rich dad: this takes the biscuit!

M

markowitzman

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Stumbled on this link:
[broken link removed]
Not a bad month's work for a man that is predicting a bust!
 
In case you get bored with all the folksy stuff at the beginning and don't reach his done deals for July, here they are in full. Makes Liam Lawlor seem lazy.

I decided to share with you my investment transactions for just one month, the month of July 2005, to give you an idea of what I invest in and that I am still buying real estate. The following is our investment activity for the month of July.
  1. Sold 30 unit apartment house for $2.0 million. Net gain, $1.3 million and did not 1031 exchange the capital gains because I want to roll this money into another investment outside of real estate. Cash in bank. (Big Deal Card)
  2. Sold 10 condominiums. Net gain $1.4 million in one year. 1031 exchange proceeds into: (Small Deal Card)
  3. Purchased 288-unit apartment house in Tucson, Arizona with 1031 money. This is a partnership with Ken McElroy, friend, partner, and Rich Dad Advisor who will rehab and manage the project. Purchase price $13 million. Expected cash-on-cash return on investment 16% before tax breaks. Positive cash flow after a year of approximately $240,000 per year or $20,000 per month. Exit strategy: hold for at least 10 years. (Big Deal Card)
  4. Purchased a $2 million, one acre lot on an island in the Caribbean for $1 million because we are friends with the developer. Exit strategy: sell for $2 million or build our own home on the lot. (Small Deal Card)
  5. Purchased 24 acres of land in an Industrial Park in Tempe, Arizona for $7.50 a square foot. Price of land in same park is selling for $12.50 a square foot. Exit strategy: develop the property and sell. (Big Deal Card)
  6. Purchased 28 acres of land in Bisbee, Arizona for $164,000 cash. Exit strategy: subdivide into 7 4-acre home sites, selling for an average price of $75,000 per lot, and sell on terms of 20% down, 8% interest. Land is spectacular, on a hill, over looking town and million dollar homes below. Since land is next to the town, may attempt to get land annex to the city, get city water to the property, and then ask for a higher density development. If we can get our land zoned to allow 1-acre lots we would have 28 lots to sell, at the same $75,000 per lot price. But this is a long shot. If you do your math you will find the numbers look good, if I can get my prices, whether I sell 7 lots or 28 lots. (Small Deal Card)
  7. Purchased two-bedroom condo with boat slip on Columbia River in the heart of Portland, Oregon. Why did we buy it? Because we are friends of Ken McElroy, the developer of the project, and author of the Rich Dad’s Advisors book, The ABC's of Real Estate Investing. He offered us the best unit at a below market price. I am a sucker for a good deal. Exit strategy. Do not know yet. (Small Deal Card)
  8. Put up for sale a 7-acre home site in Bisbee, Arizona. Asking price $90,000. Purchase price zero. We actually got the piece of land for free when we sold off a piece of land next to it. (Small Deal Card)
  9. $95,000 invested in an oil and gas drilling venture. Reason for investing: 70% tax break in year one on our $95,000 investment and the potential of a 30% to 50% cash on cash return, if they strike oil and gas. (Fast Track Investment)
So this is just one month’s investing activity, the month of July, for Kim and me. This is on top of running the Rich Dad business; writing a new book; making television appearances; showing up for book signings; teaching groups; going to Seattle to be inducted into the Amazon Hall of Fame; going to New York to attend my neighbor Ryne Sandberg’s induction into the Baseball Hall of Fame; vacationing in Hawaii; attending my high school reunion; playing golf with rich dad’s son and his wife for three days at three different courses; and traveling to Atlanta to speak at Pastor T.D. Jakes Megafest, a convention that is expected to draw over 140,000 people. As you can see, although we are busy, we still find time to invest in real estate.
Obviously, this past month is busier than most months. Our investing will slow down as we get back to work in the fall and travel overseas. One point I want to make is that even in a very hot market, there are still great deals to be found if you go out and look and have friends who are professionals in the business. Most of the deals were insider deals that never made it to market.
For those of you who are wondering what "small deal," "big deal," or "Fast Track investment" means, these are references to the size of deals found on my board game CASHFLOW® 101. The reason I included them in this article is because I want people to know that Kim and I are playing the CASHFLOW game in real life. To us, it is more than a game, it is our life. We know that the more cash flow we have, the more freedom we have... and that is why we play the game... in real life and real time.
 
Brendan said:
Kim and I are playing the CASHFLOW game in real life. To us, it is more than a game, it is our life. We know that the more cash flow we have, the more freedom we have... and that is why we play the game... in real life and real time.
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And part of their real life is flogging the actual board game to gullible punters?
 
If this was such a wonderful idea, then why is the game so over-priced?
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It is certainly a wonderful idea for Kiyosaki, there are plenty of gullible eejits out there willing to fork over their hard earned cash to him in exchange for a bloody board game!
 
Sherman said:
It is certainly a wonderful idea for Kiyosaki, there are plenty of gullible eejits out there willing to fork over their hard earned cash to him in exchange for a bloody board game!
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While I personally would not shell out for something like this - an unbelievable amount of adults do not understand simple concepts such cashflow, that assets are things that generate income, live below your means & save etc.

So for those people, if they parted with a couple of hundred quid or whatever it is, and actually grapsed those few concepts as a result - then they'd certainly be better off financially in the long run.
 
i do not condone illegal behaviour but a friend downloaded all kiyosaki's books in mp3 and .pdf format from a well known p2p filesharing programmefor nothing.
 
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