How to Understand Infinite Return through an Example Deal
The term "infinite return" is widely used in the real estate investing space. In this video, I walk through exactly how it works using real-world examples.
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Ken is the author of the bestselling books The ABC’s of Real Estate Investing, The Advanced Guide to Real Estate Investing, The ABC’s of Property Management, and most recently his book on entrepreneurship: The Sleeping Giant. Ken is a Rich Dad Advisor.
Learn more about Ken at: www.KenMcElroy.com
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For more information on this topic check out the links below.
How To Earn Infinite Returns in Real Estate - BiggerPockets
www.biggerpockets.com › Home › Real Estate Investing Basics
Sep 11, 2012 - Infinite returns are achieved when you no longer have any of your money invested in a property, but you still own it and the property is still generating income. You can earn infinite returns in real estate through two strategies. ... Most real estate investors have heard of “no money down” real estate investment strategy.
Infinite Returns. The Rich Dad blogs by Kim and Robert Kiyosaki.
www.richdad.com/resources/ric....
May 17, 2018 - She's now the self-proclaimed “Queen of New York Real Estate,” has a net worth of $80 million and lives in a penthouse on Fifth Avenue.
How To Get An Infinite Return On Property?
onproperty.com.au/infinite-re...
But how do you get an infinite return on property as is it actually as good as it ... Can you comment on this strategy of real estate investing and whether you think ...
Creating Infinite Returns - The Good Life In Ten
goodlifeinten.com/creating-in...
Mar 16, 2017 - Tags : exponential growth, infinite returns, investing, investment, passive income, real estate investing, rental properties, value add, work smart.
Пікірлер: 581
This video worth $5k worth of paid seminars...bless KZread! Thanks for sharing a insider info from the inside Ken!
@himanshukamble6025
3 жыл бұрын
Hey Omar ru n Indian man!? Me too we really need to do this in our India! What do u say bro?? With our Financial Education!👍 Waiting for your reply.....
@shyyam100
3 жыл бұрын
Hey! I am from India. We need to do this in indian context. Why don't we talk and discuss what can be done?
@harshal6342
3 жыл бұрын
totally agree
@devgupta2897
3 жыл бұрын
@@himanshukamble6025 yes we can do it if we take action properly and share info...
@61044711
3 жыл бұрын
@@devgupta2897 can we do it really in indian market. For this we need to start company or individual can also do this.
I found Ken and Robert’s videos by mistake...... best mistake of my life. Valuable information.
Excellent video Ken. I've been investing in 1-4 units for about two years now - I have 10 units and a plan to get to 40 units in the next 3 years with no external funding. You're teaching me how to take it to the next level and build significant wealth with other investors. I want to do this after my 3-year plan is done. Thank for peeling back the onion.
@juliosantos1628
Жыл бұрын
Hi Congrats for your business! Please help me figure out those scenarios: A) What happens and how do you manage if , from a moment to another, due a real state bubble or other, your property lose value and stands very below loan amount? B) what happens if from any weird situation you cant rent your property, but now you have a massive loan to pay? Thanks
The way explained it makes it so easy to understand! It’s like having a friend sharing his knowledge.
Ken all your videos are really really amazing. The insight details that you provide are real real great. Keep up the great work. Keep posting such informative example videos. Cheers.
Thanks man, it hard to find people sharing so openly and clearly explaining the concepts straight forward.
I came back to rewatch this Ken you’re going to make my family rich with this type of knowledge
Thank you. One of the best videos on YT describing why RE is the King of all investments!
@KenMcElroy
5 жыл бұрын
Thanks for watching Paul. I'm glad you found good value in the video!
Thank you Ken for sharing some inside!! Appreciate your support!
Great video Ken, simple, clear and inclusive. Thanks for educating us.
thank you for taking time out of your day to enlighten us about how real investing works... im gonna halfta watch this a few more times ...infinite thanx
@KenMcElroy
4 жыл бұрын
Thanks for watching 1844junkercars! I'm glad you are finding it valuable.
@pete86
3 жыл бұрын
Yeah this one hurts my brain. lol
Fantastic videos! Thank you for producing them. Will you please explain the details regarding the agreement with the investors? What percentage of ownership do they have upon initial investment? What percentage of the profits do they receive? How does this change after youths first cash refinance? Etc. Much appreciated.
Can’t believe this information is free. Thank you so much Ken!!!
This was a masterclass 👏. Thanks for sharing this Ken. Great job!
Great video! 👏🏻Love the timeframe (‘05 -> ‘09) and cap rates (3.68 -> 4 cap) in the example here 💪🏻 A true value-add. Thank you!
