5 Steps to Making Money with OPM
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- เผยแพร่เมื่อ 3 ก.ค. 2024
- Looking for the keys to how financially successful people accelerate their wins and build wealth? Ken breaks it down in detail for you in this video. DOWNLOAD NOTES:www.kenmcelroy.com/five-ways-...
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⏰ Timestamps ⏰:
00:00 Introduction
00:58 Step 1 Understanding patterns of the rich
07:42 Step 2 Cash flow vs capital gains
10:27 Step 3 Create value for your investors or stakeholders
15:24 Step 4 Use other people's money
18:20 Step 5 Understand the infinite return concept
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ABOUT KEN:
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 has an upcoming book: "ABCs of Buying Rental Property: How You Can Achieve Financial Freedom in Five Years." Ken is a Rich Dad Advisor.
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#kenmcelroy #realestate #InfiniteReturn
I can't get enough of this. This is not taught in school. Why?
Learn more here in 1 video than 4 years of college...
You can title this "Things i wish I knew when I was 18"
Pure gold once again. Had to listen to this 5 times so much info and I’m slow
Just get in the habit; make it your routine
You have to like the idea of using opm to secure an asset that then you use opm to pay off the debt(tenents...obv)...and get tax benefits and inflation actually increases rents ...helping you to pay the debt off faster....sweeeeet!...it's hard for the avg person to grasp getting rich through massive debt....they fear it (due to lack of education)...so they don't do it...so they stay poor. How you use debt in large part determines whether you're "rich" or "poor"...use it like most people /stay "poor"
Thank you for this, Ken! When you show the whiteboard I can pause the TH-cam video and walk myself through it, then hit play and listen to learn the subtle nuances I may not realize. It really helps to reinforce the concepts you, Danille and friends teach us. Kind regards.
This is excellent even as a refresher. Ill be applying this to a self storage acquisition when it finally happens
You are so good that my wife understood every analysis you made.
WOW!!! The end of this video BLOWS my mind!!! 🤯
Wohhh !!! Thank u ken amazing work
Great information. Thank you !!
Thanks As always Ken! Always good to bring back the 101 for people. As people grow they tend to forget fundamental principles. Your content is always much appreciated! Thanks for this Ken
Great video,thank you Ken..!
I’m am grateful to have this info in my life and being reminded of it with Ken.
Are you going to apply this info somewhere?
Great video
Thank you
Wow this information is so great!!! Thank you.
Soooooo much great content thanks ken
Thank you Ken
Great video Ken!
Love your content sir
Very clear..in perpetual debt
Awesome video. Thanks so much for uploading this.
The formula seems to be
find deals -> get investors -> value add -> increase cashflow -> leverage up / refinance
What happens when the property is sold? Particularly if 1031 exchanges are limited?
your videos are great!
Amazing!! Can’t believe people still go to collage when you have content like this
Thanks!
This is gold
Great video Ken
Ken, thanks for the great info! Would you please put out some content on how to structure a deal between general and limited partners with some concrete examples? Thank you!
Love this. What about in Canada?
All great, Ken. However, I wouldn’t put “education” as a part of good debt. More than half of the education in America should be considered bad debt these days.
Ken,
What percentage of ownership do you the general partner have of the 265 units?
What amount of the refinanced excess money goes to you the general partner?
Makes sense when the market is going up. What happens when values go down?
Goin to follow sir
First one to comment...
Got a lot of value
Hi Ken, what do you do with the cashflow? Do you split it with the investors? If yes, what percentage?thanks!
Love the dairy cow analogy! Jack and the Beanstock revision: "Don't go trade your rental property for Bitcoin." haha
Im trading my CA rentals for rentals in the Carribean... Air BnB .... Its a better bet.
CA rent moratorium seem like they will never end... plus the state protects squatters!
As the economy crisis keep rising,one needs to have different stream of income, one needs to have a diversified portfolio in order to survive
We need more educated individuals teaching finance!
Thanks for the video! I’m learning so much from you. How do you increase the rent? By updating the units? Or simply raising the price on the tenants?
Updating is one way to increase the rent, the other way is increasing the rent when the property value goes up. Also, the market has to do a lot with the rent. You always want to keep rent high enough for cash flow but low enough so tenants don’t get scare away and rent somewhere else cheaper. I’m not an expert but this is my understanding on what I’ve seen in some of Ken’s video.
The numbers are so big, it scares me. Life throws curveballs, black swan events and pandemics 🥺.
