You can grow pine trees and every seven years sell the trees to Georgia Pacific to make toilet paper. I heard a story about a couple who won the lottery and yhey bought land to grow pine trees. They grow straight up and don't need much space between them. Every 7 years sells a karge crop for a lot of money. Houses and McDonald's aren't the only way to make money. Growing little plants make money too.
one of your best. One of the best pieces of advice my Father gave me when I was a kid is, "Don't blame anyone else! Be a man and take responsibility for your actions!"
This is soo cool that you take the time to give away education like this. Owning 10,000+ units I know you don’t have to give us this Game. So thank you, Ken.
I love how he starts off his videos WITHOUT showing the cars and houses and jewelry and travel and all the bling. Man I hate that. It’s such an obvious con when they do that.
I like to use the word "wealthy" for those who have assets that are generating wealth for them. I use the word "rich" for those who have a lot of money (perhaps some musicians, sports stars, people who inherited a lot of money, etc.), but aren't investing that money in assets but instead buying really expensive toys. They usually tend to find themselves poor pretty quickly!
When this video came out, I was still living in Illinois, packing everything up. We fled about 2 weeks later for Florida. We lost almost everything in IL and were fortunate enough to start over in FL. At this moment, I "control" over $2 Million worth of real estate. Gonna keep going...
Single-family homes and townhouses. That is where my wife and I are storing our wealth, AND, at the same time, have created a success small business! We allow our Accountant to take 100% Depreciation, on each property, which allows for VERY LITTLE Federal and State Taxes to be taken out!! This is called "Postponement of the paying of Taxes". When you pay the taxes, re-capturing of taxes are at 20%, is when you sell the property! In the meantime, you have 28.5 years to Depreciate your Real Estate assets!! This allows you to really GROW your business, during this time period, by using your hard-earned money on buying more properties, and not towards paying taxes!! Of course, there is the Local Taxes that must be paid! Over 1 to 2 decades of time, or more, you can see the Asset Appreciation of your properties as they follow both inflation AND the performance of your local, housing market. So...what he is saying is....we have almost 20 loans, meaning mortgages, on 20 houses. And since each house is rented out, our TENANTS are paying off the 30 year-fixed mortgage! THOSE are the loans we like, everything else about our business is run by cash! JUST a thought. When the US DOW fell about 50% between March and June in 2020, my single-family homes did NOT go down 50%! They did not even drop 5%. And what if my properties went down 5% to 10% for 3 to 6 months....I am STILL collecting rent from professional people in the Health Care and IT Industry!! Or, they are retired or they are in the process of retiring over a 1-3 year period of time.
Everytime I'm watching from the rich dad's advisors through youtube, I feel like I'm in that situation and talking to these great people and having it for freee
This was the BEST explanation of wealth creation I've EVER heard!! Wow!! The rich invest in natural resouces!! Thank you Ken for the education and transformation! God bless you!🤗❤🥂
So, this must be that Warren Buffett or Ray Dalio are not rich? Do you know that biggest money created first of all in trade, then in manufacturing then in resources.
@@zinturis there is no money without resources. Money is a measure of resources, if we had money and no resources then we would just have paper. Warren Buffets portfolio is down about $50 billion this year. Ken said that you can accumulate money in stock, but if you actually own the physical materials that society needs then you have less risk, if you own the worlds supply of lithium and it is needed for car batteries, then you're in at ground level.
@@superduper9357 So, if Australia has vast natural resources it means they have less risk, correct? But what if when times are really good and American's are buying everything that China is making with the earth resources of Australia and then things change and China stops making as much as they were.... because the American are buying less, or there's a guy named Trump who wants to mix things up just for kicks... and the Australians have taken on a lot of debt... and with the chinese buying less they do not have the money to make their payments, even just to pay the interests on the debt, let alone the principle. What happens then? Do prices of homes go down in Australia? Do suicides go up? Perhaps both?
ROBERT IS SCAM ARTIST, CHECK BBB.ORG TO SEE HUNDREDS THOUSANDS OF CUSTOMER COMPLAINTS WHOSE CREDIT CARDS WERE MAXXED OUT INSTEAD OF MONTHLY SUBSCRIPTION
Big question is what can an average worker do to apply these knowledge without being rich yet? Regardless it will be hard to make more money or find jobs during the next few years for most people. To be frugality, simple living, DIY, learn practical skills, work from home job/business, and self/community reliance are needed.
Thank you, Ken! I really like your emphasis on the "transformation" part of change. It's so critical to moving forward. And the 3 Tiers of Wealth. It seems like we are on the cusp of Big Changes in how things work in this country!
The stock market is the most profitable venture, with plenty of opportunities to earn some decent payouts. Unfortunately most investors are too eager to make some quick cash. Making reasonable profits in the stock market requires skill, patience and the right setup.
