R
eal estate mogul Ben Mallah claims to have achieved "infinite returns" on his investments using a specific strategy. He argues that by buying, improving, and refinancing properties, he can essentially eliminate his initial investment while still generating rental income. This approach is based on the BRRRR method: buy, rehab, rent, refinance, and repeat.
Mallah explains that when he buys a property, he improves it to increase its value. He then refinances the property at the higher value, pulling out his original investment as cash without incurring taxes. By doing so, his personal capital in the property becomes zero, yet it continues to generate rental income.
To illustrate this concept, let's consider an example. If a property increases in value and Mallah refinance it, he can pull out his initial investment while still retaining ownership and cash flow. His return on investment would be calculated by dividing the property's cash flow by his remaining personal investment (now zero), resulting in infinite returns.
Mallah emphasizes that this strategy allows him to achieve significant wealth-building potential without having to lift a finger. By leveraging refinancing, he can tap into the equity of his properties while minimizing taxes and maximizing returns.
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