Robert Kiyosaki says he called the housing bust as far back as two years ago. “I was saying get out,” he says. Kiyosaki became a very, very rich man thanks to his 1997 book, “Rich Dad, Poor Dad,” in which he argued that Americans needed to take more risks. In the book he says he made his pile in real estate and small company stocks. It’s has been on best-seller lists for years, selling 27 million copies, and spawning 12 sequels, Kiyosaki thinks. “I stopped counting,” he says.
“I thought the real estate boom was a dot-com all over again,” he says. “It was hard in 2003 to 2006 to make a deal.” Now Kiyosaki is advising that investors plunge in again, selectively. ‘It‘s the same fundamental problem, an overheated market. We’re coming upon it right now. This is the best time to invest. The people who are losing money are flippers, developers who came late to the party, every time there are cranes in the sky, I am strictly cash.”
So what exactly does Rich Dad suggest? “The people getting hammered right now are capital gains folks. I’m a cash flow guy. If it doesn’t make me money today, forget about it. When you find someone who just wants to unload something you can make a deal. It’s really the best time for a professional investor.” Kiyosaki does say he expects another recession, a “ripple effect” from the construction industry slowdown and consumers burdened with debt. Sounds like it’s also time for another book.
BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.