Self study is great. Went from a technician to an engineer. Learned the market and the two basic types. The market casino is in the "Value" of a stock. Stock pays no dividends. All money made on the table was paid by someone else buying a seat, so there is only invested value. Invested value vanishes in a run on the bank. Look for these stocks. High PE heading to the stars and paying no dividends. This is casino chips made of plastic with no worth in the plastic itself. We have seen the gamblers run on the bank in 2000, 2008, 2020, Look at the rise, the slide, and the run on the bank. Now look at other stocks well over 60 in PE and paying none to very little dividends. See a repeating trend? Rising with no end in sight, slowing rise, then nervousness, some pull back, some slides, until the slide starts momentum in selling off and value starts vanishing. The other type of stock is dividend stock. Money is from company profit sharing. To get a dividend, the company must be profitable and get earnings for the cost of the shares. This is where PE comes in. A PE of 100 means for the price of 100 the Company earns 1 dollar or 1% of the price. Dividends if paid are from a portion of the earnings. I don't like yields under 1% on investment so a PE 100 or more is simply a casino chip. To get dividends, look for a PE under 20, and the company is paying over 10% in yields. These are not your superstar Amazon, Home Depot, Zoom Video, etc. These are boring utilities, pipelines, ISP's, phone companies, some banks, etc. In the last market sale, the news of the oil prices hit the price of everything related to oil. Oil price was down. Oil consumption was down only 30%. Pipeline stocks were down more than 70%. Free oil is still transported for a fee. Bought a pipeline stock for 5.15. Got the first quarter dividend of 0.311 per share. Due to the sale price the return is 24% annually in dividends. Due to actual stock worth, the price today is 8.75 an increase of 70% in price on top of the dividend in just 5 weeks. This is what knowledge gives you. Look for stock worth something to the investor that is not over valued. Buy low and sell that Amazon already. It is at an all time peak. Don't hold for fear of missing out. The crash is no fun to be in. Rode that coaster over the top with Intel in Aug to Dec 2000. It never recovered to $72 per share. Adjusted for inflation that would need to reach well over $120 per share. Do you expect a rapid recovery when Amazon repeats the dot com tech bubble? They are on the same track.
Ok g. McElroy but please then explain how one should invest in primary natural resources like oil, coal, water. This is just listing, we need examples from starting point to closing deal. It would be good if you can nake a video about it.
Ken you did a good job on this presentation; all of the resources that the Lord has made for us on and in the earth are the true commodities of wealth-ty for your time. Blessings, the Elams, TX
How many lightbulb did Thomas Edison make before it worked. He said they weren’t failures but learning experiences. My learning experience was Dec 1974. I was a newlywed in college. My wife and I had $17 in our checking account. Our student loan was late and had to borrow money from my in-laws to keep us afloat until my loan arrived. From that point on I was determined to be independent money wise. Real estate became that medium for escape. Graduated from college- went to OCS and became a Marine Corps officer.. While my Marine buddies bought Corvettes etc I bought a used Fiat. Rather than make car payments we bought real estate. Never lived on base but bought a house and kept them. Problem is we were so frugal for so long it has become hard to spend our income- I have a 1998 Ford pickup- can’t bring myself to buy a new one.
Not if you're receiving Section 8 rents!!! 100% payments received and depending on the state "if" the tenant loses their job..the program pays 100% of the rent.
An aquifer is an underground layer of water-bearing permeable rock, rock fractures or unconsolidated materials. Groundwater can be extracted using a water well. The study of water flow in aquifers and the characterization of aquifers is called hydrogeology
I store everything I have in rental real estate that produces positive cash flow. I have been doing this for years and became financially independent at 25, millionaire at 28, multimillionaire at 30. Thank God for you, Ken & Robert! I prayed God would send me a $100,000,000+ mentor and I found you.
Ken IMO *Your Golden Nugget* *Self Education* By far was the most valuable information you could have shared. This is where you get specific on the niche market to make big bucks.
@@michaelswami Yes, many drillers sucked the resources from trhe actual land owners without paying licenses or royalties -- the REAL ROAD to much wealth is by CHEATING!!
It’s Jeffrey, I do think we are looking at lots of opportunities in front of us in the “new normal” I’m talking both lots of money to be made, and more importantly a new way to live your best life! We are working hard to help others get there!!!
Very good presentation on how to invest. For years i have touted don't let the guys with the suit and tie's handle your money! This explains it the best i have seen so far.
You are fantastic Ken! Truly a real teacher. Thankful and grateful for each of your videos. Please keep them coming, because you are providing true value.
Thank you, Ken! I really like your emphasis on the "transformation" part of change. It's so critical to moving forward. And the 3 Tiers of Wealth. It seems like we are on the cusp of Big Changes in how things work in this country!
Richest people in the world have almost no investment in natural resources. Wealth is whatever you have for which people are ready pay lots of money - assets. The price of assets depends on supply and demand not cost of producing that asset which is related with natural materials in most cases. You can buy a land, and in 20 years it will not go up in price, but you can buy a BS house, and it will go up big time. People don't want to deal with vacant land, but are ready to work their asses off and pay $4000 a month for a BS house instead of them going building their nice house for fraction of that cost. Would you buy a little farmland and grow your fruits or veggies or better go online and order them on Amazon? That's why Amazon stock is skyrocketing and farmers stay poor or relatively poor.
