NEVER Invest in These 7 Types Of Real Estate Properties in 2021! (Part 2) | Robert Kiyosaki

you know real estate people say well i'm investing in real estate i don't know what kind of real estate you know some people flip houses some people i don't know what they do they fix them up and then they re-rent them whatever there's millions and millions away there's warehousing bidding warehousing there's golf courses there's hotels apartment houses what's the worst investment in real estate and it's vacation homes well that makes sense and you know and what most losers do is they buy themselves a big home and then the next thing they buy is a vacation home did we do that [Music] and one we sort of and one we kind of rent out occasionally but it's not certainly not an asset it is a liability yeah so that's why you know ladies and gentlemen so we should invest in you i said well how about education the next one are multi-family condos kim and i have had condos they're almost worse than vacation homes and the one reason is homeowners associations homeowners and you know they often say too the last thing to become successful before the market turns are condominiums so if all of a sudden condominiums are becoming very popular you may want to look and see something may be changing in the near future yeah yeah yep i i love the hoa hoa home owners association of other definitions of that name but kim has seen me go to war against those guys and i tell you you cannot talk to homewards associations which is a really good point because if you're investing in real estate is there a homeowner's association you have to deal with because a lot of homeowners associations do not like renters they want they want owner occupied oh worse than that our hoa when kim and i were first starting out years and years ago we just painted one of our units and they told us to change the paint wait a minute we just finished and they said we don't like your paint so i don't like you and then we went to war again you know a lot of those people they're attorneys and i call them my attorneys it was horrible that was people with too much time on their hand so let me give you the the next worst single family homes high income high income you know for rich people and all that they want to buy them and flip them and do whatever they do but you think about that and let's say you know the the market's doing well the economy is doing well and so you have this expensive home that you're renting out and all of a sudden the economy turns and the first thing usually that people do is they go to something cheaper so those high-end homes start sitting up they buy a a high-end home they want to flip it and then the economy reverses on them and they get flipped they get flipped over but good thing about a single family you're not part of an hoa but it's single-family moderate and workforce yeah and that's where we started that's where that's where we started that's where most of our apartment buildings are moderate to workforce workforce not high-end not not glitzy you know basically um as kenny with kenny mcelroy would say next stop is the street and if they don't pay the rent they got no place else to go unfortunately so we take good care of them but they take good care of us and it's a good point too with the moderate workforce because you gotta if you're gonna be renting apartments or single-family homes you wanna make sure there's jobs and people have a lot of jobs where that's that's the main criteria so that makes a lot of sense and if the market does turn moderate to workforce is not i mean people may downsize to that right so that you always have a you have always have a market for workforce it's it's just above the street as kenny would say you know they got no place else to go and they're very happy to have a home and all this and they generally i would say 60 percent are great tenants look we had that friend kathy you know from australia and she was buying all these right after the crash here in phoenix when the when single family homes were dirt cheap she was buying them up and putting four or five beds per unit in these houses and she had one big problem she was a horrible manager and people were dying of starvation and all those other things master plan communities you know what's lovely about master planning communities they look good they're easy to rent to people love them and all this but they are kind of a master planning communities and they do have that dreaded hoa homeowners associations which i just despise and the next category moving up the worst list is manufactured homes deals on wheels so jim and i attended workshops on deals on wheels taught by this famous guy he is really funny but he said the first thing you do is you have this vacant lot and you invite people to move their homes their mobile homes onto the lot and the first thing you do is you buy them a tree and so you give them this tray and you ask them to plant it and they plant it naturally in front of the mobile home so the home is no longer mobile i said jesus they don't want to leave their tree but they can't get the house out of them they have to cut the tree down and i'm going god what if this guy's a genius but i mean i can't believe it you know so that was deals on the wheels i talk about the mcdonald's model what business is mcdonald's and they're in real estate but you better know the hamburger business before you go into that not only our school teachers but their financial planners our financial advisors the stock brokers or real estate brokers and i just i get tired of it i mean as kim knows i'm probably not long for this business because i sit there i say the same thing you know take a class get educated it's your money oh no just told me what to do and i got sick and tired of it so that's why you know i'd rather go and talk to guys like records and we're talking about the ravens is how to predict the future well it's not easy it's not that hard to predict the future if somebody is really stupid they're going to be broke period i don't care what business here in real estate stocks bonds mutual funds commodities and most people just want to sit there and be told what to do i can't believe it i mean i just really can't believe it i mean i hated school but i like learning and really it is time if you're going to get smart you better understand what a real teacher is and a fake teacher and to me i just personally i get sick and tired of talking to people who think real estate's about making money you know you've really it's a business and it's a very profitable business for the right people but 90 of the people are idiots they don't know what to do you know and kim and i've had partners say yeah yeah i don't realize that i bought six houses for what to live in well buying a house to live in is not the real estate business better really know what you're talking about today and listen to people who know what they're talking about you know people they work all day every day for money i mean they spend their whole life they give their whole life to work for money yet they don't take any time to study money or to study how to grow their money or to study what to do with their money yet they spend their entire life working for it no and think about fake assets they give their money to wall street stocks bonds mutual funds etfs and savings that's those aren't assets they're liabilities to you well but i was told to do that i was told to save money and put money in the stock market but that's all long term education goes so that's that's my frustration you know after years and years and years of doing being in teaching people still ask the same stupid question what should i do with my money is it real estate should i get in stocks well why don't you take a stupid class and learn something that's why that's why my message for today [Music] you

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Keywords: robert kiyosaki, robert kiyosaki real estate investing, ken mcelroy, real estate investing, real estate business, real estate investor, financial advice, rich dad poor dad, property investment, property investment tips, most profitable real estate, worst real estate videos

Id: KmxdhSOe51k

Length: 8min 21sec (501 seconds)

Published: Wed Jan 27 2021