Robert Kiyosaki: "Rich Dad Poor Dad" Author Predicts a Crash

this is the bigger pockets podcast show 500. it's just common sense you know and it's not right or wrong it's just what works for you it's all the people listening right now is real estate good for you well it depends if you want to study it's great you don't want to study don't do it you're listening to bigger pockets radio simplifying real estate for investors large and small if you're here looking to learn about real estate investing without all the hype you're in the right place stay tuned and be sure to join the millions of others who have benefited from biggerpockets.com your home for real estate investing online what's going on everyone it's brandon turner host of the bigger pockets podcast here for episode number 500 crazy with my co-host mr david the capitalist green what's up man how you doing i'm doing really really well with all my capitalistic ventures the mortgage companies doing good the real estate team is doing well i'm buying real estate i'm very lucky to be able to make a living through real estate which is our passion as am i and you know what the reason that we're i don't know about you i i don't remember the impact of our guests on your life but the impact on my life was profound uh robert kiyosaki author of rich dad poor dad cashful quadrant and a lot of other books included his new book it's called the capitalism manifesto it comes out here in november but he early on in my in my uh life a guy i knew from high school named darren sent me a link on facebook messenger and said hey this is when i'm 21. you should read this book it's called rich dad poor dad because i saw you post some stuff about being interested in real estate because i posted about that so i didn't even have money to buy a book i went to barnes and noble and i went and sat at barnes noble and read it cover to cover uh in like you know three hours or whatever one night and it changed my life what i would say is rich dad poor dad put words to this like groaning in my soul that i knew i knew the life that i was being prescribed this like go to law school and get a good job and work for 50 years and retire on government benefits and all that stuff i was there's something wrong there's something like almost evil about that and i can't put my finger on it and then when i read rich deported i was like ah that's it and hundreds and hundreds of other our guests on the show said the same thing so i am uh to say i'm excited about today's interview and to release this to everybody is an understatement so i'm excited for you guys to hear it i wonder who ended up getting that book with your beard hair in it when they actually bought it i wonder somebody up in the uh i think it's willa the tuck willa area of uh of seattle that's who got it you know i remember when i first read the book everyone was telling me how life-changing it was like dude this you'll never be the same after you read this book and i read it and i actually had sort of almost the opposite of feeling as you where i thought like ah duh there's people that didn't that don't think this way it to me it was like reading a book telling you put your pants on one leg at a time yeah and the whole world's been trying to jump into it right and so i guess my eye opening was that i had an understanding of finances that not everybody else in the world shared and so in a sense it helped me relate a little bit better to everybody else it didn't change the way that i thought and so that's funny that maybe like a yin and a yang it affected us both pretty significantly but in different ways that's cool and you know just follow up the second book the kind of sequel was called cash flow quadrant we're gonna get an interview in a second guys but uh the cash flow quadrant when i first time i read it right after which i poured out i didn't get it i was like i don't this is not rich dad poor dad it's not the same thing i don't understand like like in being an employee versus self-employed versus business owner versus investor i don't get it but then i reread it like 10 years later and i was like shocked at the impact that that book had that i didn't even realize i mean the stories i would tell the way that i thought was all impacted heavily by casual quadrants so uh it's been 500 episodes of the podcast we've never had robert kiyosaki on the show it's probably our number one most in demand guest and we finally were able to make it work and get robert kiyosaki on the show today so that's what you're going to hear here shortly it's an awesome interview um we go over a lot of stuff but just uh fyi robert is a uh wild ride he is awesome and he is blunt and he doesn't care what you think and i love that about him uh but just so you know uh he's uh he's awesome you're gonna you're gonna love this but just be prepared for a wild ride on today's show so i think you'll enjoy it and uh yeah you know what you might get offended on some stuff and that's okay we're like it's okay i just uh know that man he comes at it from such a viewpoint of wanting to help people experience just freedom that's like the message of today is like real estate can give you freedom and he'll explain how but first let's get to today's quick quick tip tip hey everyone likes the contest well biggerpockets is doing a massive awesome contest and here's the deal it's a giveaway so it's called i don't know the bigger pockets bundle i think is what they're calling it uh it's basically a bundle of everything you need to do to finally get into real estate investing or to at least propel you to the next level here's what you get a year bigger pockets pro a year of bigger pockets wealth magazine which if you're not reading that is phenomenal every time i get it in the mail i'm like yes another bigger pockets wealth magazine and a hundred dollars to spend on bigger pockets books so to enter this contest to enter it's really really tough all you have to do is sign into your bigger pockets account that's it or if you don't have a bigger pocket account you can create one uh but literally that's it if you sign into your account uh and this runs until 9 30 so september 30th at 11 59 pm as long as you sign into your account before that you'll be entered to win no purchase necessary obviously void where prohibited and you got to be 18 to enter and you can read the full rules at biggerpockets.com bundle but yeah somebody maybe a few people are going to win all this cool stuff so that's the deal and now i think it's time to get into the interview with robert kiyosaki anything you want to add david before we jump in and we will debrief after the show as well so you guys hang tight for the very end of the show as well but uh anything you want to add i would just say that robert's opinions are stronger than what most people are used to hearing and they may be different than what a lot of people are hearing i think he mentioned his age when you say 76 years old 74 i think yeah 74. so as you're listening just keep in mind these are the perspectives of a person that's seen a lot that's been through a lot he mentioned he was a fighter pilot in the vietnamese or in vietnam and that he there was a lot of things he went through there and he grew up in hawaii in an area where he wasn't always welcomed and so a lot of the perspectives of robert has sort of been forged in this fire of life that he's gone through and so i appreciate robert sharing his story and his perspective and how he came to see things and why he's so passionate about those things but it may not be the way that you are used to seeing things growing up in a different america in a different world than what robert grew up in so just keep that in mind as you listen and there are a ton of gold nuggets to take out of this thing i'd hate for people to miss out on those gold nuggets just because his perspective isn't the same as what many people's is today yeah we talk about everything from communism versus marxism we talk about uh cryptocurrency a little bit we talk about the federal reserve and and the gold standard and we talk about real estate what he's investing in right now in fact he's got a cool project that he's building right now based on some macro trends in america uh that i think that part of the conversation could change your life if you start thinking that way so hang tight for all that and uh if you like this show don't forget to leave us ratings and reviews over in itunes and google play or stitcher wherever you're listening to the show at uh let the world know and uh feel free to you know share this on your instagram or on your facebook whatever you can do uh to help spread the word about what we're doing here trying to build uh an army of people that are dedicated to freedom for their life and uh you're gonna hear how to do that today without further ado let's get to our interview with the author of rich dad poor dad robert kiyosaki robert kiyosaki man it is an honor to have you here today thanks for joining us noah thank you i mean thank you guys for your success all your success i'm an honor to be in your program i've been hearing a lot about the waves you guys are making and the good work you're doing so it's an honor for me to be a part of your show today well thank you thank you man well you know uh we've interviewed what um this is episode 500 so we've interviewed almost 500 people before this