Epic Real Estate Investing - Rich Dad’s Robert Kiyosaki Talks Second Chance with Matt Theriault | 466

Episode Date: September 10, 2018

Rich Dad's Robert Kiyosaki talks second chances with Matt Theriault on The Epic Real Estate Investing Show! Learn why you should check one of Matt's all-time favorite books, "Rich Dad Poor Dad," why you should exit the stock market, and how you should use debt and taxes to invest. Learn more about your ad choices. Visit megaphone.fm/adchoices

This is the Epic Field Report. Hey, Rich, good to see you again. Congrats on all your recent success. Remind me, what markets are you working in right now? Thanks, Matt. I'm currently buying and selling land in the desert areas east of L.A., so Joshua Tree, Apple Valley, Yucca Valley, Hesperia, and then north of L.A., Palmdale, Lancaster, Lake Los Angeles.

Anything outside of about an hour to two-hour radius of the Los Angeles. Sanctalus metro area. Got it. Super. So you've been doing really well. I noticed your big win on follow-through Friday inside of the Epic Pro Academy's private Facebook group. Congrats on that.

I just going to read it really quickly. Been grinding per 12-week-year plan. We started about seven weeks ago. Momentum has started to kick in with 11 properties under contract in the last three weeks. So that's amazing. So how are you finding your deals? In the land business, getting deals is relatively easy.

So I'm getting lists from the county. I'm then figuring out what the value per acre is in an area, and I'm doing a spreadsheet exercise to calculate offers in bulk, and then I just mail those offers out. Got it. So you're just mailing out offers. That's your direct mail piece. Mailing out offers, yeah. So you first mentioned my 12-week plan. Our goal was to get candy fired at the end of 12 weeks. We're not quite there, but that required an income goal. or income achievement. And then I broke that down in the number of deals that I have to sell, which equals number of deals I have to get, which means the number of offers I have to send.

And so that's been a number that I've been driving very, very hard to achieve every week is having a hard number of actual no-joke offers that I have to send out every single week. Got it. Okay, so you've got this goal. You've got these 11 properties under contract. What's the extra strategy that you're going to be? be deploying here to actually get candy, your fiance, by the way.

Are you guys married yet? Still fiance, yeah. It's kind of, you know. Kind of. 50 plus, you know, whatever. All right. You heard it here first. Anyway, so what's the actual plan to get her fired from her day job?

So, we want to accumulate $50,000 in cash flips and or increase our monthly cash flow by $2,000. We're at about $3,000 right now. So each deal is different. Some properties lend themselves to a cash flip exit. Others lend themselves to a seller finance exit. And so I'm getting better at crafting the ads for each and marketing each flavor of property. And then when you get 11 deals, which is now 14 deals under contract in three weeks,

it highlights some weaknesses in your process. And the weaknesses in our process are getting those properties, research and getting them up on the market quickly and, you know, in a saleable manner. So that's what I've been focused on in the last couple of weeks. Got it. So that might answer my next question. I was going to, I typically ask what's the biggest lesson you got from this transaction, but you've got 11 properties under contract.

And so collectively, what would you say is the overwhelming or overall lesson that you've learned here? Is it just the dissolution process? The lesson is I need to quickly build myself. a land investment business rather than a land investment job. I need to create processes, delegate hire before I feel I need to. So getting this many deals all at once has put me firmly in the camp of only do something for as long as it takes me to figure out how to teach someone else how to do it and then hire that person. So that's really what I'm focused on now.

That's awesome. Fantastic. So when Candy, quits her job, we get her fired, right? How are you going to celebrate? Ideally, it happens at the end of a 12-week block, and we take a week off and we celebrate, which for us means cocktails and margaritas, much like you guys, and then really bring her on board as my partner so that we as a team can build this as a business with me basically running the back of the house, putting deals in the window, and her managing the front of the house because she's definitely the front of the house person, not me, on the process guy.

That's awesome. That's awesome. Well, keep doing what you're doing. Congrats on the success. If you need anything, let me know. And let's stay in touch. Thanks, Matt. Appreciate it. All right. Take care, Rich. Bye. Love the beard, by the way. Thanks. See here. All right. Bye. Yeah, yeah, we got the cash flow. You didn't know home boy, we got the cash flow. Yeah.

