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Using loans (aka debt) to buy assets that will create money. A business model that creates jobs or commercial rental properties. Eventually you pay back the bank’s initial investment plus interest. And you get to keep the asset and the profit. That’s how you make money by using debt. Not your savings, but debt!
As long as the bussiness is successful, otherwise u get bankrupt with a bunch of debts in ur name. Planning something expecting only to be successful is living in a fairytale m8
@@noodlyappendage6729 Because you can get a loan and instantly put that asset in use, it’s better to use your savings for future down payments instead.
Except banks have now realised people have started doing this and many have written stipulations into loan agreements that forbid you from using loans to invest, purchase assets and so on.
It only works if: 1. Return of your assets > initial + interest of debt 2. You have collateral (initial asset) to use debt previlage He dont teach you how to become rich from zero, but how to be richer when you already rich.
imo he's completely scammer 1. He doesnt have any finance background. He used to be sales in xeros ( source : wikipedia ) 2. what he said is literally margin which is simple term in finance but he tries to make it sounds luxury. Margin is using leverage to increase profit but also loss when market declines. Its just a double edged sword. Nothing special here.
@@thanhthanh-eq6fx For fk sake man im not speaking where the fk are you located. I'm speaking about where is Robert at the moment at what LEVEL he is right now and where are you at the moment at what level??? That was my point about your answer. Robert is teaching you exactly how to be on debt and making money without being in jail and TAX FREE and he proved the shit that its talking about. Don't reply back. End of conversation.
A government doesn't tax you solely to collect money, as it has the power to print its own. You are taxed to limit your choices and increase control over you. Taxation allows for the illusion of freedom. You might feel free because you earn money that grants you choices, but the government implements strategies such as income tax, capital gains tax, estate taxes, inflation and fines to take your money. Pysecology suggests that by moving the bars far enough away, the prisoner perceives an illusion of freedom, and that's what's happening here: your right to work and earn gives you the illusion of freedom, while taxes act as the bars that keep you confined."
@jhonatanalvarez05 The assest will have to generat money to pay the same or more coverling interest and/or capital back. Only in an enviromemt of low interest is it profitable.😊
@jhonatanalvarez05 That's a big if. Statistically, when you borrow money to make money, you will go bankrupt. There are exceptions and those are what you hear about.
Tre but the interest compounds quickly. For Example, if I have a $480,00 loan for 30 years at a 3% interest rate your monthly payment is $2,023.70 $1,200 to interest, $823.70 to paying down the loan. Now interest will compound on the 479,176.30 I haven’t paid back yet. Remember when you take out a loan, it’s APR not APY. APR means interest compounds every month, APY means it compounds every year.
You don't pay taxes on debt because you pay interest, but when you allocate your debt into cash flow assets, then the cash flow from those assets should cover all expenses while being net positive
In a way it’s true but back then you paid taxes on debt and interest. And the government wanted people to borrow more money so they stopped making people pay taxes on borrowing money.
@@symphony6759 they tax you on income, regardless of debt. they’re two separate things. You need an income to pay back a debt. your income will be taxed in addition to the interest charged on your debt. Getting a loan doesn’t dissolve your responsibility of paying tax on your income.
When you borrow money for business, government will have 2 source of income taxes: 1. Your interest payment (as Bank's income) 2. Your own business' income
You pay interest on the borrowed money. You can borrow and buy assets to make more money IF the bank actually gives you a loan. Also at one point you start paying that money back.
"Bank love people who borrow money" Me asking for a loan: sir, you just turned 18. Please have 10 yrs of great credit history and a 900 on your credit score.
Say you make 130k you’ve been employed 5-7yrs & you don’t rent or own when you’re applying for credit cards that always helps me get approved with a decent limit like $9,100+,
Been there!! Secured credit card for a few months, your credit will start to grow. Never saw much movement with a car loan or even a home loan, but credit cards help my credit alot! Key is to keep the balance owed very low but still use it for little things here and there. Bought my first house at 19.
