Robert Kiyosaki’s Proven Strategies for Creating Real Estate Gold

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hi I’m Chris Steele and I want to welcome all of you to our rich toute world livestream event Robert Kiyosaki has joined me and you’re in for a real treat you’re gonna enjoy exclusive access to Robert Kiyosaki and the strategies he uses to create cash flow and build wealth in the current economy in addition you’re going to meet Roberts 400 million-dollar man Ken McElroy a longtime friend of Roberts in a true real estate investing expert during this session you’re going to get to hear how he and Robert got started and what they’ve learned along the way you’ll also learn why they’re very excited about investing in real estate today as an added bonus for joining us today you’re also going to get instant access to Robert’s cash flow blueprint companion guide a free resource that will help increase your monthly cash flow starting today so make sure you stay until the end to receive your added bonus as you prepare now to learn from the experts I encourage you to shut your door tell everyone you’re busy and I’ll also suggest that you’d grab a notepad so you can take notes be sure to write down action items that apply to your personal plan to escape the rat race once and for all now without any further delay let’s get to the reason why you joined us today and jump right in hello this is Robert Kiyosaki he’s a great friend and partner Kenny McElroy hi and we’re here to talk to you about one of our favorite subjects it’s the subject of real estate and how you become a tycoon like Kenny it’s stuff like this but Kenny is the author of these books here the ABCs of real estate investing this is the basic this is a primer this is the ABCs and this one here is ABCs of property management because one of the big differences between real estate and stocks is management if you can’t manage stay in stocks right Kenny right that’s exactly right yeah because management is the key and Kenny is a property manager and this one here is the advance guys to real estate investing and this is for the high finance guys but you got to start here first you gotta get this one and then this one here because what would be talking about today is how you get infinite returns on your money and things like this but you’ve got to start with the ABCs gotta be able to manage of properties and all that so anyway welcome to the program and Kenny I think you want to say well I just want to say that you know everybody starts in the same spot everybody starts like you started with a without with a one-bedroom I started with a with a 1-bedroom 1-bath also condo and then but the fundamentals are the same all the way through yeah and so a lot of times what we’re gonna be talking today is about the process it’s the education is really a process it’s not an answer it’s not a book so for those some of you are starting here some of you are down here some of you are out the other end already but the point here is this you don’t forget it all in one day you don’t get it from a book so as Kenny said my mine started with a 1-bedroom 1-bath on the island of Maui and yours was where and mine was in Scottsdale Arizona Hill so we all start and the problem is most people don’t start and generally what they say is I don’t have the money of things like theirs and that’s ridiculous and we don’t have money either no no that’s that’s a that wasn’t when I first got into the business that’s what I really thought you needed I think that’s what holds a lot of people back and I think they also use it as an excuse they say I don’t have the money therefore I can’t start which it’s not that at all it’s there’s more money than there are deals that’s been my experience now and and so once I got the education then I realize that there’s a lot of people just like ones with money they are looking for a place to put it and what’s happening today and by the way if you hear some earth-shaking news in the background and all that is because every you know in that side of our building and that side of the building they’re tearing all those buildings down and putting up more high-rise apartments yeah and real estate is booming there’s more money than ever before as a dinner last night and everybody was talking about how much money and people people are actually giving money back because it can’t find deals there right so much money you know that’s exactly right and you can see how the bank’s react how much money there is in the economy because when the banks basically are turning away deposits are charging you to put your money in the bank then you know that there’s a lot of money in the system and that’s why I said savers are losers because every time the government prints money the value of money goes down but really debtors are winners and so what we be talking today is about how we start here and go over here because where Kenny is at right now this end of the process is that you don’t need much of your own money anymore do you no not anymore but see but the thing is is there’s different levels as you know so I I’m at a new process where you know first I was doing a bunch of small deals and then we started getting into bigger deals and then you start getting into bigger money and bigger deals even more so I feel like each time I get to another level I’m back on this side of the process you know for a for for the next level right so can i Ben can I have been friends for about 12 15 years now we’ve made millions of dollars together we never lost any money tops and downs when was going