Rich Dad Radio Show — "How Infinite Returns Work in Real Estate Investing"

Guest: Ken McElroy
Host: Robert Kiyosaki
Date: February 18, 2026

Episode Overview

In this episode, Robert Kiyosaki welcomes longtime business partner and real estate expert Ken McElroy to discuss the concept of "infinite returns" in real estate investing. The conversation covers their backgrounds, the principles of using other people's money (OPM), the power of property management, deal flow, and why financial education—not just flipping homes or following the headlines—creates true wealth. The episode blends candid advice, real-world stories, and practical lessons, all with the trademark humor and directness of the Rich Dad Radio Show.

Key Discussion Points & Insights

1. Foundations: Why Real Estate and Infinite Returns?

• Robert's Origin Story: After leaving the Marine Corps, Robert took his "rich dad's" advice to learn real estate, aiming to use leverage and seek out deals with "nothing down" (01:10–04:30).
• First Infinite Return Deal: Robert's first investment was a condo in Maui purchased with a credit card ("100% debt financing"), earning profit with none of his own cash in the deal.

  "That was my first investment...I paid nothing for this one-bedroom, one-bath...and I made 25 bucks. It was an infinite return." — Robert Kiyosaki (03:42)

2. Ken McElroy’s Journey to Real Estate Wealth

• Learning Through Doing: Ken started managing apartments for free rent in college, discovering that hands-on experience is essential:

  "There's nothing better than actually doing something...unless you do it, you don't really learn." — Ken McElroy (07:12)

• Transitioning from Employee to Owner: His "lightbulb" moment was realizing that ownership—not management—creates long-term wealth (08:45).

3. The Infinite Returns Model

• Definition:

  "Infinite return is simply owning something that produces cash flow when you have no investment in it." — Ken McElroy (13:12)

• Process Explained:
  • Find undervalued/broken properties (often lender-owned).
  • Use OPM to purchase and repair.
  • Improve management, increase rents (NOI).
  • Refinance to return all original capital to investors.
  • Continue to earn on the asset with zero personal funds in the deal.
• Case Study — San Antonio Property (14:51–17:08):
  • Bank-owned, 50% vacant, purchased for $20M, invested $7.5M.
  • Two years later, appraised at $42M.
  • Refinanced to return all original investment — creating an "infinite return" for all partners.
• Creative Value-Adds: Simple changes (e.g., adding washers/dryers) that increase rent and can be financed for additional profit layers (17:16).

4. The Real Role of the Fed and the Cost of Money

• Ignore the Noise: Real estate is slow-moving; Fed rate changes are often distractions from real work (21:26–22:55).

  "...for a lot of people [the Fed is] just a distraction from actually getting busy...If you focus on cash flow...you just refinance on the way down." — Ken McElroy (21:30)

• Interest Rates as Just Another Expense: Robert pays 30% interest on credit cards for a profitable deal; the cost of money is just another line item if the investment cash flows (23:00).

5. Deal Flow and Due Diligence

• Volume Is Key:
  • Ken’s team reviews hundreds of deals to find a winner (24:04).
  • Investment committee analyzes ~20 in detail weekly, often making offers but winning few—emphasizing selectivity and persistence.
• High Standards: Look for properties with stories—opportunity for management improvement or value-add, not just anything available (25:28).

6. The Importance of Financial Education & Community

• Beyond 401(k)s: True learning (and wealth) comes from hands-on investing and community, not passive retirement contributions (26:11–27:49).
• You Are a Product of Wall Street Unless:

  "Use Wall Street. It's like a tool in your tool belt...Otherwise, you're getting used by Wall Street. You're either the consumer or the producer." — Ken McElroy (29:17)

• Seminars & Networking: Both credit conferences, books, and meeting practitioners as essential to ongoing success—"you might meet your future business partner or your future ex-wife" (33:46).

7. Limitless Expo and Real-World Learning

• Limitless Expo Event: Annual in-person event in Scottsdale co-hosted by Ken, providing real education and networking—not just theory (30:38–34:23).
• Learning and Opportunity: Guest speakers come from all asset classes; attendees are active investors sharing ideas that aren’t found in books or online videos.

8. Final Words: Mindset & Responsibility

• Continuous Learning: The biggest investment is "between your left ear and your right ear" (38:26), and education prevents “infinite losses” as well as infinite gains in real estate.
• Practical Wisdom:

  "If you can't manage property, you shouldn't be in real estate...it's just all management." — Robert Kiyosaki (09:38)

Notable Quotes & Memorable Moments

• Robert Kiyosaki on Infinite Returns

  "If you have none of your money into the property, and I was making 25 bucks, that was an infinite return." (11:39)

• Ken McElroy’s Fast Definition

  "Infinite return is simply owning something that produces cash flow when you have no investment in it." (13:12)

• On Learning Through Mistakes

  "It takes creativity, takes guts, but it takes a lot of experience and years of making a lot of mistakes along the way.” — Robert Kiyosaki (17:45)

• Ken on Wall Street vs. Main Street

  "You're either the consumer or the producer." (29:17)

• Classic Humor:

  • On networking at the conference: "You might meet your future business partner or your future ex-wife." — Robert Kiyosaki (33:46)
  • Funny mix-up story about investing in Mexico, not the US (34:23)

Timestamps of Important Segments

• 01:10 — Robert recounts his real estate origin story and infinite return concept
• 07:05 — Ken McElroy shares real estate background & transition to ownership
• 13:12 — Ken defines infinite returns and explains his process
• 14:51 — San Antonio property case study (bank-owned, value-add, infinite return)
• 17:16 — Creative infinite returns (e.g., installing washers/dryers)
• 21:26 — The Fed's real impact on deals
• 24:04 — Ken discusses deal flow volume and investment committee process
• 27:49 — Why Main Street must wake up: financial education vs. being a Wall Street product
• 30:38 — Seminars, Limitless Expo announced (Scottsdale, Aug 14–16, 2026)
• 33:46 — Networking, meeting partners and learning at live events
• 38:26 — Final word on the power of education and managing debt

Conclusion

Robert Kiyosaki and Ken McElroy break down the myth that you need money to make money in real estate, showing instead that "infinite returns" are not only possible but repeatable with the right knowledge, partnerships, and persistent deal analysis. Success requires active learning, robust networks, understanding how to leverage debt safely, and consistent exposure to new ideas and opportunities. The episode encourages listeners to focus not just on transactions but on gaining the skills and mindset for lifelong financial freedom.