The net [excess] 5% ROI that the deal could be structured to kick off should be calculated off the borrowed equity layer. The payments on the 1st tier mortgage ($825-$206) have already been factored out of the NNN Cash Flow calcs. Equity holders get, 11% in-aggregate, of which, 6% goes back to the seller (equity lender) and 5% goes to the deal promoter. $206k * 5% = $10k per annum and $858 per month - infinite returns for the one who put the pieces together. Great case study!
Funny how all of you critics profess to know more than either of these guys. What a joke...Ive been investing in Wayne Palmers National Note of Utah, and Ive recieved 12% return on my investment every month, every year, through thick and thin. Most of you pontificate and play armchair QB while guys like this make wealth for themselves and those around them...you idiots.
haha, the cashflow is not 40,000 per year... are they talking about equity ?? well you dont see that equity of 40.000 before the loan is paid off in full... cashflow and equity are two different things
Does anyone know how Robert came up with netting $40K per year? Even if they borrowed the $206K at 6% like he suggest making it a NO DOWN deal, that leaves you with 5% ROI. 5% nets you $836 per month (5% / 11% or (.45 x $1840) or $10,036 per year. The numbers aren't adding up??
Wow, so many negative responses. How is that educating and exposing people to new concepts and investments brings out such mindless babble from people who will obviously never get to making enough cashflow in their lives to even be able to consider doing investments like these?
Is it any wonder why people think their 401K will is their retirement fund? Keep working and paying your taxes, the government works hard to keep people this stupid.
why wound he give you the money at 6% that you use and might loose? If he can get 6% in CDs in the bank wich is far more secure then you having them. this is just stupid talk. Also talking equty from your home is stupid too
No, I'm afraid your math is really off. Your numbers calculate to 0.89%. But 1840 is per month, so annual cash flow is 22080. So, 22080 / 206250 = 10.7% ~ 11%.
I agree with peggerguy. $825K times 11% equals $90,750 per year in Net Operating Income (NOI). Less debt service to the 6% lender which is $49,500 leaves net cash flow to the owner of $41,250. That doesn't seem like making money from nothing, that is making money using OPM on a legitimate investment. Very cool!
You cannot know the ROI without knowing the variables used to calculate it. To determine the new ROI you need to know the new CF resulting from your larger down payment. To say that the ROI is constant at 11% is wrong, unless the change in CF increases at the same rate as the increase in the down payment (which I guess is Wayne's assumption). If you increase the down payment by 4 times, will the CF increase by 4 times? If so, the estimated $40k CF is acceptable.
To get the $41k, simply multiply 5% by the $825k purchase price. No matter how much money you invest, either a down payment or the full price, you will get 11%. The higher the investment, the higher the return. The percentage stays at 11%. If you can arrange financing for the full amount at 6%, you get to keep the remaining 5%.
andviv, what does 5% of the purchase price have to do with the example and information he presents. Refer to the 9 minute mark of the video.
*IF* you have to borrow the downpayment AND borrow the balance, you will not make squat. For some reason, people think they can make money from nothing and it doesn't work that way in the real world. Maybe in $3,000 "investment seminars", but not where it counts.
@hammer7629 Ive invested in Wayne Palmer's National Note of Utah for years. Absolutely the best thing that Ive ever done with my money....and by the way, the seminar I went to was free...idiot
The $1,860 per month is AFTER servicing the mortgage.
The $40K is the 5% of the sales price (if you could get 100% financing at 6%). If you get bank financing for the 600K and then somebody else lends you the downpayment at 6% interest, you get 5% of 206K, which is around 10K (after servicing the debt). That is why at the end he says you need three more deals like this to replace a $40K salary.
Those numbers still don't work out andviv. The 11% ROI only works on the down payment or your investment. If you finance 100% of the 206K at 6%, the payments would be $1430.77 per month. Then you subtract your cashflow of $1840, so $430 per month or $5160 per year. Those are the numbers that I get at $206K at 6%. More than likely as an investment, it would be closer to 9% or 1853 per month or -$13. So, negative...?
