What Schools Will Never Teach You About Money By Robert T. Kiyosaki

Level 4: The I’m-a-Professional Level 
This is the do-it-yourselfer investor. When you look at the
CASHFLOW Quadrant, they are in the S quadrant as an investor.
Many retirees become Level-4 investors once their working days
are over.
This investor may buy and sell a few stocks, often from a discount 
broker. After all, why should they pay a stockbroker’s higher commissions 
when they do their own research and make their own decisions?
If they invest in real estate, the do-it-yourselfer will find, fix, and 
manage their own properties.
And if the person is a gold bug, they will buy and store their own 
gold and silver.
Assets
Business
Real Estate
Paper Assets
Commodities
BALANCE SHEET
Liabilities
Income
Expenses
INCOME STATEMENT

---

Five Levels of Investors
Unfair Advantage
221
220
6. It is difficult to raise money as an S-quadrant investor. It is easy 
for a B-quadrant investor to raise capital. Once a person knows 
how to build a business in the B quadrant, success attracts 
money. It becomes easy to raise money in the I quadrant if you 
are successful in the B quadrant. That is the big “if.”
The ease of raising capital is one of the biggest differences
between being successful in the S quadrant versus being successful in 
the B quadrant. Once a person is successful in the B quadrant, life is 
easy. The challenge is becoming successful.
The problem with success in the S quadrant is that raising
capital is always difficult.
For example, it is easy to take a B-quadrant business public 
via selling shares of the business on the stock market. The story of 
Facebook is a modern example of how easy it is to raise capital for
a B-quadrant business. If Facebook had remained just a small
web-consulting firm, it would have been very difficult to raise
investor capital.
Another example is McDonald’s. If McDonald’s had remained just 
a single hamburger store, an S-quadrant operation, no one would have 
invested in it. Once McDonald’s began expanding into the B quadrant 
via a franchise system and was listed on the stock exchange, money 
poured in.
The reason a business sells “shares” is because the more they share, 
the richer the entrepreneur becomes. An S-quadrant business has a 
tough time selling shares because the business is too small to share.
In real estate, the same is true. When I was a small real estate 
investor investing in single-family homes, condos, and small
4- to 30-unit apartment buildings, it was difficult getting loans.
The moment Kim and I began investing in apartment buildings 
with over 100 units, banks were more willing to lend us much more 
money. The reason: On 100-unit-plus properties priced in the
millions, banks do not finance the investor. They finance the 
investment. In other words, on properties of over 100 units, banks
look more closely at the investment than the investor.