Kiyosaki & McElroy recent podcast - Invest in business not RE

[Shiloh Lundahl]

Robert Kiyosaki recently had a podcast with Ken McElroy and talked about how the RE market seems to be topping off. They talked about different asset classes to invest in (RE, the stock market, commodities, and businesses). Ken said that they have not purchased much real estate in the last 2 years and Robert mentioned that right now, instead of investing in real estate, he is investing in the asset class of businesses.

When I think of investing in businesses, the first thing that comes to my mind is Shark Tank. In what ways have you invested in the asset class of businesses? 

Here is a link to the podcast: https://itunes.apple.com/us/podcast/rich-dad-radio-show-in-your-face-advice-on-investing/id833641766?mt=2&i=1000424721374

[Don Konipol]

Income producing real estate has a far lower risk than an operating business.  Most failures in real estate come from using high leverage.  Additionally, analyzing business operations is much more difficult than analyzing real estate deals, and requires a much different skill set.  From 1980 - 2001 I mostly invested in operating businesses (nine businesses in which I held 50% or more of the ownership) with investing in real property as a sideline; since 2001 I have invested in two businesses and 40 real estate equity positions and over 100 real estate notes, not including the investments I act as sponsor (syndicator); if I include them over 500 real estate equity and debt deals.   

For me personally, real estate is simpler, more profitable, and A LOT more fun!  However, as a disclaimer I must add that I'm not very good at managing people.