Real Estate Topics Forum :: View topic - Reed’s analysis of Rich Dad Poor Dad by Robert Kiyosaki 2

Guest

Selected responses to John T. Reed’s analysis of Rich Dad Poor Dad by Robert Kiyosaki 2

“Mr. Reed,
I have read a couple of Kiyosaki's books and although I felt pumped, I also always had a feeling of uneasiness. Something just wasn't right. I kept imagining an old wise asian man ending his sentences by calling his student "grasshopper". (Now I think that character was the model for "rich dad" in Kiyosaki's mind.) And my wife and I had commented about the numerous contradictions we saw. After reading your review I find that I now understand why I felt that way. You put what was screwed up about his "teachings" in coherent, easy to understand form. You clarified my own befuddled thoughts.

You probably also saved me from doing something really stupid. I still shudder when I think how close I came to messing up my life as a result of Kiyosaki's brainwashing. Thankfully all I lost was a few bucks for a couple of his books.

I'm not giving up on real estate investing but I will be much more careful about the education I get pertaining to that subject. And I will definitely utilize your Real Estate BS Artist Detection Checklist in the future. Many thanks from my wife, my family and myself.” Ken Douglas
“Your article on Robert Kiyosaki was quite an insight. I had to laugh when you used your illistration regarding his reason for becoming a merchant marine. I have bought his "education program" along with the books "Rich Dad Poor Dad" and "Cash Flow Quadrant" Although I thought some of his opinions were insightful (what type of people are in each quadrant) It was no more helpful than his pitch on TV. His pitch was just enough information to make you wonder if he had a new answer. "There is nothing new under the sun" And I wish I would quit forgetting that.

My Broker has advised me to read "The Millionaire Next Door" That will be my next read after "The Worldly Philosophers"

Thanks again for a well written article. I look forward to checking out all of the links you provided in the article. I will be auctioning off the choose to be rich package on ebay probably.” Dan Estey, Longview Washington.
“I just read your comments on Rich Dad, Poor Dad and wanted to say thank you. I have read 4 of RK's books. But I did NOT take the time to stop and analyse like you did... shame on me.
I have been investing in real estate since 1984. I own 8 houses and 5 small apts bldgs. I live off of the rental income I receive. I have read just about every book your site mentioned. I would say your comments are very accurate. I wonder why I have not stumbled across your works before...Once again, thank you. I appreciate your time and effort. Sincerely, Avery T. Horton, Jr.

“just read your review of kiyosaki. thanks for the slap. you're quiteright. if not you, who? you are qualified, capable and appreciated. thanks for the ballast. i'm partial to independent thinkers, as kiyosaki seemed to be, and sometimes i don't have enough knowledge or sense to judge a guru's merits. and i don't buy a naysayer's criticism without substance. you provided the substance and are immediately sobering. thank you very much. i bought three of your books and plan to buy more as i finish them. thanks, craig.
“Your review of the Kiyosaki book and the thoughts on how to tell a fake guru from a real professional are just excellent. I fully agree with your opinion on Kiyosaki. It appears that the only real skill he was able to develop is selling himself. People like him capitalise on other people's ignorance, laziness and need for 'easy and fast' solutions. I am glad I bought his book in the Russian translated version which cost me only $1.30 instead of wasting more than $13 if I have bought it at Amazon. Yours truly, Andrey Shpak, Moscow, Russia
“Just a note to thank you for your clear, hard-hitting, and informative negative review of RDPD. My mother got it for me for Christmas, and I immediately hated it for all the reasons that most of the book's detractors hate it:
-It contained very little useful information... the useful ideas that were in the book could have fit on half a page.
-the writing was appallingly disorganized and vacuous, a meandering and self-contradictory lecture unsuitable for any self-respecting adult.
-it was a very mean-spirited book, denegrating all of those who simply wish to contribute to the world by working, paying their share of taxes to help administer our society, invest sensibly, and retire comfortably.
- the book glorified conspicuous consumption (Porsches, Rolexes, etc) to a degree that nauseated me.