Subscribed! You have a very good message. Particularly @1:51; "the situation we are all in, are based off of the choices we've all made." Look forward to hearing more.
Working at getting educated as I MUST enter the world of investing/owning/entrepreneurship.....reading/watching young hipsters is a turnoff....you give me hope that this 56 year old teacher can change her M.O. (upstate NY)!
Recommended Reads: The Great Reset by Richard Florida Boom Bust and Echo by David K. Foot Big Shifts Ahead by Chris Porter & John Burns The Crash Course by Chris Martenson
I know it's a business, but I think one could argue that transportation of natural resources, like ocean and railroad freight, is stuck somewhere between primary and secondary investment. I'm thinking of the railroad tycoons in the industrial revolution. Maybe they didn't own the land, but they were smart enough to build track on it. It's a legacy that, to this day, in spite of all the green initiatives, is responsible for transporting a lot of natural resources. I've thought about that for a long time. It's best to put your money where basic human consumption is happening. This presentation puts it all together very nicely.
I agree on your point to limit the amount of investment in tertiary assets and that it is critical to understand how your money is invested there. However, your statement that all wealth is created by investing in primary assets (natural resources) is misleading. Having a software business for example (app like Instagram) creates wealth out of nothing but an idea and code. Also having land in the middle of nowhere that can't generate revenue is pointless.
Ken-I’m a new subscriber. I am 44, and have gone through a really bad situation in the last 3 years, and I am having a hard time digging out, and am involuntarily stuck in a situation where I am forced to live on $1300 a month. I really wish I could tell my story here, but it would take up the entire comments section...please if you can, reply here, point me in the right direction.
Hello, thanks for the great videos. Can you explain how housing market will crash and price of homes will go down, if our dollar value goes down same time? What will be the different this time. please let me know what you think. Thank you.
Ok now I understand....WOW......ding ding ding.....and the light comes on Thankyou.... I couldn't understand why Warren Buffet is buying Suncor Mining stock....I do now..
thank you very much Ken I listen to you I thought I'm listening to Robert kiyosaki you people are having the same motivated lectures i am taking my classes from you guys, I really enjoying your lecture thank you
Yeah, lets see if "wealthy" actually invest in "primary" - None of the top 10 at Forbes 400 have anything to do with natural resources - it's all about information & Data: Bezos (amazon), Gates (MS), Zuckerberg (FB), Buffet, Larry Ellison (Oracle), Balmer (Microsoft), Musk (AI-enabled auto & energy). Kiyosaki and his crew keep on selling illusions marketed as "education".
@@kiaurash There is a huge difference between how they initially make money and where they store their wealth. The people you listed have large tertiary wealth (company stocks) and are moving that wealth into primary assets. Gates is now the largest private owner of farmland (242,000 acres), Bezos owns 420,000 acres of land, mostly in West Texas (oil). www.forbes.com/sites/arielshapiro/2021/01/14/americas-biggest-owner-of-farmland-is-now-bill-gates-bezos-turner/?sh=437d96206096
@@briancroston1684 $1 in oil 30 years ago is worth $1.25 today. $1 in SP500 30 years ago is worth $5.83 today. No one makes money by investing in primary. People use it as a store of value, not as an income stream. This video is misleading because it mixes the two. Of the 3 stages, the secondary stage makes the most money because they are the ones adding value and doing the most work. Trees and oil are great, but absolutely worthless without secondary businesses. Tertiary is just a passive way to invest in secondary.
@@KenMcElroy Thank you so much Ken. I just had dinner with a friend and come to find out it's a mutual friend between us :) Also, the link did not take me to the board.
Great Video. I GET IT!!! Just like paper will never measure up to physical gold when it comes to real value, natural resources will always have real value.
Ken I have two rental properties in Texas . I started an LLC last year but have been unable to get myself off the ground. I wanted to use the properties I have to invest in buying more rentals by getting a HELOC, but Texas will only do this if it’s your primary residence. Can you refer a good book, or website? I’d really like to grow my business and move out of the classroom. Warm Regards and Happy New Year, Tequila
Save and buy a small home after the foreclosures come and pay it off! Buy what you need not want and be content. There is no perfect life at this time and the habit of buying things for a quit fix leads to being poor. Being rich is being happy. Look at the people over leveraged on real estate currently, alot of rent not coming in and still need to do repairs, taxes, mortgage and cant evict. Be simple and work hard and always buy gold or silver when you have extra because this fiat currency is about cooked.
I am so glad I bought my modest 1-bedroom apartment in a good neighborhood. The monthly cost is manageable and I own and not rent, which is much cheaper and I can sell and take the capital gain if necessary. Best decision I ever made.
genuine question: What tier would digital currencies such as bitcoin to fall under? Primary? With built in scarcity, it behaves as though it were digital gold. If society eventually accepts digital currencies as a store of value, the only real issue I see would be it's current volatility. There doesn't seem to be much reason why cryptocurrencies would be considered anything other than a natural resource.
