All Forum Posts by: Ronald Perich

We have our next Metro East REIA on February 13th in Collinsville. Another BP member, @James Syed told me he'd be showing up there, too. And I just invited @DJ Cummins to the meeting as well. You should come!

@Tyler Jahnke, It is a good book to get one started. It is a bad book to base one's entire future on. I really hope folks take the advice to continue reading some of his other books or to look at some of the other books I mentioned or that @Levi T. mentioned.

@Ben Leybovich, I only got confused by your writing because you were using terms I didn't understand. But I'm getting better. I take the time to learn the vocabulary because that's what successful people do - they understand and emulate those they aspire to become.

Your writing style is very fluid and personal, which might confuse some. But that just means I have to read it a bit closer and with more deliberation. And the more I read from you, the easier it is to understand your style and "translate" it into my own ;)

I am always glad I take the time necessary to understand your message. I may not agree with you 100%, but your thoughts and perspectives are well worth the effort. Thanks for your contributions.

@Jeff Rabinowitz, I have to respectfully disagree with you on one key point but agree on the others. Being well-written does not a good book make. A good book in this genre is about getting the reader to make a fundamental change in their behavior. With so many crediting this book as a beginning to their change, I'd say it has met that goal.

The 10X Rule is a terribly written book. But it is an awesome philosophy wrapped up in a poorly written and executed book.

The Four Hour Work Week is horrible. Ferriss is literally telling people to perform unethical and in some cases illegal acts to get out of work. But if you can extract out the fact that leveraging the time of others will make you more successful, then it did it's job.

Think and Grow Rich was, and still is, terribly difficult to read and full of stories that many are challenged to understand. Yet it works.

And Tony Robbins is hardly the master of eloquence on stage. Yet he has helped thousands of people change their entire life by the way in which he connects to their inner self.

So yes, it's a crummy book full of self-promoting platitudes. But it is a good book if it gets one to change their perspective.

My real problem with the book is too many think of it as being a financial literacy book. Hardly. It's only the introductory course. There is a ton of additional knowledge out there for people to take on if they'll only make the effort. Because if one sticks with only the surface-level information he gives in RDPD,  they will leave a lot on the table.

@Mike Austin, I tend to agree with your assessment. That's why I wrote the post. Rich Dad, Poor Dad is way too airy to be considered a financial literacy book. But it is a good first step. I mean, the conceptual shift he offers up is what really matters.

If one changes their perception of how money is created (by having it work for you instead of you working to make it), then the book has done a great service to the reader.

If one changes their perception of security (instead of putting your money into other's hands you now take control of your life), then it's done it's job.

But you are so right. It is only a first step. That's why I want people to expand beyond this book and get into some of the more interesting topics. Like using layered businesses to shelter funds. Like pushing people to get out of the rat race and comfort level of "a steady income".

So thanks for your contributions. Hope to see you around the virtual water cooler sometime.

@Eddie T., I think you have misinterpreted my post. It is a bad book because too many people only read that one book. They don't continue to learn and read about the real skills needed to fully embrace what Robert was talking about. If you only read this book and act upon it, you'll likely be better off than many.

I don't think you'll be as successful as you can be. Why do I say that? Listen to the podcasts... how many investors have impressively built up their flipping business but have little to show from a passive perspective? Or they manage their passive investments themselves?

Read the posts... There are so many investors out there who continue to believe that their 401K is going to be a saving grace for them 30 years into the future when they are ready to retire. It's the same lie told by employers who offered pensions. 

My point is... stop relying on one piece of advice/motivation that was written 20 years ago. Continue to educate yourself into the more complex parts of owning and running your business and professional life. 

I am decidedly not against RDPD. I love it. It's a great first step. My warning is if you only take one step, you'll never go very far.