However, I don't know much about real estate or investing, so I was unable to evaluate his stories regarding the ease of finding good real estate investments, etc. I thought Kiyosaki was just an amoral shark with an eye for a good investments. It appears from your well-written, specific, and factual (and thus believable) review that many of the things that he claims to have done are very unlikely or illegal. In other words, he is a fraud and a liar as well.

Thanks to your review, I have decided to exchange the book for something more worthwhile. The idea of enriching this scam artist any further by keeping this book on my shelf is intolerable to me.

Cheers,
Darren McHugh
Vancouver, Canada
Dear Mr. Reed,
I would like to thank you for the information that you present on your web site. It is truly a breath of fresh air in a media that has largely been taken over by unethical and criminal sharks such as your 'bad' gurus. I have read books by some of them such as Allen and Kiyosaki and can say that your take on them rings true. I have also read one of your books and the difference is stark. Thanks again, Ray Dotson, Cincinnati, OH

“Dear Mr. Reed:

I just finished reading Kiyosaki's "The Business School for People Who like Helping People" given to me by somebody who purchased it at an MLM convention. Even though you analyzed "Rich Dad, Poor Dad", my conclusions were very similar to yours in that I found every one of his opinionated statements patently false and misleading and not able to withstand some basic common sense scrutiny. However, I was particularly appalled at a part in the book where he quotes an SEC rule (he calls it requirement) that does not exist to prove his point by an asinine distortion of the actual SEC rule that he probably heard about somewhere and assumed it meant something completely different than what is actually provided for by law and that neither he, not his C.P.A. co-author bothered to actually check.

Direct quote from page 56 of that book:

"In America, the Securities and Exchange Commission, the SEC, requires that a person have an annual salary of at least $200,000 a year for an individual or $300,000 per annum for a couple, and over $1,000,000 in net worth. This is a minimum requirement to be considered an accredited investor and to qualify for the investments of the rich. Less than 4% of all Americans meet that requirement. This means that only a few people are allowed to invest in the most profitable investments in the world ... one more reason the rich get richer."

Even the most ignorant investment-wise person this statement would strike as false - the American government does not dictate what investments people are allowed to make, as long as they are legal - there is no minimum income or net worth requirement for any kind of investment.

What he is falsely referring to as the SEC requirement for minimum income and net worth to qualify for the investments of the rich (and which I'm sure you are familiar with, as is any person involved in or familiar with private equity investments would be) is probably his misrepresentation of the definition of "accredited investor" under Rule 501 of Regulation D of the Securities Exchange Act of 1933, which, among many other categories of securities purchasers who qualify as "accredited investors" lists a category of people with individual income (not salary!) of $200,000 or joint income of $300,000 or (not and!) net worth exceeding $1,000,000.
[Note by john T. Reed. You can read SEC discussion of this subject for yourself at http://www.sec.gov/rules/proposed/33-8041.htm and http://www.sec.gov/divisions/corpfin/forms/regd.htm]
But the most asinine suggestion that he makes is that it is actually an SEC requirement to qualify for the "investments of the rich". For anybody who would bother to read SEC Rules 501-506 under Regulation D (which can be found at www.bowne.com) it would become immediately obvious that the terms "accredited investor" only comes into play for any issuer of securities that sells its securities in reliance on exemption from registration under Regulation D, or in what is commonly known as private placement. In a nutshell, in order to avoid a very costly process of taking a company public, an issuer can be exempt from registration as long as certain requirements under Regulation D rules are met, among them not selling its securities to more than 35 "purchasers". "Accredited Investor" does not fall into the definition of a "purchaser", so an issuer could sell its securities to as many "accredited investors" as it desires, but only up to 35 of those who do not qualify as "accredited investors". In addition, "accredited investors" are not entitled to extensive disclosure documents that those who are not "accredited investors" are entitled to because it is assumed that they are savvy enough to make their investment decisions based on less financial disclosure than those who are not. In other words, definition of "accredited investor" serves to simply put in more safeguards in for those who do not qualify as "accredited investors" when buying unregistered securities, not to disallow them to invest. To suggest otherwise is completely false.

