Maximize Your CASH FLOW by Minimizing THESE Nine Expenses

Поделиться
HTML-код
  • Опубликовано: 27 июл 2024
  • Click this link get a free copy of the show notes that accompany this video:
    bit.ly/3hEFAJF
    Learn more about Ken McElroy and sign-up to his video library at: kenmcelroy.com/membership-acc...
    Join Ken McElroy as he explains the nine areas of expenses to watch with prospective properties to maximize your cash flow. Learn how these expenses affect your property's net operating income and increase your revenue.
    • • •
    Check out some of our recommended products! Please note: These are our sponsors & advertisers, so if you use them, we will get compensated. There's no additional cost to you.
    For your banking needs:
    ➤ Business Banking for Small Businesses and Freelancers
    🏦 NorthOne - Open a business banking account in 3 mins and get $10:
    apply.northone.com/ken
    For locating investment properties:
    ➤ What is Driving for Dollars? Driving for dollars is a more direct approach to finding wholesale properties than simply sending out emails to inboxes or letters in the mail. It’s the term used when you drive around a neighborhood that you think could house future wholesale deals, then document distressed properties to create unique lead lists. Oftentimes, it can be more profitable than other techniques. Ken’s fans instantly get $15 in credits with promo code KenDM!
    dealmachine.app.link/kendm
    • • •
    ⏰ Timestamps ⏰:
    0:00 Introduction
    0:34 Income and Vacancy
    3:28 Expenses and Net Operating Income
    5:04 Employee Payroll
    5:47 Administrative and HOA Fees
    9:18 Property Maintenance
    10:53 Marketing Your Property
    12:02 Property Management
    13:17 Property Taxes
    15:09 Insurance and Coverage
    17:13 Legal Fees and Expenses
    18:12 Long-Term and Capital Expenses
    Be sure to click the bell to be notified as soon as the next informational video is posted!
    Pre-order Ken's upcoming book here: amzn.to/31BWvXB
    Visit Ken's Amazon Shop: www.amazon.com/shop/kenmcelroy

    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.
    Ken's company: mccompaniesinvest.com/
    #kenmcelroy #realestate #cashflow

Комментарии • 49

  • @moonknight4659
    @moonknight4659 3 года назад +19

    IVE NOTICED YOUR BEST SHOWS WERE THE ONES WHERE IT WAS YOU STANDING UP WITH THE WHITE BOARD

  • @CoachDomCosta
    @CoachDomCosta 3 года назад +16

    Thank you for telling the whole truth and nothing but the truth! I’ve owned properties for over four decades and too many people have not shared what you shared and the depth that you shared in this video and thank you very much!

  • @RichardMPM
    @RichardMPM 3 года назад +5

    That pen grab was so smooth I was like... "holy shit, where did the second pen pop up from?"

  • @jordanaubrey-realestateinv334
    @jordanaubrey-realestateinv334 3 года назад +12

    This is why Cash Flow is very important especially if your leveraged and haven't paid off the mortgage.

  • @sircarpediem4175
    @sircarpediem4175 3 года назад +5

    Good information Ken, we often forget about what capital expenses can possibly cost. Always looking at cosmetic and never looking beyond plumbing, electrical, foundation, and roofing. When you said "digging up the parking lot" the point was certainly made for capital expenses lol

    • @akinadownhillace
      @akinadownhillace 3 года назад +2

      Look up the BRRRR strategy; the cap expenses are taken care of before you finance.

  • @Trioscopic
    @Trioscopic 3 года назад +1

    Thanks for the great content Ken! It’s great what you’re bringing to the RUclips community!

  • @AllNighterHeider
    @AllNighterHeider 3 года назад +1

    Very smooth transition after tossing the pen. Great video too

  • @paulross2979
    @paulross2979 3 года назад +7

    When buying into Communities with HOAs. Find out if there is a land lease. If so find out the expiration date of that lease.

  • @amit04051979
    @amit04051979 3 года назад +4

    Thank you sir for making this requested video of mine
    Was very useful

  • @davidlakvold8380
    @davidlakvold8380 3 года назад +10

    I'm an appraiser and have to constantly convince the small investor that they need the charge the property a management fee. The standard response is it is the "return" on investment they are working for and that the projected operating costs should NOT include a charge for management. My response is: Q: Do you collect the rent? Yes Q: Do you cut the grass (small apartment)? Yes.....So your time is worth nothing. If that is the case go cut the grass at my house! I'm told I don't understand. No, if you are a hands-on manager the property should pay you for your time.

  • @Planetgreenzen
    @Planetgreenzen 3 года назад +2

    Thanks Ken.Great information as always.

  • @arturogutierrez5402
    @arturogutierrez5402 2 года назад

    Thank you Ken!!!!

  • @alinaur-sam430
    @alinaur-sam430 3 года назад

    thank you so much Ken! :) great content!

  • @cityparkproperties7001
    @cityparkproperties7001 3 года назад +2

    Yes, HOAs can have rental restrictions. I’ve fought with mine for years and finally selling the property
    . This isn’t always the case but it can and will cause issues for thousands of investors. I’d recommend you serve on the board to ensure representation of yourself and other investors. Ken makes great points about the solvency. Organizations should have enough in reserves to cover maintenance requirements.

  • @Potatoroomr
    @Potatoroomr 2 года назад

    Ken you’re literally a rockstar wow man what a legend

  • @paulaorty6761
    @paulaorty6761 3 года назад

    Thanks Ken, great topic.

