Have you wondered how to get in the game of real estate investing and how to
actually invest? My name is Kris Krohn I've bought thousands of homes. And today,
I'm going to sit down with a young man fresh out of college. Got his first job
and ultimately, he saved up a little bit of money. And now, he wants to know, "What
are my options? How do I invest in the game of real estate? What should I do?" And
I'm going to give him a his personalized game plan right now. Stay tuned. By the
way, at the end of this, I'll share with you how you can get your own custom game
plan as well.
What's up? Welcome back. So, I am here with Tyler from Florida. What's up, man? How you
doing? -Good. Nice to be here. -Yeah. So, Tyler's come out for one of our events you've been before. And
excited to be back. -Absolutely, 100%. -Well, dude. We're doing a game
plan today. And I always call this a million dollar game plan because
everyone should have a plan on how they're going to make their next million
dollars. Because if you can do a million dollars and you can do it again, you can
do it again. And one of the things that I love is I love putting myself in other
people's shoes. Today, we're talking to Tyler who is a teacher. His wife does
x-rays and they're young. Right? They've been married for a very short period of
time and they're really trying to figure out, "Alright, like, how do we ultimately
get where we want to go?" That's really the question today, isn't it? -Absolutely, yes sir.
-Do you know what it is you ultimately want to create financially for
yourselves? Like, what's your dream look like? Is there an amount of money? My goal
would be about $200,000 a year. -Okay. And is it like
residual income that's coming in whether you work or not?
-Absolutely. Yes sir. -Okay, good. So, if you think about that for a minute, it's 16
thousand dollars a month that is rolling in. Let's see if we can get him there
today, you ready? -Absolutely. Okay. So, I need to find out
a couple of things first just so that I can create. And the way that I'm going to do
this is fairly agnostic. I really don't know you. I don't know your belief system.
I don't know what you value. I don't know how you feel about debt or 401ks and
things like that. So, what I'm going to do is I'm going to extract some basic financial
information. Kind of ballpark. And then I'm going to say, "If I woke up today as
Tyler, like Freaky Friday... If I woke up like Tyler, what would I do to make a
million bucks?" Fair? -Yeah. Sounds good. -Okay, let's play.
First of all teacher, obviously fresh out of college. Third year teaching? -Yes sir.
-And roughly between that and your side hustles, what would you say... And
even your wife's x-ray income, what would you say your total income looks like
right now? -Probably about $90,000. So, you got dual income earning. No kids
yet? -No, sir. -Dogs? -We have one dog.
-Okay. There we go. Okay. They're warming up to
responsibility right now. Okay. And so, we got $90,000 and
would you guys say that you're getting ahead right now or you check the check
are you getting behind? -I would say we're getting ahead, honestly. Okay. So, you're
set so money aside. -Yes, sir. -How much money have you put aside in the savings?
-Right now, I have in my savings account, I've
about total about $40,000. -Okay, awesome. And this is a very important question
for me to ask. Of that money in savings, there's always a part of that that's
there for what I call a Swan account --Sleep Well At Night account. So, my
question to you is of that 40,000, what's the minimum that needs to be in that
account for you and your will have to say, "Hey, we can sleep well at night." I
would say $15,000 would be good for me. -Okay. So, I'm going to call that the 15k
Swan account. The sleep well at night account. So, there's maybe $25,000 that
could be used for investing or doing something, is that right? -Yes, sir. -And then,
you're getting ahead... How much do you think you're contributing to savings
every month roughly? -Savings, I usually on the low end about $400. But I usually try
to make it in between 400 and 600 dollars a month. -Okay. Awesome. By the way,
young starting out learning how to live within your means and saving getting
ahead, super super smart. So, dude way to go on that. That's awesome. That's a
really important key to being able to invest. That's how you put yourself in
this position. And then other than income, savings, any other assets that I should
really be aware of? Debts? -Car loan. I have I think $7,000. -So, no other debts? No
credit cards, no student loans. -I pay off all my credit cards and things like that.
