Unfair Advantage As you may recall from a previous chapter, I stated that in 1973 when my flying career was over, I signed up for real estate investment classes and sales training with Xerox. Today people will say to me, “Can I take you to lunch? I want to pick your brains on investing in real estate.” It makes me sick to see people so naïve about financial education. Becoming financially educated is not something you do over lunch. I also have had financial morons tell me, “I have bought and sold a number of personal residences. I know how to invest in real estate.” There is a massive difference between buying a home and buying 300-unit apartment houses. Success or failure lies in the power of financial education. Taking a three-day seminar gave me the fundamentals to become a real estate investor, an investor who uses debt to acquire wealth. While the fundamentals are the same for a single rental property or a 300-unit apartment house, the difference in profitability is found in education and years of experience. My poor dad failed in his first and only business venture, an icecream franchise. In his mind, it was the franchisor that cheated him. In my opinion, it was his lack of entrepreneurial education and his inexperience that cost him two years of his life and his life savings. The strange thing about people who did well in school, like my dad, is that they respect academic education, but fail to respect financial education. They seem to think that, just because they hold a PhD or are an attorney, accountant or medical doctor, business and investing should be easy for them. To me this is academic arrogance. It is also very expensive arrogance.
by Rich Dad, Robert Kiyosaki