How to invest with NO MONEY DOWN - Understanding Infinite Returns

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What if I told you that there was a way to invest with NO money down and still make more than the vast majority of people. And in this video, I'll show you how to do it by creating infinite returns for your investors. DOWNLOAD NOTES: www.kenmcelroy.com/how-to-inv....
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⏰ Timestamps ⏰:
00:00 Introduction
01:45 The 3 strategies Infinite Return
03:35 Find something that is broken
07:29 Deal example - Year 1
11:36 Deal example - Year 4
14:36 Deal example - Year 8
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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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Пікірлер: 152

@simplemarketknowledge3958 3 жыл бұрын

“The bigger the brochure, the worse the deal” LOL that’s a great quote! 😂

@ddrummond87 3 жыл бұрын

My head immediately went to timeshares.

@bishoparchery 3 жыл бұрын

Thank you so much for your videos and teachings! Studying and learning as much as possible. Really admire and appreciate you!!!

@nikolay.advolodkin 3 жыл бұрын

Love these types of videos! Please make more like this with concrete deals and explanations

@toomuchyoutube8313 3 жыл бұрын

AWESOME VIDEO! Thank you!

@kecinzhang2467 3 жыл бұрын

Thanks, Ken. It help a lot. Thanks for showing your experiences

@syedrehanfida 3 жыл бұрын

Thank you so much!

@Cookies205 3 жыл бұрын

great stuff thank you

@geraldcliver1496 Жыл бұрын

Thank you so much for making it so clear.

@mams471 3 жыл бұрын

Thank you for your video, it was very interesting 😊

2 жыл бұрын

Great live example. Thanks for sharing.

@crisvegas2782 3 жыл бұрын

awesome explanation. Thanks Ken, cheers

@loganleemanzanares 3 жыл бұрын

Thanks for the breakdown

@joepschmobly 3 жыл бұрын

Great videos! Please explain the deal and structure with the investors in detail. Thank you.

@charlotteclairevlogs3199 3 жыл бұрын

Amazing, great video!

@xavitheta5190 3 жыл бұрын

Love your work. Thank you.

@mavoromatthew 3 жыл бұрын

Amazing refresher.

@CanadianOptionsTrader 3 жыл бұрын

Great video! I would also like to see a similar video for a really small deal (for a beginner) like a single family home or a condo. Thanks!

@CD-ii8it 3 жыл бұрын

Fantastic video as always!

@jackiesok2755 3 жыл бұрын

Thank you so much for make it easy to understand for us

@CameraTalk1 3 жыл бұрын

Wow this is amazing!

@Just_trying_stuff 3 жыл бұрын

I loved this video from few years back. Thanks for refreshing. What type of loan Corp take in this scenario?

@thefittraveler4789 3 жыл бұрын

Thanks Ken, so good explained! English is not my first language but I understood everything with no issues.🔥💪🏼

@tommythai7563 Жыл бұрын

Thank you Ken! Very informative and it works 👍

@MIL_BanhadE.1031. Жыл бұрын

Million good (like) to you sir thank you so much on all this informations .

@readerleader6539 3 жыл бұрын

I love it. Definitely need to watch it 10x more times haha. Great content.

@robertoinvests Жыл бұрын

Love it!!!

@Roy19189 Жыл бұрын

Wow !!! You laid out the blue print perfectly

@officialjaredcurry Жыл бұрын

Thank you!

@GrinsInc 2 жыл бұрын

Thanks for posting. Cheers, SV Good Karma

@Joe-wx3dp 2 жыл бұрын

Awesome explanation 🔥

@michaelpurcell2006 3 жыл бұрын

Ken, what a great and valuable investing lesson

@hummervee3395 3 жыл бұрын

Real world practices best classroom theories every time. Thanks for sharing actual experiences on your channel.

@JaspreetSingh-cx6jh 3 жыл бұрын

Great content, as always Ken! Question: any updates whether banks are easing down to accept minimum down payment for traditional finance?

@Xaea12262 2 жыл бұрын

I love this video 💝

@sniceservices213 3 жыл бұрын

Thx Ken.

@getmotivatedaboutlife2789 3 жыл бұрын

Your the man Ken!

@goldieoldie4543 3 жыл бұрын

Maybe you can do a video explaining how to get investors? Love the material thank you.

@moneymaverickstv 2 жыл бұрын

Love this

@danielsingh9701 Жыл бұрын

By far best video explaining this topic on KZfaq

@vinaybichave2156 3 жыл бұрын

Loved this video...

@Tashi-tect 2 жыл бұрын

That was fun!

