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

Different 
ROI
Most stockbrokers or real estate agents talk about a 10 percent return 
as being a good return. But in most cases, that is a 10 percent return on 
capital gains, not cash flow. It’s not real money. Again, that is the problem 
with getting your financial education in the S quadrant. (In most cases, 

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Chapter Three
Unfair Advantage
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FAQ
What happens if the federal government starts printing money and hyper-
inflation sets in?
Short Answer 
That would be wonderful. I would pay off my loans with cheaper dollars 
and raise my rents to keep up with inflation.
FAQ 
What if you’re wrong and the economy collapses and your renters cannot 
pay the rent?
Short Answer 
No problem.
Explanation 
Most of our loans are non-recourse loans. If we cannot pay the loans, we 
give the property back to the bank. Non-recourse means the bank cannot 
go after any other assets we own.
My rich dad often said, “If you owe the bank $20,000 and cannot pay 
your loan, you have a problem. If you owe the bank $20,000,000 and you 
cannot pay your loan, the bank has a problem.”
Today, banks are very careful when lending millions of dollars. That is 
why you should take real estate investment classes and learn to become an 
investor, not a real estate agent. Real estate investors must know how to 
manage debt and their properties. 
No matter how much money you have, start small. Invest in many small 
deals, practicing to gain experience in managing debt, property, and 
tenants. Once a banker knows you have experience and a successful track 
record, they will lend you as much as you can handle.
Final Questions