down we’re making money and that’s the process the power of rich dad’s education rich dad’s coaching our books our games and all that does it get your mind into the game because that’s all it really is right well people ask you know sometimes they question what do you mean you’ve never lost any money well the the reason is is it because everything that we’ve done has been based on cash flow so so every property that we purchased together has always been based on cash flow so we’re going to explain that most people flip producing we don’t flip right so like if you buy a piece of land there’s no cash flow if you buy a vacant building there’s no cash flow but everything we buy is based on cash flow so we’re not as we’re not as focused as the value of the project cuz we’re not trying to sell it at a higher price later we although we are focused on that we want to make sure that the property goes up in value but if it doesn’t if it stays flat or even goes down at least we have that cash flow to fall back on right so the point here ladies and gentlemen if you’re just starting out and you’re right here you may not have much money may not have a job and all this but that’s really not a excuse because he can still start and that would suggest you know it’s getting Kenny’s ABCs of real estate looking at programs because we’re gonna go into lists on how I started it was the reason I got into real estate was that my Rich Dad this is back in the 70s he knew that President Nixon had taken the dollar off of the gold standard and the prices were starting to rise and so rich dad said one thing is don’t save money learn how to use debt and so as counterintuitive to what most people think is most financial advisors say save money and get out of debt we’re saying don’t save money get into debt so it’s a different process you know so that’s really it so for me I was in the Marine Corps I was still flying out of Hawaii and rich dad says you gotta get some education I said well honey how do you get that because I asked he would teach me says no waste my time so I signed up for a little real estate course I’ve told this story before I get tired listen to myself it was through to $85 it was three days that was the start so I signed up signed my name sat down the course three days later at the end of the course he was a great instructor because he was a real real estate investor he didn’t need the money and that’s when you know the guy is real because he was you could tell he doesn’t need the money he liked teaching you liked inspiring people so it’s just like my rich dad says you don’t need the money so then the next thing he said at the end of the program he says when you leave this program is three days Friday Saturday Sunday he says your education begins now what you do at the end as Kenny says he gets through the process I’m three days and used again that’s the process so he says it’s when you end Monday morning your job is look at a hundred properties a hundred properties in 90 days take everything I’ve taught you and look at 100 properties that was a start so naturally if 30 guys in 30 guys for 35 guys in a class you’ll say ok yeah well I’ll do it we all break into little teams and as you know by Tuesday they’ll quit because they’re too busy you know that got through the school they didn’t start here again but there’s three or four other guys and I we stayed through it and we went to went to real estate agents went through the little files was really antiquated ways of MLS multiple listing services we’re looking for little dinky deals small deals because that’s all we could afford we’d have any money so I kept looking you know I’ll go knocking on doors and real estate agents and you know Realtors they’re not the best of masters are they know there are always focus on Commission’s yeah normally and I go knock on the doors to the first thing they say to me you can’t do that here this is Hawaii you can do that in mainland in California Nebraska but you can’t do it a hair in a white and that’s the first thing that when the first thing is my adviser said is that’s what Louis’s will tell you you can’t do that here look somebody is doing it here may not be the real estate agent but it might be you so I knocked on the doors we find these deals we have to go look at on the way to write down you know it was a three-bedroom two-bath that uh 65 back then was sixty-five thousand was a lot of money away now they’re 4 million but you know we would maybe things down make an offer do this and said in 90 days we had a hundred of these it was day and night we just kept going until we got it done and that was the process right at the end of the process I’d gone from 100 deals and it was like wow I learned more going through the process talking to real estate agents knocking on doors looking at different properties and finally I was desperate this guy says well I got I got what you’re looking for on the island of Maui now most people think Maui is too expensive how can that be how could Maui be affordable but that’s your block so I flew over to Maui I found this little 1-bedroom 1-bath condo right in Kaanapali the richest place on earth little one-bedroom one-bath condo for $18,000 of holy mackerel but the deal was I could not use any of my money that was the adviser says I’m going to teach you so you’ll never need to use money at your money again if you can raise capital you’ll always be a rich men okay so go this little little $18,000 unit little dinky thing 18,000 awesome what’s the price of it he says I mean how much to have put down he says two thousand