The example with the property purchase shows how infinite investing can work. Instead of selling, you keep the property and get a loan, which gives you more money. This way, you still make money and don't pay taxes. Great video, keep them coming! 👍
Ken, if the plan is to eventually sell a property after its stabilized, is there any benefit to using depreciation, since you'll need to pay out all back when you sell?
KEN, IN YOUR EXAMPLE ON THE 200 UNIT… YOU’RE MATH WOULD INDICATE YOU WERE ABLE TO BORROW 19,000,000 AT ABOUT A 2.2% INTEREST ONLY RATE. PLEASE EXPLAIN THIS MORE HOE YOUR DEBT SERVICE IS ONLY 400k PER YEAR ON 19mm OF BORROWED MONEY
Not enough practical real life financial strategies are taught in school or maybe I just missed em but as a senior in 1986 I can still see my economics teacher saying he buys a house and refinances it and buys another and so on. I guess I should have paid better attention. Said the lifelong C student. Thanks Ken much appreciated
Hi have you made a video showing a example breakdown of how you make money off the deal? The videos i seen always explain how your investor are making money. @ken
Imp to borrow against the value increase is at the mercy of the bankers they will determine if u can and how much if u can. So one needs to keep this point in mind
I see Danielle is in Coeur d alene .I am in spokane. Do you know of a private money lender in the area ? I own 2 Airbnb's and I want to expand. Thank you.Lee
I agree with you. But with the increasing interest rate, PMT cannot be as low as you said. It is hard to play the infinite game in a high interest rate environment.
Do i have to give up being a musician to become a real estate investor? Maybe it seems like a silly question, but that's what's stopping me. Real estate investing looks like it could be fun and very rewarding. But if it means that I will no longer have any time to enjoy making music, that's a problem.
I am a real estate investor as it is one of my two sources of income. I’m passionate about writing and recording music. It is my therapy, my muse, my inspiration, and my goal to have more time to play music. But there’s no doubt that significant amounts of time where I would like to be sitting in my studio I am instead acquiring real estate, managing real estate, repairing real estate, hiring workers and contractors, doing tax paperwork etc. Balancing real estate and an active life as a musician will take a lot of planning!
@@Kyletrue No problem. I began 15 yrs ago, a county employee looking to increase my retirement, investing in duplexes,4 plexes, house hacks and mobile homes. I now support short term and mid term clients looking for a more Private alternative to hotels in East Tennessee. Take care’
Have you improved on the property at all? Like remodeled or renovated it? If there hasn’t been any improvements and/or it’s not cash flowing, then they won’t cash you out.
So I get it now. The best this guy can do is 7% on 15 million, which is really not great at all. Ever ask yourself why a guy with 2 Billion under management does daily TH-cam videos? The answer his wealth is on paper, and he needs your paper to play his 7% game. TH-cam is his investor funnel lots of low knowledge folks lining up to get that 7%. A fools game for sure
in year 1, right off the bat, the deal is yielding a 7.5% return on the 4 million of equity. not 7.5% of the total loan, to be clear. that's a good return in year 1! plus its not taxed because of depreciation. at a 40% income tax, you would need $500,000 gross income to have $300,000 after taxes. Plus, look what happens in year 2, rents were increased and now there's $600,000 which is 15%. only paying income tax on $100,000 of that. this is a great deal and eventually in the example a cash out refinance pulls even more out. and Ken's point is that this can continue to yield for decades or more. infinite vs finite. great video Ken
The example with the property purchase shows how infinite investing can work. Instead of selling, you keep the property and get a loan, which gives you more money. This way, you still make money and don't pay taxes. Great video, keep them coming! 👍
Ken, if the plan is to eventually sell a property after its stabilized, is there any benefit to using depreciation, since you'll need to pay out all back when you sell?
KEN, IN YOUR EXAMPLE ON THE 200 UNIT… YOU’RE MATH WOULD INDICATE YOU WERE ABLE TO BORROW 19,000,000 AT ABOUT A 2.2% INTEREST ONLY RATE. PLEASE EXPLAIN THIS MORE HOE YOUR DEBT SERVICE IS ONLY 400k PER YEAR ON 19mm OF BORROWED MONEY
KEN! PLEASE RESPOND TO THIS QUESTION.