It’s easier to invest in the top tier than to go out and invest in the forest or survey land and invest in real estate if you don’t live somewhere profitable. Ying/Yang
plus, u hav to be seriusly rich to be buying up forests n lands. we r talking about tens of millions of dollars rich. its just not possible for normal folks.
Rich Dad, Poor Dad was not a very good book regarding how to accumulate wealth in real estate. For instance Kiyosake did not make his initial wealth on real estate but rather on the patent of his invention of the velcro wallet. After he gained wealth from that invention he reinvested it in real estate. The challenge for most people is getting the initial wealth, overcoming the obstacles that prevent wealth/education e.g. predatory loans, unforgivable student loans, racial barriers, access to a good education, access to fair start-up business loans.
Ken - good information. I'm invested in all three tiers. Aside from obtaining your own oil land contracts, do you recommend joint venture oil companies?
In my opinion the rich own businesses not primary assets. The return on investments in primary assets is too low to be considered a worthwhile investment endeavor. Businesses that generate sales, cash flow, etc are where wealth and income are made. Here are 2 extraction business that don't require paying for primary assets .... solar and wind power.
Great video buddy, could you go deeper into how to invest in the tertiary? Do you mean buying land or stocks in companies that are producing at the tertiary levels or both?
Good video, basically riches store their riches in it's business, passive income, gold, silver, and buy real estate when the market crashes, buy quality companies when the market crashes, day trade, forex trading.
Thanks for sharing valuable information, Ken. I am always learning from your videos. Which computing device are you using in this video and I have seen it in recent videos too?
![What Type of Real Estate the Rich Invest In - Robert Kiyosaki [FULL Radio Show]](http://i.ytimg.com/vi/7_15RfVrxec/mqdefault.jpg)
You can grow pine trees and every seven years sell the trees to Georgia Pacific to make toilet paper. I heard a story about a couple who won the lottery and yhey bought land to grow pine trees. They grow straight up and don't need much space between them. Every 7 years sells a karge crop for a lot of money. Houses and McDonald's aren't the only way to make money. Growing little plants make money too.
Tree farm....my kind of retirement job.
Perenials too! ... Cannabis flowers are about 1200-1800 per pound! pre tax of course... Its tracked and traced for licensed growers...
Let me get a nice Forest deferral tax break on that tree farm too
one of your best. One of the best pieces of advice my Father gave me when I was a kid is, "Don't blame anyone else! Be a man and take responsibility for your actions!"
This is soo cool that you take the time to give away education like this. Owning 10,000+ units I know you don’t have to give us this Game. So thank you, Ken.
This guy is a bonafide investor and truly trying to share good info. thank you for existing. he tries to be objective.
"..if you can change your habits, then you're gonna change your results...." Love this!
Me Too!!.
I love how he starts off his videos WITHOUT showing the cars and houses and jewelry and travel and all the bling.
Man I hate that. It’s such an obvious con when they do that.
this should be pinned to the top
I like to use the word "wealthy" for those who have assets that are generating wealth for them. I use the word "rich" for those who have a lot of money (perhaps some musicians, sports stars, people who inherited a lot of money, etc.), but aren't investing that money in assets but instead buying really expensive toys. They usually tend to find themselves poor pretty quickly!
Thank you for stating that. I laugh when people point fingers and blame others, rather than studying, learning, and improving yourself.
When this video came out, I was still living in Illinois, packing everything up. We fled about 2 weeks later for Florida. We lost almost everything in IL and were fortunate enough to start over in FL. At this moment, I "control" over $2 Million worth of real estate. Gonna keep going...
Single-family homes and townhouses. That is where my wife and I are storing our wealth, AND, at the same time, have created a success small business!
We allow our Accountant to take 100% Depreciation, on each property, which allows for VERY LITTLE Federal and State Taxes to be taken out!! This is called "Postponement
of the paying of Taxes". When you pay the taxes, re-capturing of taxes are at 20%, is when you sell the property! In the meantime, you have 28.5 years to Depreciate your
Real Estate assets!! This allows you to really GROW your business, during this time period, by using your hard-earned money on buying more properties, and not towards
paying taxes!! Of course, there is the Local Taxes that must be paid! Over 1 to 2 decades of time, or more, you can see the Asset Appreciation of your properties as
they follow both inflation AND the performance of your local, housing market. So...what he is saying is....we have almost 20 loans, meaning mortgages, on 20 houses.
And since each house is rented out, our TENANTS are paying off the 30 year-fixed mortgage! THOSE are the loans we like, everything else about our business is run by cash!
JUST a thought. When the US DOW fell about 50% between March and June in 2020, my single-family homes did NOT go down 50%! They did not even drop 5%.
