Keys to Understanding Real Estate Cashflow 1. Income 2. Expense 3. NOI (Net Operating Income 4. Debt 5. Cashflow Thank for putting together this priceless information, Ken
Best video on TH-cam. We made alot of money and taxes is killing us. You and Robert are my role model. You are the guy I need to model.. Told my wife about this vid.
I read your book and many of Rob's books along with Tom Wheelwright and Diane Kennedy. I've really learned a lot from this team. Now I'm getting ready to close on a quadruplex because I've learned some great tips. Thanks for putting the cash flow tips of Real Estate out there for people like me.
Wow...Love this so much. Just found it please keep posting more about cash flow love it. Cases now I am interested for investing. I have a real estate license but not sure what to do. Really interest with invest. Are u in California.?
HOW IS THIS NOT BEING WATCHED BY MORE PEOPLE? HE"S LITERALLY TELLING YOU THE NITTY GRITTY OF HOW YOU CAN START BECOMING WEALTHY! (Or a formula that you can choose to use if you go by rich dad poor dad book). This vids really is a hidden gems. Listen to Ken mcelroy says about real estate, because he's robert's real estate manager.
This is AMAZING, now I see why Robert Kiyosaki recommend you. I double clicked the subscription button my real estate company is going to follow in your footstep.
All of this is great and cash flow is important but if you really want to create wealth and cash flow from real estate, there is one item often forgotten, how to scale operations in a passive manner.
Hi 16161645! I'm fortunate to have a full schedule at this time and so instead of mentorships, I'm trying my best to get these TH-cam videos out consistently. You can also follow me on Instagram where I post tips and answer questions. I'm at instagram.com/kenmcelroyofficial
Hi Ken, thank you for your valuable information. So if I understood right, the formula is: Income (rent) - Expenses (upkeep) = NOI NOI - Debt (mortgage) = CASHFLOW Best regards! Andrea
I highly recommend checking out Ken's premium video content on his website. I just finished the Cashflow series and the amount of additional detail Ken provides is so valuable. Ken, I really enjoyed your differentiation of capital gains versus cashflow in the Cashflow series and why it is more advantageous to choose cashflow. I attribute those who prefer capital gains to typically have a short term mindset while those who prefer cashflow have a long term mindset when it comes to real estate investing and often times most areas of their life in general.
I've read about 15 of Rob Kiyosaki books in the Rich Dad series and I read Ken's The ABCs of Real Estate and I learned a lot and working on closing a quadruplex deal now. I wish I could have read those books about 10 years ago
I am Trung, from Vietnam. I am a beginner in Real Estate, I am going to make the first deal in my life. But I have questions for you, for the first time, should I use OPM or I have to borrow money from the Bank? And how can I use OPM?
@@CeeTee469 Hi fellow, this is a very simple strategy. Using OPM is basically about borrowing money from a friend other than a bank. You acquire the property and get a loan from the bank to pay your friend. I hope you dig?!
Thanks so much Ken Sir. This is Ajay from India. I have been watching your and Robert Sir's video recently and found it to be very helpful. Actually I was working in a multinational company since 4 years and I realised that my Life became far more worse than before by paying bills of credit card and personal loan I was staying in Metropolitan City. But then took up this decision and came to my hometown which is small and land and real estate price are low here. Now thinking of creating assets and buying gold and silver and buying land. I have experienced poverty from my childhood days but now I have decided to take the Rich dad's lessons and apply those in my life. I have bought a golden ring recently with the help of credit card and I know it will be giving me good returns in future. Thanks so much for your valuable information.
What happens in times of a global economical&health crisis like we are right now. How can we deal with tenants who are forced to leave and cover the debt we are exptected to pay back to a bank? isn´t this a risky move to take in those times?
Hi Roy. Thanks for watching. With a raising market such as we have had in the US for the last 10 years or so, we have been able to go back to the bank and refinance the debt and take the money out to pay the investors. So long as the cash payout is below their initial investment amount it is not considered income for tax purposes, they also retain the full legal ownership in the investment because it is a refinance and not a sale. Basically you can shield the cash out of a property up to your tax basis in that property. But full disclosure here, I am not a tax expert and don't want you to consider this tax advise, so please check with your accountants and tax advisors for a full explanation of this process. This video was just to introduce you to the idea.
