Understanding Infinite Return
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- เผยแพร่เมื่อ 1 มี.ค. 2020
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Join Ken as he walks through an example deal showing a cash-out refinance and an infinite return scenario.
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If you are interested in this topic you can find more information out at the links below.
Secrets to Refinancing Commercial Real Estate | Commercial ...www.commercialpropertyadvisors.com/refinancing-commercial-real...
Refinancing commercial real estate is important because It can immensely ... You can pull out cash from the property that's tax-free to either buy another property ...
What to Know about Commercial Mortgage Refinancing ...www.lendingtree.com/need-know-commercial-mortgage-refinance
Aug 9, 2018 - “The goal of refinancing a commercial property should always be to get you a lower interest rate,” she said. “You can also take out tax-free cash ...
Commercial Cash Out Refinance | Clopton Capitalcloptoncapital.com/commercial-cash-out-refinance
Clopton Capital is a nationwide commercial real estate capital company that offers commercial cash out refinance services. Contact one of our experts now.
Commercial Refinance Loans - Reonomywww.reonomy.com/blog/post/commercial-loan-refinance
Apr 3, 2019 - Refinancing commercial property allows owners to obtain extra cash. ... A cash-out refinance provides a great alternative for an owner who ...
Can’t imagine hanging out with Ken for one day. I mean the immense about of knowledge that’ll be learned would last a lifetime. You’re a mastermind Ken!
Hello Ken, please keep making such videos and teaching us. This is the real education that can change lives. Thank you very much.
Who would give this video a thumbs down?? This is great information
Great content Ken, this is exactly what I do but just on a smaller scale. I will be doing the same size deals on 5 years. Thanks keep the large deals content coming! 😍
Your videos are amazingly valuable! Thank you for sharing.
Thanks for your support Dewald! I glad you are getting value from the videos.
I love this video. This started it all. Hopefully in a few years time I can come back to this comment and thank Ken again for this valuable info.
This was gooood ill be back to re-watch fasho 😁🤘
Great Video!
what a genius you are!
My girlfriend would beg to differ - but I do appreciate your support and I'm glad you are finding the videos useful. Hopefully you are putting some of the principles and techniques to use in your own projects.
Hey Ken. I enjoy your videos, thank you for producing them. My one question is....I understand how the infinite return works for the investors, and the overall goal- but, where do you make your money?
Awesome once again Ken - those investors got their initial capital back and are still getting money from deal
Thanks for watching and commenting Fabian! Yes, this is the key to an infinite return. Once there is cash out, then you can use it to invest in the next project.
@@KenMcElroy please help. Im trying to understand. The part about depreciation and once you get the cash tax free, you can just spend the money? And the money that the units are cash flowing do you have to pay taxes on that? And how much of the units cash flow do you keep and how much do the banks/investors keep
Thank you I'd really appreciate if you can explain I'm really trying to learn
@@cosmic_giant1523 Although it is relevant to every deal, set aside the thought about depreciation. This is a simple example. Loans are NOT taxable income. As for your questions about depreciation and the TERMS of the deal ("units cash flow do you keep and how much do the banks/investors keep"), each deal outlines the investor's return. The banks keep what is agreed upon when the loan is negotiated. Hope this helps!
Love this because it's exactly what my husband and I are doing on a 32-unit we bought in June 2022. Where can I get a "be infinite" shirt like Ken?
Hey Ken great video as usual. I’m learning so much from your videos. Where does the money come from to force the equity over the four year period?
Ken, thank you for an excellent, easy to understand presentation of infinite return. How does the model that you presented work during an economic recession such as the one we are currently facing with the coronoavirus when one has used the concept of "using other people's money" to fund a commercial real estate investment. For example,when the economy was turned off in April and May, many commercial real estate landlords/investors were faced with the challenge of what to do when their tenants stopped and/or did not pay enough rent to cover the bank mortage. How would you suggest handling this situation?
great content. be very helpful to us if you'll make an tenant screening and deposit and terms video
Hi AK Singh! Thanks for watching and commenting. I'll put your idea on our list of videos and try and work it in over the coming weeks.
I don't understand how we got the money to pay off the 12M dollar loan and the 4M dollar to the investors...Would someone PLEASE enlighten me?!
Hello ken do you think this work on small residential property instead of huge amount of unit property
Would you do a video going through an actual pitch with investors. How, why, how, and estimation of future cash flow opportunities. How do you represent each number for them?
And the most common questions or concerns investors have
how I can negotiate with the bank?
Ken , thank you for the video.. My question is why keep them in after they have collected proft/investment. Is it for tax purposes? What is the purpose/gain of keeping them on ? Thank you for your time.
Happy investors are happy customers! They can't wait to invest in the next deal with you!
Hey Ken, Currently reading FAKE by Robert Kiyosaki, but I just purchased your ABC's on Real Estate Investing which I will read after I finish FAKE. Do you go over this in your book?
Ken sir I am huge fans of yours and want to work with you to get experience which I always wanted but never got till now . I have great passion for real estate but no mentor here in jammu city highly disturbed city in India . Kindly allow me to work with you and trust me I won't let you down ken sir.
Regards
Agam
In this situation what amount goes into your pocket in cashflow?
Exactly my question
What if NOI goes from 700k to 600k?
Hello Ken. I filled out the info on your website for a qualified investor but never received a response. Are you currently taking on new investors? I know it is difficult to find deals right now, what about building new?
What the minimum to invest with y'all?
Kenneth Robinson I guess $100,000! I am not sure but I guess they talked about it in one of their videos! Good luck !
It's the explanation from 6:00-6:40 that confuses me so much. Even though theres forced appreciation, i dont understand how the old debt is paid off. I've watched many videos on cash out refinancing and sadly i just cant comprehend it. Everything else i get though.
When he refinanced the property he obtained a larger loan ($12M). The larger loan paid off the first loan ($8M). The larger loan paid off the equity investors ($4M). I hope this helps!
Still trying to understand the pieces of this process. In order to increase from 700K to 1M, I assume that another chunk of capital was required for rehab, marketing, etc. All of that would come from your side of the pie rather than the investors' correct? How does this affect the equation when it comes to YOUR bottom line in this deal?
It would not necessarily require another "chunk of capital". The example given in the video is structured so that there is a bank loan plus the equity from the investors. The funds from the investors would be used for the improvements. Improvements can also be paid with some of the funds from the bank loan.
This video still doesn't answer the question plus how much money actually goes into your pocket?.or does it all go to the investors?
Ken and rob are my rich dad
I get it that all the debt that one takes (be it bank or investors) is tax free. But, how the income (rent) that the property is generating becomes tax free?
Because after cutting expenses , the noi becomes lower... And they show depreciation in the irs which is negative so no tax
@@AmandeepSingh-vx5my perhaps you can please elaborate...
the COMPANY shows a loss and this doesn't pat taxes. the individual investors are still "making money" when it is distributed to them and they have to pay tax on their personal income taxes. right?
i think the answer wea re all looking for is that it is because it is a partnership which is a pass-through entity,
If its so great.. Why not forgo the investors all together?
Some syndications do just that.