Have you ever wondered how to achieve infinite returns?
How do you achieve infinite returns?
I would say the easy and quick answer is to get your original invested capital back and then continue to receive returns with none of your original capital invested.
How would this work with multifamily real estate?
Below is a case study for a deal we are invested in;
- in 2018 we invested $50,000 passively into a multifamily deal
- in 2021 the syndicators operating the property refinanced the property and returned 100% of original capital back to investors
- as a limited partner we received our original $50,000 in capital back
- we still own the same percentage of the property
- we continue to receive distributions yet have zero of our original capital in the deal. This is how the infinite return comes about.
- as this was a cash-out refinance and not a sale, this is a non-taxable event so we paid zero tax on the transaction
- we rolled the $50,000 into another multifamily deal so now we have two deals providing returns vs only one
Why do I share this story with you?
I share this because I want each of you to understand that achieving infinite returns is possible. Every real estate investor started with their first real estate investment. Many great real estate investors have educated me on the importance of leveraging your capital to buy cash flowing assets. Thankful they shared with me and now I have real life experience to share with you.
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