@janbergman2164 Жыл бұрын

What a super teacher you are Ken!🎉

@jameshowe5348 2 жыл бұрын

Great video Ken. Although I’m a UK resident I’m interested to see how the company structure and the purchase tax of a deal works in the US. In the UK we also have to account for stamp duty which is a % tax on the property value

@OscarTorresWork 3 жыл бұрын

Creativity and education you need to know what you are doing before taking people's money. You are on the hook if something goes wrong and you need to be super transparent.

@gamerzskillz7780 3 жыл бұрын

Still working on my deal. Ken as motivated me to do the impossible. To high-school drop out to multifamily apartment investments.

@TroyKearns 3 жыл бұрын

Real Estate is the best way to invest and other peoples money is better than your own and a win win! Love it Ken!

@kennethcahoon1967 3 жыл бұрын

Loved the video. Do you set up a corporation for each deal you do? Also, when you bring in investors do you have to have a securities license of some type? Someone mentioned you have to be real careful because if you are the one creating the deal and something goes wrong you are on the hook. I would like to know how to structure them so I am compliant with laws when investing other people's money. Thanks

@entrepreneurcorner4146 3 жыл бұрын

Reading the advisor book on taxes so I knew what you were talking about deprecation

@ArupBhanja 2 жыл бұрын

This is a must watch to learn about investing in real estate.

@aliviate866 Жыл бұрын

Hi Ken thank you so much for the free education. I’m very green to the real estate game. I’m selling my condo but would like to invest on rental income property. I’ve been watching a lot of your videos as well as Rich dad Poor dad and the real estate guys, but I find that I’m kind of all over the place when it comes to learning. What you show here I’m still kind of confused about. Where is the best place to start and gain that knowledge without confusing myself even more? I’ve watched so many videos but don’t have anyone to ask these questions too… I hope I’m making sense

@jmoney6652 3 жыл бұрын

We’re in the process of buying an 8 unit in nice shape for $93000 with rents of $3089/mo. Great work buddy!

@professor9168 3 жыл бұрын

8 units for less than 100k?! What location you in?

@spanishlessonsforyou6265 3 жыл бұрын

What kind of property you found for that price and where?

@drjsantos15able 3 жыл бұрын

8 units where I live in grand rapids, Michigan go for about $700k-900k depending on the area of the city.

@drjsantos15able 3 жыл бұрын

@@professor9168 I think he mentioned $930k

@drjsantos15able 3 жыл бұрын

@@spanishlessonsforyou6265 he ment $930k

@robertc801 2 жыл бұрын

Ken, what is the 1.5 in the middle in green and circled? I couldn’t figure that one out. Thanks!

@marijkevanderkooi6127 3 жыл бұрын

Love your videos, 👍🏼 from 🇳🇱 the Netherlands

@loudavis9925 3 жыл бұрын

Amazing!$$$

@TheRealJeffOfficial 2 жыл бұрын

hello i have a question how do i get the show notes for this video and for future video thank you

@lyleburlingame2276 2 жыл бұрын

A realtor in FL tried selling me in a house with a brochure. Did some digging and found out it was a flip 1 year ago it was priced 200k less. I started looking for a new realtor after that showing

@houseofem7215 3 жыл бұрын

Hey Ken. If I get a HELOC on my investment property, the principal + Interest + heloc payment are more than the rent I would be charging to my tenant. Do I need to add the heloc debt to the total monthly payment in my cash flow calculation?

@ol_jasper6043 11 ай бұрын

Thanks for the video Ken. Quick question: Why do you still pay your investors after you have given them all their money back and plus some? Thank you!

@lizzystudios Жыл бұрын

my mind has just been blown. i thought the only income that can be generated from a property is the difference between the rent and loan payment + increase in the property price over time. Definetly amazed right now and its the first video that i have watched on this channel😮😮😮🤯

@shaqmaverick 3 жыл бұрын

Kevin thanks to kiyosaki with millenial money and coming across your work and keeping uptodate with your content, you gave me a brilliant idea to go prove the concept. When its done, I'll look forward to conecting with you to share with you the outcome and how the value added opportunity can be expanded.

@isound12 3 жыл бұрын

Hey Ken! Looking for a mentor for real estate investing. Do you offer private coaching?

@Cyber_Samurai 3 жыл бұрын

Easier said than done, you need to build a track record to pitch to investors, prior experience is key in this deal.

@1954vikingo 3 жыл бұрын

How can I get a total deduction of the PMT if that includes loan and interest. The only expense will be the interest BUT no the capital payment

@ddrummond87 3 жыл бұрын

Really enjoy your videos, Ken. You advice adds value at every step and a perfect example of mutually beneficial relationships. Your investors see great returns, you earn profit, your tenants have a better managed property. Can't wait to save up enough for that master course.

@dreamlifegeorgia5904 Жыл бұрын

Hello I have been watching your videos and trying to learn from you how to start my investing carrier. Can you help me out please. Once you pay off your investors for the first deal with 6%gain on their money, I don't understand how you keep them on the same deal? Can you please help me understand and go a step further? Thank you...

