Rich Dad, Poor Dad thread

[Francisco d'Anconia]

I did not know pharmaceutical companies are behind some of the illegal MLM's...

I see that you are fixated on believing that all tiered marketing methodologies are illegal, corrupt, sinister, debaucherous and inhumane. No point in debating on such an emotional level. Look into firms that use brokers that works on commissions if you need proof.

 

[azanon]

Put it this way. I started buying real estate and fixing it up with my own two hands. Then I started a business at a flea market. Then I moved to a retail location. Then I put together an off site sale which failed miserably (I felt like it was the end of the world losing $20k) That lead me to open a much larger retail location. It did well in the beginning but I got complacent and made some bad decisions on that one, which led me to have to COMPLETELY revamp my concept. New name, logo, slogan, remodeled the store, created an infomercial that is basically a television show to promote it complete with multiple characters.

Now I know how to do my own graphic design work that is better than anything I ever paid anyone hundreds of dollars an hour to do. I bought video production equipment and I am learning to shoot and edit. I create ad copy. I write my own comedy material for the infomercial skits that promotes the store.

I now know how to create logo's and slogans. I designed one of the most incredible retail stores you will ever see, from the theme to the displays to the colors and designs on the wall.

I could keep going but you should be able to get the point.

And have you gotten the point that everything you're saying there is FAR better described as a job, than an investment? You should make 10 to 20 times what I do in comparison to me passively investing the money I make from my job (which isn't in real estate). I make over 75K a year from my job (wifey makes another 50K), but you don't see me calling that an investment do you?

Quite frankly, we're talking apples and oranges. Buying houses/businesses, fixing them up, being a landlord, or selling stuff out of them or selling them to other people is a job. Anyone who calls all of that simply a mere investment and unfaily comparing the returns from that to someone like me who sends a check to Janus that I wrote in 2 minutes is being misleading at best.

Comprende?

 

[speakeasy]

I like the idea of starting a business but have no idea what to start a business in.

 

[synergy1]

I like the idea of starting a business but have no idea what to start a business in.

Money money , every kid with a dream and no desire to work for the man wants to sincerely believe there is a way out of this rat race. Enter the entrepreneurial millionaires who want to fill the need for these people by writing books of mostly anecdotal , very little factual literature, and sell it to you. Business is simple on the surface. You find a need, and fulfill it. Mind everything around you, and find needs that you think people are willing to spend money for. Most kids are willing to spend money on pyramid schemes, and BS books about becoming rich owning real estate, so these people fulfill it.

I prefer to do what most of us do with women...Observe what women do and not what they say. Observe a real millionaire, and how they run a company, how they invest, how they limit the expenditures in their lives etc. The plain and simple truth was mentioned previously; real millionaires don't tell everyone how they did what they did, and if they did, no one would believe them. Its hard work, risk, research, knowing the right people, dealing with ethics, and having balls of steel. There is no magic bullet.

 

[speakeasy]

Where in the States are real estate values high? From what I've seen values have been dropping from average homes being on the market for at least 9 months to a year. Add to that a glut of foreclosures and the market is saturated driving costs even lower. This has been going on for at least the past year.