Thank you...that captures the basics of what I need to understand then I can focus on each of those topics at micro level. Any follow up videos focusing on those four topics?
Excellent Breakdown and Explanation What is the exact formula Is there a course or a team available with the order in which to proceed in the sequence needed to achieve end result success?
Ken, thanks so much for your hard work and dedication. You helped a dude from a country you probably never heard of (Bulgaria) to dominate the very expensive real estate market in Munich, Germany! (your books are amazing!)
Hi Abdellah. Obviously I didn't understand your first question fully. I thought that you were talking about multi-family property such as an apartment with multiple units availalble for lease. You raise a good point, for single unit there is a much higher degree of risk that if the unit isn't leased for several months you will have to cover the cost. Paying down the debt is helpful, but before you purchase the property there needs to be an evaluation and cushion put into the business plan in case the property is vacant - meaning there should be cash left over in the account to make sure payments can be made on the property during vacant times. I know that might not be much help but that is how I would approach it. After your into an investment, my best advise is to either talk with the bank to see if they would work with you or you'll have to seek another investor to help out, or selling outright. None are great choices. I hope that helps.
Yes it’s help. Thank you ! Do you think is a good beginning? I didn’t invest yet , but this is my plan to purchase a studio apartment in a building and lease it. I was just wondering after paying the down payment, it is possible to be vacant for several months . Is there any suggestion Mr.Ken for my first investment ?
I think the million dollar question is how to identify properties to buy, how to manage tenants and other day to day management of it all. The little details matter.
the part I dont get is how is this "distributing money to investors tax free"? If you use a pass-through entity, arent your investors paying a personal income tax on your K1s?
You are so awesome! Thank you for doing this.. I was trying to get all the pieces to make sense from my own research..but this helped to glue them all together. You rock 🙏💙
Keys to Understanding Real Estate Cashflow
1. Income
2. Expense
3. NOI (Net Operating Income
4. Debt
5. Cashflow
Thank for putting together this priceless information, Ken
I watched this a while back and was lost and now I finally understand it 👌
Best Real Estate Channel on you TH-cam thank you
i like the way you explain. it seems simple. i understand it very well.
Real Good Advice !! Thank you Ken !
Moral Of the story: Invest with this guy
I automatically subscribed!!
Excellent explanation. Thank you.
Best video on TH-cam. We made alot of money and taxes is killing us. You and Robert are my role model. You are the guy I need to model.. Told my wife about this vid.
Well spoken. Good video
Ok. This is working now. Thank you.
Thanks for this valuable video, I keep learning .
I guess this is the most simplest explanation of cash flow from real estate business. I am glad I clicked on video.
Master class Ken
This guy is like Michael Jordan of real estate 👏
After watching this it makes me subscribe straight away thanks for the good teachings 😍👏🙏
Nice one Ken! Thank you for your insights!!
Glad you found value in the video Eugen! Thanks for commenting.
So good all this! Thanks a lot!
Great Information
Thanks for watching Scott! Glad you thought it was helpful.
Thank you very much ken this is what we need God bless you
Great video in understanding the components of Real Estate!!
Thanks for watching Mike! I find this is one of the major areas that people struggle when trying to start out in real estate.
Thanks Ken!
Practical advice that is implementable
Thanks for video Ken 👍
Thanks for watching TJ!
Thanks Ken, i estudied your books and i live in Mexico
This video is extremely underrated
Great video Ken!
Thank you Ken
Thanks teacher for sharing.
Timeless vid!
Appreciate your work
New subscriber here 🙋! I've read your book. Thanks for your ideas👍
Superb video Ken..👍👍
Great videos
Thanks for watching We Buy Real Estate! Glad you found it helpful.
Kens the man!
Great one ☝️
I read your book and many of Rob's books along with Tom Wheelwright and Diane Kennedy. I've really learned a lot from this team. Now I'm getting ready to close on a quadruplex because I've learned some great tips. Thanks for putting the cash flow tips of Real Estate out there for people like me.
How did it go
I stumbled upon you while RUNNING today! Very informative and LOVE your approach!!!! Thank you for your insight.
Wow!!! Learned a lot. Thank you so much.
Always value in these videos. Thanks for the information Ken!
Thanks for watching and commenting Jonathan! I'm glad you found it useful.