-Alright. So, we got a fiscally responsible man. And by the way, does your
wife like... Is that her way of being too? Is she all about this financial responsibility stuff? -She's a
spender but I mean I've tried to get her going my way. So I mean, she does some of
it. I mean we make sure like her credit cards you paid off and anything like
that. -So, you keep it up, pay off the bills. Just tell me you're taking off for ice cream while.
-We go shopping for Christmas decorations. -I got you. I like it. Okay. So, really we
don't have any debts to worry about. We're not trying to really eliminate any...
You've done a good job managing that part. Do you guys rent? You have a house?
-Yes, sir. -Which one? Rent or have a home? -We rent. -Okay. So, you currently rent. -Yes, sir.
-Is home ownership of goal of yours? -It is, yes sir.
-Is there anything that's kept you from buying a home so far? -Just trying to be
ready for that next chapter and saying, "Are we ready financially for
that responsibility?" -Alright. -Yes, sir. -So, I help people invest in real estate
that have good credit, bad credit. Where's yours kind of that
roughly? -My credit last time I checked was right around high 700s. It was
like 750/760. -Listen, anything over 680 is like you can invest in real estate all
day long. Even sometimes low 6. 620 or something like that. But if
you're in high 7s, you've got great credit. So really, these are the only 2
pieces of information I know to basically put myself in your shoes and
say, "Alright, I woke up today. My name is Tyler and I'm now going to make some new
financial decisions." -Cool. -In no particular order, the first thing is PR.
Stands for a primary residence. And since home ownership is a goal for you and
your wife, in your area, you guys are in Florida, what's the median home price
roughly? Around our area is about and between like 230 and 250 right now. -Now, you're
telling me kind of a strange situation. You're actually currently renting a
house that is it your mother-in-law's house? -Yes sir.
-And she had even said at one point that she might even be open to you buying
that someday? -Yes, sir. -What do you think the houses may be
worth? -A house from the CMAs that I've done is right around like 220. -Okay. So,
you have a $220,000 value. By the way, median in the area is 250. So, I like that
they're buying the primary residence below the median. You guys already lived
there. That's convenient. If family were to sell that to you, do
you have any idea what they might be open to selling that for? She's thrown
the number out about 180. -Awesome. Okay. And you like the house? -Yeah, we
love the house. -So, this is a house that you guys could actually buy and live in? -We've
done a lot to it in terms of fixing it up everything. So, I'd like to buy it and
then turn into a property if that's possible. -Dude, I love that. Well,
let's talk about how you would do that. -Okay. -So, for this first option, right now,
you've got the job income. Because he's been 2 years at the same job because
he's got good credit and he's put money aside. This is a slam dunk.
Now's the time to approach mommy-in-law and say, "Hey, we've been saving and we
would like to buy the house." If you buy it for 180,000 and you'd go with the
bank that allows you to put a 3% down, you're going to be able to purchase this
house for less than $6,000 of what you currently have saved. And
looks like because you've been in the house for a while and taking care of it,
you'd be walking into about $40,000 of equity. So, by the way, would you be
willing to trade 6,000 for 40,000? -100%. -Okay, that's smart move. Right? Do you
guys see that? Do you understand that? There's so many benefits of
homeownership. Now, he gets to actually write off the interest. Now, he picks up
the tax benefit. His business or a side hustle or anything he's got going on, he
can actually write off a part of a house home office that gets used. All sorts of
benefits can actually come from home ownership. It's also going to lower your
taxable income because of depreciation that the government lets you basically
say, "Hey, let's just take this house and divide it by 28 pieces." You take
180,000 divided by by 28 pieces and it would ultimately come down to being able
to write off $4,500 a year. -Wow. -So, it's going to lower your income which means
you're going to pay less in taxes. So, a lot of benefits. Like that $6,000, you're
going to recover that like that. More important you're stepping into immediate
equity. And if you decide to move again later which is something I'm going to
show you, that becomes an investment property. -Cool. -That make sense? -That
sounds awesome. -Okay. So, I want to talk about "How do we
stretch this money?" I got 25 grand to play with in my mind. I need to keep 15
in the grand to the bank to keep me and my wife happy. What do I do with
this? So, option number 1 is buy primary residence. It's going to be $6,000
to make that happen. And I want to carry on with this plan. Let's just
say that afterwards... Let's say 12 months later, you decided to move. This
house becomes an investment property with that equity and you get to do a new
primary residence. You don't have kids, you got a dog.
