Friday, July 29, 2005

Robert Kiyosaki has Gone Bearish

SF Chronicle columnist Carol Lloyd wrote an interesting article that appeared in last Sunday's Real Estate section. She tracked down Rich Dad, Poor Dad author Robert Kiyosaki for his thoughts on the current market. It looks like he's turned bearish on real estate and is shedding properties that don't cash flow.

You can read the article here.

A few snippets:

"Don't get me wrong, I'm still buying real estate," he told me, adding that he
was in the process of buying seven new properties but that he wasn't buying
anything in expectation of appreciation. "I'm an investor, not a speculator. ...
I want it to cash flow."

The real culprit behind the real estate bubble, he contends, is the federal
government. "They're printing too much money," he says. "It's Gresham's Law:
When bad money enters the system, good money goes into hiding."

Kiyosaki believes the U.S. government has devalued the dollar, weakened
the economy and created such distrust of the stock market that people have
sought more secure ways to invest their money. And that has driven up real
estate values.

"Please crash, so I can buy some more," he says with a hardy laugh. "I want it
to bust anyway. There's more opportunities in a down market."

Kiyosaki has a great website with a very active discussion forum. I spent a lot of time there when I was first getting my feet wet in the industry and always picked up some great info.