What's up? Hello, and welcome to the Epic Real Estate Investing show where we meet here each and every week's help everyday people escape the rat race using real estate. Thank you so much for listening to the show. And if you haven't done so already, make your way over to Instagram and follow us at Epic Real Estate. Turn your notifications on because we give stuff away there all the time now. You don't want to miss out on that. All righty. So as you've probably heard getting together this fall in Boston for the next Epic Intensive,

the next Cashflow Conclave. So if you'd like to join us, you can go to Epicintensive.com for all the details, Epicintensive.com. And all the free tickets are gone. Those disappeared. But there is still a way for you to attend for free. So if you'd like a free ticket to the Epic Intensive, actually two free tickets, go enroll in the free real estate investing course. Well, I'll show you exactly how that if I lost everything and had to start from scratch,

I'm going to walk you through the process of exactly how I would do that. And so you can get access to that at free real estate investing course.com. And with your enrollment, you receive two free tickets to the Epic Intensive. Got it? So go to free real estate investing course.com and you just kind of walk in the back door and snatch two more free tickets. for yourself and meet us in Boston and we can work on this stuff three days together. Elbow to elbow and we'll get it done.

All righty. So I got a good episode for you today. I was thinking the other day of some of my highlights as a real estate investor, as a trainer, as just a, I don't know, as a podcaster, just as an overall human being, really. I mean, I look back and think about when I got started investing in real estate and the book that just launched everything for me, that changed everything, as it's done for so many people, being rich dad, poor dad. I don't know if you've heard of that book or not, but you should check it out if you haven't. And that book just launched me in a direction that I could have never

seen for myself if I hadn't read that book. So when I got to sit down with Robert Kiyosaki face to face and talk real estate and be able to thank him right to his face for everything that he has done for me. And I thank him on behalf of all real estate investing entrepreneurs overall entrepreneurs on their behalf. And it was just, it was pretty amazing. And I started thinking about this because we were loading up some of our most recent videos to YouTube. And that video popped up. And I was like, wow, that was like four years ago.

I can't believe four years have passed already. So I watched it. And it was just like, it was just cool to reminisce. And I just thought I would play that for you here today. It's a short interview. And it's interesting to hear what has happened since then with regarding to what he's talking about and everything. So I thought I just played it for you here today. All righty?

Enjoy the show. It's time for Financial Freedom Friday with Matt Terrio. Thank you, Robert, for taking time out to meet with us. Oh, thank you. It's a pleasure to meet you. I feel like I've probably heard this a million times. I feel like I know you already. Oh, thank you.

I read the original book, and I think I've read every single one since. Thank you. And, you know, a lot of the stuff that you've probably heard a lot of times, it just wouldn't feel right if we'd start this conversation without me, at least thanking you. And, you know, you really changed my life. And not just in an idea way. I've actually been able to take and just about everything I think I've heard from you and implement it into my life and stopped focusing on creating the piles of money

and we're focused on creating streams of money. And we've been able to do that for our clients as well. And of all the people that I've interviewed, you know, they all at some point in our conversation cite rich dad, poor dad, as a turning point in their life. So just wanted to start by acknowledging you for the, contribution that you've made to the world. I appreciate that. As you know, I'm at times controversial. Well, that kind of leads perfectly into this next question is that, you know, I hear a lot of your critics talk about its theory, it doesn't work, and we've actually

been able to implement it and prove that it works, and we've held the hands of our clients and had it work for them. And I'm really curious to what your opinion is of why the financial experts of today, some of them with the biggest platforms, many of them household names, where's the resistance? Why are they still subscribing to the work, work, work, save, save type mentality? This is a middle class mentality. It's very, very middle class, and nothing wrong being middle class, because I came from, should I say, middle, middle class, you know what I mean? It's go to college, get a job, work hard, save money.

you know, buy a house because your house is an asset, you know, get out of debt, live below your means, and invest in the long term of the stock market. That's extremely middle class. You know, play it safe and, you know, vote Republican or Democrat and your vote counts. And meanwhile, we've been ripped off, you know. So as a little boy, I write about my latest book, Second Chance, which I get a copy of, is that all, coins have three sides. There's no such thing as a one-sided coin.