  • @nstrickland3162
    @nstrickland3162 3 года назад

    Great content presentation Ken..thank you👍

  • @abdiqani7709
    @abdiqani7709 3 года назад

    I didn't watch yet, but pretty sure i'll like it.. thumbs up

  • @katiechat3681
    @katiechat3681 3 года назад

    Ken you teach very well, and always smartly dressed. Thankyou

  • @santodeportes5946
    @santodeportes5946 3 года назад

    Thanks

  • @seydinadiouf4495
    @seydinadiouf4495 3 года назад +2

    Hi Ken, thanks for the amazing content. What percentage would you say is a good ballpark for NOI. Some people say 50% of the income.

  • @siphamandlamsibi9619
    @siphamandlamsibi9619 3 года назад +1

    How about mortgage payment? Why is it not included on your operating expenses?

  • @GameOnFila
    @GameOnFila 3 года назад +1

    So something interesting we experienced here in south america, not with apartments or anything but in our business, the banks where not lending us money, since on paper we where generating too much Net Operating Income, so they said you dont need our money. Why are you asking for money? We where quit shocked about that response haha

  • @simonforall
    @simonforall 3 года назад

    Consuming your daily pill thanks a lot

  • @melendez4394
    @melendez4394 3 года назад

    Good stuff by my man Ken macaroni

  • @Jason-ct8tr
    @Jason-ct8tr 3 года назад

    I was wondering why you had that extra e-pen on the screen. Now I know. Nice save Ken! BTW...your educational content is awesome!!

  • @madshane123
    @madshane123 3 года назад

    Great video ken, good insights looking to buy... armed and dangerous 🤦🏿‍♂️🎋🎯

  • @sionekulu4237
    @sionekulu4237 2 года назад

    So I just wanna ask knowing all these expenses you've explained what is the next step/s in terms of negotiating conditions as well as price into the contract off the back of these expenses. Loving the content btw.

  • @BhanuParappa
    @BhanuParappa 3 года назад

    Hi Ken, can you also please make videos for Canadian markets? A lot of us here would want to hear from you of opportunities in Canada.

  • @gelindark
    @gelindark 3 года назад

    Hello Ken, thanks a lot for the insightful tips and peaceful vibes. I'm looking for the MAKE and MODEL of your WHITEBOARD. After a quick search I've actually realized a few people were looking for this! Thanks in advance and may you enjoy an infinite 2021.

    • @gelindark
      @gelindark 3 года назад

      Found it: Samsung Flip 2 WM55R Touch Interactive 55" 4K UHD LED New Edge Backlight

  • @MasterAcquisition
    @MasterAcquisition 3 года назад

    NO, THANK YOU FOR SHARING!!!

  • @OliverGrafTV
    @OliverGrafTV 3 года назад

    Good call, Capital expenditures can def sneak up on you in the wrong deal 🤙

  • @jimross2101
    @jimross2101 3 года назад

    I would add an umbrella policy on top of the fire and liability policies to handle things above and beyond normal coverage limits for lawsuits and judgements. Incorporating and hoping the judge will not pierce the corporate veil is folly.

  • @krasimirkrastev1317
    @krasimirkrastev1317 3 года назад

    Can you please explain the insurance of the property?
    The banks want to have insurance on the property, is this the insurance that you are mentioning in other videos.
    I am asking, as I would need to know apart from caclulating the debt and interest do I need to calculate separatley this insurance as expence or it shall be included in the overall debt paid every month?

  • @MicAntoJo
    @MicAntoJo 2 года назад

    Are the property taxes and insurance premiums a tax deduction for the LLC?

  • @Ed-em6mf
    @Ed-em6mf 3 года назад +1

    5:32 - funny habit spotted. Wet finger slides better on monitor. xD

  • @bgentsja6762
    @bgentsja6762 3 года назад +2

    Teachings from the god himself. Thanks for sharing my g 🙏🏾

  • @sneocatenaccio746
    @sneocatenaccio746 3 года назад

    In manage property can i put house hacking option ? I get interested in get into this business buying a 4 plex live one and rental the 3 others ... Living full time in property i think could be a good way to get experience in manage e understand better but i have some doubts ....

  • @beautyandplay
    @beautyandplay 3 года назад +1

    you did not say how to minimize the expenses.

  • @krasimirkrastev1317
    @krasimirkrastev1317 3 года назад

    Hello, I couldn't understand well the difference between capital expenditure vs. maintanace.

    • @virajdance
      @virajdance 3 года назад +2

      Maintenance is for small repairs that don't add to property's overall value. Capital is opposite: long-term, large cost.

  • @MONITRIQUI
    @MONITRIQUI 3 года назад

    I’m learning a lot! Thank you. You’re so good that I want you to be my godfather (:

  • @AmandeepSingh-vx5my
    @AmandeepSingh-vx5my 3 года назад

    Sir please make a video explaining how to manage debt? How debt be paid off ? Whats the way that you use and other people for paying off the debt? Cuz debt also costs a lot of interest

  • @cf9240
    @cf9240 3 года назад +1

    Jeez, it seems investing in Real Estate has too many burdens. Is it really worthwhile?

  • @sandip471
    @sandip471 3 года назад

    In manage property can i put house hacking option ? I get interested in get into this business buying a 4 plex live one and rental the 3 others ... Living full time in property i think could be a good way to get experience in manage e understand better but i have some doubts ....