eighteen hundred ten percent down was a foreclosure I get broke up my credit card and I bought it so I had no money in the deal and I made $25 a month no money in a deal $25 a month in my brain would hurt it shook oh my god I’ll never need money again I can never say I can’t afford it and I can never say I can’t do that oh my god and that’s how I got started and today you know Kenny and I do lots of deals but can he kept on and I kind of stayed with a small I think I stopped at a hundred units and I said I’m this is not my business you know 100 units is a lot of work so Kenny took off after that and we still make millions of dollars when the market crash made even more but the process is the same right yeah it’s absolutely one bedroom one bath – how many units did you do last last year a thousand-mile thousand units same process but you have to learn the process how did you get started well I was probably not unlike a lot of people where I I went into college not really having much direction on what I wanted to be or who I wanted to do but there’s a tremendous amount of pressure on a kid you know to pick and and so what happened was a friend of mine called me up and he said hey if you want you can manage this building downtown Seattle and you get free rent and of course there’s a college kid you know that’s that was really appealing so that’s what I did I ended up managing a 60 unit building downtown Seattle and I remember it was a it was a one-bedroom and I made I think I think was about $400 a month plus a one-bedroom and of course I was collecting the rent and turning the units and all those kinds of things and so that was really where my real education began I didn’t know it at the time and then from there the I what happened was part of the process of managing a billions I was still wrapping up school at the time and and CL is an area where I grew up and I was familiar with so but the owner would pull up in this beautiful car and they’d walk up you know and we have these monthly meetings about how much money was collected and what the expenses were and so that was I had to learn about finances and financials and things like that and and then I start to I started to really understand for the first time what it means when you have high vacancy and you know what it means if you’re not collecting all the rent and and also if you’re overspending or something breaks and it wasn’t anticipated all those things so that was that was unbelievably important time for me it was a lot of work and and then what I decided to do is I started to go to the war go to work for that firm that managed the company it was based in Seattle and so that that was when my property management career started and then I started to manage more and more more properties than when I realized was apt it took about a year to I realized that I was on the wrong side of the desk I wouldn’t do it all the work and you know these guys really good people were investing in these projects and some of them were flying up from Silicon Valley and they were buying stuff in Seattle and I was managing them you know and I didn’t realize how important I was because property management is extremely oh that’s that’s that’s this book here if I can say ABC’s a property minute it is a key to real estate let me say one more time if you don’t like management stay in stocks you know because real estate is really running a business it is a management intensive affair very very important and so what was happening is he’s these really rich guys were flying in and they were amazing folks and I guess when I that’s when I got the whole education about equity and investments and I so I started to piece it together and then I started learning about debt and all of a sudden you know fast forward eight nine years later after doing this over you know thousands and thousands of units that’s when I first started to make the first step on on buying my first so and now we own 8,000 units ourself we have 250 employees and we’re we’re building another 1,500 right now in Arizona and you know the whole organization is is based around investments investing right so I’ll say it again you know Kenny went down he’s far down the pipe than I am you know there’s no way I could do what he did nice I stopped him and I stopped at about a hundred and Kenny picked up from there because it’s not our business you know our business is kind of a rich dad company of other businesses so that point what became the rich guys who Kenny says I need another million million comes in done and all this but I would not have been able to do that if I hadn’t started with a little 1-bedroom 1-bath I understood so when Kenny and Kim and I talked it’s kind of an understanding that’s well with all investors there it’s a high level of understanding it’s the words you use it’s the questions you ask strategy it’s the education you have so you know one of the things that we want as we find properties and we find investors for our properties is we want sophisticated investors that understand real estate and understand the tax benefits of real estate and the cash flow part of real estate and they understand how it works so it was a I guess human Rosberg he was just starting out also at the time and so when you Kenny we’re doing some dinky little stuff together then one day says I’m really he went with a big he went to the big leagues which was good for us because always to do is put our money in but we would not have put our money in if we didn’t understand what you were doing right and the difference is the different sports fans if