One of the most powerful wealth accelerators from investing in Real Estate is the Cash Out Refi! This can provide you with INFINITE Returns!

Follow me here as I explain how it worked for me.

People familiar with the #BRRRR strategy understand #infinitereturns. I have explained the BRRRR process in previous posts. A term made famous by Brandon Turner on BiggerPockets.

Infinite returns can also be done with a turnkey property. Over time as the value of the property goes up, either from natural or forced appreciation, you can refinance it at the higher value and pull out cash, tax-free!

The image for this post is me in front of the first investment property I ever purchased. I knew I wanted to go multi-family so I went with the biggest I could do. A fourplex in Idaho. I was able to buy it with just 10% down with no PMI. Most of which I actually borrowed from my 401k, so very little truly out of pocket. I really started with nothing! I used #creativefinancing to get started. I have explained this in a previous post as well.

Now, less than 5 years later, I just completed a cash-out refinance. I got six-figures back! WAY more than I put down. In fact, more than I put down total on this and two other fourplexes. Since now I have technically $0 in this property, I am receiving INFINITE returns. This concept blows the minds of some people.

How is INFINITE Returns possible?

Infinite returns is a real calculation. When you are getting money back from something that you don’t have any money invested in, then the returns are infinite. Think of it this way, if you put $10 into something and get $1 back every year, that is a 10% return. If you get $5 back that is a 50% return. If you get $10 back that is a 100% return. So if you get paid back your full $10 that you invested, but you still continue to get back even just the $1 amount, you are getting a return from something that you no longer have any money in. So therefore that return is infinite. When you do a cash-out refinance on an investment property, you will likely be getting back more than you had put into it. So therefore, you are now getting paid to keep your property and the returns that come from it are infinite since you got paid back your investment.

The great thing for me in this case is that my payment is barely changing due to a lower interest rate so my cash flows are pretty much the same. I could have pulled out a lot more but I wanted to still have good cash flow on this property. And, I can do it again and again over time!

How to spend that cash-out money?

So what am I going to do with this windfall? Buy a new car? Heck NO! I am putting it ALL back into some #syndications to get more #passiveincome and create more wealth.

Happy Camper Capital! I have discussed RV Campground investing in a recent post. I am pursuing more passive income. I no longer want to have to manage properties or tenants. I can let others do that for me. I don’t want the hassle of applying for loans. I can just invest my money and get high returns. And right now the highest returns I can find are with Happy Camper Capital.

Velocity of Money

With the cash-out refinance money, I will essentially be taking that first 10% down payment amount from that fourplex, plus more, and creating exponential returns from that same money. This is the #velocity of money!

And that is just one way how over time Real Estate can make you #wealthy and achieve #financialfreedom. Doing things such as this or 1031 exchanges, can help you quickly multiply your income and your wealth.

Do you want to learn how you can follow in my footsteps? Anybody can do this. It isn’t complicated, but it isn’t easy either. But it can be done. You can achieve your dreams, but you have to take that first step! Contact me and let’s talk about your goals!