So when somebody takes a side, then you're ignorant because you don't see the other side. So what I say in Second Chance here is that a coin, all coins, there's no such thing as an exception to that coin. So those heads, tails, and the edge. And intelligence occurs when you stand on the edge. So as a nine-year-old boy having a rich dad and a poor dead, you know, I had to stand on the edge. So my poor dad, you know, a PhD, good man, honest man, hardworking, volunteered in civic duties and all that stuff. Everything a man should be, good father, never fooled around on my mother, was home every night, didn't drink that much, and all that stuff. Go to school, get a job, save money, work hard, your house is an asset, and da-da-da.

So that was one side of the coin, the middle class side of the, also the poor side of the coin. On the other side of the coin, the tail side, let's say, was my rich dad. He says, you don't get rich doing that. That's what the rich don't do that. So as a nine or ten-year-old boy, I'm standing on the edge of the coin, which is a story of rich dad, poor dad, looking over at the poor middle class on one side and they're rich on the other. And since most people go to school and get a job and all this, all they know. And so when I say something else, like your house is not an asset, savers

or losers, the rich don't work for money, you know, things like that, I don't invest in the stock market. The other side of the coin goes nuts. And they're on, so what you were able to do was read my book and stand on the edge of the coin and go, is it poor dad or is it rich dad? And so the people who took the side of rich dad, they're happy, they're moving forward and all this stuff. The guys who took poor dead think I'm the Antichrist. You know, they think I'm bin Laden or something. You know what I mean?

I'm a terrorist out there. And I'm not saying, don't go to school. I'm just saying school does not teach you this. Right. Because that was my poor dead. Right. So that's kind of the reason. And so for your people that listen to you, they stand on the edge and they have to make

that decision too. Am I going middle class and poor? Or am I going to go rich? Right. Do you see any, you know, even? The book came up 15 years ago, Rich Dad Poorhead? 1997. Oh, is that or that?

I thought it about 2000. Okay, so it was a long time ago. It's been a long time. What type of progress have you seen in your message infiltrating the mainstream? Or has it? Are you discouraged? Are you encouraged by what's going on right now? No, it's like I said, all coins have three sides.

Right. You know, there's no such thing as a one-sided coin. Right. There's not one-size-fits-all. Right, I see what you're saying. So the people who are on the go to school, get a job, work hard, save money, invest for the long term, live below your means, they're still doing what they do. You know, and the guys like you, I said, oh, okay, I'm going this side. So there's what I consider a migration.

You know, certain people are going this way, this way, this way, especially, look, in 1997, I said, your house is not an asset, and I was crucified. Right. You know, I was, I'm a Jewish guy, a Japanese guy hanging on the cross, you know. You don't know what you're talking about. Then, and so in 2007, you know, the subprime mortgage crashed. And so everything I said came true. I said, your house is not an asset, and millions, and all across the world, millions of people found out their house is a liability.

But, you know, they still think the house is an asset, even though it's a liability. And the other thing happened was in 2008, you know, quantitative easing started TARP programs and all this. And they found out that savers are losers. So I had written a book a little bit earlier. We can show it on the crayon. It was called Rich Dad's Prophecy. So Rich Dad's Prophecy came out in 2002. So I'm still the bad guy up in 2002.

And I said the biggest stock market crash in history is coming in 2016. So I am 12 years out making that forecast. And if you look at the charts, 2016 is coming. Sure is. And it may not be 2016. hope it doesn't happen. But if that Rich Dad's prophecy comes true, the upper middle class will get light down because most Americans, most people throughout the world today are in the stock market. In other words, if you work for the government of, let's say, California, Arizona,

your retirement's in the stock market. If you're a schoolteacher, your retirement is in the stock market. So never has the stock market, you know, the Dow, let's say, been so high, the Dow was over 17,000. And they're saying, oh, come on in, man. The stock market's high. You've got to be crazy. Why would you buy it an all-time high? Because the only direction can go next is down.