you’re in stocks you’re in equity right well you don’t have any control and what I always felt like with the management that’s why I liked it because no matter what no matter what the property was doing I I could determine whether or not I could increase the value or increase the cash flow and if it didn’t happen then I just passed but the point here is this you say stock people are into the equities their cash the reason I invest with Kenny is because we’re into debt you see the beauty of real estate over stocks there is those margins things that was stocks but with real estate banks are really anxious to lend you money if you’re good if you’re not good they don’t lend you money so again it goes back to when somebody says I don’t have money it’s because you don’t have financial you don’t have education you know stuff like this and this and this you know I don’t have money so I don’t start well you’re not supposed to use your own money anyway and that’s what that was a Rich Dad lesson to me back in the seventies it says look the dollar is no longer backed by gold the dollar is now backed by debt US Treasuries and he says if you’re going to be rich you’d better understand how to use debt meanwhile the other people all the financial of people Oh save say save and put your money on the mutual funds would you do that no as a matter of fact if you think about it the whole system is designed to use bank financing I mean you know all these hard people that are all these people that are working so hard are actually putting all their money into the bank well that those deposits are a liability they’re an expense to the bank so if you put money in the bank it’s an expense to the bank cuz they have to pay you interest so they have to lend it yeah draw a diagram here it’s the process those you read Rich Dad Poor Dad you know there’s income statement and balance sheet income mix so when you put your savings over here to the bank it’s their liability because they got to pay interest on it right so what they want to do is move this over here right and that’s what they do and so this is where Ken shows up and says thank you very much it’s the same thing with a life insurance company or a pension or even a 401k that money gets invested so whatever you know that’s why these financial planners say save save save you know why because they want your savings that’s those savings that people put in the bank this is all people gets invested and so we’re asking you guys to be over here and you can do this in other words if this is a bank or a mutual fund company or whatever it is the moment you put your savings in here or you put your 401 K to the bank it’s a liability because there now responsible for it right and they’ve got to move that money over here the only way they can move that is by debt correct so Kenny goes up there to the insurance company a mutual fund company and it says can I have some money I got this business I got this huge project over here need to move it and today the big problem is guys have too much money right that’s right there’s so much money in savings if you just Google what consumers are saving now you’re gonna see that this is it at a very very high point right now because of the recession it was a very low point at the beginning of the recession now it’s very very high and so that’s why interest rates are low that because they’re trying to lend it out so much and again it’s just a supply and demand thing because there’s so much money in savings that there it’s so competitive that rates are low right so this is the strange part this is the bank your savings are their liability but if this is you your savings are your asset right that’s why it’s called a balance sheet so the reason why rich that says I had to learn how to you know invest in real estate and I’ll get good comfortable with it start the process was because I needed to borrow this money out whereas the other financial advisors say keep your money over here to me this is really stupid especially this is he was printing what 80 75 billion oh that’s something I mean why would you save money right now I’m not yet you should be using that money and putting it into investments that that hedge inflation yeah that’s the only way to make money in this next few years yeah so if I could go back to this whole thing you know both Ken and I started over here with no money with any money well we had to this made us smarter and then in the process now I’d rather be on this side than on this side right and what’s interesting is neither of us knew this stuff when we got out of school it’s you kind of bumble through it you know if you get a loan and you’re like well why you giving me all this money for so cheap well it’s because they need to lend it out so different institutions have lots of money and their job is to place it there they place it in business lines of credit real estate and all kinds of other investment they love real estate they do love real estate so think of it this way if you’re a banker and your savings and your 401k are here the banks in trouble great because they’ve got to pay you interest on it right they don’t want to pay into so let’s say they’re paying you one percent they’re gonna lend it out at five percent right that’s how money is made that’s how they make money and that is the game of money so really that’s why I took this course back in 1973 went through the process looking at the hundred houses I had my Rich Dad as my coach I go that talk cuz I assume that I show him this deal he’d laugh at me what the hell are you doing you know but if I