And what if my properties went down 5% to 10% for 3 to 6 months....I am STILL collecting rent from professional people in the Health Care and IT Industry!!
Or, they are retired or they are in the process of retiring over a 1-3 year period of time.
Everytime I'm watching from the rich dad's advisors through youtube, I feel like I'm in that situation and talking to these great people and having it for freee
This was the BEST explanation of wealth creation I've EVER heard!! Wow!! The rich invest in natural resouces!! Thank you Ken for the education and transformation! God bless you!🤗❤🥂
So, this must be that Warren Buffett or Ray Dalio are not rich? Do you know that biggest money created first of all in trade, then in manufacturing then in resources.
zinturis that’s money, not wealth
@@zinturis there is no money without resources. Money is a measure of resources, if we had money and no resources then we would just have paper. Warren Buffets portfolio is down about $50 billion this year. Ken said that you can accumulate money in stock, but if you actually own the physical materials that society needs then you have less risk, if you own the worlds supply of lithium and it is needed for car batteries, then you're in at ground level.
zinturis they are rich but they need a base that has intrinsic value upon which they can accumulate paper.
@@superduper9357 So, if Australia has vast natural resources it means they have less risk, correct?
But what if when times are really good and American's are buying everything that China is making with the earth resources of Australia and then things change and China stops making as much as they were.... because the American are buying less, or there's a guy named Trump who wants to mix things up just for kicks... and the Australians have taken on a lot of debt... and with the chinese buying less they do not have the money to make their payments, even just to pay the interests on the debt, let alone the principle. What happens then? Do prices of homes go down in Australia? Do suicides go up? Perhaps both?
WOW ! I just got a College education for free ! Pure Gold. Thank you Ken !
What they'd teach you in college is that capitalism is evil.
I heard all these concepts from Robert Kiyosaki. But I understand it better from you. Thank you.
Ken explain smoothly, Robert is more of a tough teacher, great teachers
Ken is spitting facts not fear .
For real, For real
ROBERT IS SCAM ARTIST, CHECK BBB.ORG TO SEE HUNDREDS THOUSANDS OF CUSTOMER COMPLAINTS WHOSE CREDIT CARDS WERE MAXXED OUT INSTEAD OF MONTHLY SUBSCRIPTION
ASHWANI SAXENA agreed.
Big question is what can an average worker do to apply these knowledge without being rich yet? Regardless it will be hard to make more money or find jobs during the next few years for most people. To be frugality, simple living, DIY, learn practical skills, work from home job/business, and self/community reliance are needed.
Thank you, Ken! I really like your emphasis on the "transformation" part of change. It's so critical to moving forward. And the 3 Tiers of Wealth. It seems like we are on the cusp of Big Changes in how things work in this country!
The stock market is the most profitable venture, with plenty of opportunities to earn some decent payouts. Unfortunately most investors are too eager to make some quick cash. Making reasonable profits in the stock market requires skill, patience and the right setup.
Self study is great. Went from a technician to an engineer. Learned the market and the two basic types.
The market casino is in the "Value" of a stock. Stock pays no dividends. All money made on the table was paid by someone else buying a seat, so there is only invested value. Invested value vanishes in a run on the bank. Look for these stocks. High PE heading to the stars and paying no dividends. This is casino chips made of plastic with no worth in the plastic itself. We have seen the gamblers run on the bank in 2000, 2008, 2020, Look at the rise, the slide, and the run on the bank. Now look at other stocks well over 60 in PE and paying none to very little dividends. See a repeating trend? Rising with no end in sight, slowing rise, then nervousness, some pull back, some slides, until the slide starts momentum in selling off and value starts vanishing.
The other type of stock is dividend stock. Money is from company profit sharing. To get a dividend, the company must be profitable and get earnings for the cost of the shares. This is where PE comes in. A PE of 100 means for the price of 100 the Company earns 1 dollar or 1% of the price. Dividends if paid are from a portion of the earnings. I don't like yields under 1% on investment so a PE 100 or more is simply a casino chip. To get dividends, look for a PE under 20, and the company is paying over 10% in yields. These are not your superstar Amazon, Home Depot, Zoom Video, etc. These are boring utilities, pipelines, ISP's, phone companies, some banks, etc. In the last market sale, the news of the oil prices hit the price of everything related to oil. Oil price was down. Oil consumption was down only 30%. Pipeline stocks were down more than 70%. Free oil is still transported for a fee. Bought a pipeline stock for 5.15. Got the first quarter dividend of 0.311 per share. Due to the sale price the return is 24% annually in dividends. Due to actual stock worth, the price today is 8.75 an increase of 70% in price on top of the dividend in just 5 weeks. This is what knowledge gives you. Look for stock worth something to the investor that is not over valued. Buy low and sell that Amazon already. It is at an all time peak. Don't hold for fear of missing out. The crash is no fun to be in. Rode that coaster over the top with Intel in Aug to Dec 2000. It never recovered to $72 per share. Adjusted for inflation that would need to reach well over $120 per share. Do you expect a rapid recovery when Amazon repeats the dot com tech bubble? They are on the same track.
