I once bought an apartment house for $1.2 million. I did what is called “tying it up,” with a written contract between seller and buyer. I then raised the $100,000 deposit, which bought me 90 days to raise the rest of the money. Why did I do it? Simply because I knew it was worth $2 million. I never raised the money. Instead, the person who put up the $100,000 gave me $50,000 for finding the deal, took over my position, and I walked away. ” what i understood is that he put 100k as a deposit then gave the deal to an investor which gave him 50 k , the investor took over the deal so robert didnt actually buy the apartment and walked away , why would he walk away whith a 50k loss”
by Infamous_Olive6627
5 Comments
The way i understand it, the investor gave him the 100k for the deposit. Then he sold the rest of the position to the guy for 50k.
So the investor paid a total of 150k to be able to buy the apartment house for another 1.1million, a total price of 1.25 million. Which would be a very good deal for the investor if it is indeed worth 2 million.
Meanwhile Robert got paid 50k for finding that deal for the investor. If i read that correctly, he never put up any of his own money.
It’s a fugazi, dude’s a con man
He didn’t pay $100k, he “raised” it from “the person who put up the $100k”. So basically someone else paid the deposit and bought the apartment and paid the author a $50k finders fee.
Don’t reas too much into Kiyosaki: he’s a con man.
The author is 1.2 billion in debt and claims to make most of his (nonexistent) money from speaking fees, his book, and getting people into MLM schemes. I wouldn’t take any investment advice from him simply because I wouldn’t believe a word that he says.
What he meant was that someone paid him money since he found such a good deal for them in that apartment. Why they would pay him far more than what a realtor would normally make for such a transaction is never talked about.