wasn’t doing anything he couldn’t help me right right and you had the same thing you had your your guys around your company telling you what to look at right that’s exactly right I mean you have to have something that’s why I like your the very first seminar you did where you had to go to a hundred deals because you learned a lot oh and so when you went back to talk to him you had all this knowledge and had all this real knowledge of things that you could actually get into and discuss yeah but if it’s only a textbook I learned nothing right if I don’t make any mistakes I learn nothing there was and then you learned so much about people don’t you yeah you do boy I mean school as a joke compared to what you you know like try collecting rent I mean you want excitement called collect rent oh I know we used to come we had some properties we we’re the manager we carry carry a gun yeah with them knocking on the door and guess what their guns on the inside to my friend Curtis Oakes oh yeah he’s a big african-american guy and I said Curtis what’s your niche in the real estate market he says Curtis was a big big african-american guy wears a black trench coat dark glasses yeah looks like shaft and all this is he loves it loves it he says I go where a white man dare not he’s done really well on that market – yeah that’s it she goes and collects in the low rent areas of Oakland California right that is his niche you know Kenny and I go in there me now our hubcaps would be gone our watches would be gone and we’d be going what happened yeah exactly right so really it’s really this process I asked you to start so and we do this from rich days education we have books where our board games but the idea is to get to this column here the asset column so that’s why Kenya says today has 8,000 yeah 8,000 units over here Kim and I have about 4,000 but it all started with one one one bedroom one man one math right so we encourage you to keep going this one more thing I want you to think about and maybe you can help me with this because I’m a little wing it is this word here okay ROI sense return on an investment so when guys tell me I’m getting a 8% ROI I’m going geez chump change and why would you work for 8% that is so low today guys are happy to get 5% yeah I mean 3% so that this is the point here the more debt you use the higher your ROI it is so counterintuitive to what people are thinking so let’s say I have 100% debt you know my first property was $18,000 I put $2,000 down with a credit card and I was making $25 a month I think that’s the best example Robert because essentially the what you did was you didn’t use any of your own money so the only costs that you had was whatever your debt was and whatever your whatever it cost the $1,800 on your on your credit card was right so this is but the idea was not to make money the idea was to train my mind to think that I want a hundred percent debt most people want to get auto do it I want to get out of debt I want to get out of debt and what what we’re saying here is the debt pays all your expenses and gives you some income that’s really as simple as they get so we started with this so if I have no money in the deal its 100% debt and making $25 what does my return on investment it’s infinite is this right I mean you have you basically have no investment and you make twenty-five dollars a month yeah no money in the deal it’s just knowledge way into the deal now I learned a lot on that process and it wasn’t all hunky hunky dory but today this is what we’re doing the difference is today how much money you think you’ll borrow you borrowed last year we probably borrowed eighty million in debt yeah and anyway well we’ll go invest we have your goal let’s have 100% debt right all your yeah yeah so so the reason why we want so much debt is because if I’m borrowing right now I’m borrowing it say four or four and a half percent and inflation is say four four and a half percent then I’m using basically your money pension fund in you know a mutual funds mutual funds insurance savings I’m using your money to hedge inflation and buying buying assets so that’s how the that’s how the system works and that’s how the wealthy get really wealthy so this is this is what we teach people the whole part here is you have the power to do it I mean anybody can do this and anybody can well this is today but the silt deals as many deals around well you think about it small deals yeah but you mean the the most obvious are using using bank debt to buy a home what is not even that is how you think about it you see the best thing about doing those hundred deals is I was learning to think about debt is good as long as you have in your mind that debt is bad I want to use my equity the ROI goes down that’s a good point and there is bad debt of course bad debt would be credit card debt or or if it was costing me $25 yeah exactly right yeah so there are there’s definitely debt that you don’t want to get into but we’re talking about debt that’s paid by a tenant yeah you know debt that’s paid off by somebody else so yeah that’s a that’s a really important point so if you’re borrowing money you’re gonna want to make sure that you have the rent to cover it so years and years ago Kenny came to us when he was getting started on this return type of thing it was was it Edgewood Edgewood it tells a little about that deal real quickly yeah so that property it was a once if I hadn’t done this myself I would not understand what Kenny said it was a hundred and forty four unit property that was existing that had it was ninety five percent occupied