Which pipeline stock did you buy?
Which pipeline stock
Ok g. McElroy but please then explain how one should invest in primary natural resources like oil, coal, water.
This is just listing, we need examples from starting point to closing deal. It would be good if you can nake a video about it.
I know Robert talk about that, but you Ken make it so simple to understand. I really appreciated Ken!
You are very generous. Thank you very much for sharing with us, for free, your knowledge
Couldn't agree more...no one is gonna care more about what's best for your own money and your own health than you do yourself.
Ken to 1M subscribers pretty soon. Thank you for providing educational material without the common bait and switch videos
Ken you did a good job on this presentation; all of the resources that the Lord has made for us on and in the earth are the true commodities of wealth-ty for your time. Blessings, the Elams, TX
How many lightbulb did Thomas Edison make before it worked. He said they weren’t failures but learning experiences. My learning experience was Dec 1974. I was a newlywed in college. My wife and I had $17 in our checking account. Our student loan was late and had to borrow money from my in-laws to keep us afloat until my loan arrived. From that point on I was determined to be independent money wise. Real estate became that medium for escape. Graduated from college- went to OCS and became a Marine Corps officer.. While my Marine buddies bought Corvettes etc I bought a used Fiat. Rather than make car payments we bought real estate. Never lived on base but bought a house and kept them. Problem is we were so frugal for so long it has become hard to spend our income- I have a 1998 Ford pickup- can’t bring myself to buy a new one.
Can't say I know anyone smarter that you, Ken:) Thanks for taking the time to do these videos
It's a very bad time to have large amount of rental assets.
High unemployment = low rental income.
Always put your money in multiple places.
Not if you're receiving Section 8 rents!!! 100% payments received and depending on the state "if" the tenant loses their job..the program pays 100% of the rent.
Hubris is bred by success but wisdom is derived from failure. I see many people nowadays delivering pizzas in a $50k car.
An aquifer is an underground layer of water-bearing permeable rock, rock fractures or unconsolidated materials. Groundwater can be extracted using a water well. The study of water flow in aquifers and the characterization of aquifers is called hydrogeology
Thanks Ken. You have been a great voice of reason in these crazy times.
I store everything I have in rental real estate that produces positive cash flow. I have been doing this for years and became financially independent at 25, millionaire at 28, multimillionaire at 30. Thank God for you, Ken & Robert! I prayed God would send me a $100,000,000+ mentor and I found you.
How much is it leveraged?
Ken IMO
*Your Golden Nugget*
*Self Education*
By far was the most valuable information you could have shared.
This is where you get specific on the niche market to make big bucks.
Commercial real estate doesn't look so shiny all of the sudden.
You must hear a rushing noise going over your head a lot ~
Agreed
Warehouses are up you must mean office space is not so good.
You’re so humble. Appreciate the insight
Ken, the oil companies were drilling *horizontally* under your land, not *vertically* unless they had oil wells directly on your land.
They begin vertically, then go horizontally.
@@michaelswami Yes, many drillers sucked the resources from trhe actual land owners without paying licenses or royalties -- the REAL ROAD to much wealth is by CHEATING!!
kaythegardener ...in the End, cheaters pay the price.
@@kaythegardener thats completely incorrect.....it is highly regulated and you cannot drill under someone's land without a lease that they agreed to.
Are you saying they're drinking my milkshake?
It’s Jeffrey, I do think we are looking at lots of opportunities in front of us in the “new normal” I’m talking both lots of money to be made, and more importantly a new way to live your best life! We are working hard to help others get there!!!
Thank you Jeffery
Thank You Ken ,For sharing your knowledge with us.So we can grow and survive, Very grateful.
Very good presentation on how to invest. For years i have touted don't let the guys with the suit and tie's handle your money! This explains it the best i have seen so far.
You are fantastic Ken! Truly a real teacher. Thankful and grateful for each of your videos. Please keep them coming, because you are providing true value.
Thank you, Ken! I really like your emphasis on the "transformation" part of change. It's so critical to moving forward. And the 3 Tiers of Wealth. It seems like we are on the cusp of Big Changes in how things work in this country!
Richest people in the world have almost no investment in natural resources. Wealth is whatever you have for which people are ready pay lots of money - assets. The price of assets depends on supply and demand not cost of producing that asset which is related with natural materials in most cases. You can buy a land, and in 20 years it will not go up in price, but you can buy a BS house, and it will go up big time. People don't want to deal with vacant land, but are ready to work their asses off and pay $4000 a month for a BS house instead of them going building their nice house for fraction of that cost. Would you buy a little farmland and grow your fruits or veggies or better go online and order them on Amazon? That's why Amazon stock is skyrocketing and farmers stay poor or relatively poor.
Subscribed! You have a very good message. Particularly @1:51; "the situation we are all in, are based off of the choices we've all made." Look forward to hearing more.
You are where you are because of the choices you have made.