Moving is no one's favorite thing to do but if you can move into another prime
piece of equity. And let's just say do something very similar with a $6,000
downpayment, now if that 25,000, you have used 12,000 of it and you, inside of a
year, you've got yourself 2 homes. Normally, when you buy an investment
property, got to put 20% down. If you're not going to live in it. But since he is
going from a primary residence that he's living in, banks usually say, "Commit to
living it for a year and then if you want to move, you can." Now, he just went
from putting you know... Went from 20% down to only 3% down. So, he saved all of this
money. Now, people only like to do that so many times. My wife and I, we moved 3
times before we moved into one of our first dream houses. -I think
I'd be my wife as well. She'd probably say same thing. -She might be open to that. -Yeah.
-Okay. So, moving is not fun but by the way, could it be worth getting ahead of that
fast? -Absolutely. -Okay, so I like what we're
seeing there. So, really option number 1 is milk and work the system, put minimum
down. Move into it. Inconvenience ourselves but now if you hop a couple of
times, you can actually say, "Wow, you do this 3 times." And it's like,
for less than $20,000, we bought 3 homes and we increase our net worth well
over $100,000. We're not renting it. We have positive cash flow we got all the
benefits. That make sense? -Yes, sir. -Okay. So, that's one of your... That's one of your
options right now. Let's talk about a second option. I think I've got three for
you today. -Wow. -Second option as you say, "You
know what? I don't know if we want to go buy a primary residence. Like, right we're
doing a good job managing your money. Let's just go right into buying IP."
--Investment property. You know, in investment property you've got to put 20% down. And
I can take you into markets, the best markets in the country and really show
you where you can get into property for 20 to 30 thousand dollars. Now, I
know you got 25,000 to work with but you're also saving 4,
5, 6 hundred dollars a month. And so, I think we can actually go straight into
a don't change your life circumstance, just go buy an investment property.
You're going to put 20% down. Get a good deal on it. And the goal here is to have
roughly around a 20% annual ROI. I'm usually capable of producing
25. Sometimes even 30%. And this principle is all about "Make my
money work for me, Kris." Because right now your money sitting in savings. Money
market account, right? -Yes, sir. -What's that paying you right now? -I think it's
like 0.75. If you start the answer that question with point, I'm disturbed.
It's been a place to keep your money maybe safe, relatively speaking. But
the reality is if we go from earning point seven to earning 20%, then be
awesome, right? -Absolutely. You don't have to disrupt your life. I
don't know if I'm reading body language wise that you're as excited about that
it's the first option. Because you want that home ownership. But I want you to be
aware that that is something... -Okay. -That makes sense? -Absolutely. Yes, sir. -Alright. The third
option that I want to point out for you today
then I'm going to call is partner. And here's what partnering looks like:
You have the ability to get into real estate. And once you do, there's going to
be friends, family, colleagues that get kind of curious. Like, what are you doing
and how does that work? And they're older than you in many situations. So, they've
actually maybe saved up some money as well. And if they have, you could say, "Hey,
I've got a team. Let's do some deals. I'll show you the ropes. We'll be into it 50/50.
You put up the money, I'll make it happen." And they would want to do that if they
see that you have some type of track record or access to a team with track
record. Both of which I can give you. -Okay. -And so partnering, a little more than
advance strategy that requires confidence. And it's you basically saying,
"I am determined." Like I was. Like, I was committed by the time I graduate college.