He explains how he get's the figure $40k on the film. You get $40k through multiplying 5% with the asking price of $800k. If you pay only the down-payment the 5% will be smaller.
I heard what they said...I just don't understand how you get $40K. What I understand about ROI is the amount it will take to get your investment back (ie - the $206K). Which if I do the numbers like that, it makes sense to me $1860 cashflow per month -> $22,320. $22,320 is 11% of the $206K, so if you give 6% of that away...roughly $12,000 then that leaves you with $10,000. I just don't get where you get the $40K that they mention. On the $206K, the payment will be more than $12,000 per year.
OK, so I don't get how they get the $40K. Is that the inflation? 5% of the 800k? You don't get that money every year. I only see the 1800 per month or less that 24000 per year.
The net [excess] 5% ROI that the deal could be structured to kick off should be calculated off the borrowed equity layer. The payments on the 1st tier mortgage ($825-$206) have already been factored out of the NNN Cash Flow calcs. Equity holders get, 11% in-aggregate, of which, 6% goes back to the seller (equity lender) and 5% goes to the deal promoter. $206k * 5% = $10k per annum and $858 per month - infinite returns for the one who put the pieces together. Great case study!
amirdjhiri 1 year ago
Funny how all of you critics profess to know more than either of these guys. What a joke...Ive been investing in Wayne Palmers National Note of Utah, and Ive recieved 12% return on my investment every month, every year, through thick and thin. Most of you pontificate and play armchair QB while guys like this make wealth for themselves and those around them...you idiots.
workwithbillygee 1 year ago
MATHS FAIL LOL.
SomethingSoOriginal 1 year ago
haha, the cashflow is not 40,000 per year... are they talking about equity ?? well you dont see that equity of 40.000 before the loan is paid off in full... cashflow and equity are two different things
heightboosting 1 year ago
Does anyone know how Robert came up with netting $40K per year? Even if they borrowed the $206K at 6% like he suggest making it a NO DOWN deal, that leaves you with 5% ROI. 5% nets you $836 per month (5% / 11% or (.45 x $1840) or $10,036 per year. The numbers aren't adding up??
koolbreeez 2 years ago
that guy is stupid ask how the money would replace a 40000 dollar income.
flagship21 2 years ago
Wow, so many negative responses. How is that educating and exposing people to new concepts and investments brings out such mindless babble from people who will obviously never get to making enough cashflow in their lives to even be able to consider doing investments like these?
Is it any wonder why people think their 401K will is their retirement fund? Keep working and paying your taxes, the government works hard to keep people this stupid.
Great Video John. I loved it!
blainebrazzle 2 years ago
this hawaiian motherfucker is full of shit. his books are good for one thing and one thing only - motivation.
Azbx23 3 years ago
THIS VIDEO IS COOL.ARTHUR ROBINSON
americanplanninginc 3 years ago
This comment has received too many negative votes show
you cant invest with no money. I think they sould be put to jail for misleading people like this, sorry for spelling english is my second language
lti12 3 years ago
maybe u misunderstand the actual meaning of investing with no money...
Freddusya 2 years ago
a friend has his money in the bank at 3%
why wound he give you the money at 6% that you use and might loose? If he can get 6% in CDs in the bank wich is far more secure then you having them. this is just stupid talk. Also talking equty from your home is stupid too
lti12 3 years ago
that's why you will never get rich.
flagship21 2 years ago
This has been flagged as spam show
You can do that whit been part of a network marketing company whit only 10$
Gano Excel
dennis.gano@hotmail.com
06Mtx 1 year ago
a cashflow of $1,840 for something you invested $825,000 in is a vary stupid investment if you ask me.
lti12 3 years ago
so in your opinion, you mean betting $2 or $5 on lottery tickets for $100,000 is a better investment.........
Freddusya 2 years ago
They invested $206,000, not $825,000.