Ok, poor people. Go to a bank and borrow money to buy assets. Banks says where's the collateral. You say "do what"? They show you the door. And that's how it's done.
You might have invested in one of his companies that went bankrupt, or were investigated for fraud and fined. Count yourself lucky. Find a better, honest advisor to follow.
I pay zero interest to borrow money as a credit card stacker but spend 15 years to save 10,000 total savings but I am doing a 450,000 credit card stack to rent options on currency. I can make 20,000 a year in profit from savings and 900,000 a year from debt. Thank you for your books I read 15 years ago Robert. It is finally worth it. Will continue to expand my debt by aging entities. Concreter labour to banker I am living proof to your critics. Been trained in business credit cards so it's happening.
Borrowed money is paid back with interest right?...I may be confused here, so with debt we avoid taxes but still have to pay back the interest on the borrowed money
Yes, but if you try and make 500k to start a bussiness you d have to make 800 900k depending on your country and then you ll pay taxes and be left with 500k, so therefore its better to pay 5-10% interest, than 30 40%
he is correct, no taxes. but you pay interest. so there is risk involved. such as this high interest rate environment. your return on a mortgage would have to be greater than 8%. so it seems misleading
That's why we are buying assets, not liabilities. Assets will make you money more than your debt, you pay the debt and still have money left. And this process is tax free. And investing money in the right assets is the real thing
Debt is a liability. If you buy 100k of assets with 100k of debt, your net worth remains unchanged. Now you have 100k of debt to service with 100k of assets that you're being taxed on, since it's producing income. It could work if you're starting your own business, but being an entrepreneur is not for everyone
@@star-ivig the idea is to eventually grow your asset to pay off the debt so that later after you pay off your debt u still have the asset so in the long run that debt u took is no big deal compared to the income you are generating through your assets it can be for lifetime
@@Abrhm77 I was responding to "buying assets, not liabilities," and I'm pointing out that debt is a liability. Clearly the idea is to leverage your cash on an asset that helps service the debt. Just keep in mind that using leverage can be risky
They get a low interest rate since they use their assets as collateral. Its better to them to borrow and pay back with interest rather than selling stock and getting taxed heavily
Andrew tate taught me how to become rich. The person in this video is teaching me after i become rich, how to stay rich. If i listen to these two guys and use my brain correctly. I'd be very successful. Can't forget Mark Tilbury. He is also a person who teaches how to stay rich.
I get what Robert is saying but if assets go down, aren’t you screwed? Kinda like with the car market right now. Flooring line companies are hitting up dealers for money because their car assets aren’t worth the loan value.
What's interesting about this system is that we have accepted you can borrow money but the poor person pays more interest than the rich person by a substantial interest rate😢
The only logic I find here is if I borrowed some money, I will buy a house then I will rent the house, the money that I received should be more that the amount I have to pay the bank every month, do you think I can do that?
yes, you pay interest. But imagine the case of romania (romania has not so many taxes). For example, the debt is about 6% fixed 3 or 5 years, but the taxes are 10% for dividends and gains in stock markets.
This is false. Debt is not taxed because it is not income.... it is a LOAN....also known as Borrowed. You have to give it back...eventually. I get that his trying to sound "smart"but this is just overthinking a subject that has nothing to do with the point.
He's explaining how to live on debt and avoid paying taxes through taking a loan taken on personal assets. If you make 500k but pay off 500k of debt your income for the year is 0. Especially if you take another loan out for 500k.
@AJ Your confused. The repayment of the 500k loan is NOT a write off. The only portion that is a write off is the interest paid. You still have to pay tax on the 500k income.
@@glsYF2011 no you don't. Not when the "income" is coming from debt. Paying off that debt and settling it by holding assets and using the asset to generate value that allows you to take out debt is the game he is talking about.
@AJ again your confused. Don't t call it income. It is not income it is just debt. You will repay it back. Ill walk you through the example you made earlier: -You take a 500k loan and buy an asset for 500k. -you add value the property and sell it for 900K -You repay back the 500k to the bank. -You still made 400K of "value" profit. That profit is taxed. The 500k you used to repay the bank is not a write off your giving back the money.
