Good Debt vs. Bad Debt: The Billionaire's Playbook

How Kiyosaki and McElroy turn $2B debt into massive wealth                                                                                                                                                                                                                                                                                                                                                                                                                 September 27, 2024 | [Read Online]( 👾Leveling Up 👾 I had a chat with one guy who has $1.2B in debt. The other has $800M in debt. The first one is none other than the best-selling author of Rich Dad Poor Dad Robert Kiyosaki. The second is my friend Ken McElroy. Here are their lessons: 1. There is 'good debt' and 'bad debt' 💸 These two guys typically have an LTV (loan-to-value ratio) of around 50%. Which means if they take on $1 in debt to buy real estate, the value of the real estate is $2. They own billions in real estate. There are numerous tax benefits and the cash flow from the real estate helps pay down the debt. 2. They're not gamblers 🎰 They don't buy real estate hoping that the value will appreciate over a period of time. That's a bonus. They buy real estate for the cash flow first and foremost. 3. Ken believes that you start a business to buy real estate 🏡 IMO this is nuanced. If you've had a $2B exit like one of his friends, you can deploy the money into real estate. At that point, it's like a savings account. However, if you have a business and you're still pushing, you should keep pushing on that until you're done. I'm a big proponent of focus. All my friends who are doing 9-figures+ annually are hyper-focused on ONE big thing. 4. Why business shouldn't be your top priority 🤔 When Ken said this, he totally shifted my perspective. He used to prioritize his family and business this way: - Business - Kids - Spouse He went to a meeting with successful entrepreneurs and their spouses. Everyone received a life happiness survey. It turned out that most high-powered entrepreneurs were having the time of their lives and rated their lives a 9 out of 10. Pretty damn good. Their spouses? 6 out of 10. Uh oh. Ken's friend told him that he had his priorities mixed up. It should be: - Spouse - Kids - Business If you take care of 1 and 2, number 3 should take care of itself. If you want the entire interviews, you'll have to check them out on my 'Leveling Up with Eric Siu' YT channel. 😉 Eric Siu :) FREE Marketing Plan For Our New Clients [SEE IF YOU QUALIFY]( Links You Might Like Here are some of the best links I’ve found since our last email. 🏢 Business How to build the ultimate network as a nobody ([link]() 🤖 AI A free AI stack to start coding and building ([link]() 🖊️ Writing A 6-step framework to sell anything ([link]() 💸 Finance The true P&L of OnlyFans ([link]() 📊 Marketing A full guide on PPC management ([link]() How I Can Help You If you enjoy this newsletter and would like to collaborate with me, there are a few options available: - You can apply to work with my marketing agency ([link]() - You can join my Skool community for agency owners ([link]() Interested in working at Single Grain? We have some new open roles: - Business Development Representative ([link]() - Paid Media Manager ([link]() - SEO Manager ([link]() Poll: What did you think of today's newsletter? [❤️ I loved this newsletter]( [😑 It was okay]( [☠️ I absolutely hated this newsletter]( [fb]( [tw]( [ig]( [yt]( [tk]( [in]( Update your email preferences or unsubscribe [here]( © 2024 Leveling Up 228 Park Ave S, #29976, New York, New York 10003, United States [[beehiiv logo]Powered by beehiiv]( [Terms of Service](