Rich Dad Seminar a Scam?

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668 posts

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#2276811 15-Jul-2019 11:22

elpenguino:

All based on ignorance and promises of ever appreciating assets.

Capitalism at it's finest !

Hard sales with smoke and mirrors.

It's so American isn't it.

Good that you mentioned the word ignorance as that is the very word that they used together with fear to build up the urgency to sign up for the 3 day course as apparently it will address the ignorance part with the info that you would get.

eracode

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#2276827 15-Jul-2019 11:57

CrashAndBurn:

elpenguino:

All based on ignorance and promises of ever appreciating assets.

Capitalism at it's finest !

Hard sales with smoke and mirrors.

It's so American isn't it.

Good that you mentioned the word ignorance as that is the very word that they used together with fear to build up the urgency to sign up for the 3 day course as apparently it will address the ignorance part with the info that you would get.

Poor-shaming - despicable.

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dafman

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#2276834 15-Jul-2019 12:09

No need for google or any other investigation. The name of the seminar was enough to highlight it as an obvious scam.

gzt

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#2276836 15-Jul-2019 12:14

Does it recommend bankruptcies by any chance?

elpenguino

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#2276839 15-Jul-2019 12:25

Those who ruthlessly chase wealth see bankruptcy as a valid exit strategy to limit harm to self, not as a source of shame. In trump's view it does not mark one as 'a loser'.

Most of the posters in this thread are just like chimpanzees on MDMA, full of feelings of bonhomie, joy, and optimism. Fred99 8/4/21

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#2276930 15-Jul-2019 13:15

https://dilbert.com/strip/1999-12-29

tripper1000

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#2276989 15-Jul-2019 14:16

I can not vouch for the authenticity of the subject seminar, but there are plenty of financial advisors around who are a lot more up front with both their advice and costing's.

Money doesn't lie, so follow the trail. Who is making money from this seminar and how did they make the rest of their money? If they made their money selling hopes and dreams then they are not financial advisors but are profession hopes and dreams sellers.

Interest-only loans have a financial purpose - that is reduction in tax and increasing reinvestment cash. Unlike a private home owner, a business can deduct interest from their tax. By paying down a loan with money they could be reinvesting they are potentially only buying the privilege of paying IRD more tax - a lose-lose situation.

Interest-only works well in a rising market such as our (current) housing market, and works badly in a falling market as someone pointed out above.

Interest only generally doesn't work for private home owners because 1) there is no tax advantage 2) they are usually not making further investments that are paying higher than their mortgage rates.

Edit: Grammar.

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Rikkitic

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#2277036 15-Jul-2019 14:36

Didn't the Scientologists used to give free personality tests? Maybe they still do. How did that work out?

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decibel

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Ultimate Geek

#2277047 15-Jul-2019 15:00

I read the original "Rich Dad, Poor Dad" book.

While it had some good points, one thing he did make a lot of money off was going around and buying up houses (cheaply) through mortgagee sales.

I didn't fancy benefitting from the misery of others.

frankv

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#2277049 15-Jul-2019 15:06

tripper1000:

Money doesn't lie, so follow the trail. Who is making money from this seminar and how did they make the rest of their money? If they made their money selling hopes and dreams then they are not financial advisors but are profession hopes and dreams sellers.

However they originally made their money, they are *now* in the business of hopes and dreams.

tripper1000

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#2277115 15-Jul-2019 16:09

decibel: I read the original "Rich Dad, Poor Dad" book.

While it had some good points, one thing he did make a lot of money off was going around and buying up houses (cheaply) through mortgagee sales.

I didn't fancy benefitting from the misery of others.

Don't be too quick to judge - the fewer the number of people competing to buy a house (mortgagee sale, auction or otherwise) the lower the price that it sells for (supply vs demand etc). By bidding for these houses you/he was are forcing the price up and the seller is better off/less worse off.

Also be careful about measuring a USA situation with a New Zealand yard stick. USA consumer law is different to N.Z. so more than likely in the USA you are benefitting from the misery of the bank, not an owner. In NZ the law expects the owner to pull up their big-boy pants and take some culpability for their mess, but in the USA it places far less onus/risk on the owner and far more on the bank. Many times the owner simply abandons the place (for instance when prices go down and they look likely to make a loss) and bank is left to pick up the pieces. This difference in the rules is also why you should be a bit wary of buying advice/hopes n dreams from a foreign outfit - the rules, drivers, taxes, profits, risks and opportunities are often quite different country to country.

Post GFC a school friend who moved to the USA had a business fixing abandoned houses for the banks to prepare them for mortgagee sales. Often times the owners would vandalise them when walking out. The first sign of trouble for the bank was frequently only when the mortgage stop being paid and letters went unanswered. The manager would visit and find the place flooded from the slashed plumbing etc.

tripper1000

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#2277125 15-Jul-2019 16:18

If walking away from a depreciating house in the USA sound too good to be true here's a CBS article extoling the virtues of doing so.

So when they say OPM "other peoples money" it is a far less risky strategy in the USA, and is not necessary applicable advice for Kiwi's due to the differences in the law.

elpenguino

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#2277137 15-Jul-2019 16:31

decibel:

I read the original "Rich Dad, Poor Dad" book.

While it had some good points, one thing he did make a lot of money off was going around and buying up houses (cheaply) through mortgagee sales.

I didn't fancy benefitting from the misery of others.

It's way too hard to actually come up with an idea and make something like a new product/service.

It's much easier to trade assets. There's nowt as sure as houses.

Most of the posters in this thread are just like chimpanzees on MDMA, full of feelings of bonhomie, joy, and optimism. Fred99 8/4/21

marpada

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Ultimate Geek

#2277235 15-Jul-2019 19:16

CrashAndBurn:

eracode:

Putting aside their sales pitch for further seminars, did you learn anything during the free two hours that you thought was truly useful or valuable?

It sounds like you already have a pretty strong gut-feeling about all this - trust that feeling.

I guess in a way I did learn something. They also mentioned about getting 20%+ ROI on property without using any of your money

If they could achieve that consistently, would they be wasting their time selling the secret?

Technofreak

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#2277438 15-Jul-2019 22:02

elpenguino:

All based on ignorance and promises of ever appreciating assets.

Capitalism at it's finest !

Hard sales with smoke and mirrors.

It's so American isn't it.

So if you think capitalism isn't any good, What system do you prefer? The only other system I'm aware of is communism. You only need to look at East and West Germany to get a comparison between the two of them. To paraphrase Winston Churchill, "Capitalism is the worst financial system in the world except for all the other systems".

Sure capitalism isn't perfect by any means, but it sure beats the alternative. No matter what system you have there is always a group of people who will try and take advantage of others. Unfortunately there's always enough suckers who fall for the "almost too good to be true" ruse. The rule of thumb "If it seems too good to be true, it generally is" applies.

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