Ken, God bless you! I have taken your course and this video and many other videos from you .. I just want to say , I hope to God you never feel alone, unhappy or sick ... thank you
Wow, this is so amazing! I have a long way to go, don’t even have my first rental property, but I’m amazed buy all this information, I find it so interesting and fun, I’m so encouraged to keep learning and start getting out of the rate race. Thank you for all the valuable information you share!!
By far, for me, the best most educational informative video for real estate investing. Although, there are some questions but overall extremely helpful. Thx 🙏🏼
Hearing this in 22' and still motivated by it your the man Ken !!
Have just sat in the lecture theatre of a real estate professor and he nailed infinite return for me 👌👌
Thank you Ken. You are a blessing to others. Never tire.
I feel like the luckiest person in the world after seeing the Spanish (not my first language because the first one is Trique) subtitles which gives me a better understanding of the topic you’re talking about. Thank you! I love you!
Been looking for this kind of video and finally found your content, thank you so much Ken for a very clear explanation.
Now this video you wanna watch 50 times whoaa blowing my mind! Thanks Ken 🙌
This opens my mind. I watched it many times and understand it eventually how the magic happened. Very useful content! This makes me decide to refinance my rental and do it the right way. I did my other refinances completely the wrong way. Thanks for the content!
LoVE it.....We did something similar with a single res about a year ago, much smaller scale. We went crazy and bought a 12 unit appt building about 18 months ago. we hope we can be good students and repeat your process. albeit at a much smaller scale.
Wooow, Eye-opening! 'Ve always wondered ... I was blind now I see! Thank you, Boss!
This is the best recap I've ever seen on KZread. You're the goat
@KenMcElroy
4 жыл бұрын
Thanks Remi. I'm glad you are getting some value from the videos.
@charlesritter6640
4 жыл бұрын
@@KenMcElroy it's true Ken, when it comes to syndicating apartment complexes many of us consider you the GOAT! Keep up the great work 👍 we really appreciate it.
Masterclass. Please keep producing and sharing these videos Ken. Subscribed.
Thank you Ken, you're awesome! I love ABCs of real estate investing😁😁😁😁
Love putting none of my own money in all of our deals. It’s been life changing.
This is really soooo good! Thanks Ken, You are such a great mentor. 👍🏻
Superb example. Explained the magic so lucidly. Great Job!
@mildredmccloud454
3 жыл бұрын
El you know
Thank You Ken! You are truly a LEGEND !
I liked the understanding of depreciation .. gold nuggets of info..big thank you...
Very good Case Study! really helpful in presenting the gist! thank you.
Ken...You're fantastic. You made seem so simple and fun. Thanks for the video.
Thanks Ken...here from Jamaica and I just started watching your videos since yesterday... everything is new to me but I want to learn...
I just learn something big. That’s what I was looking for too. Thank you so much for sharing.
Absolutely genus, thank you so much for these videos. Life changing!
Excellent example. I hope I come across a deal like this at least once in my lifetime.
Amazing explanation. Top 3 of the best videos i have ever watched. António from Portugal
Ken, I love your stuff, been watching for a while; I’m actually in the middle of my first $10m deal, leveraging many of the things I’ve learned from your videos. My question here today is about cap rates. Your comment about that here was a bit confusing, could you do a video on cap rates?? Thank you for all your guidance!
@ecstasybeats8687
2 жыл бұрын
Well, the real estate business in my country's capital yield 30-40 percent profit yearly, but lucky you! If i had even 10 percent of a million, i would be a millionare in 5-6 years.
@hollywoodbest9499
Жыл бұрын
@@ecstasybeats8687 really? Where are you from Sir?
Thank you sir, your lessons are helping me become a better investor
Thanks so much Ken this is very practical I have learned a lot.
@KenMcElroy
5 жыл бұрын
Thanks Remigius! Glad you got value out of the video.
@Just_trying_stuff
4 жыл бұрын
@@KenMcElroy Hi Ken great video. One thing to understand? In your video NOI is whithout the loan payment. Should the NOI be profit after expenses including the loan payment?? Greetings from Serbia from growing Entrepreneur
Brilliant lecture! Anyone who follows this intelligent investing method even a smaller scale will surely attain financial freedom from real estate.
Ken, thanks for this. The principle applies to other businesses as well.
Great stuff Ken! Super practical while educational. Will implement your tactics for a smaller project.
@KenMcElroy
4 жыл бұрын
Thanks for watching Wei! Glad you found the video helpful.
Ken - great info, and you’re easy to listen to also. Thanks for putting this out for everyone to see. I do this same thing, but on a micro level compared to you. My only regret is not doing it sooner! Thanks
Thanks Ken. Great content. Another great finding in this video is also, I found you renegociate the Bank interest of the debt every time you refinancing the asset/debt, if i'm not mistaken.