Thank you so much for helping me understand how money is created and the different risk with different investments.
this is to be honest, an enlightening video. suddenly lost a lot of interest in stocks and real estate.
I just started watching your videos over the past week and this video is spot on.
Thank you!
Working at getting educated as I MUST enter the world of investing/owning/entrepreneurship.....reading/watching young hipsters is a turnoff....you give me hope that this 56 year old teacher can change her M.O. (upstate NY)!
Recommended Reads:
The Great Reset by Richard Florida
Boom Bust and Echo by David K. Foot
Big Shifts Ahead by Chris Porter & John Burns
The Crash Course by Chris Martenson
The most practical professor
You de MAN, Ken. God bless you and your family.
I've tried to teach people this system but people are in love with their stocks! Great video.
YES YES YES! So much YES in this video. Thank you Ken!!!!
I know it's a business, but I think one could argue that transportation of natural resources, like ocean and railroad freight, is stuck somewhere between primary and secondary investment. I'm thinking of the railroad tycoons in the industrial revolution. Maybe they didn't own the land, but they were smart enough to build track on it. It's a legacy that, to this day, in spite of all the green initiatives, is responsible for transporting a lot of natural resources. I've thought about that for a long time. It's best to put your money where basic human consumption is happening. This presentation puts it all together very nicely.
Wow Ken. Thanks for this Video. I feel educated today. Thanks for expanding my mind.
How this video have not gone viral? This dude dropping some gems real talk
I agree on your point to limit the amount of investment in tertiary assets and that it is critical to understand how your money is invested there. However, your statement that all wealth is created by investing in primary assets (natural resources) is misleading. Having a software business for example (app like Instagram) creates wealth out of nothing but an idea and code. Also having land in the middle of nowhere that can't generate revenue is pointless.
Ken-I’m a new subscriber.
I am 44, and have gone through a really bad situation in the last 3 years, and I am having a hard time digging out, and am involuntarily stuck in a situation where I am forced to live on $1300 a month. I really wish I could tell my story here, but it would take up the entire comments section...please if you can, reply here, point me in the right direction.
Hello, thanks for the great videos. Can you explain how housing market will crash and price of homes will go down, if our dollar value goes down same time? What will be the different this time. please let me know what you think. Thank you.
You're an excellent teacher Ken, thank you for this content!
Ok now I understand....WOW......ding ding ding.....and the light comes on Thankyou....
I couldn't understand why Warren Buffet is buying Suncor Mining stock....I do now..
thank you very much Ken I listen to you I thought I'm listening to Robert kiyosaki you people are having the same motivated lectures i am taking my classes from you guys, I really enjoying your lecture thank you
Primary, Secondary, Tertiary was interesting and very educational!
Yeah, lets see if "wealthy" actually invest in "primary" - None of the top 10 at Forbes 400 have anything to do with natural resources - it's all about information & Data: Bezos (amazon), Gates (MS), Zuckerberg (FB), Buffet, Larry Ellison (Oracle), Balmer (Microsoft), Musk (AI-enabled auto & energy). Kiyosaki and his crew keep on selling illusions marketed as "education".
@@kiaurash There is a huge difference between how they initially make money and where they store their wealth. The people you listed have large tertiary wealth (company stocks) and are moving that wealth into primary assets. Gates is now the largest private owner of farmland (242,000 acres), Bezos owns 420,000 acres of land, mostly in West Texas (oil). www.forbes.com/sites/arielshapiro/2021/01/14/americas-biggest-owner-of-farmland-is-now-bill-gates-bezos-turner/?sh=437d96206096
@@briancroston1684 $1 in oil 30 years ago is worth $1.25 today. $1 in SP500 30 years ago is worth $5.83 today. No one makes money by investing in primary. People use it as a store of value, not as an income stream. This video is misleading because it mixes the two. Of the 3 stages, the secondary stage makes the most money because they are the ones adding value and doing the most work. Trees and oil are great, but absolutely worthless without secondary businesses. Tertiary is just a passive way to invest in secondary.
This is Amazing Ken. Thank you so much. Wish I learned this stuff 10 years ago.Also, love that digital whiteboard, I need one.
Thanks so much Planetgreenzen. The digital whiteboard that is used in the video: amzn.to/2XsoZzP
@@KenMcElroy Thank you so much Ken. I just had dinner with a friend and come to find out it's a mutual friend between us :) Also, the link did not take me to the board.
This is actually genius! Wonder why our schools never teach this stuff!
Because everybody can’t be rich. Somebody has to pay taxes. So they need middle class and poor people to pay taxes. While the rich don’t pay taxes.
great info sir! thanks for encouraging us to challenge our mindset, even if it opposes your view.
Thanks, Ken. I appreciate the education. Also, can you tell me the name of that cool board you're using?
Great Video. I GET IT!!! Just like paper will never measure up to physical gold when it comes to real value, natural resources will always have real value.
