Keys to Understanding Real Estate Cashflow
ฝัง
- เผยแพร่เมื่อ 11 ก.ค. 2024
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The building blocks of a successful real estate career is understanding cashflow, its components and its relationship to debt. Ken walks through a full explanation in this video.
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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
Ken's company: www.MCCompanies.com
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For more information on this topic check out the links below.
What is Cash-Flow Investing? | Blog - Realty Mogul
www.realtymogul.com/knowledge...
You are buying a portion, or all, of an asset that can be leased or otherwise used to generate income. With real estate investing, cash flow is the result of proceeds from rent payments. Let's take a multi-family apartment building as an example.
Building a Real Estate Portfolio for Cash Flow
www.thebalancesmb.com › Industries › Real Estate
Apr 22, 2019 - This article is about building and growing a real estate portfolio over time that will fund a wealthy retirement lifestyle through cash flow. With multiple rental properties each generating positive cash flow, you can fund your retirement in style and not worry about many of the ...
How to Calculate Rental Property Cash Flow-An Example
www.thebalancesmb.com › ... › Working With Investors › Investment Formulas
Sep 9, 2018 - How to calculate cash flow from a rental property investment ... Investing in real estate rental property requires a great deal of research.
Why Real Estate? Cash Flow! - Rich Dad
www.richdad.com/resources/ric...
Feb 21, 2019 - Cash flow is actually the beauty of real estate and the reason I love investing in properties. It's how I've been able to accomplish my goal of ...
#CashFlow #FinancialEducation #BeInfinite
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
Moral Of the story: Invest with this guy
So good all this! Thanks a lot!
Best Real Estate Channel on you TH-cam thank you
I watched this a while back and was lost and now I finally understand it 👌
Real Good Advice !! Thank you Ken !
i like the way you explain. it seems simple. i understand it very well.
Thanks for this valuable video, I keep learning .
Practical advice that is implementable
Wow!!! Learned a lot. Thank you so much.
After watching this it makes me subscribe straight away thanks for the good teachings 😍👏🙏
Excellent explanation. Thank 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.
this is highly important, thank you.
Very informative, thank you.
Great video. Thank you!
Thank you very much ken this is what we need God bless you
Another great video, thank you Ken. Regards South Africa
Superb video Ken..👍👍
I guess this is the most simplest explanation of cash flow from real estate business. I am glad I clicked on video.
You’re awesome Sir. Thank you
Excellent Info! thank you.
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.
Thanks, Kenny! I appreciate, you, Mr. Robert and Mrs. Kiyoski ❤ Im educating myself right now! I bout 2 of your books and Mr. Roberts!
I stumbled upon you while RUNNING today! Very informative and LOVE your approach!!!! Thank you for your insight.
Kens the man!
Thank you Ken
Nice information. Love it!
Well done Ken! Thank you
Thx Ken. Nice way to explain
Nice one Ken! Thank you for your insights!!
Glad you found value in the video Eugen! Thanks for commenting.
Master class Ken
Ok. This is working now. Thank you.
Great video Ken!
I automatically subscribed!!
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.
Timeless vid!
Thanks for video Ken 👍
Thanks for watching TJ!
Thanks a lot Ken!
Thanks Ken, i estudied your books and i live in Mexico
love your content!! :)
Thanks teacher for sharing.
Well spoken. Good video
Awesome Info!!
Appreciate your work
Thank you Ken👍😁.
This video is extremely underrated
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.?
Thanks Ken!
Thank you
Great Information
Thanks for watching Scott! Glad you thought it was helpful.
Nice explanation, Dayton Ohio is where we did this as well.
It makes sense thanks Ken
thanks for this!
This guy is like Michael Jordan of real estate 👏
Finally it makes sense now
TY 😊
Great video.
New subscriber here 🙋! I've read your book. Thanks for your ideas👍
Well done.
Mr ken great info
Nothing is impossible. The word itself says "I'm possible"
Ken you are a breath of fresh air. Awesome content! Subbed
Great one ☝️
Always value in these videos. Thanks for the information Ken!
Thanks for watching and commenting Jonathan! I'm glad you found it useful.
Great videos
Thanks for watching We Buy Real Estate! Glad you found it helpful.
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.
Thankyou
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.
Ken thanks for sharing your knowledge but are these principles applicable to Guyana?
You rock sir... Huaaaa
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?
Great
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.
Epic ,thanks rich dad
nice info
Thank you very much for sharing these infos. But the problem for the young person now is they haven’t much in down payment, low paycheck . So how they can deal with when they come to the bank borrow money for investing in real estate?
Thank again
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 !
Greetings from Belgium
Thanks for stopping by Eugen!
Takes time and patience but I am learning. I think you can too.
Hello and thank you for all the great info. I have a question, what does the investor get back in order to invest, besides his money back?
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.
Ken, can you explain the distributions between the General Partner and the Limited Partners ?
I've been answering questions in the most recent videos and have a running list. I've put this one on it and will try and get an answer for you.
Ken, in your activity, whats the normal length you borrow money? 10, 15, 30yr? cash flow also depends on that.
Brilliant video, keep up the incredible educational videos.
## 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
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
Man he just blessed us.
I’m doing exactly what he is teaching with my company. 💯🔥🔥🔥💎✅
could you honestly share how is the bussiness going so far, any realizations?
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?!
how do you decide what to charge tenants ? do you charge by noi, expenses or debt ?
Thank you for the educational content, I learned so much from you. Your videos are awesome.
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
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.
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
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?
THANK YOU FOR THE AWESOME ADVICE, ITS A GREAT VIDEO FULL OF USEFUL INFORMATION- PIERCING INSTINCTS PROPERTY MANAGEMENT #FOLLOWUS
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.
I am new to your channel and I am digging your content, I can't seem to find a good mentor most of them just want to sell a property. But I'm gonna get it right.
Love from Philippines.
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.
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 ?