1840/206000 = 8.9% cash on cash return.
tnmason 2 years ago
No, I'm afraid your math is really off. Your numbers calculate to 0.89%. But 1840 is per month, so annual cash flow is 22080. So, 22080 / 206250 = 10.7% ~ 11%.
chuck2205 2 years ago
Wayne Palmer is the man!
ithanku2007 4 years ago
and also....you still have a mortgage on the 618,750 correct?
you have to know the rate on this mortgage that wayne says you just "assume" in order to calculate a true ROI.
supremacy2525 4 years ago
the question is how can i get that kind of deal?
albertsteven 4 years ago
I agree with peggerguy. $825K times 11% equals $90,750 per year in Net Operating Income (NOI). Less debt service to the 6% lender which is $49,500 leaves net cash flow to the owner of $41,250. That doesn't seem like making money from nothing, that is making money using OPM on a legitimate investment. Very cool!
eelhwan 5 years ago 3
You cannot know the ROI without knowing the variables used to calculate it. To determine the new ROI you need to know the new CF resulting from your larger down payment. To say that the ROI is constant at 11% is wrong, unless the change in CF increases at the same rate as the increase in the down payment (which I guess is Wayne's assumption). If you increase the down payment by 4 times, will the CF increase by 4 times? If so, the estimated $40k CF is acceptable.
minombreesmio 5 years ago
To get the $41k, simply multiply 5% by the $825k purchase price. No matter how much money you invest, either a down payment or the full price, you will get 11%. The higher the investment, the higher the return. The percentage stays at 11%. If you can arrange financing for the full amount at 6%, you get to keep the remaining 5%.
peggerguy 5 years ago
hammer7629, totally disagree. It's simple math.
fanocks2003 5 years ago
andviv, what does 5% of the purchase price have to do with the example and information he presents. Refer to the 9 minute mark of the video.
*IF* you have to borrow the downpayment AND borrow the balance, you will not make squat. For some reason, people think they can make money from nothing and it doesn't work that way in the real world. Maybe in $3,000 "investment seminars", but not where it counts.
hammer7629 5 years ago 2
ha ha good one hammer7629 Robert and his friend are very misleading they make there money from there stupid seminars.
lti12 3 years ago
@hammer7629 Ive invested in Wayne Palmer's National Note of Utah for years. Absolutely the best thing that Ive ever done with my money....and by the way, the seminar I went to was free...idiot
workwithbillygee 1 year ago
The $1,860 per month is AFTER servicing the mortgage.
The $40K is the 5% of the sales price (if you could get 100% financing at 6%). If you get bank financing for the 600K and then somebody else lends you the downpayment at 6% interest, you get 5% of 206K, which is around 10K (after servicing the debt). That is why at the end he says you need three more deals like this to replace a $40K salary.
andviv 5 years ago
Those numbers still don't work out andviv. The 11% ROI only works on the down payment or your investment. If you finance 100% of the 206K at 6%, the payments would be $1430.77 per month. Then you subtract your cashflow of $1840, so $430 per month or $5160 per year. Those are the numbers that I get at $206K at 6%. More than likely as an investment, it would be closer to 9% or 1853 per month or -$13. So, negative...?
raepher 5 years ago
i thought this was a 24 spoof :/
darkmsy18 5 years ago
He explains how he get's the figure $40k on the film. You get $40k through multiplying 5% with the asking price of $800k. If you pay only the down-payment the 5% will be smaller.
fanocks2003 5 years ago
I heard what they said...I just don't understand how you get $40K. What I understand about ROI is the amount it will take to get your investment back (ie - the $206K). Which if I do the numbers like that, it makes sense to me $1860 cashflow per month -> $22,320. $22,320 is 11% of the $206K, so if you give 6% of that away...roughly $12,000 then that leaves you with $10,000. I just don't get where you get the $40K that they mention. On the $206K, the payment will be more than $12,000 per year.
raepher 5 years ago
OK, so I don't get how they get the $40K. Is that the inflation? 5% of the 800k? You don't get that money every year. I only see the 1800 per month or less that 24000 per year.
raepher 5 years ago