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300 units, and the increased mortgage payment of $280,000 is paid for by
the $360,000 increase in income.
The $360,000 increase in rental income, minus $280,000 in increased
interest expense, leaves a net $80,000 in passive income. This $80,000 is an
infinite return because the investors have received back their initial
investment, yet still receive cash flow. It is free money. The investors get $4
million back and move on to purchase another apartment house.
This is an example of using control and leverage. This is an example of
getting rich according to the rules of the new capitalism, capitalism based
on the use of debt to become richer. Rather than work hard to get out of