Banks don’t just hand out loans to anybody, particularly the size to buy property with - you need solid credit history, earnings, collateral, deposit - this guy is a scam artist
Poor people buy house rich people buy commercial buildings That's why houses can both be a liability and assets depending on the borrower's intentions in the world of debt.
Buying assets using a loan doesn't scare people off. It's not being able to pay it back if renters are late. The bank still wants their monthly payment. And RK is currently in court for a $24 million lawsuit against him.
People keep making fun of Robert in these videos but when he interviews someone they don't even understand why debt isn't taxable. That's like asking someone why does a number go into the negatives when you subtract a big number from a small number. It sounds like he's just trying to teach some basics.
The biggest investment is knowledge and time, invest that time in watching videos, reading books about money and finance. Once you know, you will have a plan we're to go.
You can rent it out but it doesn’t mean you will. it’s a liability until you rent it out, even your own house is a liability unless you rent to rent or ‘house hack’
The house is an asset. What they don’t tell you is that it’s the banks asset, not yours! Only after renting it out to tenants, does it become an asset to the owner AND the bank’s!
This is the story behind this man, he is nothing be a scam artist Robert Kiyosaki's first business revolved around selling nylon/velcro wallets. These were among the first wallets of their kind, and the business experienced moderate success. That being said, it eventually went bankrupt. His second attempt was a retail company that sold t-shirts. He licensed the rights to make apparel for various Rock bands, including hats, wallets, and bags. Once again, the company went bankrupt. By 1980, Robert Kiyosaki shifted his focus more towards education. This is how his Education business went In 2012, Kiyosaki's company Rich Global LLC went bankrupt after a series of class-action lawsuits. His company was sued by attendees of his seminars who felt they were scammed. His company was also sued as a result of royalty disputes. Losing in court left the company in bad shape, and so Kiyosaki chose bankruptcy. He was ordered to pay nearly $24 million to The Learning Annex and its founder. He made his wealth by scamming people.
You have to have a certain amount of money in the bank and credit to be accepted for a large loan from the bank i assume he is speaking about over time but doesnt help anyone escape from there working lives if they have a family
I completely agree but the thing is if I want to get rich borrowing money how do I a normal citizen even get the bank to approve say 2 million dollars let alone 200k ?
So, the bank is not smart enough to do it themselve, they must loan you money with x% interest and u much smarter u know what to buy so u will gain x + y%. What if u borrow money to buy 10 assets and it comes economy collapse ur assets become 1/10 price?
This is a model for rich people who are ABLE to secure loans and buy assets that pay for themselves plus profit (building with tenants, in his example). This model is not available to the poor who have no collateral. This reminds me of an old Steve Martin joke: “How to get rich. First, get a million dollars. Then…” Once you have acquired wealth, there are many ways to build it, not pay taxes on it, etc. As a capitalist, not paying his fair share of taxes, increases his wealth, but damages our society. Taxes pay for all the civic and federal benefits all these rich capitalists enjoy but don’t pay for: national defense, law enforcement, roads, bridges, schools, etc. Therefore, as the oligarchs get richer, the middle class, who ARE paying their taxes, gets poorer, by comparison. This country should have a flat tax on earnings above poverty level. No deductions. No loopholes. If you earn above $35k you pay 25%. Whether from salary, rents from tenants, investments, etc. Simple, fair. No offshore accounts. No tax havens.
Wait? Did he realise that in most of the countries theres a different tax too. Tax on total revenue earned in a month, and it also consists the price of money you take from bank. So if you earn 50000 in year and you take 100000, then your taxable rate would be on 150000, not on just 500000
Yes but can t but big loans instantly.teacher is right in some point of view .but if too many buy property etc then the asking price goes high and it creates real estate bubbles.
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What’s the full video called?
Isn't the interest rate a tax..???
Sure, it can be.. unless you're rate of is greater than the amount of interest paid@@mebrahtuhayleab
The IRS should arrest this man, and charged him in Court, for tax evasion!!!