Keep up your good works with exposing Kiyosaki's as a fraud!” elaine-ross@mindspring.com
Lately, I've gotten very interested in real-estate. It all started with Robert Kiyosaki. (I can hear you groaning, but wait!) His books were kind of a kick in the pants for me, a call to change my perspective on life, time and money. I was thrilled to have such a hopeful vision of the future, for once in my life. It was refresing to finally find someone who could tell me how to become financially secure. I read chapter after chapter waiting for the grand revelation; the one piece of advice that would make that idea click in my head; the "AHA!" as it were.

It never came. 3 books later the "AHA!" still hadn't come. Frustrated, but with some idea what I wanted to do, I set out to find my own path to wealth, still inspired. I started looking into real-estate, the "get-rich-quick industry", or so I thought at the time. After several months of frustration I realized it wasn't quite as easy as it sounded and gave up.

Towards the end of this phase, I stumbled across your website. Immediately, I was upset by your critical tone. Your scathing review of Kiyosaki's books upset me terribly, but not being one to simply dismiss an opinion different from my owne, I decided to read the entire review with the idea that I would compose a nasty letter at the end outlining your obvious bias and blatant stupidity. By the end I found myself agreeing with about half of what you said, and not sure what I thought about the other. After a day or so of pondering, I realized that all the reasons I felt so frustrated after reading the "Rich Dad, Poor Dad" series were exactly the reasons you have for disliking the man's writing so much.

After giving up on *everything* to do with making money, (in a moment of intense disillusionment) and returning to my long string of 9 to 5 jobs (several of which have provided me with valuable experience) I recently have decided to explore investing in real-estate again. Now, a year later, while looking for good advice, I have again stumbled across your website, again inspired by a book. Ironically, that book is a part of Kiyosaki's new series 'Rich Dad's Advisors'.

This book, 'Real Estate Riches' was written by Dolf DeRoos. I consumed it in one day, this time with more of a critical eye, and slightly more experience into the finance end of things. (I spent a few months working for Fleet Mortgage, now WaMu, in their Wholesale office locking loans and later as a Jr. Underwriter) Again, I've been inspired. I've looked at the numbers myself, and what Mr. DeRoos has to say makes some sense. While he's a little short on specifics, he isn't spouting complete drivel. And after all, this book WAS written as part of the Kiyosaki cult series. Perhaps the books he's written on his own might be a bit more helpful.

I decided to re-enter the world of real-estate. This time, I actually found a property near where I live in Caldwell, Idaho. Newly remodeled, cheap, with several tenants already in place and making a respectable sum in rental income, and an owner who was interested in getting a newcomer started in investing with little to no hassle, it seemed like the perfect place to start getting my feet wet. I'm still sure it would havebeen, but with no cash to bring into the transaction, I was unable to make the deal. I was lucky enough to meet wonderful agent who worked with me, showed me a few of the ropes, and got me a couple of important contacts. She represented her seller well, but tried just as hard as I did to make my offer work, even though more than a dozen easier offers would have taken less of her time and energy. She introduced me to a property manager who she has had wonderful experiences with in her own rental properties, and who I plan to check out more thoroughly.

None of my experiences in this venture were what I was expecting; neither the positive nor the negative ones. I have seen the pleasant side of real-estate, working with people who are out there trying to make the business as comfortable as possible. I have seen the not-so pleasant side of real-estate, such as the mortgage broker who suggested that he could get me in with 0 down if I was "intending" to occupy the premises. (implying very strongly, though never coming out and saying, "You could rent it out anyway, and what the wholesaler doesn't know won't kill them.") This time, I am very interested in continuing on in the business.

It may comfort you to know that I will never again take another shred of advice from Mr. Kiyosaki, thanks in large part to you. Mr. DeRoos I am still evaluating, though I have found his advice to be helpful, if a bit non-specific in places. I am curious to know what you have heard of him. As one who knows more about real-estate than I, I would be interested to know if you believe his words are worth paying for. Seeing a review on one or two of his works would interest me greatly.

