Epic Real Estate Investing - Robert Kiyosaki Discusses "Second Chance" with Matt Theriault | Financial Freedom Friday

Episode Date: January 23, 2015

If you are like most listeners and guests of this show, the book Rich Dad, Poor Dad, was a complete game-changer and likely flipped the way you think about money and wealth upside-down. Today, Matt is sitting down with the man that started it all, Mr. Robert Kiyosaki, for an interview about his new book, Second Chance.  Rich Dad, Poor Dad, written in 1997, taught us that our houses are not assets and that savers are losers. While understood by some, these statements challenged the prevailing financial wisdom and largely angered the public. He was crucified in the media, and considered a fraud by those who clinched tightly to what Kiyosaki calls their “middle-class mentality.” It wasn’t until 2007 with the subprime lending crisis, and again in 2008 with quantitative easing, that the world took notice: Robert Kiyosaki was right. In his newest book, Second Chance, Kiyosaki helps people understand the past so that they, too, can make accurate predictions about their financial future. He says of Second Chance, “My new book trains your mind to see what your eyes cannot.”  What your eyes might not see is that, when choosing your financial strategy, there are actually 3 sides of a coin to choose from. The poor and middle class, along with their outmoded financial habits are on one side of a coin, with the rich and their financial habits on the other. When deciding the most ideal strategy for yourself, Kiyosaki argues that the best vantage point is the third side: the edge of the coin. “Intelligence occurs when you stand on the edge,” he says.   So as you watch to today’s Financial Freedom Friday interview, ask yourself: Where are you standing? ------- The free course is new and improved! To access to the two fastest and easiest strategies to a paycheck in real estate, go to FreeRealEstateInvestingCourse.com or text “FreeCourse” to 55678. What interests you most? E ducation P roperties I ncome C oaching Learn more about your ad choices. Visit megaphone.fm/adchoices

It's time for Financial Freedom Friday with Matt Terrio. Okay, so last week we talked through the inner game of real estate. And maybe you're glad that part is over. I don't know. It may be uncomfortable. But it is the key. Okay, it is key. Without that inner game, the outer game cannot be one, period.

All right. Now, the outer game, let's talk about the outer game. There are four tools that you'll need in order to successfully play the outer game of real estate. One, you need knowledge. You need to know what you're doing, obviously. Two, time. You've got to have time to consistently apply what you do know. And three, you need money.

Yep, real estate costs money. It's not free. You do need money. And four, credit. You need credit. Now, that could be a credit score, or it could be credibility amongst your network, your peers, friends, family, and associates.

That's all you need, those four things. but you do need them all. Now, before you throw in the towel and you have this head-to-desk moment, let's evaluate ourselves real quickly. Okay, it's reality check time. Let's just get a real good, clear picture of what we got going on. Get out a pen and a scrap piece of paper.

Okay, get that out real quick. Go ahead. I'll wait. Go ahead. Got it? Okay, cool. On a scale of 1 to 10, one being very little, 10 meaning you have plenty, how do you rate yourself in the knowledge department?

the know-how of investing in real estate. I mean, how comfortable are you with what you already know? A one being, hey, I don't know anything. I'm just, I have no idea. And at 10, meaning, Matt, I got this covered. You can't teach me a thing, actually. And in fact, I'm going to go check out what's on TV. If that's you, you're a 10, all right?

So go ahead, write it down. On a scale of 1 to 10, how do you rate yourself in the knowledge department? Write that number down. Now, on a scale of 1 to 10, how do you rate yourself in the time department? How much available time for investing do you have? Because this takes time. This is a business. It's probably going to take more time than you plan for.

It does take time and it does take work too, but it definitely takes time. So a 1 looks like, hey, I'm holding down five jobs right now and I care for a family of 6. I don't have any time for this real estate investing thing. If that's your life, score yourself a 1. and stick around because you really need this. And now you're a 10 if this sounds like you. Hey, I haven't got a thing to do in the world all day. I've got nothing but time.

If that's you, give yourself a 10. So go ahead, write it down on a scale of 1 of 10. How do you rate yourself in the time department? Okay, so let's talk about the money department now. Based on your goals, okay? How would you rate yourself from 1 to 10 in the money department? A one being, I haven't got a pot to pissing. I can't rub two nickels together and actually there's nothing in my pocket but Lynn.

If that's you, you're a one. You stick around too. Or you might be, I have all the money I've ever needed. I'm just doing this real estate investing thing because I'm bored. If that's you, give yourself a 10. So go ahead, write it down. On a scale of 1 to 10, how do you rate yourself in the money department? Write that number down now.

Okay. Now, in the credit department, I want you to kind of push or smush, I guess, your credit score and your credibility score together. I want you to combine your credit score, high or low, and take an average of the credibility that you have with your network, your family, and your friends, and come up with a number there. Just kind of take your credit score and your credibility score and kind of put those together, come up with an average.

I mean, if I ask one of your friends what kind of person you are, what are they going to say? He's a good guy, he's honest, she's hardworking, or that low life, I wouldn't loan them a dime. ever. What are they going to say about you? On a scale of 1 to 10, how would you rate their response? And take that number and combine with how you'd rate your credit score on a scale of 1 to 10, and it's just kind of average the two. Okay, go ahead. Then that's to be exact. Just come up with a number. Trust your gut. All right. On a scale of 1 to 10, how do you rate yourself in the credit department?

All right, so you should have all four numbers. Do you have all four numbers? Got them down? Great. Now, after asking these questions of thousands of people, here's what I know. Very few people have the same number of score all the way across the board. Very few. In fact, I don't think I've met one. And if they do, it's going to be very short-lived. What happens to many people, though, is they think they need to have all of the tools before they ever get started, so they don't get started.

You don't need all of them. In fact, that's unrealistic. You just need access to all of them. Got it? Understand. One person's strength is another person's weakness and vice versa. So take a look at your scores and see where you're strong and where you're weak. And if you're weak and all of them, that's okay too.

The first place you'll want to build is your education. But take inventory and instead of waiting to build or acquire the stuff you're lacking, collapse your time frame to success and associate with people that already have it. Bring your strength to the table, head held high, by the way, knowing that you have what others are missing. what you've got someone else is out there they're looking for it what's easy for you is difficult for someone else and vice versa oh and one quick side note however

if you have all the time in the world and nothing else to offer you're not providing value you've become a value extractor actually yes as a real estate investor you actually you absolutely need time but if time is the only thing you've got then it needs to be paired with something else to create value for someone else Okay? So, listen, nobody makes it in this business alone, and nobody scores a perfect 10 in every category. Nobody. So just go out there with confidence and build your team with people whose strengths complement your weaknesses. And once you have your team together, all there's left to do is to plan the work and work the plan.

That's how the outer game is won by working a good plan consistently with persistence. I'm Matt Terry of Epic Real Estate, and I will see you next week on another episode of Financial Freedom Friday. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.