Rich Dad’s Kiyosaki Dumping Real Estate


Talk about shocked! I always say that it is important to watch what others are doing and saying when it comes to investing, and now there are some major happenings. From the San Francisco Chronicle:

But now, in the past couple of months, the man — whose engaging financial parables have coaxed millions of ordinary under-earning boobs (including yours truly) into the real estate market — has become a major bubble-blower.

On his Web site,, which contains a forum for his casual and dedicated followers (including those who pay $100 a year to join his “insiders” club), he has begun posting articles that caution against what might be called “surreal estate exuberance.”

He cites the Economist at length, including the assertion that “the global housing boom is the biggest financial bubble in history.” He confesses that he’s currently dumping real estate that produces no cash flow (from rental income) and going “long on gold and oil.”

Kiyosaki continues:

“I’m worried about people using their houses as ATM machines,” he says, referring to those homeowners who have refinanced their homes to buy cars, pay for remodels or to buy more real estate.

The article is quite interesting, and reveals a new side of the Rich Dad Guru. He talks about using hedges against the predicted housing crash, like oil, gold, silver, and other commodities. In addition, he goes on to say that he hopes for a nice crash so he can get in and buy more property (I agree with this simple wish).

Read the article, and learn a bit about why one of the Gurus of real estate is looking to clean house a bit. I just wonder if something like this could trigger a small panic. You never know with the rate information flies today.

One thing I do know is hold on to your shorts. Personally, I would get rid of riskier RE investments in exchange for safer, income producing bets (I’ve done this already!). Just remember how frothy things were before the stock market crash a few years back – it is a wise decision to at least prepare for a rocky ride.

About Author

Joshua Dorkin

Joshua Dorkin (@jrdorkin, Google+) founded when he saw a need for free, trustworthy information about real estate investing online. Over the past 12 years, Josh has grown the site from self-funded hobby to full-time job and passion. Today, BiggerPockets brings together over 600,000 members, housing the world’s largest library of real estate content, iTunes’ #1 real estate podcast, and an array of analysis tools, all geared toward helping users succeed.


  1. Chris Fraser on

    As usual people love the messenger only when they are right, more to the point, right according to them. There is no new side to Robert he is an investor. Kiyosaki’s message and choice of investments has been a proven money earner to millions even before he was known to the investing public, and now that he is doing what all savvy investors do, you are chastizing him for being a good businessman.

    Grow up, stop blaming others for you own actions or lack of action, get educated and roll with the investing flow. Investment cycles were not created by Kiyosaki, but at least he has the good sense to address the changes as the climate requires. In an effort of disclosure I am the President of the Port Charlotte, Fl chapter of the Rich Dad Club. I am a former Investment Consultant with Morgan Stanley in New York.

  2. I think it’s a good idea to go long on gold, but the thing to remember is that the returns can be fairly mild in comparison to some of the other investment opportunities. At the moment, Real Estate could be on the verge of a rather large drop, so selling of non-cash flow holdings is a pretty good idea. Investing in Gold and Oil, however, is not really a “cash-flow” investment. Unless you plan on day trading to take advantage of the ups and downs. Otherwise, you should plan on holding for a very long term before liquidating for income.

  3. Agrees, sell the no-income producing RE and hold onto the ones giving cashflow each month. Gold is not something I would purchase right now. The USD seems more interesting I need to say. The US will clean their house someday and when they do this specualtive investment will be worth it’s salt.

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