All Forum Posts by: Anaim Murcia

Good question...  And here's the answer...

First, there is always an end. You even said so yourself: 10-15-20 years.

But even without an end, there's a metric called Internal Rate of Return (IRR) that can tell you the estimated compounded rate of return over the life of the deal, even if the deal goes on forever.

This is because there's something called Time Value of Money, where money earned later is worth less.  Money earned 15, 20 or 100 years in the future is great, but factors much less (and eventually not at all) on the returns than money earned in the short term.  

And here's a cool little secret for you...  You talk about getting your principal back sooner and future money being "infinite profits," but from a math standpoint, that's irrelevant.

Here's an example:

Let's say you put $100,000 into a deal, and after 2 years you get $100,000 back. Then you get $10,000 a year for the next 10 years.

Overall, you invested $100,000 and you get $200,000 back.  Does it matter if the first $100,000 that you got back after 2 years was the return your original investment or whether the $100,000 you got back over the next 10 years was the return of your original investment?

It doesn't matter. Saying you're getting your original investment back first results in the exact same mathematical returns as saying you're getting your profits first and your investment back later.

In the example above, all that matters is that you received $100,000 after 2 years and $10,000 a year after that. Doesn't matter which was the profit and which was the return on capital. The return metrics are all the same.

If you want to better understanding of any of that, check out the latest book I published with BiggerPockets.  It digs into all of this and a whole lot more...

https://store.biggerpockets.co...

 Here's an idea, POST THE NUMBERS and location.  This looks like a FB post, that is the LAST thing everyone here wants to see . Looks like you are trying to " build a list " 

Good luck 

Incorrect. You certainly can calculate it.

Getting back more money than what you put in is not an infinite return.  It's called a positive return.  And it happens with most investments.  And there are plenty of metrics you can use to calculate it.

It's only an infinite return when looked at from one very specific calculation (CoC in the years following the payback). Which isn't a useful metric in the first place.

If you don't understand these basics concepts, you're probably not yet ready to be pitching deals to investors.

Brother I Appreciate your Feedback, and to be honest I'm okay with sarcasm because its actually pretty normal when the person does not know about a topic. Its a mind block and it just means a person is not ready to hear about different investments opportunities that actually exist, in this case (Large Multifamily) 

Look at it this way;

Most of people are saying "no" without even actually asking me "how is this possible, can I get more details, Can I see the property you are talking about". 

And it's 100% okay. Because eventually, those who invest, will have more opportunities offered to them. 

As a matter of fact, many other companies are doing different sorts of syndication. But once again brother, I appreciate your feedback. God bless your heart.

@Anaim Murcia we call that too good to be true. You’ve probably noticed a fair amount of sarcasm in the responses thus far, and it’s because your offering doesn’t sound credible. If this is indeed a legit opportunity, you should provide more information in a balanced manner.

The relationships with the most longevity are done in person. Having coffee and going to meetups trumps other forms of networking. 

@Anaim Murcia You will receive better responses from investors using defined offerings by using metrics that investors can relate to. IRR, COC, etc All the best Anaim.

 Only if it comes with zero risk ;-)

@Anaim Murcia you may want to move this to the Marketplace instead of posting it here.