Using loans (aka debt) to buy assets that will create money. A business model that creates jobs or commercial rental properties. Eventually you pay back the bank’s initial investment plus interest. And you get to keep the asset and the profit. That’s how you make money by using debt. Not your savings, but debt!
As long as the bussiness is successful, otherwise u get bankrupt with a bunch of debts in ur name.
Planning something expecting only to be successful is living in a fairytale m8
@@bravochamp9495 You just become a limited company, that way your own personal gains don’t get touched, it’s just that business that taps out
Why not just use your own savings? Then you don’t have to pay back the interest.
@@noodlyappendage6729 Because you can get a loan and instantly put that asset in use, it’s better to use your savings for future down payments instead.
Except banks have now realised people have started doing this and many have written stipulations into loan agreements that forbid you from using loans to invest, purchase assets and so on.
There's no tax in Debt because there's a same thing named different word also known as intrest
exactly... and that's how banks make money. Why he is not talking about that?
@czezarion1123 if you have a business, at least I'm Canada the interest can be written off for tax purposes.
@@occultislux now I have 1 more reason to move to Canada :D
yea you can associate it with tax in this case.
Bc hes a con man when he misses out the main thing interest
It only works if:
1. Return of your assets > initial + interest of debt
2. You have collateral (initial asset) to use debt previlage
He dont teach you how to become rich from zero, but how to be richer when you already rich.
So what Robert he says in the video is not so true ? How can you really use the debt with your side and not becoming poor?
imo he's completely scammer
1. He doesnt have any finance background. He used to be sales in xeros ( source : wikipedia )
2. what he said is literally margin which is simple term in finance but he tries to make it sounds luxury. Margin is using leverage to increase profit but also loss when market declines. Its just a double edged sword. Nothing special here.
@@thanhthanh-eq6fxOk man let's say that it's as you say, Robert is where is right now, and my friend where are you now??
@@theoa17000 what does my location have to do with u
@@thanhthanh-eq6fx For fk sake man im not speaking where the fk are you located. I'm speaking about where is Robert at the moment at what LEVEL he is right now and where are you at the moment at what level??? That was my point about your answer. Robert is teaching you exactly how to be on debt and making money without being in jail and TAX FREE and he proved the shit that its talking about. Don't reply back. End of conversation.
A loan is temporary money. You have to pay it back. Income is money you earned and you keep it. That is taxed. He is great at confusing everyone.
That's the mark of a grifter...
A government doesn't tax you solely to collect money, as it has the power to print its own. You are taxed to limit your choices and increase control over you. Taxation allows for the illusion of freedom. You might feel free because you earn money that grants you choices, but the government implements strategies such as income tax, capital gains tax, estate taxes, inflation and fines to take your money. Pysecology suggests that by moving the bars far enough away, the prisoner perceives an illusion of freedom, and that's what's happening here: your right to work and earn gives you the illusion of freedom, while taxes act as the bars that keep you confined."
How can you get out of rat race
It's tax-free because it's not your money. You have to pay it back with interest, using money that you paid taxes on. It's more expensive.
No
Not if it makes you more money...
You borrow to buy assets not liabilities..
Who cares about interests when you start making More.
@jhonatanalvarez05 The assest will have to generat money to pay the same or more coverling interest and/or capital back.
Only in an enviromemt of low interest is it profitable.😊
@jhonatanalvarez05 That's a big if. Statistically, when you borrow money to make money, you will go bankrupt. There are exceptions and those are what you hear about.
Interviewer Soo hurt , he don't even wanna be there anymore
😂😂😂
You still pay interest rate.
Yes but I think it's a very small percent... I guess 1 or 2 percent... so that's the dig I guess...
Show me a loan you can get at 1-2%.
Nope the customer or tenant does. You take profits. I love being a landlord.
