Flashback Fridays: Casey and Kiyosaki, Part 2

You can see Part 1, including the actual video, here.

Here in Part 2, I decided to write out some highlights from the video that was recorded on October 31, 2006. Since the video is about 43 minutes long, I will be doing this over several "Flashback Fridays". The time, in minutes, is shown here so that you can go to that portion of the video if you wish.

00:50: Kiyosaki points out the article from the Money section of USAToday that mentions Casey. Article is titled “10 Mistakes that Made Flipping Flop”.

01:10: Strangely mentions that for some of Casey’s acts, he was “brave” for doing them because many of those acts constitute fraud. (I think most of us would use a lot of words to describe what Casey did, but “brave” isn’t one of them.)

01:15: Kiyosaki mentions that for some of the more serious offenses, “he may go to jail and become someone’s boyfriend if they catch him”.

01:22: Kiyosaki laims that he is proud of Casey for “taking responsibility” in the article for his actions and that he wants to pay the money back. (As we all know by now, Casey says he wants to do a lot of things, but we’re still waiting for the results.)

02:00: We get our first glimpse of the entire audience for Kiyosaki’s presentation. From L to R: Casey Serin, Joy O’Day, and Erin Morgan. As you may recall, O’Day and Morgan pressured Casey to sign a contract shortly after this presentation as I mentioned in Part 1. This led to Casey saying “NO DEAL!” on the contract in December 2006.

02:15: Kiyosaki writes out “Mistakes Are Only Sins When Not Admitted”, apparently using a different book than the book of law to justify Casey’s actions. Kiyosaki then goes on to say how most people are “programmed from birth not to make mistakes” and it’s valuable to learn from your mistakes. Somehow Kiyosaki has mistakenly believed that Casey has “taken action” by learning from his “mistakes” which Casey definitely hasn’t done as evidenced by his future dealings with Nigel Swaby and other investors.

04:08: Casey is now speaking and he mentions that he moved to the United States in 1994 from Uzbekistan when he was 12 years old.

04:37: Casey mentions that he has “one unit of college” which gets a laugh from the group. The class was a ½ semester class on “Introduction to Linux”. He claims that he only went to this brief stint in college “for social reasons”.

05:00: Casey starts to talk about his various entrepreneurial endeavors – website design and charging people to rent the use of his server. However, he began focusing on real estate. A transcript follows regarding the first property he ever bought, a condo which he used as a personal residence:

"...the more I read the books, and I see that the financially independent are either investing in real estate directly – and that’s how they made their money – or their business is investing in real estate, so I thought this is where I need to be. So I started learning about it and my first experience with real estate was, I bought a condo just for a personal residence when I was 19. And…”

Kiyosaki: “How much was the condo?”

Casey: “That was $100000.”

Kiyosaki: “How much did you put down?”

Casey: “Zero. I put down zero. That one, I qualified for a government first-time buyer program, FHA program. And that was great, I really didn’t think I was able to buy a house, but I was moving apartments, and I thought, hey, let me look into it and maybe I can get into a house, and I was able to do it, and everything was good. It was a slight fixer, I needed to do a little bit of work, so it was at a little bit of a discount. A year later, I ended up selling it for a net gain of $30,000. And I was making $30,000 at my job at the time, for a year."

This would be one of the few times where Casey would actually meet the terms of a contract he signed.

In Part 3 of "Flashback Fridays", I will talk about the first property that Casey Serin bought for investment purposes back in October 2005.