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Jan 31, 2015
11:36:10pm
How to generate an infinite return on investments. Infinite return is based on
not investing any of one's own money into the project and having the project cash flow immediately. Thus, a person is achieving a return on zero investment. This is achieved any number of ways including having someone else put up the money for a project, having a very low capital requirement, yet having margins and profitability ensure immediate cash flow for the various periods. Another is through seller financing, but a premium must be paid. I personally don't like this one, but there are a number of people who are successful with it. Some people will also do a cash out refinance to get back their initial down payment and the cost of rehabilitation. The most common form is either obtaining conventional financing or hard money financing so no capital input occurs and then achieving immediately positive cash flow. As long as there are no capital requirements from the investor and the project cash flows, an infinite return is achieved.
My Soapbox
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