If you look over the Best Real Estate Books blog post by @Brandon Turner you will see Rich Dad, Poor Dad as one of the best business books for real estate entrepreneurs. I will admit, I found it to be one of the best books I had read as well. It was the book that solidified what I had been thinking for some time:

• Make money work for you
• Don't rent out your time for money, leverage OPM to make money for yourself
• Have multiple streams of income so you are not beholden to one
• Being a conservative investor in stocks and mutual funds is a losers game.

If not for this book, I might still be sitting on the sidelines looking for that first, best property to buy. So I thank Robert Kiyosaki for writing it!

But it is a terrible book.

Let me explain. This book is only a first step. As Robert stated in RDPD, "I may go in and out of stocks, but I am long on education... I am always shocked at people who buy stocks or real estate, but never invest in their greatest asset, their mind."

You see, Rich Dad, Poor Dad is an introductory course to your financial freedom. I've read that book a couple of times and it is always a great read, but it lacks the truly deep knowledge you need to fully embrace your future. It is a terrible book if you never continue on.

The Retire Young, Retire Rich book is my recommendation for your next book. As I read it, it was if the light bulb turned on by reading RDPD was originally dimmed to the lowest light level. The further I read Retire Young, Retire Rich, the brighter that light bulb became.

Robert gets into the finer details about building out your empire and putting all of the pieces in place. You see, it's not just about the real estate; it's about how you structure all of your financial pieces together to make a fully functioning enterprise.  His narrative weaves together several pieces that are important factors in your success at building a fully functioning, fully freeing lifestyle.

This book also goes into more advanced subjects to consider. How to your other businesses flow into your overall plan. How to use effective, multifaceted structures to reduce or eliminate taxes. About learning the language and then using that to leverage other's expertise.

If you've ever found yourself confused by @Ben Leybovich posts, then my recommendation is to continue your education journey. Don't stop at on Rich Dad book, invest your time in others. My recommendation? Continue reading the rest of his series. And then pick up some other books as well.

Read The 10X Rule by Grant Cardone. Pick up Rank Gallinelli's book What Every Real Estate Investor Needs to Know About Cash Flow... and 36 Other Key Financial Measures. Listen to Podcasts like that offered by BiggerPockets, Rod Khleif, Grant Cardone, Bruce Norris, Kevin Bupp, and Tucker Merrihew.

I'm curious if you have other recommendations for podcasts and books to read? Interested in hearing your thoughts!

Update... shortly after writing this post, I took out a $50K loan against the 401(k) to buy a nine-unit apartment complex. There was a lot of deferred maintenance and CapEx. I spent the first 14 months of cash flow and an additional $20K of personal funds to get the property turned around.

This month, I refinanced the property at 75% LTV and pulled all of my cash out, including the $20K personal contribution and the $50K loan. I have a nice chunk of change left over to repeat this process.

I am into this property for no money. After accounting for all costs (including the mortgage), I'm making over $900/mo in cash. And I have none of my own money into the deal.

I no longer contribute to my 401(k). Instead, every penny is going into the business. I look for single family homes to flip/wholesale and use that cash to buy small multifamilies or mobile home parks. 

Same statement as before. This is how I chose to make my own destiny. This is not for everyone. 

But where I live, we had 2000 people laid off from the steel mills. The community came together to buy turkeys for their Thanksgiving dinners. There were major layoffs announced this year at Macy's, Microsoft, Boeing, Lockheed Martin, DuPont, Seagate, Cisco, Intel, and Wal-Mart. Those people cannot get their money out of their account without paying a fine.

I'm taking life on my terms from now on.

 I'd like to know more about this program. Can you please start a new thread on it and let me know where to look?

I would probably do it as well, but check with the terms to make sure you can meet any reserve requirements.

Once you establish your business relationships, getting more advanced loans based on past record is not as difficult as one would think. I know of several investors in my area who were able to get six figure lines of credit based simply on their holdings... and they don't have a lot of properties.

That gives them tremendous leverage. Offering all cash and then refinancing in six to 12 months is a great way to big up properties below current value, especially with a motivated seller.