So, ah, that’s not how that works.
If he “goes bust” and can’t make repayments the bank will take his cars and silver and gold.
This guy is a great author, and those four words “rich dad, poor dad” are masterfully crafted. The book basically says borrow money to buy houses not boats. It’s not revolutionary, it’s just packaged in a way which is appealing to… poor dads.
No bank in the world is going to hand anybody millions (never mind over a billion) without some reasonable assurance it can be paid back one way or another.
If he was in real estate, they’re taking his property.
IIRC, the advice was basically a recipe for overleveraging yourself in debt trying to make money with “throw everything and see what sticks” (and then blaming them for not being “savy” enough when it becomes apparent they can’t manage the debt.)
Which is what happened to a friend of mine that kept bouncing from one self help book to the next (he was a big fan of what’s-his-but-zero-debt-guy until his church group read it.)
“It really resonated with what you said… I have a responsibility to my kids!”
“Uhm, I was talking about not having a third when you already need help with two.”
“No no. I get it now…” (and now we’re not friends because he asks for advice, doesn’t listen to it and blames you for when it doesn’t work. It also wasn’t about finances per se.)
No bank in the world is going to hand anybody millions (never mind over a billion) without some reasonable assurance it can be paid back one way or another.
You say that, but Deutsche Bank and others have been very happy to loan Trump money over the years and they must know he won’t pay it back.
Some of those loans are predicated on extremely inflated business dealings. For example, in the NY fraud trial, the collateral was Trump’s properties. Some of those loans, as already mentioned, were also straight up bribes.
also its extremely unlikely this guy is going to be somebody that people want to bribe. Remember, mortgages count against networth, so this guy isn’t that rich.
He was committing fraud. That’s why Deutsche Bank no longer does business with the Trump organization.
Tell me you have no idea what’s actually going on without saying you have no idea what’s actually going on…
It was basically instructions on how to become a grifter, with very little actionable advice. Here is a podcast the breaks down books like this.
https://pod.link/1651876897/episode/1a9316ba1134a0c2484e8fc6e416b978
Remember we’re probably not talking about a single person, but an company. His company is likely over valued because of how famous his books/seminars are. And yes, while he probably has real estate, it’s probably not the same business. When they come after him, they probably hit one side of the business and not the other.
It’s very possible someone gave him a ton of loans that are undeserved because they overvalued the names. We see it all the time in the stock market.
Given what I understand of his ‘advice’… he may not in fact be smart enough to split his assets up like that. Also, if you do split up your assets into LLCs or whatever; then they’re loaning to the LLC, and they will be looking at its financial ability to pay back… banks are generally rather careful with these kinds of things.
if he’s using [assets of company a] to inflate the [assets of company b] (IE IP on his books etc,) then that’s fraud.
Thank you, I always assumed it was more capitalism pearl clutching and to know it’s another ‘get a mortgage’ flip answered all my questions.
Yeah it’s the common sense stuff we all know to be true. “Save and invest your money! Compound interest magic! Investments increase in value!”
IIRC he makes a case for ripping off his employees. Justification is that if he have them more money they would just waste it, but he will invest it.
Yeah it’s the common sense stuff we all know to be true.
If you knew how many people in America didn’t have bank accounts I’m pretty sure you’d shit yourself, lol
Ya know I never really understood it. This book was recommended to me 94295832 times so I read it and everything in it seemed super obvious, and it was mostly just boring anecdotes about how he discovered the idea of putting your money to work for you.
You might be surprised then, to see how many people seem to lack understanding of that apparently obvious concept.
