Hey friends, Kris Krohn here and today we're talking about how to partner in
real estate. I might be partnering with you or you might be watching this to
learn how to partner with other people. In this series, you're going to get the
full scoop. -- All about partnering.
Alright, welcome back. So listen up. Partnering is absolutely something that
has created a tremendous amount of wealth for me and for my partner's over
the years. In fact, I have 15 years of experience partnering with people. I can
tell you that in that period of time, I've learned who I like partnering with,
who I don't like partnering with. And ultimately, partnering is a tremendous
strategy to purchase a lot more real estate. For me, it means that I can
purchase a lot more real estate. For my partners that means they can get in on a
level of real estate investment that they couldn't have otherwise. Now, there's
going to be a couple of benefits for you to watch this entire series on
partnering. The first one is, you might actually be watching this because you're
considering partnering with me. I'll select a handful of people over time
that I work with and what I'll do is I'll build them an amazing portfolio
that builds tremendous wealth. But I have other people that are watching this or
saying, "Alright Kris, I want to get into the game of real estate but you know
what? When I run out of money, I want to know how I can do more. If I figured
something out and if I have a strategy that works, how do I actually attract the
kind of individuals that want to put money into the game so that we can
actually go out and partner long term together?" So, there's going to be many
applications to watching the series. And what I want to do is I want to start
right off the bat by talking about, what really is partnering? You know, in the
game of real estate, when it comes to making money,
someone's got to put money in the deal to make the deal work and someone else
has to find the deal. And right now because of the team that I've built over
the years, I have a problem. My problem is is that I find too many really good
deals. And I can only buy so many of them. So, what I've done is I've created a
system where people can partner with me they can put their money in the game. And
basically, I'll do with my team, all the management, all the heavy lifting, all the
work and I'll bring about some of the best ROI is that real estate has to
offer. On the other end of the spectrum, there are people out there that have
money that say, "Wow, I'm not diversified in real estate and I see that real
estate has created so many millionaires, it's created so much wealth. But frankly,
I either don't know how to get in that game or I don't want to." You might know
who you are. You might know what your passion is. And at the end of the day
you're saying, "Wow, I'd rather partner with someone that has the expertise and
that's been doing this on thousands of deals and we'll build
the portfolio together." So, the way that I do partnering in the way I'm suggesting
that you tackle it is a partnership is typically for me divided up on a 50/50
basis. There's the managing member and then there's the funding member. We're
both members of this corporation that we put together. But ultimately, the funding
member has money sitting in a 401k or an IRA or home equity or an annuity or
savings or gold and silver or something. And they're getting too low of an ROI.
And they're basically saying, "Wow, I'd like to make a whole lot more money or I
want to diversify in real estate." So, the funding member is the member that brings
the money to the table. The other member, I am in this case, the managing member.
And the managing member is the one that says, "Hey, between me and my team, we'll
tackle all the day-to-day of real estate." On every deal that we do on average,
there's 342 hours put in. Now just wrap your mind
around that for a second. 342 hours worth of work. That
my funding member doesn't have to do. So the rule that I'll play is, my team's
going to be the busy bee's, doing all the expert work. My funding member is going to
be bringing the money to the table. And what do we do? Well, we're there to make
really big picture decisions together, when is it time to refinance, take the
money out and redeploy it into the next properties. Because here's the goal: We're
trying to take a small amount of money and turn it into a lot of money. In fact,
the goal of the first decade. Because this is not get rich quick. The goal of
the first decade is to take a small amount of money and turn it into a lot
of money. If we were to continue building into the second decade, that's what we're
taking a lot of money and turning it into a legacy. And when we're talking
about multi millions and millions of dollars. Creating tremendous amounts of
freedom. And that's ultimately what the goal of the partnership is. Now, if you're
a subscriber to my channel, you probably know that my specialty is doing a short
term buy and hold. I like to hold homes for three, five, seven years. And what I
like to do is I personally, out of all my deals, I cherry pick the very best ones.