with tenants so that was important piece and the next door had another ten acres and so the deal was is that I was going to build a second phase on the ten acres and then we were gonna have one property that was two hundred and fifty six units and so that’s what we did so we took the first 144 units and and the land and we went to the bank and we got a construction loan to build the second phase and then we built the second phase and through management through good management we filled up the property and all and then we went back to the bank and we refinanced the whole project and got one loan on it so we use debt to build it we use debt to take out that construction debt but this is the way it looked for Kim Kim and I we’re one of four investors thinking that deal something like that so what we did was we we had this property as window yep and it was pumping about three hundred thousand yeah so Kim and I every year we’re receiving three hundred thousand dollars in cash flow from the tenant income most of it tax-free yes because of depreciation and all that all those things you have to learn so three hundred thousand dollars from most people’s a lot of money the problem was Kim and I had I mean 1 million in it right yeah I think so we had 1 million equity in it so what Kennedy is when they refinance it he gave us our million back so Kim and I got all of a million dollars back right yeah through a refinance and we still have this right so we’re receiving three hundred thousand with no money into a deal to me that’s it that’s great deal yeah and people might ask how so well there’s a lot of things that happen inside of here was that this was over a five or six year period the rents had gone up we had increased the value and during that time interest rates went down if you remember I think we borrowed the original at somewhere around 7% and then we refinanced somewhere around five so we actually saved on the loan on the on the interest rate of the loan and so what we had was we had a property that was worth a lot more and it’s still cash flowed very close to what a cash flow before and we got the million out and the million was tax-free because it’s a refinance so when you pull money out from when you put a new loan over an old loan and you pull that money out that’s tax-free so with that million dollars we gave it back to Kenny another deal Manik same process goes out goes out goes out and now it’s huge yes that’s what we call the velocity of money so now at that point Robert and Kim were still in the deal they were still cash flowing and then that million was also at work somewhere else it’s a long-term strategy it’s not for flippers it’s definitely but it’s done cash flow it’s actually no different than the first one that’s right that’s right it was no money into the deal I’m making $25 a month but it’s a way you think about it and so I’m not saying it’s easy and all that but again it starts as a process yeah it’s funny people ask because now of course edgewood is infinite there’s no investment in the property and it produces a great deal of cash flow or you’re raising the rents right that’s right yeah we’re raising the rents especially now have in this market but now people come to us and say do you want to sell do you want to sell and and we’re the the question is is why would we because it’s producing all this cash flow and we have no investment so all it would do is create a taxable event so all we don’t want the money for I understand that right right yes there’s millions of dollars in equity in the project but we’re not interested in that we’re interested in the cash flow it’s a big difference in the way we think we want we want this here that’s right we want the monthly and annual recurring cow well into our into our own bank accounts so everybody you know a lot of people ask well when is he enough when is it enough that’s nothing to do with enough it’s fun isn’t it yeah it has nothing to do with that it’s it’s all about you know the neat part about is is that we’re doing it all over Texas as you know you know we’re going into neighborhoods that are nice neighborhoods and we’re finding properties that are mismanaged and our problems in that neighborhood so everybody embraces us you know I mean everybody I mean the City Council the mayor the local police they’re so excited because we’re going in and we’re spending you know in some cases millions of dollars like that property we did in San Antonio together you know we spent 7.5 million dollars on that project and that you know all of a sudden equity also it was yeah but that property is now an amazing property that fits in into the neighborhood and everybody’s happy it’s a total win-win for the community so I want you to all to understand this starts here yes you know and if you don’t start you don’t go through the process and well oftentimes talk about it is when I went to flight school in Florida I couldn’t fly entered here came out a pilot that’s the process but if you don’t go through the process you stay here but the most important thing is how we think I’ll give you one more thing where it takes absolutely no money or it does take some money what I was thinking about 15 years ago I wanted to I wanted to have a little ranch and Kemp says why they don’t ranches don’t cash flow right that’s right yeah so I said that came off I can get a ranch for free would you be happy and she says show me oh yeah how could you argue that yeah so that’s you know but the point here is this it’s only up here you know so I went round I went wandering around all over the