John T. Reed vs. Robert Kyosaki

http://www.johntreed.com/

I found this website was fairly honest and consistent. The real estate advice he gives in his articles section is fairly basic, but it gives a prospective real estate investor some basic fundamental understanding of what is required for the job, how to make sound financial decisions using ratios, etc.

One segment that I enjoyed was his complete disdain for Robert Kyosaki that culminates in a 185kB plain text document outlining inconsistencies in his book Rich Dad, Poor Dad, his life, and other musings. It really is quite scathing, I’m sure Ken over at ARRDPD would disapprove.  However, it is consistent, and reads well.  It is actually quite amusing to look at how JTR’s research disproves many of the careless comments in Rich Dad, Poor Dad.

I do see JTR’s point though. When reading RDPD, one gets the feeling that everything is exceedingly vague. I think Kyosaki, if anything is a fantastic salesperson who has managed to find a key niche of selling real estate investment advice to people who will probably never get involved in real estate investing.  The book is dumbed down, and mostly amounts to a bunch of flag waving like you see at a highschool pep rally. 

For some readers, Kyosaki makes them feel smarter by giving them ‘insider’ information like how to calculate your net income.  For other readers he makes you feel superior to the rest of the world by constantly putting down people as not being able to figure out the most basic foundations of accounting.

The article entitled
“Suggested sequence for starting a real
estate investment program” has some good information.  Its more of a
pre-questionairre to see if you have the right-stuff for investing in
real estate.  It is a simlar approach to that used by Robert Griswold in “Property Management for Dummies.”

Either way, there is some good information on John’s site that is worth a look and skimming the Rich Dad, Poor Dad book review is good for some amusement on a Friday afternoon.

NG

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27 thoughts on “John T. Reed vs. Robert Kyosaki

  1. I do agree with you on your analysis of RDPD and johnreed website. I believe that RDPD is a great introduction to basic concept only, to open your eyes, however if one wnats to pursue it further then they would need do more research and self-learning. John Reed website offers that first step.
    -Marc

  2. Thanks for your comment Marc, I really enjoyed reading RDPD, but it left something lacking in how well it teaches you to actually invest.

    However, what I think the reader should appreciate is that there is a reason for that. Kyosaki’s goal was to create a system. The objective of RDPD is to hook the reader, so they will believe in his system. This is the definition of multi-level marketing. One product sells the next.

    You can see this all throughout his books as he pitches the value of his games, his other books, his seminars, etc., etc. I think you could actually learn more about how to market things from his books than you could ever learn about investing in real estate.

    But, I’m a cynic 🙂

  3. Overall, I’m pro-Kiyosaki.

    Personally, I interpret the books as more like parables than historical records, though, and was a bit surprised to believe that JTR would ever have read them differently.

    Actually, Multi-Level-Marketing is something different 🙂 However, I agree with your analysis that Robert Kiyosaki has created an outstanding “information publishing” business.

    Whether or not you, I, or JTR agree with 100% of RDPD, I am on public record as saying that the series have taught me a few things that have paid for the cost of the books and the game many, many, times over.

    Regards,

    Mark in Sunny England.

  4. I agree with Mark. Kiyosaki opened my eyes to the world fo real estate investing. I’ve made many times my annual salary from that step.

    of course JTR’s books are stellar – amongst the best I’ve read – but you wouldn’t think that from his comments. He comes off as extremely bitter.

    Maybe he’s jealous that kiyosaki (who didn’t go to Harvard B school like JTR) is so many times richer!

  5. I’m for Kiyosaki…(he teamed up with Billionaire Trump). I know John T. Reed looks at the glass half empty and that’s what I don’t like. I go by the saying “success leaves clues”. John T Reed lists his properties owned. (big deal) Doesn’t impress me. He really lost me when he put down a Billionaires books and systems “Donald J. Trump. I think once you hit the B’s in income no one with a few bucks should ever be able to open their mouth negatively against you. Does anybody know John T. Reeds net worth? There’s your answer ,Allen j. OC, CA

  6. Does anyone know Kyosaki’s net worth? I would assume Trump’s worth is estimated. The thing about Trump, is that he knows a good marketing opportunity when he sees one. He must have a good PR person. Take the Apprentice for example, or his recent collaboration with Kyosaki. I’m not really pro Kyosaki or Reed… they both have their points.

  7. Does anyone know Kyosaki’s net worth? I would assume Trump’s worth is estimated. The thing about Trump, is that he knows a good marketing opportunity when he sees one. He must have a good PR person. Take the Apprentice for example, or his recent collaboration with Kyosaki. I’m not really pro Kyosaki or Reed… they both have their points.

  8. I do like some of Kiyosaki’s books. I also realize that the “Rich dad” concept is most likley fictionalized in an atempt to illistrate the difference between the employee and entrepaneurial mindsets.

    The way I look at it is I take what I need as far as inspiration and understanding the concepts of traditional employment vs other types of business models and get the meat form other authors and books.

    I don’t waste my time trying to pick everything apart. I take what makes sense to me and move on.

  9. I am a core JTR fan in this matter. About the John-Reed-being-jealous argument, please read this:

    http://www.johntreed.com/envy.html

    That is a good summary of why John T Reed has been successful.

    About Kiyosakis reply to Reed: It Sucks. There is no substance in it whatsoever, and it does not in any way explain why RDPD is a nonfiction book (which should have been his major intention).

    Personally, I wouldn’t trust liars. But hey, that’s just me.

  10. I do like Robert Kiyosaki’ material, it does give you something to think about in terms of building businesses and assets, true it is not forthcoming with theory but I dont think it was ever intended to be.