uh and we ask a question at the end of every show we'll ask you it later uh it's what you know what's your favorite real estate book and the interesting thing is like i mean 90 percent people say rich dad poor dad at least 90 maybe 95 and we always kind of laugh about it because we're like well it's not really a real estate book yet everyone calls it a real estate book and i'm like like it's so i want to start with that why does everybody call rich dad poor dad a real estate book i wish you could tell me i mean when they asked me like when when when i early on like when it was my turn to be interviewed on my own show uh my co-host asked me you know what what's your favorite role says i was like richard parker i was like wait that's not a real estate book no but it changed something in in here in between the years that made real estate possible for me well as the book talks about in there i think it was a ray kroc founder of mcdonald's and my my friend who was at the european university of texas you know was talking to ray kroc and he said something about you know ray what business are you in i mean ray says what business is written mcdonald's in and everybody says hamburgers and ray said no mcdonald's is a real estate company and today i think they own more real estate than the catholic church and so back in the 70s when i was trying to figure my life out my rich dad said the same thing it says the purpose of a business is to buy real estate now if you understand that your brain will shift but it's not about starting a business to make money the purpose of a business is to acquire real estate so you can use massive amounts of debt and pay no taxes i mean that's why i do it you know i mean it's um and just get my background in real estate when i came back from vietnam 1973 when i got spit on and hit by the eggs by the hippies i was a marine pilot in vietnam so i have a very little love affair for the flower children of peace and peace bill here here here i'm out there i lost so many friends in vietnam and these sobs spit on me and hit me with eggs in california i got i'm still i need to see my therapist about that one but you're not bitter at all i had no peace i had no ptsd from vietnam but i had ptsd in california so the first thing my rich dad said to me so i said you know i want to be a rich he says why may take real estate courses what you know it's not stocks it's not bonds it's not mutual funds it's not this is you have to understand real estate i didn't understand why but as you guys know real estate is based on two things debt and taxes debt and taxes and a pure capitalist will do everything possible to avoid paying debt and tax i mean i mean using debt and paying no taxes that's what capitalists do but these idiots go to school and they invest in a 401k which is possibly the riskiest of all long-term asset acquisitions and i don't blame them and i don't blame them they should do that because they have no financial education and no common sense but if you really want to be a capitalist you have to understand real estate and entrepreneurship yeah you know that that concept of of most people just don't have the financial literacy or the education like they have just no interest in it right like and what do you say those people who are just like i'm just i'm too busy i'm working my job i don't have time to learn about all this complicated financial stuff i mean like how do you respond to people like that maybe you don't hang out with them i think that if you've seen the cash flow quadrant e s b and the i employees and self-employed small business guys they pay the highest taxes your employee will pay this is worldwide will pay 40 percent of their gross in taxes and a self-employed person like a doctor lawyer or a small entrepreneur will pay 60 percent and ease and s's are what people go to school for you know go to school become a doctor or a lawyer or an accountant or being a ceo you're just you're just a tax slave and if that makes sense to you then don't study real estate yeah you know i i'll have to say i'm kind of stealing from anything warren buffett maybe he said at first but last year my intern my intern who was only making just a little stipend to live you know and help me out paid more taxes than i did because i own real estate and he doesn't i own a lot of real estate and i'm like this this concept like i mean he's paying a lot in taxes yeah and other people think well i don't really care i mean it's only it comes out of my check automatically i don't have to worry about it but when you look at the life of 40 50 years of all the money that you're losing and not compounding it's incredible it is incredible you know one question i got for you i get this a lot for myself you know me and david teach real estate a lot we teach financial literacy and education all that and i always get this question from people this kind of i don't say almost reverse judgmental well what's so wrong with being poor what's so wrong with not have like with not without money aren't you just being greedy to want all this money what's your response to that well that's right a pure marxist you know what i mean and the thing i i hate to say and then we're discussing before came on the air my next book coming out was called the capitalist manifesto and the reason that's coming out november 10th 2021 that's the us marine corps birthday and i'm a u.s marine and i fought for our freedoms and i went to vietnam twice and so what most people haven't done because i went to the academy i went to new york um us merchant academy at king's point and my english teacher was in english slash economics teacher had us read the communist manifesto mind comp and mao's little book so i started hitler mao stalin and marx and once you study those books you go holy moly then you realize people like my poor dad a very good man stanford universe chicago northwestern they're marxists because their academic system is based on mark's principles well i think that comes from when people hear us saying you don't have to pay taxes it can easily be misinterpreted to sound like i don't care about other people i don't care about anyone but myself i'm a rich greedy sob and taxes are for the poor man and that's one of the things i'd like to sort of clear up because many people will hear i don't pay taxes and that's all they hear and then they use it as a way to dismiss anything else that's said regarding capitalism because they've painted it with a with a selfish rush but in exchange for not paying taxes because you're making your money through real estate or entrepreneurialism you are taking on risk you are walking away from the safety of the sheep herd who isn't using their capital to build money they're getting paid a guaranteed check from somebody else in exchange for that they're going to pay taxes so when you hear about people like like you robert who've made a lot of money and haven't paid taxes on it you've taken on a massive amount of risk and i'm imagining your military career that you first started had a lot to do with you being comfortable with the concept of risk obviously as you're flying planes into enemy territory you have to understand that in order to accomplish my mission i'm taking on risk in order to have good there's going to be bad and i really just wanted to get your take on if you agree with the way i look at it or if you think there's another perspective to be offered well i would change the word risk because it's not risky it's smart so if you understand this the reason capitalists like me on you know on the b side b stands for brand like you know rich dad is a brand i intentionally built a brand so warren buffett who invests in companies doesn't invest in joe's startup warren buffett only invests in brands like coca-cola gillette those guys where um the reason we don't pay taxes is a book by my personal accountant his name is tom wheel right he'll be a good guy i've never had a money be a great guy to have on yeah i just met him in person he was awesome yeah we want to have them on awesome but he explains it from another point of view is that taxes are incentives from the government to do what the government wants done so think about this i make millions of dollars and pay no taxes because i'm doing two big things number one i'm using debt i don't use my own money it's called opm or infinite returns whatever you want to call it and the reason they need people to use debt is because in 1971 the u.s dollar became debt when nixon took the dollar off the gold standard so they're incentivizing capitalists not consumers to use debt because with if guys like me don't step up to the plate and borrow like 25 million dollars i just created 25 million dollars out of nothing so they need a capitalist step up and use debt number two the reason real estate is so important is because we provide housing and if everybody ever been to a communist country like you know like tajikistan or kyrgyzstan and all that you've been to a communist house i mean a communist housing project or you've been to the projects in the bronx or in brooklyn that's what happens when government provides housing so the reason i get tax breaks there's two big reasons it's an incentive from the us government the treasury and the fed to say please borrow money please get into debt and that guy dave ramsey is a friend of mine that's saying live debt free i go yeah