I feel better with a cushion against possible surprises, not sure how much.🤓
I am working at doing this and learning what my income needs to be to do this.🤩
Thanks Ken. I have been wholesaling for a little while and have save some money, how do i start that relationship with a broker to get deals from them? I have been talking with some brokers on loopnet but they don't send me any deals. I am looking to start with 16 or 30 units then start raising money from investors to purchase? My initial plan was to wholesale and save like 300 to 500k and start buy my first 16 units, but listening to this, it makes sense to get the deal and get investors money in it.
Ken, regarding your purchase scenario - where do you get equity cost 7% ? Thanks!
What was the calculated CAP rate in each scenario? Was the cap rate determined by the lender?
Hi Ken! Will you do an in depth video of cash flow vs capital gains? Thank you 😊
Sorry I got too excited 😝 ! I saw where you broke the two down later in the video thank you!
Where did the money for the value add come from?
Can you do this in the same bank?
Ken, what will be the best way to get into Sindication?
So when they lend you the down payment is that in a form of a fixed debt outside the deal, But you still own the equity? Or does the investor own the down payment equity as well? How do you get paid? It makes sense if they lend it as debt but you remain equity ownership.
When a cashout refi occurs and the investors are paid back. They still remain - on as owners?
I'm confused with the appraisal part where they put the property up for another debt to pay the last debt. Is it done with a different bank??
Will the new proposed 1031 rules change how investors take distributions such as the millions of dollars of distributions from the refinance?
can you make a video how to write off %100 a vehicle under the business? what if the business has NOI but has not enough credit history
so its a never ending cycle? when do you pay of the Milions?
Thank you Ken. In the last example I would have appreciated it if you defined how the partnership with the private lender was arranged. As you went through it, it sounded like every time there was a refinance or cash flow increased, it all goes to the lender. How do you take your share? Are you making 0 the first 3 years until the first re-fi? Then what happens...?
I think he has a percentage of ownership as well
That's the part he doesn't answer
I just want to point out that the depreciation of 500k can only be claimed for 27.5 years not forever.
I'm curious about the math with an investor. If the place is making $2,000 a month cash flow and I am paying investor 500 a month is that 500 a month taken off from My overall income
Texas ? Well, Texas has area that get flooded when it rain. So please be very carefully when you buy. Real Estate is a great way to increase your income. But a there are stumbling blocks, so be care when you buy.
Great video! Where can I buy a 4plex for 400k? Looking at around 1 mil in So Cal for a 4 unit.
Midwest
Hi Ken
Very good information Thank you . I have taken your Master course also very good information
Question. It looks like you were giving an infinite return for the investors but how are you profiting from this investment?
What is the breakdown of ownership of the building.? Meaning your portion and the investors portion? Thanks
He doesn't answer that question
Can anyone explain me how 500k in depreciation comes to make negative tax income?
This was great content. Very easy to follow. I will be sharing this video with my teenage kids! In example #5, you perked my interest about one of my own deals. We went infinite return after year 3, but didn’t consider refinancing again with lower interest rates and cash out, AGAIN! Thank you for your insight!
like this
now i am getting a loan for a property
I struggle with the idea of being in debt on a building. Why not pay it off then get another one rather than having several buildings and owing 50%-75% to a bank. Seems very insecure to me.
The biggest issue here is finding the investor to give you debt. It may work in the U.S. but in Europe, it's totally a different story.
Huge Red Flag! There is NO WAY your debt payments are only 400k per yet on 19 Million dollars per year of blended capital. That comes out to an Interest Only payment of 2.1% no one lends money anywhere close to this.
Am I the first comment? Cool
👍❤❤
Hey Ken, I have a property in TX we're looking to sell. Let me know if you're interested. Would be good for small multi-family.
if more people would view these videos they'd be less people depending on the government for assistance.
this all sounds easy enough. but what they dont tell you. the majority of people who are newcomers and employ these strategies end up holding the bag and get SCREWED.
MAKE ANOTHER VIDEO ABOUT THE "RISK's" your investors currently face as well as in the Future. DOES THE END OF 1031 Exchange Affect your Mindset in the slightest way????? So your LAZY & Have People Hand you Money cause you don't wish to RISK YOUR OWN FINANCIAL SECURITY... (of course! ) I understand... KEN SHOULD RAISE MUCH MUCH MORE MONEY TO PAY DOWN THE PEOPLE's RISK THAT THEY HAVE TO LOSE'n THEIR INVESTMENTS BY A MAN'S MINDSET OF ONLY TO BUY BUY BUY... Because this Business Plan Works BEST 4 KEN! THIS DEBT & NEW TAXES WILL END THIS WHITE BOARDS VIDEO's WORTH...
Great video Ken!