What Schools Will Never Teach You About Money By Robert T. Kiyosaki

Real-Life Real Estate
FAQ
Would you give us a real-life example of how you achieve 100 percent 
debt and still have positive cash flow?
Short Answer
Sure.

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Chapter Three
Unfair Advantage
107
106
The good news is that the same strategy can apply to small real 
estate investments. I used 100 percent financing to buy my first 
apartments on Maui. While not all investments work that way, this 
is our objective: We want our down payment back, a free asset, free 
cash flow, and tax breaks. Kim, Ken, Ross, and I call an infinite return 
“printing money.”
Infinite Return
FAQ 
What is an infinite return?
Short Answer 
Money for nothing.
Explanation 
If I have zero in the asset and I receive $1, a return on zero is infinite. 
It is money for nothing. The asset is free, once we get our money back.
Keeping this overly simple, I’ll use the following for an example. Let’s 
say a property costs $100,000 and my down payment is $20,000. 
If I receive $200 net monthly cash-flow income after all expenses 
(including mortgage payment), I have a 1 percent monthly return 
on my investment of $20,000. That’s a 12 percent annual return or 
$2,400 per year.
ROI is net income divided by down payment. 
Our investment strategy is to get that $20,000 back and continue to 
receive $200 a month. Once the $20,000 is returned, the ROI is infinite. 
This is the investment scenario I was looking for when I finished the 
real estate course in 1973. This is what most real estate agents said was 
impossible. Today, we continue to strive for the impossible.
New financing:
75 percent leverage = $13.5 million 
($18 million x 75 percent = $13.5 million)