how do you spell loser you know what i mean [Laughter] ramsay's my friend rav is my friend but i go how can you give people such bad advice but it's good advice for people who have no financial education it's perfect advice it's perfect advice for my poor dad live debt-free but if you're a capitalist when i borrow money the us government says thank you thank you thank you and when i put it into apartment houses they go thank you thank you thank you thank you again so i make all that cash flow and i use appreciation depreciation amortization to pay no taxes that's called basic financial education you could teach a ten-year-old to do that because that's how old i was my rich dad taught me that man if if you could boil down a couple i mean the rich dad poor dad has been out for a long time now but for those who maybe haven't read it are there a couple key points that you want people to make sure they understand or maybe points that you get misunderstood about the concepts taught in rich dad poor dad well number one you know i'm going to get my butt hang for hung for this one it's the capitalist manifesto so we have a communist manifesto yeah and rich dad porta is a capitalist manifesto and simply said look i i the capitalist manifesto starts with me flying in vietnam looking at some of the most beautiful real estate in the world it's called the french indochinese riviera just outside the capital city of vietnam called way and i'm flying along there i'm looking at these burned out french chateaus beautiful beautiful french tattoo that burned out blacked out bombed out i'm going what happened here but suddenly the lessons i learned at the kings point the march marine academy what i learned in my textbook and reading the communist manufacture i could see playing out in front of me this is 1970 uh two i'm flying along this beach going holy mackerel that's communism in real life you know i realize my family are marxist but they never read the manifestos yeah and that's why they're poor you know that's why i kept asking you guys probably ask the same question why don't they teach this stuff at school well because they need poor people to pay taxes and do the work and i want to say something it's not about communism and all this it's about freedom i write for only one reason i want my freedom and as a marine pilot we fought for our freedoms i didn't fight for the republicans or democrats i fought for our freedom our right to free speech the right to bear arms the freedom of religion that's what we fight for you know so what happened in kabul the last few weeks makes me sick because i saw that in 1975 also and i had several friends not come back you know two guys were a six drivers uh there's a sexy a6 intruder one flew the navy one flew the marine corps they're still m.i.a they've never come back never found the planes never found the bodies another friend when i came back from vietnam in 73 he was in the hanoi hilton he was an air force f-4 pilot and then i had several friends who just never returned the m.i.a and so when i when i when they say oh your your aunt tried this i said no i fight for our freedoms i just want my freedom of speech leave me alone just leave me alone let me say what i want to say but today with the canceled culture and this new wokeness that's marxism and it's taught in our schools why do you do i mean freedom um you said the reason you write is for freedom you know what you do you you podcast you're continuing to write these books like what are you hoping to change in the world is it is it to drive is it to stop the spread of this you know marxism idea uh do you have any other like what do you i guess what's your why i had the question a number of times from people when i said i was going to interview you you said why is he doing this still that's exactly it because the uh the capitalist manifesto actually started with my board game cash flow 1996. without financial education the average guy has no idea what an asset or liability is so they called their house an asset they called their car an asset they called their college degree an asset when there were liabilities the long-term debt that you have to pay for and as i wrote about in rich dad porta there's two kinds of debt you know in good debt and bad debt and the average out there with his phd which stands for poor helpless and desperate they don't know the difference between good debt and bad debt they think all debt is bad so of course they should listen to my friend dave ramsey and of course there's susie orman who says cut up your credit cards let's talk let's talk asset liability this is one of the most like i think maybe groundbreaking things people still talk about all the time when it comes to rich dad poor dad it's this idea that your house is not uh is not a asset it's a liability or is it like how do you view home ownership today uh and has your views changed on that at all no nothing it's nothing to do with all ownership it does to do with the definition like a definition of an asset is something that puts money in your pocket whether you work or not so my personal residence and i have five personal residences they're liabilities i don't i don't sit there and pretend you know tinker bell on as well this is really an asset because it's going up in price i don't play with myself i call an asset an asset a liability a liability so my five houses are liabilities now their net their their value because they've gone up in equity but just fyi when refinancing all my houses right now because interest rates dropped i'm going to borrow that money out and buy more real assets yeah so it's just a matter of definition it's not personal this assets put money in your pockets liability to take money from your pockets it's that simple but people want to argue with me because you know what they like to argue because they're idiots they went to school well i think that's america right now where we never settle on the same definition before we start the argument so i found i found two people arguing and realized they're actually making the same point but they're on a different definition and it just allows the whole thing to get off the rails and i like what you're saying robert is your definition is if it's an asset it puts money in your pocket if it's a liability it takes money away and it's that simple and i if we could all get on the same page with things like that there wouldn't be another controversy with the dave ramsey situation and david's a friend of mine and we both agree if you have no financial education live debt free because debt is like it's a four letter words like a loaded gun you misuse it you get crushed but if you look at what's happening at the highest levels of government in the fed the treasury and wall street debt is going to kill us you know i mean it's our debt our debt to gdp ratio today is a 130 that's an all-time high and the average guy is what does that mean a debt to gdp ratio means we're screwed yeah our country has taken on bad debt we have taken on debt that does not actually get a return through the gdp and if you rank in your household like that you had a bunch of debt that wasn't bringing you money at a certain point the credit card companies would cut you off and you would go to foreclosure and you would have to start over but because it's a government that controls the currency that basically the whole world uses there's an there's unlimited line of credit is how it would appear so one of the things that i'm sort of doing is is sounding the drum that the rules of the game are changing whether you like it or you don't i don't think it's good that we're printing all this money i think it's very bad but david can't stop it so i'm adjusting my personal wealth building strategies to take advantage of the rules which means owning assets is even more important than it was before there's almost an urgency to own real estate now as inflation is likely to just spread and i sort of wanted to get your take rob because i know that you have sort of the crow's nest view of what's going on and you've been talking about this for a long time do you think inflation is a serious concern that should spur people to take action or do you think that we're in the next five to ten years gonna have a crash so people should hold out before they buy well all of us say to your listeners is amen and listen to you you see it's not a matter of what you're thinking it says you've got to look at what are the idiots doing you know and if the idiots are going to give you free money take it but you better know what you're going to do with it first like i always say the most important piece of real estate is between your left here and your right ear you know that's a great vast wasteland in america we have no financial education so you should listen to my friend dave ramsey and susie orman you should invest for the long term and a well-defined portfolio stock sponsors mutual funds and you know etfs like tony robbins recommends i wouldn't do any of that garbage but i don't have to there's a difference and so the reason i'm very honored to be on your program is you guys and i are on the same team you know if you're going to be an idiot don't listen to us that might be the best advice ever given on the show don't listen to us because it might be the new slogan of the show if they're gonna print money and they're giving it to me now