southwest and tombstone and Bisbee Arizona and all this I’m looking for a property I can get for free that was a challenge she said you can have as much land as you like as long as it’s free because it doesn’t cashflow so finally I’ll I’ve talked about this deal I’ll do it really simple he was 80 acres in Bisbee Arizona so I walked up to it I was looking at the property and I knew it cuz his beautiful property was tall mountains oak trees all of its little stream running through it and all this and the problem was it was a hundred and fifteen thousand dollars there’s no property there’s nothing no improvement the building on it except for there was a little road running through it like this and it was a little building here and this was a stagecoach depot at one time with Wyatt Earp and all those guys to go pass this is Tombstone Arizona over here this is Bisbee Arizona here some stay on this property and I said to the realtor doesn’t know what he was so homeless has probably been facilities this so 10 years hey I said what’s wrong with it you know the good question he says I don’t know now looked around I said oh that’s what’s wrong with it the sign was down nobody could see that they drive by it all day all day long they could never see the sign so I said oh these guys they really want to sell underneath this is yeah hey desperate and I said well where they live he says Florida no all of this is good news okay this is a good news so ok make him an offer and Kim’s watch me said this this is the offer I’ll pay you full price because by now they want to discount it because they’re not selling I’ll give you a full price but I have to have this property for free and I will pay you in one year I’ll pay the whole thing in one year so basically it’s called I took a note right I got a note $415,000 I take control of this property this little building here I put $25,000 into it and this this was the stream was running like this through it and I built a little cabin right there so this and this we fixed the whole thing up and then about 9 months letter was finished I put it up for sale and we sold that we sold 30 acres this house this dream I had 50 acres left and I sold this for two hundred fifteen thousand so at the end of the deal it’s only going on in my head we get this we got that we got fifty acres and I put after expenses let’s say about 80 80 thousand dollars in my pocket and I had that land for free so these guys are happy I’m happy at my 50 acres I never see it anymore still beautiful but that’s how money is made from your head just by understanding things it’s all education and this here happens every day or somewhere every single day that can be a mobile home park it could be a corner for a for a gas station on a commercial lot it could be a piece for apartments it could be a piece for single family but this is how master plan developers make all their money they buy a big piece of land and then they sell off parcels to the individual builders and all the way down people are taking chunks and at the end you know who makes you know who who pays for all the consumer its whoever you know however these guys on the 30 acres made their money or is actually pays for the whole project yeah well this I had to understand loan-to-value and all those things they talk about here but I knew this would be valued around this much with an improved house and this I knew the best I knew my target would I had to set it out for so these guys I went got the loan they pay they borrowed whatever they borrowed but I got the money here and I had the 50 acres the point here is done all the time the real the real lesson here is the rich don’t use our money if you understand that you know all those big buildings over there it’s not anybody’s money but people who have 401ks people have money in the bank people have insurance which is true without a doubt and what’s interesting is nobody especially the realtor didn’t see any of this no and this this happens a lot all the time yeah where you know even the properties that we buy it just surprises me we just bought of that building in Tulsa Oklahoma and the two brokers there are really good people huge rich Ted fans by the way and you know I’m like all I’m seeing is I’m buying it for nine and I’m going to make worth 14 that’s all I’m thinking it’s the same as I can buy I think one could make it 115 and you know what they’re thinking is commission I’m gonna be able to buy a new car and you know I’m like great you know and I’m happy to pay those guys and they did a good job and they brought us a deal but the point is is I’m taking a nine million dollar property and I’m creating value into that and and now I’m gonna take that out at some future point it’s the same thing and I just do it with multifamily I got friends that do it with Mini Storage I got friends that do it with commercial office and retail and industrial and and in single-family so the whole point here is this going back to it all that education is a process we’re still in the process we’re learning more every day it’s just the numbers get bigger that’s true without a doubt and that’s the thing is once you kind of get one thing behind you then you find new mentors new coaches new people for your team and and you start to play a bigger and bigger and bigger game yeah the process is the same the numbers get bigger that’s all miss you it tells us get bigger so I’ll just close with this I encourage you guys to go for it you know we all start at one place nothing and then somehow we chug along I kind of I kind of sometimes feel sorry for guys who