Hey, everybody, is Ken McElroy.
And of course, I've got my great friend here, Kim Kiyosaki.
So happy to be here.
This is so fun. Kim, thanks again. Thank you.
Thanks for having me.
Just talk a little bit about,
you know, a lot of people, I think have a tough time just getting started.
Just that one thing. Just focus on one small thing.
I always tell somebody, you know, just
to set one goal, it seems so far away, but they don't understand.
We all started we all started very with the same fear.
Yeah. Oh, lots of fear.
I knew nothing about real estate.
I knew nothing about cash flow.
I'd only learned I had only been raised probably similar to most people.
You know, you hear about the stock market
a little bit, and I didn't understand that.
But all it was like save your money and and put it in a 401 K.
And so I had no idea about real estate, but I always basically just drove around
and I'd see a sign like a for sale sign and I'd call the broker
and that and even doing that because I didn't even wasn't quite
sure what questions to ask.
Yeah.
It's like, okay, is this like a rental neighborhood or is it. No.
And some people say, no, they don't want to rent.
They don't want rental people here.
And that was a big lesson because I did buy one property
that the owners did not want renters in their community.
Okay.
But no, I was scared to death.
I'm like, I found this little two bedroom, one bath house.
It was literally a ten minute walk
from my house where I lived, and I didn't know what I was doing.
And sometimes ignorance is bliss and it was $45,000.
I had to put $5,000 down and I had all the fear of, you know what,
if the roof leaks, what if I make a mistake?
What if I lose money?
You know, what if this, what if that?
And I literally was looking
for a reason why not to do this deal
that I wanted something to come up that said, no, this is not going to work.
I can't do it because I would have been so much easier And that's it.
That's actually pretty common at this point. Yeah.
To look for reasons not to and have that anxiety
on just the phone call and feeling stupid by picking up the phone
and asking somebody a question that you don't know the answer to.
Right. Well, they're all very common, that really common.
Really common.
And it wasn't just the first property that was there with the second
and the third and the fourth.
And it took a while.
With every property I bought,
there'd be a little less anxiety, but it was, you know,
you never you never know exactly what you're buying, ever.
You do your due diligence and you and you follow up with it.
But that little house,
I finally did
cross the line but but to your point,
it's easier not to do the deal.
Yeah, in the short term, but it becomes harder in the long term.
Agreed. Right.
Yes. I always tell people it's it's almost like starting a new job.
Yeah.
Not knowing what the culture is, not really
knowing what you're supposed to be doing.
You know, not knowing who your supervisors are and all those things.
And, you know, and,
and when you sit down and talk to somebody for the first time, you don't know.
But they're even like. Right.
So it's kind of like that, you know, you're becoming a beginner again.
Beginner. You got to be a beginner.
Yes. And I felt kind of felt that way on most of the deals I did.
So that little two bedroom, one bath house, I finally did the deal.
I finally crossed the line,
and I'm like, okay, well, we'll, we'll see what we have, what we have here.
And I would collect the rent and I'd pay the mortgage.
And I'd pay the expenses at the end of every month.
I had $25.
Yeah. In my pocket.
And that's how I started.
The key to, by the way, cash flow.
Cash flow, yes. Yes.
Making sure that you have enough rent. Yeah.
To cover the expenses.
And then I made the classic mistake when the renter didn't move out,
I thought, Oh, great, I can raise the rent
so I raised the rent without understanding
what the market wanted and what the, what the, what was
well, just what the rents should be.
So I raised the rent and the house set empty for three months.
Yeah. Because I raised it too much. Yeah.
And then I then I'm negative cash flow now because I got to pay the mortgage
and pay all the expenses without the rent coming in.
So a lot of lessons.
I mean, one of the great things
about investing in real estate is the lessons you learn along the way.
They're not just real estate lessons. They're life lessons.
They are. They are.
There's a lot of human behavior, a lot of relationship thing.
Yeah.
And just follow up on basic things, you know, accounting yeah.
Well, that's so that my I wasn't very good at that.
But to that point, every, every property is a business.
Yes. It's not a hobby. It's a business.
And you got to treat every single property,
whether it's a Single-Family house, whether it's a four plex,
whether it's a hundred units, you got to treat it as a business.
Yes. It's just well, I think sometimes people don't realize,
you know, because as you know,
when we get into some of these talks and go on the road
and a lot of these people
are kind of flippers or they're kind of capital gang people. Yes.
They don't realize the tax benefits and the cash flow.
You know, we get massive cash flow with no tax.
Right. Right.
Where the flippers are paying a lot, a lot of tax,
a lot of that while they're paying commissions
and they're paying capital gains and depreciation recapture
and they're only as good as their next deal.
Correct? Right. So they have to time the market and stuff.
Yeah. I mean, you know how hard it is to find a good property.
And honestly, this is all we teach.
Yeah. Yeah.
Thinking that way there is a possibility
to buy real estate, you know, to have a massive cash flow.
And just with the way you think, it all starts in the mind. Yeah.
And it does start in the mind.
And really what we're teaching is for people to be personally responsible
for their financial lives.
And because I think that's what's part of the big problem
with the world right now is everybody is depending on the government
and people don't want to work or they don't want to think differently.
But if you can take responsibility for your own financial life
and not depend upon the government to take care of you or your employer
to take care of you, I mean, how powerful would that be?
That's why we do what we do.
Well, Kim, thank you thank you.
Can you change lives? I love you. I love you, too.
Thank you for the work you do. Amazing.