How to Find a GOOD Business Partner - Robert Kiyosaki

Kenny and I only met about five six

years ago but moment we met we speak the
same language when I speak to somebody
was talking about a big house I know I'm
talking to a person who came from a poor
family who wants to join the middle
class I know that when I when we can't
hit can't go to a small house Kim and I
had a small house we didn't have a big
house when we met but where we're
working our plants you know Kim's plan
was start with one house then get two a
year go to 18 and then when we got
$10,000 a month cash flow and 3,000
expenses we're financially free once we
got that then we could go full time into
it that was our plan and just about that
time I met Kenan so we understand each
other but I can tell by a person's
values you know like poor Gilbert so
he's still renting his expenses are
gonna go up and his wages are gonna go
down and let me tell you one other
problem with Gilbert so the landlord
that he's renting from his energy costs
are going up his insurance costs are
going up it's gonna pass it on yeah of
course that all gets passed on to him
that's how the that's how it works
so his rent it's gonna go up so I just
said this is when Kenny Kenny gave me
this but when we met we both understood
this like that quick way this was my
rich dad's for me it was a thing
monopoly teaches is this right away my
poor dad was into capital gains and my
Rich Dad was into cash flow one guy had
one house and one guy had hundreds of
houses who do you want to be yeah I mean
it's not that tough a mental decision
but if you're a poor person you want to
look rich
it's the illusionists psychosis so Kenny
said this and I agree with this number
one if you want to be successful you
have two good partners the moment I met
Kenny I understood come was a property
manager I was in love with him he's my
boyfriend
I knew I said this is the kind of guy I
want to hang out with and as that last
real estate course we did you can't do a
good deal with a bad partner it doesn't
mean they're bad people
there's just the wrong partner and
you're very careful who we become
partners with right well yeah the key
really is what do they bring because I
obviously have lots of people Robert has
lots of people approach us to be our
partners and I always ask the same
question what value do you bring that I
don't already have it's even worse than
that there are people who want to go
into real estate but they have them they
have the negative Midas touch everything
they turn they touch turns to [ __ ] you
know doesn't turn to gold and they no
matter what piece of real estate another
what stock they go into they have a
loser's mentality and that's why I don't
hang out with posers well I'm a good
hardworking person I say no but you're a
laborer you're not an investor you don't
understand me but I'm a good person I go
to church every Sunday I work hard I say
you still a loser it doesn't mean you're
a bad person does that make sense you
guys hear you're a loser you're a
financial little sir
that's what it means it doesn't mean I
don't want a bad part got this got it so
Kenny and I will make millions and
millions of dollars ad infinitum lemak a
time and all is this because number two
you have to have good financing right
yeah and there's a lot out there that
that's another thing it's very
interesting Robert it's very easy to get
financing in the commercial arena right
now at the moment a rates low rates are
low we're we're getting low rates right
now under 6% for our apartment buildings
and what's happening is the you know the
subprime all the stuff that's going on
with a subprime now the jumbo loans have
gone up right so their direct they're
actually penalizing the wealthy people
that will higher rate loans to get money
back you know to to recapitalize the
money
in in the lower-end markets now in the
commercial markets it's completely
different because the bank the financing
source everybody values that real estate
on the cash flow so that's the
difference see all the people that are
in this arena here also base their real
estate on cashflow not on where's the
market going that is something they're
not on equity you're not an appreciation
or capital gains that's what losers do
right will the property pay back to my
loan that's it that's all they care
about so they're looking at cash flow
it's all fundamental it's called a
fundamental investing now when the
market was trending up that's technical
that's momentum play in in stocks bonds
mutual funds real estate it's this
moment everybody's hot they're in the
market now the momentum is shifted the
other ways the property values will keep
coming down it's gonna wipe out people's
equity when it wipes out people's equity
it's called the wealth effect negative
wealth effect they get depressed
but it's just stupidity that got them
into that problem anyway does it make
sense you guys here because they were
playing cash capital gains so the third
part of the deal and this is I don't
care if it's real estate or a business
or anything as Kenny said management and
management means having good partners
good financing good employees well then
when I met Kenny I mean we met and I met
Kenny through a bad deal yeah yeah you
know I've this is the rule of thumb for
all you people who are afraid of making
mistakes every bad deal I've ever gone
into a bet a good person every single
one so when I go into a bad deal it's
all this is good I'm gonna get screwed
by a nice
no but that's let's say I meet some guys
am I going into Oh what if I make a
mistake would it was a bad person
you know you will meet bad partners
right now I'm going to a lawsuit my
partner's good people bad partners they
just do not fit the business anymore
that makes sense you guys here but
through every bad deal
I meet good people and Kenny and I met
business this guy probably not a good
day Robert your partner's on the front
of USA today yeah I mean I said what
happened to his name I said I don't know
the SEC was in there and they handcuffed
him and took him out so what can't even
get some lunch
I guess our meetings off suffice to say
you probably didn't make any money on
that deal
no but we made a lot of money here so
you know but you can't get a good
partner unless you get rid of the bad
partner we work hard we work very hard
but we don't work hard to work hard we
work hard to make a lot of money yeah
it's the same personally too and I mean
it in a marriage situation it's the
exact same if you guys are hanging out
with couples that have that kind of
mentality then that's what you're gonna
get sucked into and you know whatever it
might be so it doesn't it doesn't apply
to just business so I'd like to you know
to for those who have not or have reread
Rich Dad Poor Dad you know those are
saying I've never helped people I'm
going I put it in the book Kenny knew it
I read the book he understood it it was
management
it was finance it was partners nothing
has changed the economy has changed it's
gotten worse which means is good but for
losers uneducated people it's bad and
the poor will always be poor it doesn't
make any difference because poor Joel
Berto when the economy was good he
didn't do anything different and for the
middle class they wouldn't bought bigger
houses when the economy got good how
stupid is that and now is going to
tract it's gonna go down so all the big
you know the big real-estate companies
and the guys with the mortgage brokers
and real estate brokers they're not
working looking for a job because they
think like laborers does that make sense
you guys they don't think like an
investor's if you had bad you've had bad
management what would happen to the
value of our properties well those are
the kind that we buy so we you know we
actually do look for a bad management
situation you know it's interesting
because as some of the investors come
into our properties invest with us they
always say oh it doesn't look like it's
in a cash flow in the first year you
know that's what they think and I'm like
that's true because it's 75 percent
occupied and expenses are high you know
it takes me 18 months maybe 2 years to
turn around the management of this
property on our larger ones but they're
they're thinking is it's not a good
investment for us because it doesn't
produce cash in year one even though I
have a strategy to increase the
occupancy increase the rents and all
those things so those are the real
estate investments that we look for are
bad management quite honest that's it so
nothing has changed the reason I was I
wanted to do this is because you know
those of you sit in your hate emails and
love emails nothing has changed if you
were stupid enough to be a flipper then
you're getting punished right now and
you still hanging on to it if you're
lucky enough to get out of it you got
lucky
but we didn't flip we just got we just
we treated up at times but we didn't
flip the property does that make sense
you guys here I I trade it up because
can you manage a 30 unit apartment house
sure but I don't want to it's too small
yes it's not economically small so when
we met Kenny you know five six years ago
he just said you got to get bigger I
said thanks very much
well that's a word from God as far as
I'm concerned it's time to get bigger
for somebody who's just starting out
this is your time this is the time to
start