I’m here today to share with you from the Robert Kiyosaki’s point of view the secret of the investors and how you too can use it for your own advantage.
The secret of the investors (I quadrant) is OPM: other people’s money. As you know, many people invest, but they use their own money.
To be a true investor, a person needs to learn how to use OPM to invest, either from banks, pension funds, or private investors.
A smart investor can use OPM in any asset class, including stocks, precious metals such as gold, and commodities such as oil. OPM is the secret of the investors, regardless of asset class. Once you learn the secret, you will see it used everywhere.
When Robert wife invested in her first house, she put down $5,000 and borrowed $40,000. The moment she did that, she became a true investor, using OPM to invest. When her husband used his credit card to buy the $18,000 units on Maui, he was using 100 percent debt to finance his investments. The moment he did that, he moved into the investors’ quadrant.
When the couple (Robert & Kim) invested $1 million with Ken and Ross, they did so because Ken and Ross business plan was to use bank money to get their money back. They got their $1 million back in three and half years. They use OPM as much as possible because they want their money back, plus they want to keep the asset, plus they want the cash flow, and they want tax advantages. That is what true investors do.
When Robert invests in oil, he uses OPM from the government and from the oil companies to buy his oil wells. When he invests in stocks, he use options and market momentum to buy his assets.
His rich dad often said, “Only lazy and foolish people use their own money.” OPM is the secret of real investors.
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