are given the money then they feel better off if you don’t have it trust me you’re better off if you have to be creative and find the deal in your head and then go find the money this is what I always say to people I was smarter when I was had no money because I had to get smarter without a doubt yeah so I’m a final story you can tell final story is I was in you know Kenny and I live in Phoenix and I was coming through Phoenix Airport and this woman comes running uh Robert Robert Robert your real estate investor yeah I read your book love it I said it I have a house I want you to invest with me I want you to put the equity in that way well no that’s stupid you know what the debt side I said okay what’s the deal she says oh it’s a little 3-bedroom 2bath house it’s eighty nine thousand dollars and it’s really worth $95,000 of it and she says it’s the best deal in all of Phoenix I want should be my partner and invested and I said so she’s here and I’m down here yeah that’s not it might have been a good deal it might not have been a good deal I don’t know but it’s not worth my time because there’s only a 3-bedroom 2bath house worth $90,000 it’s not worth my time now forty years ago it was worth my time so then at the end up she was I mean I still remember she was screaming at me in the airport and Phoenix Sky Harbor Airport it might be a great deal but for you not for me and so really that’s how it starts I mean I wish her luck oh boy it was really tough exported just wanted to make was I think when I first started off in the business I I wanted to just do it all myself and that was my biggest mistake was I thought I needed to know everything about everything and and that that actually prevented me from starting and so now I start going to these it’s funny you go to these seminars and you go to these different places and you see these people that are all trying to do the same thing and they all have that spark inside of them and everybody leaves and they don’t follow up with anybody and really inside of that room is really their own team so I would just encourage everybody to just start asking you don’t need to know about financing you just need to find somebody who does and go ask questions and put them on your team and you don’t need to even you don’t even need to be a realtor you just need to find somebody who is and go fine you know and you start you start putting this team together and the next thing you know as you start to meet that things start to happen momentum starts and and that’s how you get the ball rolling and it truly is all about education and and you’ll learn from other people but you know the last thing you want to have is for you to you you to be the person who has to make all the decisions on everything and know everything because that will limit you severely okay so with that well thank you for listening in you know we have rich ties books we have cashflow games have in education the start of the process and then Kennison exactly the best you come through it go back yeah and that’s that is the process you know like why don’t I stop that’s just fun and it makes me a lot of money it’s fun being here yeah I mean I know people are like what you know it’s absolute it’s it’s so much fun as you know we’re stepping it up again ourselves we’re trying to buy a portfolio from a big bank in Texas of fifteen hundred units six different projects it’s totally new for me so it it’s exciting but the other part of my gig ask any of this you know people that’s a really a two world it’s a two economy world today rich and poor everybody else is poor if you just have stock I mean you’re not in the game anymore so for Kenny he says I need to raise 65 million and all that how long would it take you to get the money not very long now I mean just cuz the track records so you know a week maybe I right now when Kenny calls us I have a deal sup I don’t even ask him what the deal is I’ll place this much there’s so much money out there looking for somebody like Kenny we can take a lot of money and make more money with it yeah you have to have the track record and the experience and the team behind you to do that but you’re right and it’s you know as I’m saying you know it’s a twenty-year overnight success right you know it is it’s it takes a long time to get to that point to where you would get people’s trust then when you do it really starts being fun because you’re making them money and you money yeah so we’ve kind of grown up together going through this process over here I got I just think it’s really funny you know Kenny calls up he goes I have this deal I don’t even ask him what the deal is I said I’m in for a million by that’s real estate that’s faster than stocks anything like that the reason is I know that Kenny will get my money back get me a property and having more cash flow so really that is the process you have the ability all of you do but you have to start you have to go through the ups and downs of it have been hell sometimes right you just have to start exactly like you said you know the hundreds of the hundred deals in 90 days is probably the best way because it forces you to talk to people it forces you to look at things it forces you to ask questions on things that you don’t know which still today there’s so much stuff that I don’t know and I learned every day so it’s never-ending and learning learning is very very very fun and and and next thing you know you’re over here so once again it’s not about the money it’s about the process thank you for tuning in

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