I just shared this video with my teenagers. They had many questions throughout which made it hard for them to stay focused and for me to stay coherent and they had a lot of trouble understanding how this was ever possible and at many moments seemed very dazed and confused with much head shaking. But once they began to understand the main ideas and grasped the concepts, they began giggling, jumping around, and laughing like they had just found a box of hidden candy that no one else knew about. Its gotten very chaotic over here !!!!!!!! Thank you for sharing this video !!!!
@chuckiehsieh
4 жыл бұрын
Shane Rockriver if you all understand please answer some of the questions in the comments, thanks.
Super great video, it open my eye to learn how the professional investor do, thank you very much Ken!
Best Video By far on youtube world Thank you , Ken Mcelroy. Regards South Africa
Wow! Thank you so much Ken!
@KenMcElroy
5 жыл бұрын
You're welcome Eugen! Thanks for watching.
Loved this. Thank you for making this.
This video is an excellent summary of the basic syndication principles that I teach to accredited investors. I got my start on learning syndication and refinancing from two authors: Tyler G. Hicks and Robert Kiyosaki. "Mortgaging Out" through refinancing is an essential part of creating inter-generational wealth with real estate.
@JA-vv8wy
4 жыл бұрын
UltimateBargains do you mind if I ask which books by Hicks you learned about syndication from? I see he has several books & just wondering where to start. Thanks
@keepgoing7630
4 жыл бұрын
What is the name of book of Tyler G. Hicks?
@TheThegreenpi
Жыл бұрын
So how does he get paid if the investors initially have all the equity and he's giving them all the cash flow? Does he charge a management fee or does he wait until the refi gives him $1M to give back to himself?
Best video ever!!! So informative. Thank you.
Beautifully explained. Thank you.
This information is gold .. thanks Ken
@KenMcElroy
4 жыл бұрын
Thanks for watching Sunny. I'm glad you are finding value in the videos.
Absolutely fantastic, Ken!!
Thank you Ken McElroy for this video it's very helpful and interesting
Currently doing this with our plaza refinanced. With the money of plaza we will buy a Bigger Shopping center. With zero of our money it's other people money. Thanks Roberto kiyosaki and Ken, with Ken advise will do it even more.✊✊ people out there if you want to Invest in Real Estate listen to Robert, Kim and Ken this are the real teachers we need.
Just beautiful! Seeing these numbers motivates me. I would love if you would make more videos on syndication that go deeper
I cannot believe I just sold a triplex; I should have refinanced. I was brought up rehabbing undervalued multifamily and mixed-use properties. We would hold then sell and find the next project. Not sure how my parents and now I have missed the last critical step of refinancing. Then I watched this video and the light bulb went off. Thank you so much for this video and laying out the plan in detail. Currently we are putting in an offer on a six plex that breaks down to 5700 gross, 2400 NOI, 80K down for 320K price. It is 1/2-acre lot and 7000 sqft, so large units. Anyhow thanks again for all the videos, but this one in particular is a game changer.
Brilliant video. My investment methodology is exactly the same for 1 apartment as your 267. thanks for the video Ken.
Hi from Greece perfect example nice lesson to my mind hope to be successful in some years .! Thanks to you and Robert ..!
Excellent real example. It’s a great way to generate cash flow. Thank you.
@KenMcElroy
3 жыл бұрын
Glad it was helpful Diane!
I was looking all over and getting these guys who were unprofessional trying act like your friend on youtube and just seemed like they actually make money show there cars off and you realize they have cars not because they know how to sell but instead because they scam people. All talked about it but they were just talking points. You broke it down mathematically which is what I want not vague do's and donts. props bud you got a new subscriber. I am maybe getting into it soon but unsure where to start and you just broke it down like kindergarten math. later Ken and I'll lyk if I need any advice ;-P
Thank you thank you thank you. I appreciate you sharing your wisdom.
@KenMcElroy
4 жыл бұрын
Thanks so much for watching, I'm so glad you have found value in the videos.
This is gold thanks Ken!
Thanks for your knowledge I like learning from your point of view
Though technical but very logical presentation. It takes years to get that wisdom.
Thank you Ken for the elaborate explanation of infinite return. This is one of the best ever video on KZread. Now, My question is how do we manage payment to bank when we take loan for construction of building rather than buying existing building. In this scenario cash flow would be zero during initial construction days. Kindly enlighten me.
Great video Ken! Enjoy the detailed content and longer description of a topic in this video. Hopefully, you will have investment opportunities in the near future. Thanks again
Thank you for your teaching , I wish you can do with small investments like single housing like $200.000
@levimalone4433
3 жыл бұрын
You can. Cash out refinance can be used on anything as long as the numbers work.