@ashleyalvey3187 2 жыл бұрын

How do you find investors? I worked in property Mgmt for 12 years. 3 years ago I had built what I thought was “my team”. This included a real estate lit. Lawyer, 2 investors and even my contractor. No one wants to spend “their money”. I had a meeting with a business plan laid down at Del Friscos in Fort Worth. Tons of people supporting me, even my cardio thoracic surgeon ex, and my experience (tax credit, new construction etc) and it was like trying to squeeze money out of a Turnip.

@justice1841 Жыл бұрын

Hi ken your link to your notes do not work. Is there another way to gain access to the documents?

@ethanwilson2449 2 жыл бұрын

what did the investment structure look like?

@rudywalls4994 Жыл бұрын

@ken i understan how the investors are making money but i don't understand how you are making money. Can you explain how you are getting paid from this deal?

@Jeffsingleton100 Жыл бұрын

Does anyone know what kind of electronic board he is using?

@Tashi-tect 2 жыл бұрын

The part I don’t understand is what does infinite equity mean? I thought when you re finance you lose all your equity? I thought refinancing was bad because you pay mainly interest on the front end of the loan. Ever time you refinance the clock starts over for the bank and high interest right?

@charancena5950 Жыл бұрын

When he gave the equity to the investors and along with cash flow then what profit he is gaining in every year?

@joecortez2332 3 жыл бұрын

Thank you for this great info! Regarding investors, seems that your investors keep receiving money even after you've returned their money. How long do they keep receiving profits? Wouldn't it be more profitable for me if I have investors whom I pay x amount of interest until I can return their original investment? This way I paid them back and there's more profit for me after they're out of the way? Clearly your strategy has worked so I'm trying to figure the best route for me if I have investors. Thank you!

@2percenter 3 жыл бұрын

Yes I am curious also. How come you paid the investors a second 5 million dollars after you already returned their original investment?

@willskaggs15 3 жыл бұрын

The purpose of someone investing in you and your plans is to build their own wealth passively while you do the work. Just returning their original investment doesn't entice ANYONE to do business with you.

@ashleyalvey3187 2 жыл бұрын

Let me know this answer as well

@Rpvc5542 2 жыл бұрын

I have this same question, wouldn’t the investor receive income passively from the monthly income of the property as opposed to the loan amount on the cash out refi?

@cityparkproperties7001 3 жыл бұрын

Ken, how much of your own money do you put into deals versus the amount of capital you raise from investors?

@TokyoTaisu Жыл бұрын

Most investors like to see 10-15% own equity. But with a great track record, they usually want to invest all.

@coopcoo 3 жыл бұрын

So let's say there is an empty lot 1.8acres, walking distance to a Wal-Mart, college town and about 6000 age 20-40. Would it be worth it to build a multi unit apartment complex?

@JohnSmith-su3ze 3 жыл бұрын

Probably not unless you have deep pockets and some experience

@japshernandez 2 жыл бұрын

Great video, Ken! How much do the investors get on the cashflow and the equity? What is my share as the architect and manager of the portfolio? Is this what syndication means?

@fitnessbybrady7269 Жыл бұрын

Did you ever get an answer to this? I am curious myself

@TokyoTaisu Жыл бұрын

@@fitnessbybrady7269 this is a syndication yes. Profit sharing or interest terms with investors I don't know. That's a private agreement I guess. Some go 50/50 on the NOI, some go first 6% to investors then 65/35% investors/syndicators. Syndicators is the same as "sponsor". I've seen some guys do first 5% to investors then 80/20% investors/syndicators too. Architecture/capex is usually a one time fee sourced out to a contractor. Asset management fee can be outsourced. If you mean manager of the portfolio on profit share basis it's usually something like the above percentages. If it's fixed fee it could be 5% of rental income as a rule of thumb. But that depends on country, location, competition.

@TokyoTaisu Жыл бұрын

@jappyhappy see my answer above

@sellingshop9395 3 жыл бұрын

Please keep doing solo videos unless you have a guest, there is no need to have a host interviewing you, you are the knowledge

@dakshpatel2183 3 жыл бұрын

Who are the real guru of real estate for me

@niczablocki2536 Жыл бұрын

How do you divide profits among yourself and the investors? They put up the money, but you do all the work, so what's your cut? Do you share all the profit from both the refinancing and cash flow?

@ElioMondelloCEOMondosol 2 жыл бұрын

hi Ken how cn Iwork for you--------

@jwhagy 3 жыл бұрын

Ken, any way you could do the same type of video but with something much smaller... Like a $1m property? I'm wanting to get a group of investors together but with less deep pockets. Thanks!