You’re awesome Sir. Thank you
Thx Ken. Nice way to explain
Wow...Love this so much. Just found it please keep posting more about cash flow love it. Cases now I am interested for investing. I have a real estate license but not sure what to do. Really interest with invest. Are u in California.?
Great video. Thank you!
Well done Ken! Thank you
this is highly important, thank you.
I recently came across your videos. This video is gold. I only got two properties and I am looking to take this to another level in the next 10 years.
I am new to this game but i have potential to grow my 1 property owned. thankyou for all your knowledge..will hold onto this for life!!
Finally it makes sense now
Takes time and patience but I am learning. I think you can too.
Nice information. Love it!
Another great video, thank you Ken. Regards South Africa
Ken you are a breath of fresh air. Awesome content! Subbed
Thankyou
HOW IS THIS NOT BEING WATCHED BY MORE PEOPLE? HE"S LITERALLY TELLING YOU THE NITTY GRITTY OF HOW YOU CAN START BECOMING WEALTHY! (Or a formula that you can choose to use if you go by rich dad poor dad book). This vids really is a hidden gems. Listen to Ken mcelroy says about real estate, because he's robert's real estate manager.
lets just keep this a secret lol
Students of the king of real estate. Donald trump.
thanks for this!
TY 😊
On the fence about buying five rentals. I’ve always been terrified of debt. I need to rewrite myself.
There is such thing as good debt and such thing as bad debt. As long as the debt is making you money it is good debt
Mr ken great info
This is AMAZING, now I see why Robert Kiyosaki recommend you.
I double clicked the subscription button my real estate company is going to follow in your footstep.
Nothing is impossible. The word itself says "I'm possible"
Thank you
I'm addicted to this guys channel, thanks for putting this information out there and for free.
All of this is great and cash flow is important but if you really want to create wealth and cash flow from real estate, there is one item often forgotten, how to scale operations in a passive manner.
## Thank you for the information Ken . do offer any mentorship programs. ?
Hi 16161645! I'm fortunate to have a full schedule at this time and so instead of mentorships, I'm trying my best to get these TH-cam videos out consistently. You can also follow me on Instagram where I post tips and answer questions. I'm at instagram.com/kenmcelroyofficial
Great video.
Nice explanation, Dayton Ohio is where we did this as well.
I love the way you teach the topic of “cash flow”. You make it easy to understand. Thank you! You’re awesome!
Right!!!👍👍👉
@@himanshukamble6025 THIS THE TYPE OF INFO ROBERT KIYOSAKI TEACHES THIS SAME PHILOSOPHY 👀👀👀😁😁😁😁💪🏿💪🏿💪🏿 "CASH FLOW"
Bravo
Ken your a legend please keep posting videos
Hi Matthew! Thanks so much for the kind words. I'm glad to hear these lessons are helpful.
Hi Ken, thank you for your valuable information.
So if I understood right, the formula is:
Income (rent) - Expenses (upkeep) = NOI
NOI - Debt (mortgage) = CASHFLOW
Best regards!
Andrea
*AWESOME ANDREEA*
Well now i just feel silly typing my long winded summary. lol.
Awesome Info!!
Thanks, Kenny! I appreciate, you, Mr. Robert and Mrs. Kiyoski ❤ Im educating myself right now! I bout 2 of your books and Mr. Roberts!
Thanks a lot Ken!
Well done.
Thank you Ken👍😁.
nice info
I highly recommend checking out Ken's premium video content on his website. I just finished the Cashflow series and the amount of additional detail Ken provides is so valuable.
Ken, I really enjoyed your differentiation of capital gains versus cashflow in the Cashflow series and why it is more advantageous to choose cashflow. I attribute those who prefer capital gains to typically have a short term mindset while those who prefer cashflow have a long term mindset when it comes to real estate investing and often times most areas of their life in general.
do you need to be a member to watch those premium video ? thanks in advance.
I've read about 15 of Rob Kiyosaki books in the Rich Dad series and I read Ken's The ABCs of Real Estate and I learned a lot and working on closing a quadruplex deal now. I wish I could have read those books about 10 years ago
@@ChromeVending Why you find these Books deserve this recommendation !
Ken thanks for sharing your knowledge but are these principles applicable to Guyana?
It makes sense thanks Ken
❤️ love this !! Thank you Ken.
I am Trung, from Vietnam. I am a beginner in Real Estate, I am going to make the first deal in my life. But I have questions for you, for the first time, should I use OPM or I have to borrow money from the Bank? And how can I use OPM?