under two percent so i refinance those five houses i think i'm going to pull out a million dollars and i it doesn't affect the cash flow at all because interest rates are so low my personal cash flow but i'm just going to buy more stuff i am going to buy another apartment house in austin you know why because every time they print money every time the fed and the treasury print money they screw the working class you know higher lower interest rates causes inflation which makes it impossible for young people and poor people and working class people to afford their first house so naturally they're going to move into my apartment house that's right and then those socialists who are in academia like my poor dad oh you guys are capitalists you take advantage of the poor people that's not true we provide housing low income affordable clean housing where do you think like from an economic standpoint you know if you're pulling out your crystal ball right now and saying this is what is the result of what's happening today this is the the fruits of our labor where do you see the u.s head in the next few years we see another real estate crash coming or an economic collapse coming or just a slow down what do you what do you what do you think well first of all i love crashes as you know that's that's like uh even mark is having a sale yeah yeah i don't have to break in and loot the place i just wait for the sale do you think that's happening like how much time we got i mean it's always right there's always a crash coming right so yes it's kind of a broken clock is right twice a day kind of situation but when when do we when do you think this is happening well let me go back again i don't you know this is called macroeconomics but there's a debt to gdp ratio yeah and when it was at 90 percent that meant the keynesian multiplier was one to one 1.1 two one so if we borrowed money at ninety percent debt to gdp ratio then the economy the gdp grew by one point one percent so it was a healthy economy when covet hit it was 106 and then today's 130 percent so what's the option so when i look at any decision i'm going to make first i want to look macro so when i see 130 percent debt to gdp ratio and 90 is healthy we're sick and so there's three options going to come about number one the u.s may default on a dollar i doubt that'll happen because you're the u.s number two is hyperinflation and number three they're going to raise taxes so as when i when i'm making a decision you know people ask me what should i do i first checked the big picture the czech macro the debt to debt to gdp ratios and all that and then i make my decisions and then i start making looking for properties going to fit them so what i see happening is that we have these college kids coming out with student loans that they'll never afford a house yeah they're screwed and so i hate to say this i'm going to provide housing for them is that cruel or should i just give it to them you know like the vote crowd wants me to give them like marx just want me to give them free housing and like i said if you want to see what free housing looks like go look at a government housing project and you won't live there and i live in arizona you know i look at high inc you know i mean i look at scottsdale which is the rich guys apartments and i look at the government low-income housing projects the scottsdale projects for the affluent are so much better than the low-income projects but the low-income projects costs more money because anytime the government touches it it gets more inefficient as you know yeah so when people say you know capitalists are criminals and all that is because morons they really don't know what's going on they haven't studied karl marx you know i mean it was marx who said we must have a central bank it was lenin said if you want to even destroy capitalism you must debauch the currency which what next which is what exactly what nixon did in 1971 and then both uh then stalin and mark said donald and london said you want to if you want to crush the middle class you grind them through taxes and inflation and that's what we're doing and so when people say well you're an idiot for writing this capitalist manifesto well it goes back to 1996 kim and i created the cash flow board game so people could protect themselves from marxism the motto of the capitalist manifesto is how do you prevent how do you protect yourself from marxism taught in schools you perpetua you prevent being crushed by marxism taught in schools by teaching capitalism at home i'm such a big believer in the idea that like school doesn't end like when i i just got two little kids at home one's five she's just starting kindergarten but school doesn't end at three o'clock i'm such a big believer like that's where they go maybe to go get some education some education but school for rosie my five-year-old and for wilder when he becomes old enough like he's two now almost two like what happens between three and eight like that's school like that's where i get to teach them like what what what happens i tell the story a lot on the podcast but i don't think you heard it but one thing i did for my kids where each my kid i buy them a piece of real estate when they're young and i just put it on a 15-year mortgage with the idea being over 15 years by the time they're ready to go to college they've got this asset that the tenant has paid off i get all the tax benefits i get the cash flow in the meantime and now they can take that money and use it for college if they want but if i did my job right the real goal of all of this is for them to see a real life picture over the course of 15 20 years of what you teach in rich deported i'm trying to just instill that in them so i hope they don't go to college i hope they take that money and they invest it in their own real estate or their own business or their own whatever but that stuff's not taught that's not taught in school i i commend you because because that's when my financial education started it started at 10 when i was 10. and my rich dad just started teaching me about money playing monopoly and you wonder why i'm so screwed up today you know we all know the formula four green houses 1031 red hotel yeah that's great and then you don't pay taxes every once in a while you come across somebody whose parents were in martial arts and they started when they were five and you see at 25 and they're a ninja and you're just like god how did they get that good right or you meet that real estate agent that sells 50 houses a year at 19 years old and every time it's because their mom or dad were an agent and they grew up seeing it right it's obvious that that is the way human beings work what you see over and over what you're exposed to and the time frame you have of practicing those concepts leads to being really successful and yet so many americans don't teach children how money is supposed to work even though money might be the only thing you could ever get good at that allows you to be good at everything else right if you have money and you have time you can go train martial arts you can go do all the things that you want to go do i feel as an analogy for like the one ring to rule them all here that that you missed out on the right [Music] that's the one skill that rules them all is knowing how money works amen and that's why the cap the capitalist manifesto was started in 1996 was you teach capitalism at home because they'll be teach they'll be taught communism at school hey let me let me ask you a question about the the cash flow quad oh sorry the cash flow board game uh when i played that a lot when i was younger i got really into i mean red rich dad poor dad played the game and i got everyone i knew to play the game with me and i found this thing over and over is that the the lawyers and the doctors in that game like for those who haven't played it you start with a character like you start with as a as a job the lawyers and the doctors had such a hard time winning that game yet the janitors had some much easier time was that on purpose and if so what were you trying to teach there well if you understand the whole you know the eric how rich dad poor does the book on accounting income statement balance sheet statement of cash flow and you don't have to go to college to know that stuff yeah but the other thing too is if your expenses are lower it's easier to get out of the rat rates but what happens to most people as we know they go to school they think they're you know john wayne or something and then they buy the big house they got a big car and all that so they're trapped in debt and that's when guys like dave ramsey jump on them and say i live debt-free you know i go well yeah they just put their debt in the wrong places if you bought like exactly what you're doing with your child they're using debt to get rich but the average person even if they went to college or harvard or stanford they use debt to get poor i mean it's not that it's not rocket science there's certain debt that hurts one person and helps the other so that would be if i borrow money to go buy a ski boat that's great for the person who let me borrow the money because they're going to make interest on the payments it's great for the person that made the boat it's bad for me then there's other debt that helps both parties when i go buy an asset that goes up in value and it helps my