I'm looking for deals that have often a well over 15% ROI, which is
awesome. But I'm actually targeting deals where I can get 20% ROI or more. Now, the
reason why that's important is because most people in 401ks and IRAs and in the
market, over time they're averaging maybe 3, 4 percent. They're hardly
keeping up with inflation. But in real estate, if you're doing 15%, 20%,
25%, the goal is to deploy a certain amount of money. Let's say
someone had $200,000. And we were going to buy 5 homes. Having 5 homes, earning 20%
is awesome. That means that 5 years down the road, they will have more than
doubled in value, potentially. What we want to do over time is we want to take
a look at those 5 homes that are earning 20% and see a few years in, "Can we do our
refinance?" Which is a tax-free event and take that money out and deploy it in
five more homes. Or in three, five years, do we sell those homes and instead of
buying five more now have 10 more. Well, ultimately, the first part of the decade
is getting that money growing into something. But if 5 can turn into 10,
if 10 can turn into 20, if 20 can turn into 40,
if 40 can turn into a hundred. Then you can see that what we're trying to do is
actually create a very special velocity where we can have our money compounding
on top of itself. If the first layer homes are producing a 20% ROI, for
example. And we can pull that money out and put them and do another set of homes
earning 20%. Now, we're compounding on top of compounding. And that means that over
a period of time, maybe a decade, we could take a small amount of money and
potentially turn it into a lot of money. Which means that the decade after is
basically, taking a huge windfall of profits and rotating it into a whole lot
more money. Now, when I partner with people, there's something I'm bringing to
the table and there's something my funding partners bring it to the table.
Me, I'm bringing nearly a billion dollars worth of real estate experience to the
table with this expertise in my strategy. And for a lot of people, that is worth
its weight in gold. Because they want to skip as much of the learning curve as
possible. It doesn't mean I'm perfect at what I do. It just means that I have a
massive track record that I get to rely on and a massive team to make as few
mistakes as possible. And hopefully to do as many of the right things as possible
like we're going to talk later in the series about being in the very best
markets which not everyone really knows how to do. They're usually subject
to their backyard and if they do something out of state, they're not
willing enough power of volume and doing enough deals to actually make that work.
On my partner side, I generally partner with people that have at least
$100,000 on up to $10,000,000 or more. And what we're doing is we're
building a massive portfolio. Now, if you don't have $100,000, don't sweat it. You
need to be watching this series so that you can be learning, "How do I build my
own track record? And then how do I partner with other people? And how do we
work together so that together we can do so much more than either of us would
actually do on our own?" Now, you have to understand, if you're a partner of mine
that I set up boundaries. Because I'm going to be giving you my personal
cellphone. Not very many people get that. We're actually going to be working very
very closely together. And I'm there to work with you on the vision, on the big
picture, on the big picture strategy and making the right decisions. And you can
imagine, I've got an extensive team and they are the worker bees that are going to
set the whole thing in motion and at an expert professional level, execute
everything that we want. Now, as a funding partner, you would be collecting
financials and documents and seeing if we're bringing your credit to the table
and later in the series, we'll talk about what happens if you can't use your
credit or if you eventually max out your credit for investment properties. But
ultimately, this is a relatively passive role. So, we're getting together and we're
really deeming the the big decisions of what we're doing and playing with this
portfolio. Now, anytime someone comes on to be a partner of mine, we're
basically getting married in a business kind of sense, right?
You come from one background, I come from a different background and our minds
think very differently. Now, there's a strength to that but there's also a
weakness if we can't get on the same page. And one of the other videos, I'm
going to talk about how to select a good partner versus a bad partner because
I'll tell you that when my partners join with me,
I put on quarterly events. There are three-day, life-transforming events. They
have to do with manifesting, belief breakthrough, they have to do with
creating wealth. And when my partner's come on board, I require them to come to
one of the next two big events because I want to connect in
person, we actually have some private time together and we work together with
all the partners to actually advance their education, knowledge of the markets
and what we're doing. I want a relationship with you. But I also want
you to come to the three-day event because I want to get our minds aligned.
And I'm going to share with you the most successful thinking patterns
of millionaires and billionaires, the most successful people in the planet. And
I do that because I want us to have a common core foundational understanding
of how successful people think. Because you're trying to become more successful
than you currently are. And that's going to require a change in mindset. So,
partnering with me actually has two components. One component is as we're
developing our relationship and friendship, is I want to know. Are we
investing in our mindsets so that we know how to think in an aligned pattern
more later on why that's important. And then the other part is making sure that
on the technical aspect, you learn the things that you need to know when
working with my team, that ultimately you feel really comfortable with the process
of going out there and building as aggressive and successful of a portfolio
as possible. Hey, thanks for watching this video. Listen, if you are serious about
becoming a partner of mine, then I want you to click the link in the description
below. And I've got a specialty team that has been trained up to know my appetite
for who I like, personalities, who I'm looking for.
If you think it's something that interests you, then I want you to click
the link in the description below. Otherwise, watch the next video. Next I'm
going to be talking about the difference between good partners and bad partners
in this lengthy series to teach you everything there is to know about
successful partnering in real estate.