It's high here, over there in west it's just 2 percent until recently so..... soon you'll be right they'll be paying interest at our rates
Tre but the interest compounds quickly. For Example, if I have a $480,00 loan for 30 years at a 3% interest rate your monthly payment is $2,023.70 $1,200 to interest, $823.70 to paying down the loan. Now interest will compound on the 479,176.30 I haven’t paid back yet. Remember when you take out a loan, it’s APR not APY. APR means interest compounds every month, APY means it compounds every year.
You don't pay tax
You pay interest
What he's talking about only works if you are able to increase the value of what you are buying using debt.
@@bobbyb8438if you invest borrowed money and make a profit, you pay tax on the profits. Debt is not an income, it’s not taxable.
Interest its a write off too
That part
Yeah, what he is saying doesn't make sense.
You can claim interest expense against the debt. You pay tax when you sell any asset
You may not pay taxes but you get absolutely shafted on interest.
Its doesn't matter because the assets should produce enough cash flow to cover all expenses an be net positive
Maybe but still, taxes are about 50% depending on were you live.
@@TRUESKATE720 could be true with the right assets
Property taxes. Did he forget those?
@@TRUESKATE720what kind of assets are you buying bro? Got any collateral for that loan?
You don't pay taxes, you pay interest
You don't pay taxes on debt because you pay interest, but when you allocate your debt into cash flow assets, then the cash flow from those assets should cover all expenses while being net positive
In a way it’s true but back then you paid taxes on debt and interest. And the government wanted people to borrow more money so they stopped making people pay taxes on borrowing money.
@@Electricity667 didnt they still charged the tax of the debt interest to the bank?
What would you prefer to pay, 22% or 6%? Tax is roughly 22% and interest is roughly 6% so you would save 16% im in the UK.
I’m in the UK too, is what he’s talking about actually more effective in the UK than the US because interest on loans is lower?
You’re still gunna pay that 22% tax on whatever income you use to pay back that loan plus 6% interest
@@LdFarquaadbut if the government knows ur in debt do they still tax u?
@@symphony6759 they tax you on income, regardless of debt. they’re two separate things. You need an income to pay back a debt. your income will be taxed in addition to the interest charged on your debt. Getting a loan doesn’t dissolve your responsibility of paying tax on your income.
When you borrow money for business, government will have 2 source of income taxes:
1. Your interest payment (as Bank's income)
2. Your own business' income
Debt-free equals stress-free.
You pay interest on the borrowed money. You can borrow and buy assets to make more money IF the bank actually gives you a loan. Also at one point you start paying that money back.
It's better than making nothing
"Bank love people who borrow money"
Me asking for a loan: sir, you just turned 18. Please have 10 yrs of great credit history and a 900 on your credit score.
Say you make 130k you’ve been employed 5-7yrs & you don’t rent or own when you’re applying for credit cards that always helps me get approved with a decent limit like $9,100+,
You need a better bank lol
Oh you want to go to SCHOOL. Fuck yeah here’s $80k call us when you need more.
The max is 850
Been there!! Secured credit card for a few months, your credit will start to grow. Never saw much movement with a car loan or even a home loan, but credit cards help my credit alot! Key is to keep the balance owed very low but still use it for little things here and there. Bought my first house at 19.
Ok, poor people. Go to a bank and borrow money to buy assets. Banks says where's the collateral. You say "do what"? They show you the door. And that's how it's done.
😂😂😂 haha kyosaki explained in 2 words 😅😅😅
This makes me wanna rented out my house and sleep on a sidewalk.
😂😂 fr same
😂
I mean he has a point, if it doesn’t put money in your pocket, it’s a liability.
You can't! ...a house is a liability and a Real Estate is an asset...! Why didn't you bought Real estate instead? You got fooled😂
@@doomedwojak420 he can still get a building and rent it out and have that building pay for both mortgages
He is right, so right learn how to work the system
OK get in debt buy assets, except you need a high paying job to buy it. He needs to teach what assets to start out with if your poor
I work at super saver and I'm going to buy a rental the second I turn 18 just buy real estate
If only Id found this guy 20 years ago.
