What don’t I get about YouTube “entrepreneurs” & interest only?

[John Mangiameli]

Hey Cats,

New to MF, not new to RE. Still seems like I’m missing something about how the big(er) boys play this game. 

You know the usual suspects for RE content on YouTube. Why is it when they break down their financing numbers on a big’ol TV or blown-out whiteboard (fix your exposure, man) they never seem to account for paying any principal?

Example:

Price: $2,000,000

Down: $500,000

Loan $1,500,000 @ 3.5%

NOI: $140,000

WOW LOOK YOU MAKE OVER $85K - 17% COC HOW CAN YOU NOT BUY MY COURSE?!

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What am I missing?