http://en.wikipedia.org/wiki/Housing_bubble

I study real estate trends pretty closely. I'm not sure what part of the country you live in, but places like pretty much all of CA, Vegas, Phoenix, Miami, Boston, NYC, Seattle, D.C. and other places are still sky high. There are foreclosures coming from the subprime fallout, but we aren't even close to the bottom of the market. It's JUST beginning. The majority of subprime loans are set to adjust upward next year, it's going to be a f*cking bloodbath out there, especially now that it looks like we are on track for a recession later this year with credit liquidity tightening up. This whole thing was so obvious from day 1. We never did truly recover from the recession of 2001. It was simply masked over by the housing bubble allowing people to pull out massive amounts of home equity loans and put that towards consumer spending which floated the economy. Now that lending standards have tightened up and fewer people can get loans and these shady ass subprime lenders are going belly up one by one, now we going to be headed right back into recession. The whole economic "recovery" of the last several years was footed on real estate values. Houses that were selling for $200,000 here in Los Angeles back in 2001 are now selling for $700,000. But just like the dotcom bubble, the real estate bubble is going to give back much of those gains as well. However, unlike stocks where the market can tumble litterally overnight, upswings and downswings in the real estate cycle take years to play out. A downturn usually takes about as long as an upturn. This property bubble took a good 4 years or so to get where we are now, so it'll probably be about as long until we reach the cheapest point in the cycle as well. Of course every market is different, and some parts of the country like Texas or Kentucky or Nebraska never experiences a real estate bubble, I'm only talking about the areas where prices shot through the stratosphere in the last 5 years for no reason other than easy credit liquidity. If you can find some well-priced cash flow positive properties in your area, then sure go ahead and buy them.

 

[STR8UP]

And have you gotten the point that everything you're saying there is FAR better described as a job, than an investment? You should make 10 to 20 times what I do in comparison to me passively investing the money I make from my job (which isn't in real estate). I make over 75K a year from my job (wifey makes another 50K), but you don't see me calling that an investment do you?

I did not dispute any claim that real estate CAN be a job, only that it doesn't HAVE to be a job.

You made a blanket statement that was false.

Any time you say something like that, younger guys that are looking for the right path are going to say, "Wow, I don't want to deal with the roof caving in every month, I better write a check to Janus cause that's easy and real estate isn't."

That would be like me saying "Don't ever buy stocks cause xxxx". And I will never do that, because I understand that the stock market is an asset class just like business and real estate and all of them have their place.

You have your method for becoming wealthy, I have mine, and thousands of other people have a different formula, but at the end of the day, wealth is made with assets, and you should pursue whichever suits you and your time frame the best.

If you are happy doing what you are doing and it is working for you then nobody should be telling you that it is wrong. HOWEVER, at the same time you shouldn't give advice to others where you lack knowledge and experience.

Someone asks me about investing in the stock market and I will tell them I can't do much to help them, but if they are interested in that they should seek the knowledge and try it out. You would have everyone follow one "safe" path and that's that. There ARE alternatives and they DO work. That's all I am saying.

Comprende?

 

[PeterNorthisawesome]

Kiyosaki's entire premise on wealth is based on creating passive income. Multi-level marketing is just one way to create passive income (if done correctly). How much do you know about his ideas about creating wealth?

Him and Donald Trump wrote a book together and I thought it was good. The whole point is to make money work for you, so basically investing in land and buildings. That way you have a steady income that you can use to buy more investments. What I didn't like was how they never said anything about getting the money to invest... lol Donald used his dad's money... don't really work for lower-middle class people, who can't mess up the first time.

 

[spesmilitis]

I see that you are fixated on believing that all tiered marketing methodologies are illegal, corrupt, sinister, debaucherous and inhumane. No point in debating on such an emotional level. Look into firms that use brokers that works on commissions if you need proof.

You might want to refresh and read this whole thread over again. . .I think you might have me confused with someone else you have been debating with recently. . .

I have only talked about pyramid schemes this whole time; I never mentioned any other marketing techniques. The only marketing techniques I'm against are the illegal ones, and I have proven that pyramid systems are illegal by websites from both the FTC and the U.S. Securities and Exchange Commission. If you believe that those two organizations consider "all tiered marketing methodologies are illegal, corrupt, sinister, debaucherous and inhumane", well, thats a different debate altogether.

If your cognitive dissonance is causing you too much stress to debate me on the issue of pyramid schemes, at least answer my questions about the pharmaceutical industry. That is, if you have answsers.

 

[Mr. Highroller]

I like the idea of starting a business but have no idea what to start a business in.

i am in the same boat

 

[Reyaj]

what is cognitive dissonance?