Not enough practical real life financial strategies are taught in school or maybe I just missed em but as a senior in 1986 I can still see my economics teacher saying he buys a house and refinances it and buys another and so on. I guess I should have paid better attention.
Said the lifelong C student.
Thanks Ken much appreciated
Hi have you made a video showing a example breakdown of how you make money off the deal? The videos i seen always explain how your investor are making money. @ken
thanks ken- from philippines
Imp to borrow against the value increase is at the mercy of the bankers they will determine if u can and how much if u can. So one needs to keep this point in mind
Simple and amazing, investing in a nutshell
Great video sir, I live in Ireland and my understanding is the banks here don't do "cash out refinance" it looks a fantastic strategy.
As long as banks lend debt, you can refinance.
Thank you from Italy 🇮🇹
Priceless information
When you calculate NOI, do you subtract vacancy, Capitol Expenditures, maintenance, etc?
Where did the additional $200K come from in the $1.2M Tax Free Cash Flow you exclaimed in the end of the video??
Awesome video! At the 9:00 mark, if you can make another video breaking down all of those sections, meaning *Value - Depr*, that would be great.
Great info with simple actual numbers👍. Wish I knew about this 20+ years ago - Better late than never, I guess. Thnx
I see Danielle is in Coeur d alene .I am in spokane. Do you know of a private money lender in the area ? I own 2 Airbnb's and I want to expand. Thank you.Lee
I agree with you. But with the increasing interest rate, PMT cannot be as low as you said. It is hard to play the infinite game in a high interest rate environment.
Ken is a master teacher…period. He explains concepts in such a simple, easy way.
Love this model! How come more syndicators do not follow this model?
Enjoying these breakdowns
Do i have to give up being a musician to become a real estate investor? Maybe it seems like a silly question, but that's what's stopping me. Real estate investing looks like it could be fun and very rewarding. But if it means that I will no longer have any time to enjoy making music, that's a problem.
I am a real estate investor as it is one of my two sources of income. I’m passionate about writing and recording music. It is my therapy, my muse, my inspiration, and my goal to have more time to play music. But there’s no doubt that significant amounts of time where I would like to be sitting in my studio I am instead acquiring real estate, managing real estate, repairing real estate, hiring workers and contractors, doing tax paperwork etc. Balancing real estate and an active life as a musician will take a lot of planning!
@evanseymour4172 thabk you this was helpful. What types of properties are you investing in?
@@Kyletrue No problem. I began 15 yrs ago, a county employee looking to increase my retirement, investing in duplexes,4 plexes, house hacks and mobile homes. I now support short term and mid term clients looking for a more Private alternative to hotels in East Tennessee. Take care’
Lenders won't give me a cash out refi on my rental properties even though I own them outright
3 bedroom SFR brand new construction in an HOA made by Lennar with military tenants. @@TettyBoyFloyd
@@TettyBoyFloyd I own them outright. They cash flow. Banks won't even entertain refi's for some reason. I don't get it
Have you improved on the property at all? Like remodeled or renovated it? If there hasn’t been any improvements and/or it’s not cash flowing, then they won’t cash you out.
So I get it now. The best this guy can do is 7% on 15 million, which is really not great at all. Ever ask yourself why a guy with 2 Billion under management does daily TH-cam videos? The answer his wealth is on paper, and he needs your paper to play his 7% game. TH-cam is his investor funnel lots of low knowledge folks lining up to get that 7%. A fools game for sure
I'm pretty sure Ken has made more than 7% average per year throughout his career lol
You missed the point of the video. 😂
in year 1, right off the bat, the deal is yielding a 7.5% return on the 4 million of equity. not 7.5% of the total loan, to be clear. that's a good return in year 1! plus its not taxed because of depreciation. at a 40% income tax, you would need $500,000 gross income to have $300,000 after taxes. Plus, look what happens in year 2, rents were increased and now there's $600,000 which is 15%. only paying income tax on $100,000 of that. this is a great deal and eventually in the example a cash out refinance pulls even more out. and Ken's point is that this can continue to yield for decades or more. infinite vs finite.
great video Ken
So lame. Clearly you don’t get it.. 🤦♀️
the whole point of the video is infinite return.