I wanted 25 homes. Because I know that that would be that 6-figure
residual income. And whereas you want to make $16,000 a month residually, that's
why I'm bringing up this option right here. I've got a version of it actually
called maverick. And what maverick is it's where you find people that partner
with me that can buy 2, 3, 5, 10, 20 homes. My half of the ownership I actually
split equally with you. -Oh, wow. -Just for the referral.
Because I'm building my portfolio. I buy houses every single day. And so,
partnering. This is a way for you to actually acquire homes. But literally and
most importantly, you can do it with no money and you can do it with no credit.
it's important for me to give everyone, you, as well as Tyler an option of
knowing that listen we talk ourselves out of the investments that make the
most sense. Because we're like, "I don't have the money for it." Even you, it's like,
"Well, I got 25 grand I can work with. I'm always going to show you an option that
doesn't require 25 grand." That way if you have a relationship capital, let's go buy
some real estate. If you're a good saver, let's go buy some real estate. If you
want to move, let's go buy some real estate. And your situation,
you've got all three of these available to you. Bottom line is this Tyler: If
I can show you how to buy 1 or 2 homes, every 5 years, they double. They
multiply. So 2 become 4, 4 become 8. 8 become 16. And you're going to get to your
goal. So, that's the good news. The good news is you put yourself in a great
situation. You're young. You've been responsible with your money. And your
game plan says that, "Hey, whether I'm in the mood for moving or not or opening my
mouth. I've got 3 viable ways to put myself on track to making
million bucks." -A solid right there. -Excited? -Awesome. Absolutely. Yes, sir.
-What are you favoring right now? -Honestly, the first one is probably like the one
that I would want to do the most just because I know my wife if I'm thinking about
her as well like, I just put myself in this. I would say that first option
is probably something that she would be more open to. -Cool. -At the same time, I
would want to continue looking at the other 2 options because (1) I
do have some people in my life --parents, family members, people that I know that
have expressed interests and things like this. When I discuss about you and the
videos that I've seen. But even the 20% ROI is hard to pass
up as well because... I mean, you guys helping out with that work.
I mean me just saying, "Hey, I'll let you guys handle it and I'll just... I'll
just be here laying back." So... -And Tyler, that's what I call the chaos in
abundance. Right now, you have plenty of options.
It's just a matter of now figure out which option should I do it. For those of
you that are watching, there's a link in the description below. If you haven't
received a private game plan like you're experiencing right now, you should click
that link and have a chance to talk to a member of my team or get a copy of my
book that comes with a complimentary game plan. Because there's something so
refreshing about sitting down with someone that has loads of experience in
the game that can just look into your world and say, "Wow, did you know this was
an option? Did you know that was an option?" You've got options to actually go
out there and freaking crush it in real estate. -I'm excited. It's just pretty cool
to see that. I'm glad I don't have like one-set path. I'm glad I have those
different avenues to take. -There's probably a few more of them out there.
Listen, Tyler. Thank you so much for being here today. -Yes, sir. Thank you. -And
congratulations. I'm excited for you. -Thank you, thank you. -I'm excited to track
your results and what kind of the next move is. And... -Absolutely.
-If it were me for what it's worth, the idea of buying the house that you're
currently living in from family, getting a deal on it, walking into equity and do
it with a little very little out of pocket, that's always a smart move. So, I
like where your wife's headed on that direction.
I'd honor her. I think that's a good way to go. -Okay. -But ultimately, you guys will
figure it out together. -For the rest you, make sure that you like this. If this was
useful, you're like, "Wow! Wow! I'm getting into Kris's head and figuring out how
like a millionaire like looks at people's situation. Figures
how to make money." That's how I would do it for Tyler. How would we do it for you? Click the
link below find out for yourself. You get a custom game plan. And otherwise, we will
see you on tomorrow's video.