You might have invested in one of his companies that went bankrupt, or were investigated for fraud and fined. Count yourself lucky. Find a better, honest advisor to follow.
I pay zero interest to borrow money as a credit card stacker but spend 15 years to save 10,000 total savings but I am doing a 450,000 credit card stack to rent options on currency. I can make 20,000 a year in profit from savings and 900,000 a year from debt. Thank you for your books I read 15 years ago Robert. It is finally worth it. Will continue to expand my debt by aging entities. Concreter labour to banker I am living proof to your critics. Been trained in business credit cards so it's happening.
Following this man's interviews the word Dbt has been a must to be mentioned
Borrowed money is paid back with interest right?...I may be confused here, so with debt we avoid taxes but still have to pay back the interest on the borrowed money
Ya but i think the point is that the assets either bring more money than the debt + interest or it’ll bring in revenue
Interest is significantly lower than taxes especially at higher amounts
Yup, because you are the counter party risk. The interest is the bank’s reward for trusting you with the loan.
Yes, but if you try and make 500k to start a bussiness you d have to make 800 900k depending on your country and then you ll pay taxes and be left with 500k, so therefore its better to pay 5-10% interest, than 30 40%
Borrowing money for a house is one of the smartest ways to save
How do I start then scale up?
he is correct, no taxes. but you pay interest. so there is risk involved. such as this high interest rate environment. your return on a mortgage would have to be greater than 8%. so it seems misleading
Just saying... we have to repay that debt...
That's why we are buying assets, not liabilities. Assets will make you money more than your debt, you pay the debt and still have money left. And this process is tax free. And investing money in the right assets is the real thing
Debt is a liability. If you buy 100k of assets with 100k of debt, your net worth remains unchanged. Now you have 100k of debt to service with 100k of assets that you're being taxed on, since it's producing income. It could work if you're starting your own business, but being an entrepreneur is not for everyone
@@star-ivig the idea is to eventually grow your asset to pay off the debt so that later after you pay off your debt u still have the asset so in the long run that debt u took is no big deal compared to the income you are generating through your assets it can be for lifetime
@@Abrhm77 I was responding to "buying assets, not liabilities," and I'm pointing out that debt is a liability. Clearly the idea is to leverage your cash on an asset that helps service the debt. Just keep in mind that using leverage can be risky
ofc you are 100% right i mean if ur taking a huge debt risk u need to have existing assets to fall back on and experience in taking debt.@@star-iv
But you're paying the lender interest.
They get a low interest rate since they use their assets as collateral. Its better to them to borrow and pay back with interest rather than selling stock and getting taxed heavily
is house not called assert? buying a flat by borrowing money from bank and renting it out , is it called buying asset or buying a liability?
If you borrow money , then bought an active on that money , will you pay a taxes on profit ?
Andrew tate taught me how to become rich. The person in this video is teaching me after i become rich, how to stay rich. If i listen to these two guys and use my brain correctly. I'd be very successful. Can't forget Mark Tilbury. He is also a person who teaches how to stay rich.
Guys remember asset does not always mean house
Heyy how you get the rentals
I get what Robert is saying but if assets go down, aren’t you screwed? Kinda like with the car market right now. Flooring line companies are hitting up dealers for money because their car assets aren’t worth the loan value.
Exactly what assets does he buy and how does he use borrowed money to buy necessities like food?
What's interesting about this system is that we have accepted you can borrow money but the poor person pays more interest than the rich person by a substantial interest rate😢
The only logic I find here is if I borrowed some money, I will buy a house then I will rent the house, the money that I received should be more that the amount I have to pay the bank every month, do you think I can do that?
That fact that he had to think about it and in the end guessed 😂
yes, you pay interest. But imagine the case of romania (romania has not so many taxes). For example, the debt is about 6% fixed 3 or 5 years, but the taxes are 10% for dividends and gains in stock markets.
Also Added ASSETS SUPPLIES. NON CASH.
What about paying interest on debt??
This is false. Debt is not taxed because it is not income.... it is a LOAN....also known as Borrowed. You have to give it back...eventually.