financial future and i made money for the person that let me borrow the money who doesn't want to take their time to go do it and that is such a simple concept but it gets mixed up in the whole debt versus no debt debate well also if you understand what happened in 71 again it was lenin who said you want to do you want to kill capitalism debauchery currency that's what happened in 71. i'm a student of economic history the fact is money is created it doesn't even exist you go to the bank they don't have unless they want to borrow a million dollars they don't have a million dollars there so you you sign your name to give you a million dollars it just pops up and that's how that's called the fractional reserve system and all that stuff so that's why the whole system is so screwed up but we don't we have these college professors who don't even know what i just said money doesn't exist you walk up to the bank you say i want to borrow money they lend it to you but they just created it money is created out of debt that's happened in 1971. you think your credit card has any money in it no money is only created the moment you say hey i'm an idiot here it is you know it's created and if you understood that you'll understand real estate that's exactly where i was going as you were speaking i was thinking if what he's saying is is right that money's not real it's just created then you want to exchange it for an asset as fast as you can yes because an asset is real right it's even worse than that is you helping the banker out because you're going mr banker i'm giving you an excuse to make some money here you're gonna you know like i just bought about 25 million bucks the banker was ecstatic yeah do what i mean that money did not exist that's why they dropped the interest rates now to blow two percent is so you'll borrow money and then my buddy ramsay is saying live debt free i'm going well you're anti-american if you do that yeah i i've been buying mobile home parks lately uh partially because i'm like you know i i like them but uh yeah about 2 000 units in the past year or something crazy like that but i look at this i'm like they're giving like they're giving us loans on mobile home parks at like two and three four percent like really low interest rates that are locked in for like a decade at these rents that are you know 2 300 a month so even if we do see a decline in you know the economy i'm like i can hold through and buy low income housing as well like the lower like you know like lower income housing apartment complex not like you know government housing but just you know cheaper apartments because i'm like people can afford to pay this the government's just giving me almost free money and then they're printing so much that that should just go up i'm excited about this stuff well that's why there's three possibilities again you look at the debt the gdp ratio one of those default number two is inflation number three is taxes they'll probably they'll probably inflate yeah and then what the way they do that is well mmt you know marxist monetary theory and ubi universal banks the income what you're doing right now they don't give the poor people the money directly to give to us yeah they're gonna say hey you need to pay your rent here's somebody to pay the rent i go thank you i see the exact same thing i think the government is going to more and more get into this housing as a right kind of mentality but i don't think they're going to go build housing necessarily i think they're going to give tenants money to pay us and then we're just going to make more and that's going to make real estate go up even more valuable and our debt stays the same so that's why i start this whole thing with start with macro first what's the debt to gdp ratio at 90 it's good it's a one to one 1.1 with a keynesian multiplier but when kovit hit it was already 101 106 and today it's 130 and so you better start protecting yourselves and i still endorse real estate you know because you can use debt and you pay no taxes it will less taxes but you've got to be smart and if you're not going to be smart then listen to dave ramsey and live debt free i mean it's a free country i mean i agree with them if you don't have any financial education you don't want to listen to you guys listen to dave ramsey also tony robbins i think that's fantastic advice i'll just throw this in brandon if you didn't know how to drive a car the best advice someone could give you would be don't get behind the wheel yeah yeah right you know how to drive a car walking to work instead of driving is sort of foolish right like that's probably the best way i could think about the whole like is dave ramsey right or wrong well it depends on the person listening and what they're capable of handling if you don't want to study listen to dave ramsey that's as simple as that you know like when i when i was going to fly in vietnam i decided who i'm going to fly with and i said says the marines are the biggest psychopaths i'll just join them you know i wanted to fly with guys who wanted to fight i didn't want to fly with guys who were draftees [Laughter] so it's just common sense you know and it's not right or wrong it's just what works for you so all the people listening right now is real estate good for you well it depends if you want to study it's great you don't want to study don't do it that's very good and a lot of people that bought real estate in 2005 are nodding their heads right now saying yes i didn't want to study i just wanted to speculate and they all got burned can i tell you a funny story because you know like somebody says well the market crashes oh boy that'd be exciting you know because 2008 i thought i died and went to heaven you know they were giving away property at bargain basement prices interest rates were dropping you know people were screaming they were complaining i was going thank you jesus you know this is wonderful so the other night i was with my friend he's a very very very very big real estate developer and he already talked about when's this bus gonna come you know when it's overdue and so we walked into this restaurant in scottsdale arizona and there were all these women in the evening gowns and he and i elected each other says it's time to sell and the reason is this is one of the most important lessons at the top of a market people are the happiest if you can understand that one so when the markets are really really high everybody's happy they're spending money and so i was on uh stansberry research she says well maybe it was a prom night i said then daniella these women were about four decades out of the prom season you know they were just celebrating champagne was flowing i don't know what they were celebrating was about 20 of them yeah and i said that to me is the top of a market so i call it now the prom night indicator i worked in restaurants during that time and i can attest to the fact that selling more expensive bottles of wine and more of them was a lot easier i mean it was just people were yep take another one take two like take it one drink of it leaving the whole bottle there and then when i got out from what i heard from the other people i got into law enforcement was that it just got so hard to sell anything right people feel rich they spend money freely people don't feel rich they become tight ones and but when people are happiest as the top if you can understand that one and what you're waiting for is the depression you know like when neiman marcus has a sale i'm happy yeah you know and when i don't know why people think it's bad to have a crash it cleans house except when the fed cleans it up for you and pumps it up fake yeah that's terrible we haven't had that crash we should have had it a few times now at least from my perspective just like a human being has a sleep cycle we're awake we spend energy then we need to sleep and refuel and the economy works that way too you have a big boom too many businesses are there that shouldn't be they need to go out it's like a forest fire you have a depression it cleans out the bad ones the capital gets reallocated to better places the companies do better we get better products like better iphones and better cars and it works and it seems kind of like every time it's time for us to crash and sleep the government pumps us full of methamphetamine and so the experience is we're doing great i feel wonderful but underlying it's not healthy for the body to go through that do you think that i'm off with that that perspective no it's basic it's basically what's happening today is that people are addicted you know it's like giving a heroin addict more heroin and that's what we're at today it's sad i mean it's really sad i can laugh about it and all this but like i said in 1996 my wife and i created the cash flow board game so people could understand inca station's balance sheets station statements of cash flow and it's not that it's the answer but if you continue on with your education learning making mistakes you know dealing with good people bad people which is all part of being an entrepreneur you actually get smarter and better deals coming away so today and i just turned 74 i have more deals coming my way just because i've made so many stupid mistakes and dealt with so many crooked people but it doesn't mean i have to be stupid or i have to be crooked what are you investing in these days