In article <pmb-0108040003110001[at]max1ka-12.his.com> , Paul Michael Brown
<pmb[at]his.com> wrote:

- quote -

That is good advice to keep in mind anything you buy anything these
days. Another version of this that I have heard is that no one ever
sells a profitable business.

What makes these schemes work is that there is always a kernal of
truth burried in there somewhere. In the case of Carlton Sheets,
people likely did get hard up home owners to quit claim their
homes with assumable mortages once upon a time, resulting in a
huge windfall of equity, but you just are not going to see that
happen very often today. Someone just might find a deal like
this if they work hard enough, such as making zillions of calls
and putting in zillions of low-ball offers, but the thing of it
is that the type of person who falls for the get rich quick thing
is normally the very same person who would never do the work that
was required to make the program successful. If they were the type
that is willing to do the hard work, they are most likely already
doing something, working hard, and wouldn't have time to attend
the free seminars.

-john-

--
================================================== ==================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ==================

- quote -

Here's how "cash flow investing" works:

You send your cash flow to the promoter of a get-rich-quick, work-at-home,
no-money-down, earn-zillions-in-real estate scam.

He invests your money and lives comfortably while chuckling about the
gullible suckers who fund his life of leisure.

The eternal truths bear repeating: If the idea being sold was so lucrative
and so foolproof, don't you think the guy who came up with it would be
reluctant to let you in on it? Don't you think he'd be out there following
his own advice and getting fabulously rich?

Thanks to you both for replying.

I've heard of the Rich Dad, Poor Dad title, but I didn't know who the author
was.

Yes, the interview was a little short on the details. I guess I tuned out
before they made a pitch for whatever it was they were pitching. I just had
never heard of "cash flow investing" and wondered if it was some investment
vehicle I needed to know about or just a euphemism (or more accurately a
misnomer) for running a business.

sid <justsid[at]i-dont.net> wrote:

- quote -

I think it's an invented term by him. The gist is assets that can both
appreciate *and* generate cash-flow. Almost anything that meets this
definition qualifies as a business to run (including rental real-estate)

- quote -

That would pretty much be it. Well, you could certainly buy REITs or
dividend paying stocks. Those provide both some equity appreciation and
some income (cash flow). They are not as risky, nor as much work as
owning real-estate or your own businesses, so naturally the upside is
much smaller.

Kiyosaki (this is the Rich Dad, Poor Dad guy, right?) is a crank. I
don't think he's a scam artist, but he's like every other "Make a
million dollars in 5-10 years" character out there. It's certainly
possible to do what he talks about, but the key to success is in the
details, and he doesn't give 'em. Most of these guys are not actually
successful at what they espouse, they are merely successful at selling
books. Most of them (including Kiyosaki, IIRC) *tried* to do what they
advise others to do, and ended up bankrupt.

It takes a lot of work, talent, and a certain kind of temperament to
make money his way. Not only that, but you can have all that and still
get hosed. It's a very risky game. You pays your money (and time!) and
you takes your chances. Make good choices and in the long run, that
risk pays, but in the long run we are all dead. Some people who do
everything right will never get paid for their big risks, they will just
lose.

If you have what it takes, and aren't unlucky, you will probably make
more money running a business or buying and selling investment
real-estate or other private assets than you can make investing in
stocks or other standard vehicles, but there's a very good chance you'll
end up at zero before you get a large enough portfolio together to
moderate your risk. Kiyosaki, like many before him, implies that anyone
can and should be willing to try this. The facts say: Well over half of
people who do just get eaten alive. It doesn't matter how many books or
seminars they go to, either the balls don't bounce right, or they just
don't have what it takes, and they figure this out a couple years and
many thousands of dollars after they start down that road.

The number one thing that has to be there for you to be successful in
business (including a rental real estate business) is to be willing and
able to work your ass off for as much a year or two at low, no, or
*negative* pay.

When you're a business owner, in times of stress, it's like the ads
about the army -- you will do more before 9 am (or after 5pm if you're a
night owl) than most people do all day. And sometimes you'll be doing
it for a vapor paycheck: *probable* appreciation a year or two down the
road may be the only compensation you get. If that doesn't sound worth
it, and even exciting to you, *STOP RIGHT NOW* and don't *ever* consider
running your business or owning rental real-estate.

Anyone who advises people to run their own business (and make no
mistake, rental real estate *is* a business) without making that caveat
clear as day is not doing their audience a service.



Michael

In article <ccu7j2$of4[at]library1.airnews.net> , sid <justsid[at]i-dont.netwrote:

- quote -

It was an infomercial. They prepare them nowdays to sound like a
regular radio show, and they run 30 to 60 minutes most of the time.
What they want you to do is call in and sign up for the $3200 seminar
to tell you how to do it.

Note that Kiyosaki talks like an expert on this stuff, but he doesn't
actually do it. He makes most of his money from his books, seminars,
and multi-level marketing (Amway and Quikstar).

- quote -

No, they didn't give any usefull details. That is what is supposed
to get you so excited about the $3200 class.

- quote -

There are a number of cash flow investments. All you need to do is
find something that you can buy for X per month, and sell for X+1
per month. One that they are big into is buying carry-back mortgages.
You find someone who took paper in a real estate deal. You buy the
paper at a discount, then resell it for higher than what you paid.
You pay X per month on the loan, and you collect X plus a little more.
You keep the difference. This all sounds good, but finding these
deals is pretty hard work, and the risk is pretty high.

If you are curious, buy one of Kiyosaki's books. Also, check out
some of the on-line reviews.

-john-

--
================================================== ==================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ==================

I heard an interview this weekend with Robert Kiyosaki, author of "Who Took
My Money."

Actually, it was a little hard to tell if it was a true interview or more of
an infomercial, but the main topic was "cash flow investing."

I am not familiar with this term. And while both the interviewer and the
author were enthusiastic and adamant about the benefits of cash flow
investing, they did not say what opportunites there are for cash flow
investing, other than real-estate.

So what is "cash flow investing?" What forms might it take? Other than
owning rental properties, I can't imagine what other "cash flow investments"
might exist, unless they are talking about owning small businesses such as a
laundromat or a vending machine company or something like that.