I get that his trying to sound "smart"but this is just overthinking a subject that has nothing to do with the point.
Went over your head
He's explaining how to live on debt and avoid paying taxes through taking a loan taken on personal assets. If you make 500k but pay off 500k of debt your income for the year is 0. Especially if you take another loan out for 500k.
@AJ Your confused. The repayment of the 500k loan is NOT a write off. The only portion that is a write off is the interest paid. You still have to pay tax on the 500k income.
@@glsYF2011 no you don't. Not when the "income" is coming from debt. Paying off that debt and settling it by holding assets and using the asset to generate value that allows you to take out debt is the game he is talking about.
@AJ again your confused. Don't t call it income. It is not income it is just debt. You will repay it back. Ill walk you through the example you made earlier:
-You take a 500k loan and buy an asset for 500k.
-you add value the property and sell it for 900K
-You repay back the 500k to the bank.
-You still made 400K of "value" profit. That profit is taxed. The 500k you used to repay the bank is not a write off your giving back the money.
Even capital isn’t taxed as far as i know. Usually it’s the income which is taxed.
NASDAQ : CISS , PRICE TARGET OF 100 DOLLARS PER SHARE, RATIONALE IS P/E CORRECTION. UNDERVALUED AND GROWTH 📈🚀
Banks don’t just hand out loans to anybody, particularly the size to buy property with - you need solid credit history, earnings, collateral, deposit - this guy is a scam artist
So use $50,000 of credit line to buy crypto?
This guy's right on.
So if I take a loan today, what do I buy as assets?
Poor people buy house rich people buy commercial buildings
That's why houses can both be a liability and assets depending on the borrower's intentions in the world of debt.
You don't pay taxes but you pay % every year
the best way to learn is to listen.
Buying assets using a loan doesn't scare people off. It's not being able to pay it back if renters are late. The bank still wants their monthly payment. And RK is currently in court for a $24 million lawsuit against him.
People keep making fun of Robert in these videos but when he interviews someone they don't even understand why debt isn't taxable. That's like asking someone why does a number go into the negatives when you subtract a big number from a small number. It sounds like he's just trying to teach some basics.
What assets give a return to mitigate interest rates?
The biggest investment is knowledge and time, invest that time in watching videos, reading books about money and finance. Once you know, you will have a plan we're to go.
So what do you buy with borrow money to make money?
Real estate, gold, silver, bonds . Thats what he's saying
i dont understand..please explain..the debt is tax free..but when you buy, you get taxed
Nice podcast!!
You don't pay tax on debt, but you pay interest on it.
2 percent interest is better than 30 percent tax
@@TeddyZayne Have to have a perfect credit score for it, which means paid down credit cards, which most people don't have.
Thing with assets why is a house not an asset? I thought it was as u can rent it out.
It is only if u rent it out
You can rent it out but it doesn’t mean you will. it’s a liability until you rent it out, even your own house is a liability unless you rent to rent or ‘house hack’
The house is an asset. What they don’t tell you is that it’s the banks asset, not yours! Only after renting it out to tenants, does it become an asset to the owner AND the bank’s!
The house isnt yours because u keep paying for it all ur life
My only question is , doesn't the government ask you to pay back the money before borrowing again??
Don't you pay interest on debt. Would that interest payment not count as tax?
What Robert doesn't teach is first you have to establish good credit and then you have to find the opportunities to finance and go into debt for.
This is the story behind this man, he is nothing be a scam artist
Robert Kiyosaki's first business revolved around selling nylon/velcro wallets. These were among the first wallets of their kind, and the business experienced moderate success. That being said, it eventually went bankrupt. His second attempt was a retail company that sold t-shirts. He licensed the rights to make apparel for various Rock bands, including hats, wallets, and bags. Once again, the company went bankrupt. By 1980, Robert Kiyosaki shifted his focus more towards education.