@debcleveland131 3 жыл бұрын

You can do this yourself. Just take what he is talking about here and scale it down to the property you are purchasing. I have done what Ken is talking about here for over 32 years with everything from single family rentals all the way up to 42 units. The important thing is to know how to read in the income and expense report that the sellers agent has provided. If you find a property off market you mostly will need to put this together yourself. This is where the gold is when looking for high expenses and low rents.

@Rpvc5542 2 жыл бұрын

Do you give the investors a percentage of the monthly income of the property as well as what you get for the cash out refi or how does that work?

@octaviodiaz7615 2 жыл бұрын

How can I contact you ken

@cityparkproperties7001 3 жыл бұрын

What was the cost to refi and how did you reinvest the proceeds? Or did you?

@TokyoTaisu Жыл бұрын

Refi cost is usually another 1%

@ryanbowden7569 3 жыл бұрын

atleast Kenny shows how it works some of these guys tell you some then want you to order a class

@acroedd 3 жыл бұрын

you sir are a gangster.

@lukasnilsson3015 3 жыл бұрын

But how do I put food on the table if all the cash-flow is going towards the investors? Can I become rich by doing this? Someone answer me!

@okaybear3434 2 жыл бұрын

can someone help me out when ken took the 25m loan he give the 5m to investor and 20m is still a new debt to a bank that he have to give every month , so if he keep re-finance wouldn't he have a higher and higher debt? sure he have more CF but how is he gonna pay all the loan back

@TokyoTaisu Жыл бұрын

Because rents increased it's okay for the bank to give him more loan. DSCR ratio look it up.

@jeadie8131 3 жыл бұрын

When do you buy out the investors?

@TokyoTaisu Жыл бұрын

ASAP as possible

@bryanlagman_ 3 жыл бұрын

How do you pay the loan from the bank? When you're also paying your investors with the cashflow?

@clayjones1933 3 жыл бұрын

The tenants pay rent which pays off the mortgage, in the beginning the NOI was 700k, the loan payment was 400k so the other 300k was cashflow and with the upgrades he charged more for rent, as the value increases so does the rent.

@robertc801 3 жыл бұрын

@@clayjones1933 where is Kens take home if the investors stay in the deal indefinitely and it sounded like they get the cash flow?

@drjsantos15able 3 жыл бұрын

The cashflow is after all expenses, so the bank is paid and management and bills before cashflow, that'd $500k left over

@TokyoTaisu Жыл бұрын

Investors can get paid as mezzzzzzzzz

@brianmuuka1303 2 жыл бұрын

Hi Ken, how do the investors still have ownership in the deal even after paying them back the money they invested in the deal?

@Rpvc5542 2 жыл бұрын

I have the same question

@joecountry01boy Жыл бұрын

I'd like to know as well.

@TokyoTaisu Жыл бұрын

@cityparkproperties7001 3 жыл бұрын

Is this a syndication or JV?

@TokyoTaisu Жыл бұрын

Syndication. He didn't put money down. If he did, it would be more of a JV. But people in real estate just say syndication all the time.

@johnpitschi9417 3 жыл бұрын

This is all pretty basic, but the detail I'm interested in is what part of the cash flow and cash out equity YOU keep vs what you give to the investors. This is the part I want to understand so I know what to expect as I structure deals. Thank you.

@claybarnes4901 Жыл бұрын

What protects investors from heisting your deal after you pitch it?

@TokyoTaisu Жыл бұрын

99% of investors have money and no time.

@whatmommydoes Жыл бұрын

I can follow every single thing in your video EXCEPT I am having a hard time understanding why you gave the investors their money back so quickly? Why do this? I’m sure there’s something I’m missing.

@3LITTLE3RAVEN3 3 жыл бұрын

So then the title of the video "no money down" means that you use equity for the "down payment" for the rest of what the lender doesn't give? It wasn't very clear what you mean by no money down, thanks!

@y2knoproblem 3 жыл бұрын

Why was the second $5 million paid out to the investors? How is the equity ownership divided up?

@Rpvc5542 2 жыл бұрын

This is a well structured question, which I too am curious about.

@TokyoTaisu Жыл бұрын

@@Rpvc5542 Maybe 50/50, maybe 90/10, maybe profit share first 6% to investors then 65%/35% who knows...

@jordanmulford8363 3 жыл бұрын

When do you make money in this situation?

@TokyoTaisu Жыл бұрын

Every month starting when the renovations have finished

@kcwallacetube 2 жыл бұрын

One thing is confusing me here. Why do the investors still have an ownership stake if you’ve paid back the $5m original investment? Even if you’re structured as a partnership llc, you’ve returned their ownership percentage which reduces to zero. Please explain

@Rpvc5542 2 жыл бұрын

Need clarification on this as well

@TokyoTaisu Жыл бұрын

Usually the equity gets shot in as a loan so it's technically paying back debt.