Keys to Understanding Real Estate Cashflow

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  • Опубликовано: 27 июл 2024
  • To get a free copy of Ken's eBook "21 Keys to Real Estate Success" just visit this link: 7rxyf2er.pages.infusionsoft.net
    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.
    Be sure to click the bell to be notified as soon as I post the next video in the series.
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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
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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

Комментарии • 257

  • @gowithten
    @gowithten 3 года назад +21

    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

  • @Potatoroomr
    @Potatoroomr 2 года назад +3

    I watched this a while back and was lost and now I finally understand it 👌

  • @douglasaugustomorenosanche2350
    @douglasaugustomorenosanche2350 5 лет назад +10

    So good all this! Thanks a lot!

  • @valsamuel2764
    @valsamuel2764 3 года назад +2

    i like the way you explain. it seems simple. i understand it very well.

  • @Martin_Chua23
    @Martin_Chua23 3 года назад +3

    Moral Of the story: Invest with this guy

  • @francismansapit2643
    @francismansapit2643 4 года назад +2

    Real Good Advice !! Thank you Ken !

  • @jeanbrea8543
    @jeanbrea8543 3 года назад +1

    Best Real Estate Channel on you RUclips thank you

  • @valueplus4624
    @valueplus4624 4 года назад +3

    Thanks for this valuable video, I keep learning .

  • @nitinkumar7329
    @nitinkumar7329 4 года назад +6

    I guess this is the most simplest explanation of cash flow from real estate business. I am glad I clicked on video.

  • @shockfilmfest
    @shockfilmfest 4 года назад +1

    I stumbled upon you while RUNNING today! Very informative and LOVE your approach!!!! Thank you for your insight.

  • @tonybona7822
    @tonybona7822 4 года назад +1

    Wow!!! Learned a lot. Thank you so much.

  • @porscherebukeporsche4301
    @porscherebukeporsche4301 3 года назад +1

    this is highly important, thank you.

  • @mikeparsons3921
    @mikeparsons3921 5 лет назад +8

    Great video in understanding the components of Real Estate!!

    • @KenMcElroy
      @KenMcElroy  5 лет назад +1

      Thanks for watching Mike! I find this is one of the major areas that people struggle when trying to start out in real estate.

  • @eugenberzani1216
    @eugenberzani1216 5 лет назад +19

    Nice one Ken! Thank you for your insights!!

    • @KenMcElroy
      @KenMcElroy  5 лет назад +4

      Glad you found value in the video Eugen! Thanks for commenting.

  • @sallytinay
    @sallytinay 3 года назад

    Thank you very much ken this is what we need God bless you

  • @mkelly1118
    @mkelly1118 5 лет назад +1

    Great video. Thank you!

  • @sakhilemathaba5453
    @sakhilemathaba5453 4 года назад +5

    Practical advice that is implementable

  • @kish5230
    @kish5230 4 года назад +1

    Excellent explanation. Thank you.

  • @user-rh1mr6xs5e
    @user-rh1mr6xs5e 3 года назад +1

    Very informative, thank you.

  • @brownpj2441
    @brownpj2441 3 года назад

    You’re awesome Sir. Thank you

  • @christinajones7319
    @christinajones7319 3 года назад +2

    Thanks, Kenny! I appreciate, you, Mr. Robert and Mrs. Kiyoski ❤ Im educating myself right now! I bout 2 of your books and Mr. Roberts!

  • @josiehepworth3934
    @josiehepworth3934 2 года назад

    After watching this it makes me subscribe straight away thanks for the good teachings 😍👏🙏

  • @thunderkey1
    @thunderkey1 4 года назад

    Excellent Info! thank you.

  • @millermucave6435
    @millermucave6435 3 года назад

    Well done Ken! Thank you

  • @RealEstateRadioTV-SA
    @RealEstateRadioTV-SA 4 года назад +1

    Another great video, thank you Ken. Regards South Africa

  • @ericjamesantonio1087
    @ericjamesantonio1087 3 года назад +1

    I automatically subscribed!!

  • @rksr8103
    @rksr8103 4 года назад +1

    Superb video Ken..👍👍

  • @festerartix
    @festerartix 4 года назад

    Thx Ken. Nice way to explain

  • @velwear
    @velwear 4 года назад

    Nice information. Love it!

  • @kingrichards3000
    @kingrichards3000 3 года назад

    Best video on RUclips. 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.

  • @Litlikelitto
    @Litlikelitto 4 года назад

    Thanks a lot Ken!

  • @shanemoreschi
    @shanemoreschi 4 года назад +1

    Thank you Ken

  • @nicoleimanuela307
    @nicoleimanuela307 4 года назад

    love your content!! :)

  • @maxuria6371
    @maxuria6371 3 года назад

    Great video Ken!

  • @youmayberight2434
    @youmayberight2434 3 года назад

    Ok. This is working now. Thank you.