Hows it going
@@CeeTee469 Hi fellow, this is a very simple strategy. Using OPM is basically about borrowing money from a friend other than a bank. You acquire the property and get a loan from the bank to pay your friend. I hope you dig?!
love your content!! :)
Thanks so much Ken Sir. This is Ajay from India. I have been watching your and Robert Sir's video recently and found it to be very helpful.
Actually I was working in a multinational company since 4 years and I realised that my Life became far more worse than before by paying bills of credit card and personal loan I was staying in Metropolitan City.
But then took up this decision and came to my hometown which is small and land and real estate price are low here.
Now thinking of creating assets and buying gold and silver and buying land.
I have experienced poverty from my childhood days but now I have decided to take the Rich dad's lessons and apply those in my life.
I have bought a golden ring recently with the help of credit card and I know it will be giving me good returns in future. Thanks so much for your valuable information.
What happens in times of a global economical&health crisis like we are right now. How can we deal with tenants who are forced to leave and cover the debt we are exptected to pay back to a bank? isn´t this a risky move to take in those times?
Great point. I'm wondering if Ken addresses this in another vid.
Right now being over leveraged is dangerous
how do you decide what to charge tenants ? do you charge by noi, expenses or debt ?
Nice video. Can you explain how the money comes back to the investor tax free?
Hi Roy. Thanks for watching. With a raising market such as we have had in the US for the last 10 years or so, we have been able to go back to the bank and refinance the debt and take the money out to pay the investors. So long as the cash payout is below their initial investment amount it is not considered income for tax purposes, they also retain the full legal ownership in the investment because it is a refinance and not a sale. Basically you can shield the cash out of a property up to your tax basis in that property. But full disclosure here, I am not a tax expert and don't want you to consider this tax advise, so please check with your accountants and tax advisors for a full explanation of this process. This video was just to introduce you to the idea.
Greetings from Belgium
Thanks for stopping by Eugen!
Great
is cashflow net income?
great video btw
You rock sir... Huaaaa
Thank you...that captures the basics of what I need to understand then I can focus on each of those topics at micro level. Any follow up videos focusing on those four topics?
Excellent Breakdown and Explanation
What is the exact formula
Is there a course or a team available with the order in which to proceed in the sequence needed to achieve end result success?
Question what rate of return are you looking for to do a deal? Thanks
Ken, thanks so much for your hard work and dedication. You helped a dude from a country you probably never heard of (Bulgaria) to dominate the very expensive real estate market in Munich, Germany! (your books are amazing!)
Thanks so much Radi I'm humbled by your comments! I'm so glad that I could be a small part of what put you on the road to success.
Radi Georgiev wow nice. What did you buy?
Thank you for the educational content, I learned so much from you. Your videos are awesome.
Hey, Ken!
what should I do if the property didn’t get rent it for a couple of months? How can I pay the monthly Bank instalments?
Hi Abdellah. Obviously I didn't understand your first question fully. I thought that you were talking about multi-family property such as an apartment with multiple units availalble for lease. You raise a good point, for single unit there is a much higher degree of risk that if the unit isn't leased for several months you will have to cover the cost. Paying down the debt is helpful, but before you purchase the property there needs to be an evaluation and cushion put into the business plan in case the property is vacant - meaning there should be cash left over in the account to make sure payments can be made on the property during vacant times. I know that might not be much help but that is how I would approach it. After your into an investment, my best advise is to either talk with the bank to see if they would work with you or you'll have to seek another investor to help out, or selling outright. None are great choices. I hope that helps.
Yes it’s help. Thank you !
Do you think is a good beginning? I didn’t invest yet , but this is my plan to purchase a studio apartment in a building and lease it. I was just wondering after paying the down payment, it is possible to be vacant for several months . Is there any suggestion Mr.Ken for my first investment ?
I think the million dollar question is how to identify properties to buy, how to manage tenants and other day to day management of it all. The little details matter.
the part I dont get is how is this "distributing money to investors tax free"? If you use a pass-through entity, arent your investors paying a personal income tax on your K1s?
Wow! You know your stuff. Thanks!💯
You are so awesome! Thank you for doing this.. I was trying to get all the pieces to make sense from my own research..but this helped to glue them all together. You rock 🙏💙