In the meantime, I wish to thank you for providing your evaluation of these various gurus. I am going into future ventures with more caution, and a bit more wisdom thanks to you. Thank you also for backing up all your statements with evidence of what you are talking about. (A practice I had ingrained into me during my grueling high-school writing classes, and which is sadly lacking in most writing in this day and age) That alone sets you apart from many others I have read or listened to. Please keep the criticism coming, though it does grate on my nerves.

-Nathan Allen Nelson
IT Programmer
Idaho State Police
dEAR sIR,,i just finished reading a great part of your site regarding the above...you spent a great deal of time in tearing apart the above subject...would you be so kind as to do the same with the TRUTH of Who YAHWEH is
vs. Jesus and talk in detail about how a whole race of people have disapeared...THE HEBREWS...and who are the JEWS in reality as the letter J is only 371 yrs old...
if you would devote as much time to the above..many lives who be much improved and ten thousand angels who dance on your grave and you'd live eternally...
i await your reply...
Sarah Claybore womenofvalor@webtv.net
Dear John Reed,

I believe you're an honest irracional man and I also believe you may have helped many people with your guru raking. But I believe you are being an idiot on Kiyosaki's book rich dad, poor dad. In your review and unless you are completely stupid you constantly misinterpret everything on purpose and take statements out of context. You also make lots of unproved allegations. Maybe you should consider yourself for the "not recommend" list of your guru ranking on the accounts of lying and misliding the public. Ask yourself what are you trying to prove with all that false information...
david duarte
“youre a dream stealer , quit giving your stupid opinions on things you know nothing about . millions of dollars of real estate is bought and sold all the time using methods you say dont work. you just want people to think youre some kind of expert youre not.” derring595@aol.com [A former Amway distributor sent me the following regarding the phrase “dream--tealer:” “The one E-mail response that you show on your site calling you a dream-stealer ( The one that has "your" and "you're" confused and misspelled several times ) is undoubtedly from an Amway ( or some other MLM ) minion.
"dream-stealer" is the term of choice for anyone trying to point out holes in the brainwashed logic taught by MLMs.”]
“I just wanted to let you know that I found your information very valuable. I too was feeling very "uneasy" after reading Kiyoski's Rich Dad, Poor Dad, even through it was highly recommended by a good friend. I decided to do an internet search to see what showed up. I looked through all the options and yours seemed to be the only one offering a contrairian (sp?) view of his book. I only wish I had found your site before and saved myself the three nights reading. I was so intrigued by your commentary that I ended up reading the whole thing, including your things to look for page.

Thank you for your time and effort, by the way, your reference to your mother and getting advice from her was great. I loved the free advice offered afterwards as well! It was better than anything I read in Rich Dad, Poor Dad. Thanks again for your guidance and counsel,” George Andrews
“I was mad as *beep* when I began reading your article about Robert T. Kiyosaki and his book Rich Dad, Poor Dad. I should have known right then and there that I had been duped. I finished reading the your article only minutes ago and despite my embarrassment I want to thank you for writing a poignant article that even an ass like my self can understand. It was very well written and thought out, I enjoy your take no prisoners style, that is refreshing. There are several things I can be thankful for: I read it before I did something stupid, I will learn from my foolishness, and I still would like to be wealthy.
After I wrote you I spent a couple of more hours on your website, and found it very informative. I can appreciate your hard work, research and common sense approach. I will keep that in mind in with my future endeavors. I bought three of Robert T. Kiyosaki's books and thought that each one might lead to more detail, but as you noted they were primarily boasting or giving very dangerous information. My gut as well as my attorney and accountant were telling me the same thing, "something is a miss in paradise". I look at my experience with Robert as a truly inexpensive lesson in letting pillow talk lead me rather than good hard facts. Thanks again” David Johnson
“dude, get a life. you waste so much energy on negative stuff. no one cares.” sean power