  • @Tariqslo
    @Tariqslo 4 года назад +3

    Ken you are a breath of fresh air. Awesome content! Subbed

  • @mandeango1
    @mandeango1 4 года назад

    Awesome Info!!

  • @tjportaro
    @tjportaro 5 лет назад +2

    Thanks for video Ken 👍

  • @phillykat4
    @phillykat4 5 лет назад +14

    Always value in these videos. Thanks for the information Ken!

    • @KenMcElroy
      @KenMcElroy  5 лет назад

      Thanks for watching and commenting Jonathan! I'm glad you found it useful.

  • @roberttanner8443
    @roberttanner8443 3 года назад

    Thank you Ken👍😁.

  • @cburrell927
    @cburrell927 3 года назад

    Appreciate your work

  • @boy6dragon7
    @boy6dragon7 3 года назад

    Thanks teacher for sharing.

  • @BrokTheLoneWolf
    @BrokTheLoneWolf 3 года назад

    Kens the man!

  • @dreivillalon8997
    @dreivillalon8997 3 года назад

    thanks for this!

  • @dlugomer
    @dlugomer 3 года назад

    Master class Ken

  • @colbeats5952
    @colbeats5952 3 года назад +1

    This video is extremely underrated

  • @AngelGonzalez-fy9ej
    @AngelGonzalez-fy9ej 3 года назад +1

    Thanks Ken, i estudied your books and i live in Mexico

  • @higadouglas
    @higadouglas 4 года назад +1

    Nice explanation, Dayton Ohio is where we did this as well.

  • @temidayoaworeni7500
    @temidayoaworeni7500 3 года назад +1

    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.

  • @Tacolyfe
    @Tacolyfe 3 года назад

    Thanks Ken!

  • @scsmith4604
    @scsmith4604 5 лет назад +3

    Great Information

    • @KenMcElroy
      @KenMcElroy  5 лет назад

      Thanks for watching Scott! Glad you thought it was helpful.

  • @solarsolicitor9618
    @solarsolicitor9618 2 года назад

    Well spoken. Good video

  • @lubosimaboshe
    @lubosimaboshe 4 года назад

    It makes sense thanks Ken

  • @Princess-rz5hn
    @Princess-rz5hn 3 года назад

    New subscriber here 🙋! I've read your book. Thanks for your ideas👍

  • @robertoinvests
    @robertoinvests Год назад

    Timeless vid!

  • @germinsebastian5171
    @germinsebastian5171 3 года назад

    Mr ken great info

  • @moneymaverickstv
    @moneymaverickstv 4 года назад

    Great video.

  • @tikibaby9423
    @tikibaby9423 Год назад +2

    This guy is like Michael Jordan of real estate 👏

  • @6PackTo6Figures
    @6PackTo6Figures 3 года назад

    Thank you

  • @vannyt816
    @vannyt816 4 года назад +1

    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.?

  • @TMP10
    @TMP10 3 года назад +2

    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.

  • @lyn403
    @lyn403 4 года назад

    Well done.

  • @franksmart3826
    @franksmart3826 3 года назад +1

    Nothing is impossible. The word itself says "I'm possible"

  • @tarasfitworld
    @tarasfitworld 3 года назад

    Great one ☝️

  • @webuyrealestate2892
    @webuyrealestate2892 5 лет назад +2

    Great videos

    • @KenMcElroy
      @KenMcElroy  5 лет назад

      Thanks for watching We Buy Real Estate! Glad you found it helpful.

  • @Feddy99
    @Feddy99 3 года назад

    Finally it makes sense now

  • @user-em2tt1js3r
    @user-em2tt1js3r 3 года назад

    TY 😊

  • @Sanjipoi
    @Sanjipoi 4 года назад +22

    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.

    • @explorewithping5757
      @explorewithping5757 4 года назад

      do you need to be a member to watch those premium video ? thanks in advance.

    • @ChromeVending
      @ChromeVending 4 года назад +2

      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

    • @MrJosephsoultan
      @MrJosephsoultan 3 года назад

      @@ChromeVending Why you find these Books deserve this recommendation !

  • @TheRealEstateInvestingAcademy
    @TheRealEstateInvestingAcademy 3 года назад

    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.

  • @andreeam.1239
    @andreeam.1239 4 года назад +16

    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

    • @TOPTALENTREVIEW
      @TOPTALENTREVIEW 3 года назад +1

      *AWESOME ANDREEA*

    • @7Earthsky
      @7Earthsky 3 года назад

      Well now i just feel silly typing my long winded summary. lol.

  • @rajramkhelawan3221
    @rajramkhelawan3221 3 года назад

    nice info

  • @TheLinymarie
    @TheLinymarie 3 года назад

    Thankyou

  • @mandingo_matty
    @mandingo_matty 5 лет назад +3

    Ken your a legend please keep posting videos

    • @KenMcElroy
      @KenMcElroy  5 лет назад +1

      Hi Matthew! Thanks so much for the kind words. I'm glad to hear these lessons are helpful.