    Bill

  11. John Reed is a joke. Serious the time he spend picking on every detail on RDPD. Whatever Robert preached, it works for him. Kinda dumb to say its not true. It works for me too. I see only one person who makes irrelevant statements and and who has issues. But what John is doing is working for him so no comments. You go Johny boy bring those guru’s, who are empowering people, down.

  12. RDPD has about the same value as any ficitonal book. It can entertain. It can inspire. But it can’t teach you much about real life or real situations. That is what John T Reed is trying to tell people. Don’t buy the book if you want to learn about making money, buy it if you want sunshine blown up your ass.

    I could tell how full of BS the book was when i read the opening chapter. Making lead nickels? RTK must of had an A in science and an F in English if thats the idea he got when his dad said “make money”, of course it never happened.

    Heres some advice on how to get rich: write a book full of over the top bullshit stories with no core theory.

    Have money work for you? what the fuck is that supposed to mean? The whole book, in fact all of RTK’s advice, is just flashy sounding crap.

    Getting rich is usuually hard, thats what JTR says, which explains why there arnt too many rich people.

  13. I couldn’t agree more that RDPD does not have a whole lot of sustenance. The extent of the information found in the RDPD series can be found in almost any high-school accounting class…. but you have to remember that there are millions of people who have never taken a basic accounting course! For these people, maybe RDPD does present some new information and new ways of thinking that they hadn’t considered. So – the book isn’t totally useless – it depends on where you are coming from. I would guess that you are somewhat more highly educated than 90% of the world’s population – and therefore didn’t get as much out of the book series.

    Thanks very much for your insights.

  14. Kiyosaki or Reed

    Im not pro or against Kiosaki/Reed

    One question why does Reed Reccomends
    Robert J Abalos a convicted scam artist then bashes trump and kiosaki
    please do your research
    is he a real person? (Reed)(Abalos)
    maybe thru their books we get inspiration but its
    up to us how to understand and apply it we have to be responsible on how we interpret what we read! not depend on advices and take them literally READ between the lines. Education is still an ingredient for success but our attitude towards life is what propels us to achieve.Money is not just the sole achievement in this world but it does make u partly happy.

  15. Please help inform JOHNTREED with due respect he is misleading people into buying Abalos nonexistent products ! thru his recommendation!

  16. It’s all about marketing. Everybody is trying to make money off something. There seemed to be money in MLM, so there are the people who say they will teach you how to do it successfully and then there are the people who will write against it; warning people of the “danger” so they can get exposure and of course, make money.

    It’s the same principle with Robert Kiyosaki and John T Reed. One writes a best selling book and because the other wants to make money too, he gets exposure by creating this controversy with Robert’s book.

    Nobody is really more concerned about consumers than they are about their own finances. Everything is about money!

  17. I just attended a basic training course for rdpd. The content was very basic. I did enjoy the salemanship of the “Rich Team” I would estimate that 40-50% signed up for the “Next” advanced training at somewhere between $5000 and $68,000.

  18. What a way for reed to make a living by knocking everyone else so he can sell his own wares.Does anyone see a conflict of interest ?

    His investigations not only against robert kiyosaki but russ whitney are at the least cruel and petty and at the most defamatory and an invasion of privacy.
    A Mr. T said so eloquently ” on the A team TV series “I pity the fool”

  19. Wow… Reed is some piece of work. He says that “Kiyosaki is just telling lazy and/or stupid students a line of bull that lets them avoid responsibility for their poor academic performance and gives them a convenient scapegoat to blame for their lousy financial situations”. As though Kiyosaki’s only intention is to dupe unsuspecting people to make a sale.

    When asked if anyone can explain the ‘point’ of RDPD, one of Reeds respondents writes…

    “Please open your copy of Rich Dad Poor Dad and turn to page 77. Look half way down the page. You will see this:

    “Rule one: You must the know the difference between an asset and a liability, and buy assets. If you want to be rich, this is all you need to know. Its rule No. 1. It is the only rule. This may sound absurdly simple, but most people have no idea how profound this this rule is. Most people struggle financially because they do not know the difference between an asset and a liability.””

    This point, combined with introduction of the Cash Flow Quadrant, are the concepts that cause people to see how their lack of success in financial life can be overcome/corrected if they are willing to look at the situation from a whole new perspective… i.e. left-side vs. right-side thinking.

    Although I wondered whether the book was factual, I never considered that to be irrelevant. I simply looked at it the same way I would from “The Wealthy Barber” (Chilton).

    It would seem obvious that the reason most people are ‘broke’ is because they look at Investments as expenses and possessions as assets.

    Overall I would simply say that Reed’s assessment is more of a personal attack. As others have noted… out of jealousy. Seems as though Reed is stuck in the “I” quadrant.

    About ‘duping the public’… Reed is taking advantage of a well known SEO tactic called ‘Piggy-Backing’ where you create a controversial web presence around a highly searched subject (RDPD/RTK). Then you place your own links to your own sales pages within the article to promote your own products. It works great and Reed could probably offer the best proof. I wonder what percentage of his sales come from traffic generated by RTK?!… better yet, would Reed be willing to admit it.

    Who’s duping who?

    Bill

  20. i have been reading RDPD for teenagers. Im only 17 but thought it was time to have an idea on how money works or how money can work for me .Reading Kiyosaki book laid down a foundation on how to spend my money wisely but i wouldnt treat the book as a bible. i dont agree with everything he has written.the book is merely a guide for those who wish to educate themselves a little more.The same goes for JTR views. There just guide,nothing more.

  21. Kiyosaki’s book is more of motivational. Reed should stop criticising the best message given by selfless people. I like kiyosaki’s books & have helped me take a step when i read that failure is part of the process of success. this made me fear no risk & when he said that one bite at a time you can eat an elephant made me know that success is a long term process. another quote is that success is not measured by how long your strides are but the number of steps you take and the direction you are moving!!!

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