"The One Mistake I'll Never Make Again" From the Man With 10,000 Apartment Units
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- Опубліковано 3 кві 2024
- Ken McElroy shares the story of making $18,695,00 from a single property and why he still considers it a significant mistake. He walks us through the details of the investments, from the conversion to unexpected costs and legal battles, ultimately leading to a pivotal shift in his business model, prioritizing cash flow over capital gains.
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You wouldn’t be the person you are today if it wasn’t for that learning experience. Always great content, Ken.
Buy and hold to build wealth is key
VERY happy that you showed this. Transaction costs, cap gains, and debt service so largely ignored and underestimated. Also, look how quickly that deal could have gone upside down, 10% off on outsale projections and it would have been a bust.
I actually can't believe I figured it out when you asked.... Time is so crucial to a deal
Very interesting lesson! Thank you for sharing!
My God ! Excellent video very well explained ! Many thanks
love the content very informative
Such valuable content Ken.
Kenny isn't it amazing how we learn from looking back and analyzing. To me I am glad you never did this project another way because we would have never met. Thanks for allowing me to invest in this project with you. I'm quite sure the experience you gained helped you get to where you are now, a much more knowledgeable investor/business owner. Thanks for sharing your wisdom with this video to so many others. Now my kids can learn from our past investments. Keep rocking it Bro.
Great video........... thanks....
Interesting. Thank you.
Your transparency about the mistakes and challenges you faced in real estate investing is invaluable. It's reassuring to know that even experienced investors encounter setbacks and learn from them.
Ken, this is one of the best and informative videos you ever made. Thank you
The newsletter subscription function on your website is not working. I can't subscribe to your newsletters. Anyway, thanks for the great contents! :)
Great Video. Thanks.
Great warnings to prepare for! You may have avoided a bigger headache by selling out of it though. Maintaining a property on the waterfront in Multnomah county comes with higher OpEx, property taxes, and tenant protections.
wow, best free RE info out there
good info
This lesson makes me want to find a high ROI affiliate product to sell online. You went through 3 years of work, money and headaches when some people are getting a better return in one month with online marketing. Do you teach Virtual Real Estate? However, I would take profits and follow your long term cash flow positive real estate investing. I am anxious to learn how you are doing that now.
I knew about capital gains taxes
"The price of doing a good job is a bigger job." Usually true in the job world, and usually without a proportional pay increase.
In the current r.e. environment, buying,holdong short duration treasury bills instead of buying real estate, and borrowing at 7.5-8% makes a lot of sense.....something will have to give eventually
I assume from a capital gains perspective you could not find in 1031 exchange properties suitable for the partnership at that time to shelter and defer the$2.7M capital gain on this deal?
Hey Ken! Awesome video I dont live in America but wasnt a 1031 exchange a possibilty over here ?
Have a nice day :)
Gold!
please share more your failures , that's priceless heritage for next generations
The condo conversion is a great "highest and best use" method.
Oregon imposed statewide rent control in 2019, effectively eliminating interest in a private rental market.
I suspect it would not be possible to buy any rental property now in Oregon and convert it.
California did the same thing in 2019. It is a reason we are no longer participating in future investment in the asset class.
If SCOTUS fails to act, we predict a complete elimination of the private rental market in our lifetime. It is politicians who
should tell the population "private investment in providing apartments to the population is vital" but they do the opposite
and eliminate all incentives to provide housing for people. There are other asset classes to invest in.
Don't understand cap gains tax. Our team drops that to less than 5%. Legally
Mccormick Pier Condos
What is Normal people? Define Equity and liability? We are still paying for the Napolin War in Europe. Not Napolin Hill. Author of the book, Think ond grow Rich. By the way! What is the Secret mentioned in that book? I am not sure did I get it right. Thanks
At 23 years old I am so excited to learn about these things, I hope to be at this level at some point in my life
Maybe you can partner with my son, he’s into this and is 23 years old too..
Priceless business lesson.
3 L kill a man.
Ladies
Laziness
Leverage.
Thanks Ken
I thought capital gains federal tax rate is only max 15% if the investment is held onto for at least a year.
I was thinking same thing, why he mentioned 40% I don't know
Kenny for Presidente
One big fustercluck 😅
Couldn’t you 1031 the capital gains, though?
I don’t see the mistake in the deal. I will unpause and continue watching. Seems like a pretty good profit.
I see debt ate up profit
Too many mouths to feed.
Ken, Depends if this property is I Washington, be happy you no longer own it.
About 2 minutes in he says Portland, which is even worse!
Now do a video for normal people...
Underrated comment 😂
That mindset will keep you “normal”
He's been doing normal videos for normal people for years. All of his books are for people brand new getting into real estate. He hardly ever goes over his bigger commercial deals
This video is for normal people. The message is: Don't flip properties, buy and hold (cash flow) is what you want)
@@charlesritter6640bingo. The difference is scale but the advice is solid.
Thanks Ken you always have good onfo