I've read pic related a few times over

CouchChiller
CouchChiller

I've read pic related a few times over. Changed the way I look at finances and really set me on the path.

The biggest lesson - stick your money into money generating assets. However, Kiyosaki is huge on real estate, and that's not something myself or many of us can do with their career.

What's the best way to do so, and what have you done to generate passive income?

All urls found in this thread:

johntreed.com/blogs/john-t-reed-s-real-estate-investment-blog/61651011-john-t-reeds-analysis-of-robert-t-kiyosakis-book-rich-dad-poor-dad-part-1

JunkTop
JunkTop

passive income is a meme

PurpleCharger
PurpleCharger

best way for the past 20 years index funds have been the best option. i have no idea if they remain so. real estate is mess it's risky it's high maintenance. if you have faith in your skills and knowledge and want to be active sure flip real estate. but the low energy way is simply buy index funds.

Fuzzy_Logic
Fuzzy_Logic

these things exist on a spectrum no?

something doesn't need to be COMPLETELY passive. imagine owning a property, and the rentals within it are full.

yes there's work involved in different phases, tenant changes etc. but most of the time it would be pretty damn passive I would think. sit back and collect the rent

whereismyname
whereismyname

if you own more than 2 or 3 apartment complexes, it's a full time job.

Nojokur
Nojokur

Through your brokerage account. You can even own REITS. It's that easy.

Illusionz
Illusionz

What deters me from real estate is being responsible for all the repairs and upkeep. Eventually the cost will outweigh the benefit, or if there are vacancies, or bad tenants that beat the shit out of your property.

Dreamworx
Dreamworx

what have you done to generate passive income?
i had some passive income for a while but of course it came to an abrupt end.
what i did was invest some minimal amount in hashocean which was an up and running bitcoin ponzi for a few years then. and i posted my ref links everywhere so basically after a month or so i reached daily payouts and already recovered my initial investment. at this point i had nothing to lose anymore it was just free money. but then i got into the next problem. aside from a lot of people that got burned and lot a hell of a lot more than what i gained on my behalf i couldn't scale it up. any money i threw into this scheme was only gonna make my roi worse.

i kinda regret the whole thing but i have to admit the passive ever increasing income stream (as the refs kept pouring money into it) was very satisfying while it lasted.

but all in all passive income is mostly a myth as the entire world is set up that there would be no such thing.

Booteefool
Booteefool

if you factor in maintenance and repairs ahead of time then who cares if the property gets beat up.

i know casey neistat gets a lot of jew hate on Veeky Forums, but there is a video where he explains why he treats his camera equipment like shit.

That guy destroys hundred dollar cameras and drones on a monthly basis, yet he doesn't care. To him, cameras are just tools of his trade.

rental properties are just tools to a real estate investor. Its ok to beat up your tools as long as they are making you money.

Evil_kitten
Evil_kitten

Any recommended brokerage firms to buy index funds and REITs?

lostmypassword
lostmypassword

those are very real risk and should be carefully factored in you calculations.

it's safe to assume the cost of ownership is about 5% of value a year (plus mortgage). if the rents are so high you still turn profit and don't mind dealing with your rentees go ahead.

hairygrape
hairygrape

i thought you can buy vanguard directly.
brokers would just be a dead weight.

PackManBrainlure
PackManBrainlure

Hell, even if are renting out 1 house. Houses get fucked up all the time, and your tenants will be calling you constantly.

Firespawn
Firespawn

and your tenants will be calling you constantly.
that would be real shit. i have only called my landlord like 3 times in 5 years. i usually handle the repairs and we deduct the material costs from the rent. i only call him to let him know what i'm doing and get his yes on the replacements.

but i can totally see some shithead calling every second week about something and not lifting their ass to replace a lightbulb. and technically they have a right to do that.

viagrandad
viagrandad

I would agree. RE isn't all it's cracked up to be; I've done it for years and it's kind of a pain in the ass. I bought 10 units in a town I used to live in back in the 90's made a bunch of mistakes, one being having partners, and watched the town decline and the property values stagnate. Rich Dad's okay but I think being heavy in Re is its problem.

likme
likme

You're 100% right and you have to be able to get your money out of any improvements. Ron Le Grande used to have some good points but where he recommended buying properties was basically crack houses an slums and shit. Bottom line is u gotta have the money to underwrite the maintenance and vacancies. You never get a months rent back when the apt is vacant. You can't charge someone else for that

Carnalpleasure
Carnalpleasure

The point is that the starting capital for a passive income that is worth going after is huge. If you would want to lend it, you had to pay...

...more than you make on the passive income. That's how risk financing works.

Exception A: you are a god like trader and have huge alpha gains

Exception B: You start your own company with it, but that's not "passive" income. That's active.

Also I'm Ass Man by the way, some folks from /b/ might know me. Summon me if you have any questions.

Emberburn
Emberburn

It's fake. That guy literally just made up a bunch of stories. Also real estate is a horrible class for the average investor. Not liquid, and subject to local and regional pricing trends that you don't have the resources to analyze. It also requires 75% leverage in long term loans which lock you in for decades. If anything goes wrong, you don't collect enough rent after losing your job etc... You can lose the entire investment and get left with debt and bad credit.

johntreed.com/blogs/john-t-reed-s-real-estate-investment-blog/61651011-john-t-reeds-analysis-of-robert-t-kiyosakis-book-rich-dad-poor-dad-part-1

Evilember
Evilember

That's the thing, it's actually really hard work to find the right property cuz once your in it it's a bitch to unload it if you didn't buy it right. These gurus present it like it's a job for lazy people. They talk about working"smart" etc etc etc...

FastChef
FastChef

I had great tenants but, Yeah, the property is always falling apart and I had good ones. Then there's lawn care snow removal etc. And you can't depend on the tenants for that because if they don't do it you're held responsible.

kizzmybutt
kizzmybutt

once you start scaling and purchasing more apartments you hire someone to manage them
sure you take a slight dip, but time is money

AwesomeTucker
AwesomeTucker

In an interview by SmartMoney magazine, published February 2003, Robert Kiyosaki gave an answer that is surprisingly vague, yet real: ""Is Harry Potter real? Why don’t you let Rich Dad be a myth, like Harry Potter?"

Stupidasole
Stupidasole

1997
still investing in a real estate bubble
Dumb nikkeijin learns nothing from the homeland, news at 11

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