created by Robert Kiyosaki in his book “Rich Dad Poor Dad” and is used by many real estate investors today.

"There's nothing wrong with buying a house," Kiyosaki says. "The difference is I use debt to buy it. And I pay no taxes. It's not the house, it's not the stock, it's not the bond, it's not the ETF.

Kiyosaki explains that his poor dad believed in the traditional path of education and getting a job, while his rich dad believed in creating wealth through entrepreneurship and investing. In this chapter, Kiyosaki explains that the rich do not work for money, but instead, they make money work for them.

Some critics argue that using an anonymous and potentially fictional character to convey financial advice can erode trust among readers. Critics argue that “Rich Dad, Poor Dad” promotes a “get rich quick” mentality and encourages readers to take substantial risks without fully understanding the potential consequences.

Hence, the question has been solved in detailed explanation manner. 1) What is rule #1? Rule #1 is "Don't work for money." Rich Dad explains that the rich don't work for money, they make money work for them. This means investing in assets that generate income, such as rental properties, businesses, and stocks.

The size of your success is measured by the strength of your desire; the size of your dream; and how you handle disappointment along the way.

It advocates the importance of financial literacy (financial education), financial independence and building wealth through investing in assets, real estate investing, starting and owning businesses, as well as increasing one's financial intelligence (financial IQ).

His primary income sources are book sales, speaking engagements, real estate, precious metals, cryptocurrency investments, financial education programs, and business ventures. He founded Rich Global LLC in 1977, a conglomerate specializing in manufacturing, retail operations, and financial education.

Kiyosaki's favored way to invest is for cash flow. There are many ways to do this. One of the most obvious is to invest in rental real estate. If you buy the right property at the right price, you can earn enough rental income to not only cover your costs but also provide you with positive cash flow.

How many rentals does Robert Kiyosaki own? ›

He stated, “I own about 12,000 rental units, but the real story is how did I acquire those properties. I use debt.” Kiyosaki emphasized that contrary to conventional wisdom, he leveraged debt to acquire more properties and consequently reduce his tax liability.

Many people think of homes or cars as assets, but they're liabilities. Investment and rental properties that generate income are the real assets. Overall, the Rich Dad, Poor Dad book is about getting a financial education and making wise financial decisions to acquire wealth and escape the rat race.

In 1997, Kiyosaki launched Cashflow Technologies, Inc., a holding company that owns and operates the Rich Dad and Cashflow brands.

Kiyosaki claimed that growing up, his views on entrepreneurship, money, and wealth were influenced by two figures: his “rich” dad and his “poor” dad. Kiyosaki's biological father—the “poor” dad referenced in his best-selling book—was highly educated and employed by the government.

According to Kiyosaki, the rich acquire assets and make the money work for them. They don't work for others but only for themselves. Earning passive income from assets is the key to building wealth over time instead of relying on a salary.

“Instead of putting money in your pocket, it takes money out of your pocket in the form of a mortgage, utility payments, taxes, maintenance, and more,” said Kiyosaki on his Rich Dad Poor Dad blog. “That is the simple definition of a liability.” When looking at technical definitions, an asset puts money in your pocket.

'Rich Dad, Poor Dad' by Robert Kiyosaki offers powerful money lessons on financial education, passive income, risk-taking, leveraging resources, controlling spending, handling debt, and personal growth.