Dear Reader,

I’m going to say something that will make most people’s heads explode.

Landlords are amazing.

They are heroes. Unsung heroes of the capitalist system. And if you’re smart, you’ll thank your landlord every month when you write that rent check.

Why? Because he is taking a bullet for you. A financial bullet. And he’s doing it so you don’t have to.

My poor dad, the PhD, always told me that renting was “throwing money away.” He believed in the American Dream. Buy a house. Get a mortgage. Build equity.

He was wrong. Dead wrong.

My rich dad taught me the truth. The renting vs. owning debate is a lie. A scam. Designed to trap you in debt for the rest of your life.

There is no “owning.” There is only renting. You either rent a house from a landlord. Or you rent money from a bank.

That’s it. Those are your only two choices.

When you get a mortgage, you are not a homeowner. You are a renter. You are renting money. 

And you are on the hook for paying that rent—the interest—for 30 or even 50 years.

But it’s worse than that. Much worse.

When you “buy” a house, you are not just a renter. You are the CEO of a highly leveraged, capital-intensive, and extremely risky business.

A business you have to run on your own personal balance sheet.

You have suppliers: the builders, the plumbers, the electricians. 

You have a silent partner who can change the rules at any time: the government, with its property taxes.  You have a mandatory insurance company. 

And you have a bank, the loan shark who will take your house if you miss a single payment.

And you, my friend, are the one holding the bag. You are the residual claimant. You take all the risk.

When the roof leaks, it’s your problem. When the boiler breaks, it’s your problem. When the housing market crashes, it’s your problem. When interest rates go up, it’s your problem.

Your landlord? He takes all of that off your plate. He is your risk shield. He is your financial bodyguard. 

That rent check you write every month? That’s not “wasted money.” That’s a premium. An insurance premium you pay to offload all of that risk onto someone else.

It’s the smartest money you’ll ever spend.

But it’s not just about risk. It’s about freedom. And opportunity.

When you own a house, you are tied down. You are illiquid. Your net worth is trapped in an asset you can’t easily sell. 

You want to move for a new job? Good luck. You have to find a buyer, deal with realtors, lawyers, and bureaucrats. It can take months. Years.

When you rent? You give a few months’ notice, and you’re gone. You are geographically mobile. 

You can go where the opportunity is.

And what about the financial opportunity cost? This is the biggest one.

When you have a mortgage, you are forced to “save” in a financial product—your house—that gives you a terrible return. 

Maybe a few percentage points of appreciation, if you’re lucky. After you factor in maintenance, taxes, and insurance, you’re probably losing money.

Meanwhile, your cash is tied up. You can’t invest it in things that will actually make you rich. The stock market. Gold. Bitcoin. Your own business.

The S&P 500 has had a fantastic decade, returning 15%. Gold, a steady 9%. Bitcoin, well, we all know about Bitcoin.

By “buying” a house, you are giving up all of that upside. 

You are choosing a low-return, high-risk, illiquid asset. 

And you are leveraging yourself to the hilt to do it.

It’s financial insanity.

Your landlord, on the other hand, is the one taking that risk. He is the one who has leveraged his balance sheet. He is the one who is tied down.

He does it so you don’t have to.

He holds the legacy asset so you can hold the options. He takes the liability so you can chase the opportunity. 

He borrows from the bank so you can stay liquid and invest in assets that will actually build your wealth. 

With your savings you can invest in hard assets like real estate, gold, silver, and bitcoin.

Assets that  build your cashflow.

So next time you hear someone say that renting is “throwing money away,” I want you to laugh. 

And then I want you to explain to them the truth.

The truth is that rent is the price you pay for freedom. Financial freedom. Geographic freedom. 

The freedom from risk.

And your landlord? He’s not some greedy villain. He’s a service provider. A risk-taker. An entrepreneur.

He’s your best friend. And it’s time you started treating him like one.

Robert Kiyosaki

Editor, Money Power and Profit

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