Yes. So that's why in 2002, 2004, Rich Dad's Prophecy, and hopefully it doesn't come true. But if it does, we're going to see a depression like we've never seen before. This is too deep of a question. You can redirect it if you want. But if these prophecies do come true in 2016, your prediction of the biggest stock market crash,

what are some of the things that someone could do right now to prepare themselves for that, so to mitigate their damage and mitigate their loss? Well, as being as capitalistic as possible, buy this book here. That's how I wrote this book because it just came out in January of 2015. And the book's in three parts, past, present, future. So the reason most people cannot see the future is because they've never had anything. They don't understand the past. So part one of this book is written very, very simply.

I use a lot of pictures, you know, pictures like this. So everybody can understand. A 10-year-old kid can understand it because I could understand it. And you'll see what's happening in the past. And when you can see the past, you can see the future. And so part three of this book is the future. and stuff like this, and you'll understand standing on the edge of the coin.

When you read this book, you will stand on the edge of the coin. And you go, okay, this is what the middle class is doing, and so the poor is doing on this side, and this is what the rich are doing. The rich are not on the stock market. They're going to get out. So all the guys who invests for the long term for their 401K, hopefully I'm wrong, will be wiped out.

So all the doctors, the lawyers, the CEOs and all that, anybody whose retirement is based on the stock market is in trouble, in danger. If I'm correct, if my rich debt's correct. So rich debt, second chance here is saying this, read the past, stand in the present, and look at the future. And you make your mind up because your second chance, this may be it. This may be the biggest opportunity of all simply because, as you and I know, more money is made when the market's crash. You know what I mean? I made more money after 2007

buying the best real estate at cheap prices at low interest rates. That's how you get rich. And all the fools jump in when prices are high. So idiots jump in at the top and the rich guy jump in at the bottom. And that's what this book's about. So second chance to make a killing, but not get killed.

I can't wait to read. I haven't just as a first time seeing it. I knew about it, though. I made it very simple so a kid can understand it, but also you can talk to your friends. You see if it's in pictures. You have friends who are saying, yeah, I'm going to invest for the long term of my 401k. If you just look at part one, they go, oh, my God, maybe I should rethink something. Right.

You know, based off your past books, there's no doubt my mind that's going to be outstanding and I can't wait to read it. Well, it depends on who you talk to. Oh, well. Yeah, financial planners will hate this book. They'll hate it, which is, they've always hated my books anyway. I love it. I love it.

So my big question is something I've always wanted to ask you. If I ever had the opportunity to sit down with you, one thing I always wanted to ask was, you know, with so much the world now getting their education from Robert Kiyosaki, where does Robert Kiyosaki get his financial education from? Stay tuned. We'll be right back with more. Robert Kiyosaki in 30 seconds. Your portfolio has seen better days. But this two shall pass. And the best for you is yet to come.

Together, we'll get you there faster. We're Cashflow Savvy And we'd like to share some information with you That will show you how you can take control of your financial future And accelerate its arrival Go to cashflow savvy.com More building, less waiting Cashflow Savvy.com

Where does Robert Kiyosaki get his financial education from? Well, again, it's covered in second chance It is, okay. Yeah, there was two. Convenient. No, there were two men who really influence, my life. One was my rich dad obviously. My poor dad also, because he was a good bench, humanitarian, a socialist, and my rich dad was a capitalist. So rich dad was a capitalist.

But there was another man who was more of a socialist. His name was Dr. R. Buckminster Fuller. And he's considered the planet's friendly genius, because he wanted a planet that worked for everybody. But he was also known as a futurist. So second chance is about Dr. Buckminster Fuller. And the story starts in 1967 when I was 20 years old, and I was school in New York, and I hitchhiked from New York to Montreal, the Expo, 67, to see the world's fair on the future. Bucky Fuller's dome was the U.S. pavilion on the future. So I'm a 20-year-old kid. I walk into this dome.

It's massive. And all of a sudden, I go, wow, this guy is in another dimension. He's another realm of thought. you know and I went wow so I started to understand as Fuller did you can actually see the future he is considered a future because he actually found a way to see the future

so second chance was designed to allow the reader to see their future not my future your future their future and you can see the future then you can make changes so really it was Bucky Fuller and my Rich Dad and Bucky Fuller and Rich Dad were as opposite as you can get.