Ken I have two rental properties in Texas . I started an LLC last year but have been unable to get myself off the ground. I wanted to use the properties I have to invest in buying more rentals by getting a HELOC, but Texas will only do this if it’s your primary residence. Can you refer a good book, or website? I’d really like to grow my business and move out of the classroom.
Warm Regards and Happy New Year,
Tequila
Ken please keep these videos coming! They are great and the best explanations! Thank you!
Thank you for breaking it down! You are a superb teacher.
Save and buy a small home after the foreclosures come and pay it off! Buy what you need not want and be content. There is no perfect life at this time and the habit of buying things for a quit fix leads to being poor. Being rich is being happy. Look at the people over leveraged on real estate currently, alot of rent not coming in and still need to do repairs, taxes, mortgage and cant evict. Be simple and work hard and always buy gold or silver when you have extra because this fiat currency is about cooked.
Nacho Papa yes, living a more minimalist lifestyle while building residual income is key!
I am so glad I bought my modest 1-bedroom apartment in a good neighborhood. The monthly cost is manageable and I own and not rent, which is much cheaper and I can sell and take the capital gain if necessary. Best decision I ever made.
A lot is always two words.
All I can is thank very much for this info, and electronic board is awesome.
Great info for free thank you.
genuine question: What tier would digital currencies such as bitcoin to fall under? Primary? With built in scarcity, it behaves as though it were digital gold. If society eventually accepts digital currencies as a store of value, the only real issue I see would be it's current volatility. There doesn't seem to be much reason why cryptocurrencies would be considered anything other than a natural resource.
I came here trying to work out if now is a good time to buy a property and have left with an education. Thank you for making this video, class act.
Thanks Ken for a very informative time I spent watching your shows....
I Love Uncle Jim I listen too him everyday!!! #Facts
It’s easier to invest in the top tier than to go out and invest in the forest or survey land and invest in real estate if you don’t live somewhere profitable. Ying/Yang
plus, u hav to be seriusly rich to be buying up forests n lands. we r talking about tens of millions of dollars rich. its just not possible for normal folks.
Great information. Natural resources is how countries get rich & build empires.
Thank goodness for 2X play speed.
Rich Dad, Poor Dad was not a very good book regarding how to accumulate wealth in real estate. For instance Kiyosake did not make his initial wealth on real estate but rather on the patent of his invention of the velcro wallet. After he gained wealth from that invention he reinvested it in real estate. The challenge for most people is getting the initial wealth, overcoming the obstacles that prevent wealth/education e.g. predatory loans, unforgivable student loans, racial barriers, access to a good education, access to fair start-up business loans.
This was so eye opening, I will take it to heart. Thank you!
The rich store their wealth in heaven
"...where moths and rust do not destroy, and where thieves do not break in and steal"
Lucas McDonald amen
You don't understand how the machine works. Rich are not to blame; they can't print money - politicians and central banks do.
Thank you - we all need to be reminded of this.
ABSOLUTELY. THANK YOU FOR THE REMINDER. NOTHING WRONG WITH BEING WISE WITH RESOURCES ON EARTH, BUT ONLY WHAT YOU DO FOR CHRIST WILL LAST.
Ken - good information. I'm invested in all three tiers. Aside from obtaining your own oil land contracts, do you recommend joint venture oil companies?
Thank you for passing along what you know, my friend
I really Really loooove your video. Great info, thank you so very much for sharing.
So typical American. You go into a technical talk that quickly turns into some sort of a motivational pitch.
In my opinion the rich own businesses not primary assets. The return on investments in primary assets is too low to be considered a worthwhile investment endeavor. Businesses that generate sales, cash flow, etc are where wealth and income are made. Here are 2 extraction business that don't require paying for primary assets .... solar and wind power.
Cocoa is also on the primary level.
Good lesson today.
The primary may be the cacao farm land that produces the cacao, although the cacao is a commodity I don't think it's a store of wealth.
Great video! Very informative. Thank you Ken
I love your book about managing property and your exclusive content about real estate. It could be better if your video has subtitle in English
Great video buddy, could you go deeper into how to invest in the tertiary? Do you mean buying land or stocks in companies that are producing at the tertiary levels or both?
Thanks Ken, Great Investment video. Explanations was very clear and organized.
This video is part of self education.. Thank you.
Good video, basically riches store their riches in it's business, passive income, gold, silver, and buy real estate when the market crashes, buy quality companies when the market crashes, day trade, forex trading.
Power of investing in the long term- slow & steady, opens you up to passive income
Really nice comment 💯✌🏻
WOW, WOW, WOW. STANDING OVATION!!!!
I think information would also be considered primary. Awesome video Ken!
Thank you so much for your guiding 👍
I always find myself clicking "like" within the first 5 seconds of Ken's videos... because I know they're going to be good.
Same
Great content Ken!
Thanks for sharing valuable information, Ken. I am always learning from your videos.
Which computing device are you using in this video and I have seen it in recent videos too?
Thanks Ken! I always learn a ton from your videos. Keep up the good work.