i mean what's the focus for you is it is it real estate is it crypto is it uh businesses or all of it you know i started buying gold in 1971. so i flew to hong kong and i bought my first gold coin was a south african krugerrand and then my whole world changed oh my god this is money and the problem was i had to smuggle it in because in 1973 or two it was illegal for americans to own gold so i smuggled this krugerrand into him right it's not hard to do you tuck it in your pocket yeah but i still have that krueger and i paid 50 bucks for it today's worth 2 000. wow nothing's changed so that because i became an advocate of the gold silver and today bitcoin and bullets i mean i made more money with bullets because i was buying it by the okay um pallet load i was buying five five six or two to three ammunition for seven cents around and today i can get a buck for it yeah but that's fascinating it just takes study you know i mean you just sit there you observe what stupid people are doing just don't do it now for somebody who like me i've i've not ventured very deeply into the crypto world but i know you've got a little bit more under than i have uh yeah you sound bullish on crypto and you think that's the future and if so like there's so many points out there what does somebody even start thinking about that well it's the same way i do anything as i don't talk to myself i talk to people who are smart you know guys who are actually like peter schiff hates it he's a friend of mine yeah and guys at rutgers won't touch it but i talk to guys who will touch it so when when this is a while ago when when bitcoin hit 20k it's tempting because it's like that's like prom night everybody's happy yeah but you know it's going to retrace so i i talked to uh several people who ralph pal and all that stuff i said what do you think talked to um max kaiser i said just wait so when i retraced down to from 20k to 3k then it went to seven i picked it up at nine and today it's about 50. yeah so it's a matter of just a little financial education all booms bus and all you know but i don't know much about it i just don't trust the us government i don't trust the fed and i don't trust a treasury i don't trust wall street it's that simple so i want to trust what i can control so when i talk to people i said real estate's the best because of debt and taxes who else is going to lend you millions of dollars at low interest rates and then you don't have to pay tax on it oh no that's too risky i'm going okay what are your thoughts on building right now i know uh one of our mutual friends you know ken mcelroy is doing a little bit of apartment complex building and i i i like the idea but what are your thoughts where's the building headed right now is that a good investment well because i invest with kenny as a good investment [Laughter] and i have kenny has made me a millionaire over and over and over and over he is the smartest guy i know in real estate at the same time i have another project going up it's much bigger than any kenny's deals but it was a longer term project it's an it's a old-age home which i'm going to be the first client so no just look at you look at demographics right and they have this massive thing called the baby boomers it was set for retirement yep so i have the most luxurious um they called the assistant living home it's right next to my house in phoenix and it's massive it's it's an infinite deal to have no money in the deal uh but that's why i just love real estate it's so you have but you have to have guys like kenny on your team or tom will write my tax guy yep or listen to you guys because it's it is higher risk if you're dealing with idiots yeah that's so true i i 100 agree when i did when i went into mobile home parks i was debating like in my head between mobile home parks and uh senior housing because i i see the macro trends of where we're ahead in the next five like i don't invest for tomorrow right i invest for 20 years from now very smart yeah yeah and there is something there's a massive problem right now and there's a lot of people getting older and older and older and the technology is improving like we're going to live a way longer than our parents lived uh i heard a guy this weekend at a go abundance event i know you've been known gobundan's event before yeah fabulous organization yeah i love i love gobundans and we're at we're at this event and this guy they're speaking like a harvard phd whatever you know guy studying longevity and he's like yeah you guys are all living to 150. now doesn't mean we're going to live i mean like if they can extend our life to 150 fine but we're still going to need a place for all these people to live and even if it's not 150 there's a growing problem then the two i see right now are there's a problem of affordability in america and there's a problem with uh with elderly care in america so if we can get ahead of that curve i think there's a lot of money to be made yeah you know this homelessness is a major major disaster i mean it breaks my heart that just breaks my heart and but in california you know i think the tents are costing him 250 a tent on going jesus i can buy one rai for 50. you know but anyway it's just a mess and then so housing will always be a mess starting with tents and homelessness and all the way up to high-end uh affordable you know i mean um elderly care which i'm going to be the first tenant what do you envision for this i want to know a little bit more about this project you're working on i mean what do you what what's it like i mean how many beds is it going to be or rooms and uh what are you excited about with it you're talking to a marine here man i really don't i don't even know i set that project up 25 years ago oh that's cool and then what happened was um it was a no money down deal again it's right next to my house it's on 32nd and camelback which is the location this is the location it was a um health club and it was a triple net lease so i borrowed three million dollars off of my house i put i paid for the property i borrowed money for that too so the three million was amortized by the triple net you know they paid me 50 000 a month which then advertised my three million dollar debt on my house and then we rolled so after the whole thing was paid off which was and got all these tax breaks for all this and then we sold it to a development company who sold it to this um elder you know senior living housing luxury high-end property so we didn't want to take the money so we sold it to them on a 100-year lease oh wow and so they said they sent me a lot of money every month but i still own the property that's fascinating yeah it's a structure so how many units on it i don't really care just send me my check so here's what i want to highlight from that you also incorporated leverage into this deal which is the best business people answer exactly how you just did what are the details i don't know that's that person's job right i had the vision and i had the money and i let them and that's what capitalists do is they create opportunity for the person who is going and and managing all those details so yeah that's that's goals right there i did a joint venture with my friend marin katusa out of vancouver and we now sell carbon credits it's a great new deal thing so we're making fortunes because ever because this green these grainies are going to force every airlines every steam ship company every trucking company to buy carbon credits yeah so we just manufacture the carbon credits and we sell it to them there's so much opportunity if you're an entrepreneur if you've had the experience if they listen to guys like you who are for real in the market the key is fighting for real people or your teachers it is the key you know when i talk about flying in vietnam i flew there and i know what it feels like i know what it feels like to shoot people i know we did it but when i talk with oh you're so mean you know well what the heck do you think we're doing out there playing holding hands singing kumbaya you know people are just so out of reality today i don't know where they're at so i like i'd rather be a capitalist i'd rather listen to you guys i'm honored to be part of your program you know kenny mcelroy and have made millions together but i do deal with other people too i hang out with people smarter than me and being a marine that ain't hard to do i love it man well we got to start wrapping this thing up i mean this has been phenomenal we got kind of four more four or five more questions we it's our last segment of the show it's called our famous four the famous four is the part of the show where we ask the same four questions every week to every guest and so we're going to ask you this is the part where everyone says rich reporter but i'll ask you uh the first question is there a real estate specifically related book or resource uh that's been impactful in your life like what's you what would be your your favorite source of real estate education well actually i read a lot of them laurie nickerson but these old guys i mean they're gone already yeah yeah but i think the books that really affected me were the macro books like the creature from jacqueline on the fed and once you understood the fed you understand why you've got to be in real estate do i mean it's macro it's not micro yeah and and uh because it's all debt and taxes so once