Let’s face reality folks. Rich dad, aint so rich anymore.
In fact, he is really in foreclosure on 27 homes, is cash poor, going through a divorce, drinking heavily and his flip this house real estate buying advice and books suck!
My Rich Dad was really a greedy real estate speculating liar and my Poor Dad was the man who got it right.
John T. Reed actually has dedicated a chunk of his life to educating people about Rich Dad’s deceptive tricks and bad real estate advice. You can view the informative post here.
Why Rich Dad don’t know diddly:
Never again in our lifetimes will our eyes witness the things we are seeing in our economy today. We are watching the largest loss of wealth and the biggest transfer of real estate from one entity to the next in the world’s history.
If you followed “any” of the real estate buying and house flipping advice by these paid for TV snake oil salesman, you are now what I call, my “New Poor Dad”. Hey, it’s OK to be poor. As long as you do not judge your self worth by the money in your bank account, car your drive or equity in your property.
The next three years in “all” sectors of real estate will make the Great Depression look more like a mild case of postpartum depression and massive defaults in every real estate sector send much of our Rich Dad’s to the foreclosure auction block.
Many people who were once real estate rich, are now actually poorer than many people who didnt speculate or buy real estate in the last 5 years. I know because I see and talk to these people almost every day.
How do I know Rich Dad is really an impostor and is actually my Poor Dad? – Let’s use the Inland Empire of California and the real estate bought and sold here by my old Rich Dad (New poor Dad) to show you what I mean.
The recent real estate past for my “New Poor Dad”. (This story is a true story from an actual client)
- Rich Dad loved to read books by guru’s who had the “secret” to being rich
- Rich Dad followed this advice and purchased 27 homes all over the country during the last 10 years
- Rich Dad enjoyed a lavish lifestyle of no “real” work for the last 7 years
- Rich Dad lived off the equity and positive cash flow from the rents he collected from his 27 homes
- Rich Dad collected approximately $400 a home is his positive cash quadrant for a total of $10,800 a month.
- Rich Dad had: an average equity position of $100,000 per property and appeared to be financially solid for life.
- Rich Dad was worth $2.7 million just 12 months ago.
Fast forward to today and my “New Poor Dad’s Life”.
- New Poor Dad reads books on “The True Meaning of Life” and “Get Out of Debt Fast!”
- New Poor Dad is collecting rent on all the homes still and he is not paying his mortgage because every single home is in foreclosure.
- New Poor Dad has turned from real estate guru to an “unfair and deceptive” businessman who rents his homes to families who have no idea that he is in foreclosure.
- He takes the $54,000 ($2k average rent per McMansion) in rent monies he collects from unsuspecting renters and stashes the stolen dough in an off shore bank account and to build his beach bungalow in Mexico.
- My New Poor Dad is now worth a negative $2.7 million. Meaning he is $2.7 million underwater on the values of all his homes and that is on top of the $5.4 million he powes in mortgage and $237,000 in credit cards.
- Poor Dad is going through a divorce, has a heavy drinking problem and the FBI is looking for him because of mortgage fraud.
Read who else thinks Rich Dad is an impostor and is really my Poor Dad.
- Wall Street Journal: “Rich Men, Poor Advice” -
- Smart Money Magazine: “Karma Chameleon”
Fiction posing as non-fiction
- Oprahneeds to confront Kiyosaki about calling a fiction book non-fiction just like she did with James Frey
- He asks why Rich Dad has to be any more truthful than Harry Potter
- Admits fictionalizing on copyright page of Rich Kid, Poor Kid
- Admits to 20/20 that he doesn’t teach people how to get rich
- “Marine corps made him what he is today” – he was laterally transferred to the Marine Corp from the Merchant Marine and Navy, he never went through the entry-level Marine training
- Lied about desertion while serving in Vietnam (admitted later he just missed the boat)
- Became a helicopter pilot to “lead men” (platoon leaders and company commanders lead men; pilots lead machinery)
- Rich Dad, Poor Dad triggers the following items on my Real Estate B.S. Artist Detection Checklist: 1, 6, 7, 10, 11, 13, 20, 26, 27, 28, 29, 30, 31, 38, 39, 46, 49.
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