Lecture Notes

Introduction

Lecture began with the acknowledgment of mixed feedback (positive and negative emails).
Story about a keynote speaker, Larry Winget, who is known for his no-nonsense approach.
Mentioned a personal anecdote about the 1987 stock market crash and how it led to opportunities.

Self-Reliance:
- Importance of personal responsibility and not being a "wimp".
- Urges people to have a backbone or take action.
- Individuals need to help themselves before expecting help from others.
Stock Market and Real Estate Insights:
- 1987 crash affected not just subprime but the entire Savings and Loan industry.
- Impact of the 1986 Tax Reform Act which affected professionals in real estate.
- Perspective on real estate investment versus owning a house.
- House is a liability, not an asset.
- Market pessimism as an opportunity (Buffett's advice).
- Rich Dad Poor Dad philosophy on house not being an asset reiterated.
Investor Mentality:
- Comparison between buying low and selling high (flippers) versus cash flow investors.
- Emphasis on investments that generate cash flow (economies of scale in real estate).
- Mention of leveraging the 1031 tax-free exchange to acquire bigger properties.
Economic Conditions and Financial Freedom:
- Population trends indicate increasing demand for housing.
- Declining US dollar due to excessive printing of dollars and high deficits (Bush, Clinton, Bernanke, Greenspan).
- Inflation is real despite claims from politicians.
- Rising costs of gold and oil as indicators.
- Real estate benefits from the dollar's decline as rents can be increased.

Story about Gilberto at the Arizona Biltmore and how poor economic understanding can lead to poorer outcomes.
Example of working with Ken McElroy in upgrading from small 30-unit apartment houses to larger 150-unit apartments for better economies of scale.
Commentary on the education system ('Rich Dad' philosophy) emphasizing practical financial education.

Reiterating that real estate and the right investments can still provide substantial returns.
Emphasis that Rich Dad Company is not for those looking for easy, thoughtless investment solutions.
Note on how tax increases and inflation make smart investment essential.