i understood the creature from jekyll island then i understood real estate that's a great point is it's kind of like that scene in the matrix where neo has to travel back to the the computer source and see where everything flowed from right there's we're not just banging the real estate drum because real estate is a cool thing it's if there's a reason that money flows that way yeah and you said it you said it you said it perfectly early you have to watch what's going on then you make your decision yeah you know if they're going to raise interest rates tomorrow i'd probably back off that's exactly right you got to watch how the rules are being developed yeah and as long as you can keep lowering it and all this and making it more affordable i'm coming in but you've got to be smarter because more people are in today so i just you know ken mcelroy are our partners for about 25 years and that boy has made me a multi-millionaire over and over and over and over and over and over again but i don't know as much as he does i'm quite happy not knowing yeah you've got to hang out with real people that's all i'm saying and then tom will write i suggest people listen to him it's called tax-free wealth yeah if you understand that it's debt and taxes that make you rich then you'll understand real estate yeah i was just on ken mcelroy's podcast not to like maybe a week ago and he was on ours what a couple weeks ago brandon yeah yeah very smart and he's experienced he's like like you said he's flown the planes he's not just talk there's a lot of people out there that put one or two deals together with other people's money benefited from a great market and they've got podcasts and they've got youtube channels and they've got courses and they've got everything uh kenny's not one of those guys right he's he's been through it he's he's seen deals that went bad which is just as important as seeing people that have deals that go good that know what went wrong uh next question what is your favorite business book well it would probably be again macro as i'm writing a book with a guy named jim records who was cia he was part of long-term capital management and all that and the book is the road to ruin he wrote you know the new case for gold he wrote he and i writing a book called the ravens is how you predict the future but again everything starts with the biggest picture if i could recommend that if you step back and look at the big picture then you know what to do so being a pilot that's probably my mo i wanna get the big picture then i figure out where to go so next question maybe about you personally a little more robert what are some of your hobbies i'm a politically incorrect hunter you know the last question for me for the day and then david's got one more for you but if you had to really boil it down between the successful real estate investors that you've met in your life from all those who like you know they get excited they want it or they try or they give up they fail what's the difference if you had to really boil it down what's the difference between people who succeed in real estate and people who don't well it's the same thing as they teach in the marine corps it's the words dedication honor discipline um discipline yeah that's a great answer yeah i i don't do it to get rich i mean i i that's the intent but i know i better know know the game so i said it again the reason i don't like stocks is because i love gold i took i bought a gold mine in china for nothing down uh years ago when the chinese was kicking out you know what on what they were doing but i got a goal of mine for nothing down all i had to do was take it public and i took it public through the toronto stock exchange made 27 million dollars for it and we struck gold so we have about a hundred million ounces of gold over a billion dollars in gold and the chinese government took it i know but i learned more about the stock market you know china's china and they just took over afghanistan but anyway i learned more about the stock market taking a company public and you that's why i'm in real estate [Laughter] it's a whole different world i i am a control freak i like knowing who i'm doing business with why i'm doing business with them do i trust them i didn't trust anybody in the stock market yeah i'm right there with you man yeah right there with you that's a great argument for why real estate you have control over your asset as opposed to owning a share of a company you have no control over absolutely and debt and taxes and tenants and all that stuff it's so much different when i first heard you speak robert it was at a go abundance event in lake tahoe and you said something that it changed my perspective on money and life forever and i've said this before but i don't know if i ever told people it came from you you mentioned that most people look at the coin as heads or tails and that's often expresses itself as republican or democrat it's one way or the other and if the if it's tails that you're looking at and you like heads you just get angry and you said i don't play that game but i stand on the third side of the coin which is the edge and i can look over on either side and i can see what is the government doing and how can i make my move and i just thought that was so much more brilliant than wasting energy railing about things you can't control is to look at what each side is doing and then position yourself in the best spot is there any insight you can share on that before we wrap this up just thank you for taking i think that's probably the most i really thank you for remembering that it's called you know all coins have three sides heads tails and the edge and intelligence has found the edge especially today when people yelling and screaming at each other all day long i just stand on the edge and kind of take a deep breath and watch both sides but by standing on the edge the edge is also intelligence you know that's where you gain more from both sides and so one of the reasons i know so much about real estate and stocks is because i've been on both sides and for me personally it fits my personality and my beingness better on the real estate side but yeah but but chasing down a real estate deal is fun it's fun it's the most fun game i know it's exciting i could do it all day long and that's what it comes down to you know what not is one right or wrong or is dave ramsey right or am i wrong and all this is what works for you you know if you want to study then real estate is good get into debt if you don't want to study listen to dave ramsey that you sum that up so beautifully thank you for doing that because i know as a lot of people are listening they hear us make statements that immediately create a knee-jerk response and they just want to shut down i don't want to learn i don't want to that's not what i like to hear i don't like to look at the tails i only like to look at the heads but the point of sharing information the point of a podcast like this is to empower the average american or wherever you're listening to improve your life by improving your financial education your knowledge to what happens and then the decisions that you make and you cannot do that if you don't know what's happening on each side of the coin and so that's just what i want to encourage everybody who's listening to hear is that knowledge can never hurt you it can help you it can help you know what not to do but it you don't running away from information is never the answer to putting yourself in a better spot and that's where our hearts are so we want people to have better lives without relying on others whether that's the government or a system or whatever your family taught you at one point and that's all you know how to rely on uh you want to be empowered which is like you said robert you were fighting for our freedom to empower us through capitalism you were fighting for our freedoms and you've just described freedom freedoms you've just described freedom one last thing about practicing what i preach as i come out of this book the capitalist manifesto is against the you know the communist manifesto so jordan peterson is one of my heroes yeah and he goes and he's like an idiot he debates those communists and so i go i crank on to youtube jordan cassandra he debates like richard wolff and all this stuff and it does you know it's white knuckling it takes everything in my power to listen to a communist tell me why capitalism is bad but i still have to sit there as a public say a 35 minute talk i will listen to the communists you know just rip apart capitalism but if i don't listen i'm not practicing what i preach so i still hate listening to them but i sit there and listen to them and try to understand their point of view i still don't understand it but i don't listen to them yeah yeah that's still wrong but you you listen to them oh funny that's what i love about youtube and all this stuff i mean i hate these platform people but i can access different points of view so quickly in a few minutes so it's great it's a great thing yeah that's awesome man well this has been phenomenal i i loved having you on today i just i admire everything that you're doing right now and you're making such an impact on the world so thank you and i'll let david kind of wrap things up with the final question no i just missed meeting jordan peterson he was scheduled to speak at a ted