One was a capitalist, Fuller was a socialist. But then, in 1983, a year after his death, I studied with Fuller three different times, 81, 82, and 83. And then a year out, two weeks after my last time with him, he passed away, July 1st, 1983. And I was just lost. It's like losing a father.

Sure. And then a few months later, his book came out posthumously. It was called The Grunch of Giants. so we can show that on the screen. Sure. It's a hard book to read. Bucket is hard to read, but Grunt of Giants was saying the same thing my rich dad was saying.

And that's when they came together. And when I understood those two, I could see my future, if you know what I mean? I'm, wow. And that meant I could not do what I was doing anymore. I was in rock and roll. Working the police, Duran Duran, Iron Maiden, Boy George, Van Halen, you know, I was having a lot of fun, sex, drugs, rock and roll. suddenly when I could see what my rich dad was saying to come true and what Bucky Fulah was saying to come true in 84 I sold everything and that's when I met my

wife Kim and I said in good conscience I can no longer be in rock and roll just making money to make money and I said I gotta start teaching so we can all do something and I just you know even it's a little little thing we can all do something and so what Kim and I did my friend Blair Singer is a rich dad advisor we just start to teach. And nobody listened to us. They still won't listen to us. But we call it something. So really, that's kind of the story

of Bucky Fuller, his book Grunch of Giants, Rich Dad, Poor Debt, and now Second Chance. It's a combination of the three books. Super. Well, it's in stores now. Go to Amazon and pick up a copy. Can I add something for those

you who are actually interested? Sure. When I invest, people think I'm a real estate investor. When you read Second Chance, you'll understand, I do not invest for real estate. I invest using debt and taxes. You see, on one side of the coin is a poor and middle class. And the poor middle class, debt and taxes makes them poor. And the reason the rich are getting richer today is because on the other side of the coin, debt and taxes makes the rich richer.

And so it's so opposite. and the reason people cannot see the poor middle class cannot see what the rich are doing is because they have no education. And I commend you for giving them the education. But when you read Second Chance, you'll understand when the market started coming down in 2007, I didn't get out of debt. My partner, Ken McElroyd, my real estate guy, partner and all this, we borrowed nearly $500 million.

So when everybody's trying to get out of debt, we're getting into debt. It's opposite. the opposite side of the coin. So we bought with debt, the banker's money, it's actually your money because you're savers. So we bought

$500 million worth of real estate at approximately 5%. In 2014, because the economy is so bad, and that's tax-free money, too. Debt is tax-free money. It's lovely stuff. And so when 2014,

they reduced our interest rates from 5% to 3%. So do the math, what's 2% of $500 million? That's quite a big. That's money in my pocket. Tax-free money. So more than anything else, second chance is for your people, because they're actually already proactive thinking the way you think.

Right. So it's not really a real estate, it's debt and taxes. It's the same as oil and gas. Why am I in oil and gas? You know, the price of oil is coming down? It has nothing to do with the price of oil. Has it do with taxes. When I invest a million dollars in oil,

you can invest 10,000, let's say. You get 80% of your money back in taxes. So the raise and the rich are getting richer, and the poor and middle class are getting poorer. There's two words, debt, taxes. And second chance will have you understand that. I'm not saying it's easy. I'm not saying everybody can do it,

but you will understand that. And that's why the guys in stocks and bonds and mutual funds and all that do not like what I say because debt and taxes works against them. I hate to say this every time when we started printing money, quantitative, be using, we basically took the poor middle class and threw them under the bus. We said, screw you. We have to protect the rich. And I hate to say this, nothing has changed.

So in closing, if it's closed, I'll have to say, your job is to stand on the edge. Poor middle class on one side, rich another side, and be the intelligent thing to stand the edge of the coin, read second chance and see which side is best for you and do what's best for you because I don't expect people to do what I do, but you got to do what you're you do. Right. And everybody out there knows their situation much better than we do. Yes. You know, read the book and make up a decision, make up your own decision. Yes. Right? Robert, appreciate it so much. Thank you. Thanks for coming all the way from L.A. Oh, you bet. You bet. And thanks for taking time on a

Saturday morning to me with me. A teaching is most important. Yeah, absolutely. Absolutely. It's rewarding, isn't it? It's sold satisfying. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. This podcast flow. You didn't know home for us, we got the dash flow. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.