Amazing!!!! Best video ever!!
You are a genius! Thank you!
Phenomenal lesson Ken
@KenMcElroy
5 жыл бұрын
Thanks for watching Fabian!
MIND BLOWN
Great video Ken!
Our each time I realize that the biggest barrier for the vast majority of people is without a doubt. The social along with educating real things, which are important. How do you teach ken mcelroy. Thank you very much. BRAZIL
Hi Ken, thanks for this TREASURE! Please excuse my ignorance all of you but...I am learning and even though I understood everything else, there is two things I don't understand, and they are these: How much of the 300K cash flow during the first 4 years, are the investors getting? And, Why do I keep paying the investors after the first 4 years, when I payed off the 4M to them? Who are the "investors" after the first 4 years, you and your partner? If that is the case, I understood everything loud and clear. Thanks for your response Ken or your team, or anyone that knows more about this than I do.
Excellent video. Thanks a Lot.
@KenMcElroy
5 жыл бұрын
Thanks for checking it out Angel!
This is great stuff. I always love seeing deals like this. But 2 challenges I see for a newer player. 1) without a track record, how do you get a loan from a bank for a multifamily? 2) without a track record, how do you raise equity investors? Success begets success but for people who are trying to become successful, i just don’t know how to get started without that track record of success. Of course, a newer person would go for something 1/10 this deal, but the questions still remain.
Okay great video ken very informative! quick question . When you refinance the property after adding value to it and pay back the investors their money plus a return. Is the deal now fully yours and the investors go away looking for another place to invest there money or do they still own a percentage since they put the equity up.
@harkenm
3 жыл бұрын
Investors would always have the option to sell their ownership, but I doubt they would in this case. So they would still own a percentage. Not sure how their ownership percentages would shift with the influx of additional equity. That is most likely private information.
@harkenm
3 жыл бұрын
Actually, I think the additional money would just increase the value of each owner's equity share, and would not affect percent of ownership.
Great video wealth of information Ken! 👍
@KenMcElroy
5 жыл бұрын
Hi Kirk! I'm glad you liked the video. It takes a little while to get through it, but I think it will be very helpful to people.
@kirkmerrill992
5 жыл бұрын
I study everything you put out Ken. Those who put in the time will get the lesson your trying to teach.
Super insightful. Thank you
I was with you for awhile then I was completely lost. Looks like I got some studying to do.
Ken, this is a great video giving a clear understanding of project level returns - I appreciate it! Could you go more in depth on GP and LP returns with a promote so we have a better understanding on what our returns would be if we were to buy a deal like this and raise equity capital ourselves?
@tama-a-tumatauengahiku3647
2 жыл бұрын
I would assume Ken wouldn't go too much in to those details. Let the powers that be. Meaning, you can have a financial advisor guide you. And also you must determine a advisor who's there to help you get to where you want to be or the ones who are just doing there job and getting by
Great stuff Ken!
@KenMcElroy
5 жыл бұрын
Thanks Justin! It is a bit complicated but when you walk through the example it helps clarify it.
Thank you Ken so much
Great video!! Thanks!!
Hello Ken, thanks a lot for sharing this fantastic video! I have a question for you and for the whole community here: when we are re-negotiating the debt in 2009, we paid the previous loan + previous equity with the new loan. How can we find the new Equity value of 5M? Is this money that the bank will borrow, but at a different interest rate (more than the loan)? Thanks a lot and keep up sharing this great knowledge! 🙌🙌
@bogdanarsene9602
Жыл бұрын
Did you find the answer to your question? I don't understand where the down payment is for the refinanced loan
Perfect 👌🏻 very nice lesson, one question though... what’s the percentage for the investors and yours?? Ths
Thank you for the video. Very informative. I’m just starting to get into real estate so please correct me if I’m wrong, but when you’re looking at NOI, as your income minus expenses, aren’t your expenses tax deductible?
Could you create a video about when you sell/ if you sell? I’d be interesting to understand your strategies behind selling properties
Great video Ken!! In today's market it seems as if all of the syndicator's are looking to sell at the 5 year mark and not refinance. I can't find anyone who is looking to hold so the investor will get an infinite return. Do you think today's market is dictating this or is it I haven't found the right company yet?
Hey Ken, thanks for the video so much value. I got a question you said weak markets has high cap rates and strong markets has low cap rates, but you pointed to 2009 as having high cap rates when value of the property was much higher? Isn’t it suppose to be the opposite?
Great content! Just one question, why do you still pay your investors when you already returned their initial investment of 4M?
This is awesome! What I’m trying to figure out is how the company makes money. The investor return is understood but where does the company profit flow from. Is it from operational cost and/or from a percentage of money from the cash out refinance?