talk that i was speaking and he was unfortunately hospitalized right before he was supposed to fly into uh california so my parents are with him but that that's one brilliant mind right there we'd love to have him on the show i don't know if brandon and i would ever get a word in if we had him on the show but that's okay i'd love to talk for an hour yeah i'd be probably fine with that he you know he is one of those geniuses walking the planet and he's got guts that's you know he's not on the fence you know another guy is gad said he's not on the fence he's a hardcore capitalist as an academic and then there's um so many guys coming out now victor davis hanson their academics coming out against communist and academics yeah so it's like it's a really an exciting time but i encourage people to listen to both sides all right last question of the day robert where can people find out more about you richdad.com is probably the best spot but you know i'm i'm turning into a hermit i said i said i sit at home no it's wonderful because i i go to the gym and all that i meet i meet the second and third generation yeah you know these guys got to my dad or my granddad gave me your book and if there's a if there's a rush that's it yeah it is the highest of highs i say change my life you know most of them go into real estate because they're entrepreneurs they said i've you know they started a business but we're also investing in real estate so i just remind them what ray kroc of mcdonald's said mcdonald's business is not hamburgers mcdonald's business is real estate and the perfect reason you start a business is to buy real estate and you use debt and you pay no taxes and you have freedom and that's what it's all about robert that's been amazing thank you so much i hope you uh i wish you best of luck on all your endeavors all your real estate all your everything else and can't wait to see where you had in the future thank you well thank you congratulations on your success and you say hello go abundance i appreciate them all right that was our show with mr robert kiyosaki by the way i do want to pull out here at one point in the show david you casually just referred to your buddy robert as rob and i thought that was a pretty big flex you can just like you know shorten robert's name to rob just like your your buddies so good job on that i wasn't gonna go there he took it in stride obviously he doesn't have as big of an ego as you do i can't call you brand you cannot call me brand no no just so casuals it's always just my buddy rob over here i'm like this is robert kiyosaki like the godfather of every thing that we do here at bigger pockets it's like he's like the guy that yeah but he and i go way back all the way back to lake tahoe and go buddy man it's impacted millions of people maybe even billions of people you guys go way back yeah that is true you guys met before i had not met uh keystone before so anyway that was a fun interview man he is a you know he he downplays his brilliance you know he he he kind of plays up the you know marine not very smart trust other people but he is a he is a thinker he is a jordan peterson in himself uh a very smart guy but also very good at explaining complex topics in a way that the rest of us can grasp us mere mortals things like rich dad poor dad that whole concept or the the rat race that was his thing or the cash flow quadrant or all these things that he talks about yeah phenomenal what are your thoughts i think it's worth pointing out he is very critical of certain institutions but if you look at his motive for that it's that he loves freedom so much he sees those as enemies to those things so if something is an enemy of getting you out of the rat race if it's an enemy of giving you the freedom to make your own choices or to build your own wealth or to carve your own path he he sees that as something that should be attacked as he's defending freedom and our ability to improve our own lives and so i think that's what i really like about his his demeanor which can be rough around the edges of the time is that he values freedom and real estate's ability to grant you that so much that he takes that that other like a stance we don't hear about too often you know what what are your thoughts on a tax thing you know he talked a lot about we invested real estate for debt and taxes and i've heard him say that before places you know when people talk about taxes there's a lot of the world i would say the majority of the world do not like us when we talk about not paying taxes right that was a big thing that everyone railed against trump about is how he didn't pay taxes and you know when i said in the show like i paid less taxes than my intern that that ruffles a lot of feathers and we kind of hit on the show but i wanted to ask you if you could maybe expand on that and give your thoughts on on that are we just evil capitalists well i think donald trump and robert kiyosaki say i don't pay taxes you shouldn't pay taxes you're an idiot if you pay taxes in a sort of a click baby fashion it gets your attention and makes you go what why and what they're trying to do is get you down a path of learning how wealth building works because it's a more efficient way to build wealth without paying taxes but what it like every clickbait article if you just hear that phrase it's very easy to become critical of it and say oh you're anti-american or you you're anti the people that benefit from taxes you don't want people that are starving to get food or medicine that's not the case at all the government incentivizes business owners and specifically real estate investors with tax incentives that can cover all your income so you don't pay taxes because they're providing good to the world they are uh providing housing for people they're making bad things better you start a business that wasn't doing like there was a need in the market you created a way to fulfill that need in the process of that you created a bunch of jobs for other people that wouldn't have normally been able to do what you did those people pay taxes the government's happy if you created 20 jobs and pay taxes and you didn't have to pay any taxes are you an evil person and not at all the other thing i would point out is that when you do pay taxes let's say that you pay 30 of your income to the government you are now depending on them to go use that money in the way that would best seem fit the government recognizes themselves throughout the tax code we're not always the best at using money right like opportunity zones would be a great example of that they've given investors uh incentive to go revitalize areas that fell apart to make the world a better place and so you're not avoiding taxes so that you can keep all this money to just go eat caviar and drink champagne you're pouring it back into the business that you have to grow it to make the world a better place and that's really what i like to highlight don't just take the knee-jerk response of oh you don't pay taxes you're bad ask why ask what you do with that money instead ask yourself well why is the code the government irs code written to benefit is it because they're wealthy no it's because they're using that money in a way that makes the world a better place more efficiently than the government would well dead man that's awesome well uh we gotta wrap this thing up and get out of here but i hope people took a lot of this episode and uh uh and it's just that thought about like like where is the world headed what are the rules that are being rewritten right now and how can you take advantage of that to better you better your kids better the world around you better the planet uh by playing the rules as they're written so uh thank you everyone for joining us today again if you have not left us a rating review in itunes that would be much appreciated uh follow us on bigger bigger pockets everywhere you can on social media so you know twitter instagram facebook youtube all that you can follow david personally at davidgreen24 and you can follow me at beardy brandon it's beard with a y i'll let you take us out of here david i almost did it but then i was like i can't take your your your job on episode 500. it's really the only reason i'm here i have an hour and a half to come up with a clever nickname there you go you're still struggling this is david green for brandon the ronald mcdonald of mobile home parks turner signing off that was pretty good you're listening to bigger pockets radio simplifying real estate for investors large and small if you're here looking to learn about real estate investing without all the hype you're in the right place stay tuned and be sure to join the millions of others who have benefited from biggerpockets.com your home for real estate investing online you

Channel: BiggerPockets

Views: 340,320

Keywords: biggerpockets, real estate, real estate investing, investing, rentals, rental property, investing in real estate, income property, bigger pockets, passive income, Robert Kiyosaki, rich dad poor dad, rich vs poor, rich dad, life lessons, Robert Kiyosaki speech, cashflow quadrant, cash flow quadrant, capitalist manifesto, rich dad poor dad author, real estate market, real estate crash, real estate market crash, housing crash, housing bubble, real estate investor, investor, cash

Id: 4qU8n1xNp3k

Length: 72min 23sec (4343 seconds)

Published: Thu Sep 02 2021