Rich Dad LIVE: Real Estate Investing with Robert Kiyosaki and Ken McElroy

Introduction

• Host: Chris Steele
• Special Guests: Robert Kiyosaki and Ken McElroy
• Focuses on real estate investment strategies
• Free bonus: Robert's Cash Flow Blueprint Companion Guide
• Encouragement to take action and notes during the session

Key Speakers & Their Backgrounds

Robert Kiyosaki

• Author of "Rich Dad Poor Dad"
• Strong advocate for financial education
• Wealth-building strategies focusing on real estate

Ken McElroy

• Real estate expert
• Author of "The ABCs of Real Estate Investing" and "The ABCs of Property Management"
• Focus on property management
• Examples of successful real estate investments

Main Discussion Points

The Importance of Education and Process in Real Estate

• Education is a process, not a one-time thing
• Importance of continuous learning and practice
• Starting with small deals is crucial to gaining experience
• Both began with small properties (1-bedroom condos) and scaled up

Overcoming Financial Barriers

• Myth: You need a lot of money to start
• Both started with no initial capital
• Importance of leveraging other people's money (OPM)
• More money in the system today than there are deals

Real Estate Management vs. Stocks

• Management is crucial in real estate; if you can't manage, stick to stocks
• Property management can dramatically affect investment returns
• Comparison of focusing on value (stocks) vs. focusing on cash flow (real estate)

The Strategy of Infinite Returns

• Aim for 100% debt financing to maximize ROI
• Real estate as a means to get infinite returns through leveraging debt
• Use tenant income to cover debt and expenses

Practical Examples and Case Studies

Robert's First Deal

• 1-bedroom condo in Maui for $18,000
• Used credit card for down payment
• Achieved positive cash flow with no initial capital

Ken's Multi-Unit Deal

• Started managing properties in Seattle during college
• Learned the importance of management and financing
• Now manages and invests in thousands of units

Edgewood Property Example

• Initial investment of $1 Million
• 144-unit property generating $300,000/year in cash flow
• Refinanced to get initial investment back, achieving infinite return

Bisbee Ranch Example (Robert)

• Purchased 80-acre land for $115,000 with no initial payment
• Improved and sold a portion, keeping 50 acres and profiting $80,000

Conclusion and Encouragement

• Education and experience are key to successful investing
• Importance of starting small but thinking big
• Encouragement to continuously learn and seek mentors
• Final emphasis on the fun and satisfaction in the process and the results

Additional Resources

• Rich Dad's coaching programs, books, and games to educate and start the process

Final Notes

• The process involves ups and downs but is crucial for learning and success
• Real estate can provide significant returns and financial freedom if done correctly and intelligently