  • @ChromeVending
    @ChromeVending 4 года назад +16

    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.

  • @Sicandar12
    @Sicandar12 4 года назад

    You rock sir... Huaaaa

  • @armandfotie3844
    @armandfotie3844 4 года назад

    Epic ,thanks rich dad

  • @julianwortel
    @julianwortel 4 года назад

    Brilliant video, keep up the incredible educational videos.

  • @lorenzolanzani4098
    @lorenzolanzani4098 3 года назад +7

    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?

    • @brandofalcon
      @brandofalcon 3 года назад

      Great point. I'm wondering if Ken addresses this in another vid.

    • @irinab7524
      @irinab7524 3 года назад

      Right now being over leveraged is dangerous

  • @tickedoffsheikh8587
    @tickedoffsheikh8587 4 года назад +1

    Ken thanks for sharing your knowledge but are these principles applicable to Guyana?

  • @blackbeans8096
    @blackbeans8096 4 года назад +10

    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.

  • @ashtonking3948
    @ashtonking3948 3 года назад

    Thank you for the educational content, I learned so much from you. Your videos are awesome.

  • @GrindHardPeezy
    @GrindHardPeezy 4 года назад

    Takes time and patience but I am learning. I think you can too.

  • @079402
    @079402 2 года назад

    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?

  • @MartinMartinez-uq4gx
    @MartinMartinez-uq4gx 3 года назад +1

    Man he just blessed us.
    I’m doing exactly what he is teaching with my company. 💯🔥🔥🔥💎✅

    • @FastAkira
      @FastAkira 3 года назад

      could you honestly share how is the bussiness going so far, any realizations?

  • @liveandletotherslive.5458
    @liveandletotherslive.5458 3 года назад

    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.

  • @eugenberzani1216
    @eugenberzani1216 5 лет назад +2

    Greetings from Belgium

    • @KenMcElroy
      @KenMcElroy  5 лет назад

      Thanks for stopping by Eugen!

  • @JacksonTaylorandTheSinners
    @JacksonTaylorandTheSinners 3 года назад +6

    On the fence about buying five rentals. I’ve always been terrified of debt. I need to rewrite myself.

    • @alibrightwell8047
      @alibrightwell8047 3 года назад +3

      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

  • @safiyanuumarfulani3887
    @safiyanuumarfulani3887 2 года назад

    Great

  • @16161645
    @16161645 5 лет назад +2

    ## Thank you for the information Ken . do offer any mentorship programs. ?

    • @KenMcElroy
      @KenMcElroy  5 лет назад +2

      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 RUclips videos out consistently. You can also follow me on Instagram where I post tips and answer questions. I'm at instagram.com/kenmcelroyofficial

  • @phungbakien1404
    @phungbakien1404 3 года назад

    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

  • @dreamlifegeorgia5904
    @dreamlifegeorgia5904 Год назад

    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?

  • @marcogarofalo5444
    @marcogarofalo5444 4 года назад +1

    Ken, can you explain the distributions between the General Partner and the Limited Partners ?

    • @KenMcElroy
      @KenMcElroy  4 года назад +1

      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.

  • @ECX0x100h
    @ECX0x100h 3 года назад +2

    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.

  • @billydkid1881
    @billydkid1881 3 года назад +1

    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?

  • @narigueta007
    @narigueta007 4 года назад

    Ken, in your activity, whats the normal length you borrow money? 10, 15, 30yr? cash flow also depends on that.

  • @johnmatallana8106
    @johnmatallana8106 4 года назад +8

    I'm addicted to this guys channel, thanks for putting this information out there and for free.

  • @hildamiller-3816
    @hildamiller-3816 2 года назад +1

    cash flow in real estate is the best but only if you pay off your real estate investing otherwise, you just only pay to the lender, tax, insurance plus maintenance and you have only a little return. for example, your monthly rent is 1200, the mortgage payment is 750, your property tax is 100, your insurance is 150, and your profit is only $200 plus an emergency fund for maintenance. That is not a really good investment unless you don't have a mortgage then is a good return. The whole return a year for investing is only $2400

  • @MerinaHam
    @MerinaHam 2 года назад

    how do you decide what to charge tenants ? do you charge by noi, expenses or debt ?

  • @ldtrung93
    @ldtrung93 5 лет назад +6

    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
      @CeeTee469 4 года назад

      Hows it going

    • @mastergold7891
      @mastergold7891 3 года назад +1

      @@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?!

  • @piercebrooker5175
    @piercebrooker5175 4 года назад +1

    THANK YOU FOR THE AWESOME ADVICE, ITS A GREAT VIDEO FULL OF USEFUL INFORMATION- PIERCING INSTINCTS PROPERTY MANAGEMENT #FOLLOWUS