This is how his Education business went
In 2012, Kiyosaki's company Rich Global LLC went bankrupt after a series of class-action lawsuits. His company was sued by attendees of his seminars who felt they were scammed. His company was also sued as a result of royalty disputes. Losing in court left the company in bad shape, and so Kiyosaki chose bankruptcy. He was ordered to pay nearly $24 million to The Learning Annex and its founder.
He made his wealth by scamming people.
Why will the bank give u money unless you have resourse to pay loan
Since when is a house in the liability column on a financial statement..
You have to have a certain amount of money in the bank and credit to be accepted for a large loan from the bank i assume he is speaking about over time but doesnt help anyone escape from there working lives if they have a family
I completely agree but the thing is if I want to get rich borrowing money how do I a normal citizen even get the bank to approve say 2 million dollars let alone 200k ?
And when you die your left with nothing because you BORROWED everything lmao 🤣
Because the people who are in debt are paying a shit load of interest.
But you pay interest on debt. So... isn't that like tax. I don't get it. How will debt help me get rich. Someone answer me
So, the bank is not smart enough to do it themselve, they must loan you money with x% interest and u much smarter u know what to buy so u will gain x + y%. What if u borrow money to buy 10 assets and it comes economy collapse ur assets become 1/10 price?
Banks are the dealers, the rich and smart are the hustlers, whilst the poor are the users.
Damn this guy is a genius. ❤😢
But does he pay interests?
Or we are different here in uganda
I don’t understand this if I were to pay of the dept can I just pay it of with untaxed money?
Or is it because my asset pays of the loan and there for its tax free?
This is a model for rich people who are ABLE to secure loans and buy assets that pay for themselves plus profit (building with tenants, in his example). This model is not available to the poor who have no collateral.
This reminds me of an old Steve Martin joke: “How to get rich. First, get a million dollars. Then…”
Once you have acquired wealth, there are many ways to build it, not pay taxes on it, etc.
As a capitalist, not paying his fair share of taxes, increases his wealth, but damages our society. Taxes pay for all the civic and federal benefits all these rich capitalists enjoy but don’t pay for: national defense, law enforcement, roads, bridges, schools, etc. Therefore, as the oligarchs get richer, the middle class, who ARE paying their taxes, gets poorer, by comparison.
This country should have a flat tax on earnings above poverty level. No deductions. No loopholes. If you earn above $35k you pay 25%. Whether from salary, rents from tenants, investments, etc.
Simple, fair. No offshore accounts. No tax havens.
Who is gonna forgive your liability
Wait? Did he realise that in most of the countries theres a different tax too.
Tax on total revenue earned in a month, and it also consists the price of money you take from bank.
So if you earn 50000 in year and you take 100000, then your taxable rate would be on 150000, not on just 500000
for getting a loan from bank you should have a higher salary who aren't eligible for it then how they get the loan ans buy a assets??
But borrowing money makes u pay interest. In one way orr other u are paying tax that is loosing money
But how can some bank lend you money qithout collateral.
A house in this economy might as well be an asset, given how much the price rises every month,
It sounds good. But the asset has to work and not fail. If your asset fails to produce, then youre in trouble. So your asset has to be good and solid.
Still gotta pay the debt back. And whatever Income you’re using to pay that debt back will be taxed.
Does bank gives debt without any surity😢
What is the podcast name guys ?? Tell me asap.
If your parents are paying a house and you live with them and pay rent. Dont pay it to them pay it to their loan. If they get it first is "income"
So he pay interest from cash flow not from the capital gains
Borrow money, buy high paying dividend stocks, Pay off your loan every month. This NOT financial advice.
You’re still paying interest. And you’re still gonna pay the money back. So it’s still your own money
WARRANTIES in EQUIVALENT. TRIAL BALANCED REPORTS.
Yes but can t but big loans instantly.teacher is right in some point of view .but if too many buy property etc then the asking price goes high and it creates real estate bubbles.
I borrow money too but I don’t pay it back 😂
How come house is liability
If you borrow money at the bank, You need to pay back interest am I correct?...Isn't that tax in a way ? Can someone please help me
Buying assets with debt also may have risk associated with it.