All Forum Posts by: Rikard Lorén

Hello !

So i want to start to get my hands a little dirty and begin with real estate, i have a girlfriend who are not into it as much as me but she’s still in BUT she soon want our own place too. So we fought that a duplex/triplex/ fourplex would be a good start. So we are planning to buy a rental property and live in one of the units and rent the others out so now to the question:

Q 1: should i start with my investing company ( find a team, investors And sush ) and buy the property in a LLC and rent 1 unit to us OR should we buy the property the "normal way" like when you buy your first home and live in one of the units and rent the other ones out private and later when we move we put it in a LLC as a "normal" rental property ?

Q 2: wich is the better scenario from a cashflow standpoint ?

*we ARE going to live in one of the units.

Thanks in advance,
//Rikard Loren

thx man ! Didn't knew there was sush a thing.

Hello, I just bought 1 month of KenFlix ( www.kenmcelroy.com ) and now I'm greeted with "Your user account has been disabled. Please contact your system administrator to enable the account."

I have alrdy paid for the Kenflix with my paypal account, created the account for his website but still get the text when I try to log in, it's my computer, windows 7, could anyone who reads this help me ? Thank you!

So, I have a hard time understanding how it works with investors, I mean, what is the basic steps to pay them/pay them back ?

1. I Find a property
2. Costs 100.000 and I need a DP for 30.000

Q 1. How do I pay back ? with intrest ? or do I pay back their downpayment+intrest ? example: I pay intrest from start every month, then refinance and pay back their Downpayment and keep paying intrest to them forever as long as I own the property ? Or are they out when they have gotten back their downpayment + 10 % ( example ) and then they are out ?

Q 2. If I pay 5 k and 5 investors bring up 5 k each for the downpayment. Do I split the whole buildings value into 6 ? 100.000/6 ppl = and we own 16.666 % each ?

If someone could explain for me how it works when u bring investors into a deal from start to the end, thx !

Oh, okey J Scott ;)

Aight Jeff Greenberg, thanks for updating me on that one, cheers! :D

So, Ken Mcelroy says this in his book :

( just something he said before the other part )
"When using other peoples money for multifamily investment, you want to be sure the operations for the property can pay for the mortage and still provide a good return for the investors"


"we refinanced the property and with this tax free money, we were able to return all the original equity for the deal to our investors+a substancial profit on that money, all and all our investors made 40% on thier money not including depreciasion and tax savings wich depended on their own situations and the amounts they invested, the investors now have absolutely NO MONEY INVESTED in the propertry and they CONTINUE to recive a %:t of the cash flow, it's free money, that's simply lands in their accounts each month"

*In my current post, I said private lenders, that's not the same thing as OPM, right ?


Question: Is this the way u do it when using OPM / Investors ? ( Other ppls money )

Thx for the answers !

PS! I'm allowed to quote things like texts/audio books like this ? If not, tell me pls!

J Scott,

Yea, ofc I mean borrowed ( my bad :p )

Aight, thx so much for the answers ;)

So basically it's: I lend a sum of his money 20.000 for example and meanwhile/when I'm w8:ing some years 2 refinance, I pay him intrest 2 him, then when I refinance, and pay back the loaned amout, then that's the end of it and it's all mine ? ( basically ? ) Have I got it right ?

But what do they mean in the rich dad books then ? " we finally payed back the investors money and they keept reciving intrests on their investments for life ( i'ts something like that, not the exactly words ) I mean did they have a speciall deal then or something ?

Q 1: is it basically like lending from a bank ? loan an amout, pay intrests, then after a while, I pay back the invested money and I quit paying him intrest ?

Q 2: Did they have a speciall deal then or why do they keep reciving intrest on their investment ?

Thx for the answers above both J Scott & Aaron Junck !

So, I just want 2 get a thing straight:

If I'm going to buy a real estate, and I lend 20.000 dollars and he/she will get a return on investment ( as usually ?) and intrests, I'm supposed to PAY BACK the 20.000 + Intrest as long as the deal is active ? or does he/she LEND me money for THE INTREST ? Can someone clear it out for me ?

Bcuz when I read Rich dad book, they said that they founded the deposit for the downpayment by investors and then when the building was done, they build made some inprovements and then refinanced it so it increased in value and THEY PAYED OUT ALL THE INVESTORS and THEY GOT Their intrests for the investments AND THEIR DEPOSIT BACK ( correct me if I'm wrong )

So could someone just clearify how the procces goes ? Lender/investor lends out money to me, I later pay back ALL THE MONEY + that they have gotten and will continue get a intrests of their investment every month ?

Cheers!

okey, thx for all the answers ppl ! :)