Robert Kiyosaki’s book Rich Dad Poor Dad was a huge motivator for me to invest in real estate. However, it did not teach me how to actually invest: just that I needed to. I hear all the time how great the book is, and I agree that it was a great book, but I don’t think it did a good job of actually teaching how to invest. There is also the issue that Rich Dad Real Estate training can cost up to $40,000 and they do not use the most ethical marketing techniques. If you want to be motivated, I think that Rich Dad Poor Dad is a great book, but if you want to learn, there are better options out there.
Summary of Rich Dad Poor Dad
Rich Dad Poor Dad is written by Robert Kiyosaki and is about two families. One family has a dad who has a job and works very hard. However, the dad never gets ahead in life because he is always working to earn a living. The book compares this”poor dad” to another dad who is an investor. The “rich dad” who is an investor always has free time and plenty of money. The idea behind the book is that being an investor is good and working a regular job is bad. At least, working a regular job and not investing is bad.
There is more to the book than the point that investing is good, and the book is well written. It is also extremely motivating and has motivated many people to become investors instead of workers.
Does Rich Dad Poor Dad teach us about real estate?
While the book makes point after point that investing in real estate is good, it does not tell us how to invest in real estate. I read the book when I was in my mid-twenties. It got me pumped up and ready to change my life. However, I kept searching for how to actually get started investing in real estate from the book and then the other books that Kiyosaki wrote. I never did find any details or instructions on exactly how to invest in real estate or any broad information about real estate either. It was all motivation.
Rich Dad Poor Dad does offer real estate coaching
Something else that was very disappointing for me was that Rich Dad Poor Dad offered real estate coaching in the form of seminars. Or at least, the seminars were created to sell the coaching. It almost seemed as if the book was one giant marketing tool for the real estate coaching. I have no idea if this is how the book was planned, but that is how it seemed to me.
I do not have a problem with all real estate investing coaching (I offer some myself), but I have a problem with certain programs like Rich Dad Poor dad, Fortune Builders, and a few others that try to trick people into the coaching program. They have a free seminar that teaches you nothing about real estate but is very motivational. That seminar is meant to get you to buy a three-day seminar, which again teaches almost nothing about real estate but is motivational. That three-day seminar was created to get people to sign up for a $30,000 to $50,000 coaching program. Often, these coaching programs use time-share sales tactics like keeping the rooms cold, getting people hungry, and encouraging people to borrow money or use credit cards to pay for the coaching.
I have talked to many people who have taken the coaching, and very few were happy with it. Most of the people I have talked to say that their “coaches” barely had any experience investing in real estate themselves. I think someone would be better off using the money to buy a house and learn how to invest in real estate that way than spend $50,000 on a course.
What is a better book about real estate investing than Rich Dad Poor Dad?
I own 20 rentals now and have flipped over 155 houses in my career. I learned how to invest in real estate through a mix of books, online resources, my father, and experience. While Rich Dad Poor Dad was motivational, other books had much more information in them about actually investing. Gary Keller’s Millionaire Real Estate Investor was a great book that taught me a ton about investing in rental properties.
After I found success in real estate, I also wrote a book about investing in rentals. I wanted to make my book the complete opposite of Rich Dad Poor Dad. I packed it full of as many details as I could about how to invest in real estate. I also did not hold back any secrets for my real estate coaching. Honestly, you find just about everything in the book on my blog, but I have over 500 articles on the site, and it can be tough to find everything you are looking for in a timely manner, so I wrote the book to make it easier. The book is Build a Rental Property Empire and is in paperback, audiobook, and Kindle versions. I just got my 250th review on the book through Amazon!
While there are many ways to learn about real estate investing, I think spending $50,000 on a coaching program is not the best use of your money.
Rich Dad Poor Dad is a very motivational book but not a very good guide. It lacks the details to actually do what the book is motivating someone to do. I find that extremely discouraging seeing how the author supposedly got rich using the techniques in the book. I use my coaching to help people who want to go faster in this business or get personal advice, not to hinder learning because all the secrets are reserved for the big spenders. If you have not read the book, I would encourage you to do so, but don’t get your hopes up that you will actually learn how to actually become a rich dad.