Dude, can you even actually make money in real estate? I mean is it for real or is
it some crazy hoax? Is it like the game for the wealthy? Or who are these real
estate gurus anyway? And are they just ripping people off? Are they just taking
their money for selling their training courses? Friends, real estate? the gloves
come off and today we're going to take the hardest look that we've ever had on
whether this whole thing is a hoax or whether everyday people actually can
succeed real estate.
Okay, so I moved here into the mountains to escape the real estate gurus that are
going to hate what I'm about to say. Okay, that's a joke. I do live in the mountains.
It's really beautiful. But here's the deal. The whole real estate guru industry,
I have insider knowledge on it. Because when I was a college kid, I got to see
firsthand the way this whole thing went down. And it actually is what
jump-started me becoming very successful in real estate, ironically. So, what I want
you to first of all understand is I live here in the state of Utah. Utah is a
really beautiful place, it's a wonderful place. But because of its very favorable
tax situation, it attracts telemarketing telecentres like crazy. So it just so
happens that here in my backyard, down deep in that valley, there are all of
these companies that it looks like sweatshops as people that are wearing
their like headsets. And think boiler room. They're all walking around and what
they do is you have these real estate gurus that have made all this money. And
because of infomercials or online marketing or their books that they've
written, they go out there and say, you can make all this money in real estate.
And what they'll end up doing is, they'll then hire these coaching
floors. These call centers to call all the leads that are responding. And their
goal is to sell them a coaching package. Now this is crazy.
But the coaching that they're all selling them isn't even the coaching in
many situations of the Guru. It's just these generic floors that get paid to
sell the leads. And then they have this often substandard fulfillment. There are
some good companies out there but a lot of them, what they're doing is they just
have these people like... "Do you have real estate experience?" "Yeah, I read a real
estate book or I'm a realtor." "You're a hired. You're a coach. Just read this
manual. Give people these 10 phone calls in these ten assignments." And people are
paying tens of thousands of dollars for this. Anyway it ends up being really
substandard and it's a joke. And fortunately the FTC's come in and
they've changed a lot of guidelines. They shot a lot of these companies down. and
it's a really good thing because they should be gone and they shouldn't be
here. But to some extent, it's always going to exist. Because the reality is
you can make a lot of money in real estate But the people that don't have
the training, that don't have the hands-on help, they can make a big
to get in on the house and boom, it's going to come crashing down on them. So this
is actually kind of the crazy part. You know, there's a counter fit for
everything that's out there. I've actually gone on to become
extraordinarily successful in real estate. Have helped facilitate thousands
of deals. I myself this year I'm buying 250 homes. And yet, I'm just telling you
right now. If you have a YouTube channel with hundreds of thousands of
subscribers and you've written multiple books and you've done thousands of
presentations, people are going to get out they're going to ask for help. They want to
know the shortcut. And here's one of the things that I want to tell you to know
the difference between a guru scam artist and a guru that's the real thing.
Before I tell you that, I just want you understand. I'm not a guru. I do have
extraordinary amounts of knowledge and experience and track record in the game
or real estate but I'm not comfortable with that phrase. I'm very comfortable
with the concept of mentor because someone has experience can give it to
you. Now, the difference between these gurus and the people that are really
helping, it all comes down to this. Is the Guru practicing what they preach? They're
all claimed that they are but that's what you really ultimately need to find
out. Are they actually just trying to make all of their money selling
information? Which that and of itself isn't necessarily bad. But the moment
they're not doing what they practice or they're not doing what they preach,
that's when I think that things fall apart. At least that's when I believe...
What I've been able to observe from behind the scenes. So, it turns out that
when people ask you for help, guess what? I actually have programs where I will
mentor people. But it's me that's mentoring, It's actually me that's
working with people. When I partner with people, they get my cell phone and
actually work with them and we're actually doing deals together. Do you
understand the difference? It's... What's the real thing? For those of
you that are maybe Christian or fans of the Bible, there's this
passage that says, "By their fruits you shall know them." Well, what are their
fruits? Are they real? Are they genuine? Are they authentic? Or are they made up?
Or they lies? Are they embellishments? So, then we got a talk about real estate
like is even real estate for real. We know these gurus are the bearers of
the message that says that it is. But real estate in and of itself. Let me
share this with you. When I did my very first deal in real estate, I was scared.
Like I was crazy nervous. I had mentor. I remember going to his house. His
name's John. We were going through all the numbers, we were looking at it. And
dude, everything from knocking on that door for the first time, negotiating,
getting it under contract to buy it. Man, I was just sweating bullets. I was so
nervous. And I had an expert helping me out because dude, I was a young dumb college
kid who should have been focusing on his grades and his degree. And instead, I was
trying to forge a path for me to be in charge of my financial destiny. I didn't
want to put that in the hands of a counselor. I don't want to put that in
the hands of my parents or society. I mean, they're all part of that other
generation. And the new generations going places. The other one just hasn't been
before. Something inside this internal compass was calling. So I decided to do
something. I don't know if it was stupid or courageous. In hindsight, it worked.
Because this house that I bought, it is true. The people that lived there had
actually worked at the steel mill. Geneva steel. In our backyard, next to Utah Lake.
Geneva steel supplied families for decades with a wonderful job and
wonderful income. And then the steel mill shut down and it got shipped off to
China. And when that happened, the people that lived in this home, he lost his job.
He was unemployed and he stayed that way. I think living off of subsidy programs
and government programs. And really had a hard time. And they got to the point
where they needed to sell their house. When I knocked on the door, I was
terrified. In fact, as a young dumb college, I can remember. So I'm like 22
years old and I'm trying to sound as official as I can. I knock on that door
but inside I'm just like, "Waaah." And the lady's like, "What do you want?" She
was very grungy, grouchy woman. And it smelled like smoke. The whole house was
just... It was a wreck. But it was going to be my first deal. I didn't know yet. And I
remember that lady's like, "What do you want?" I said, "I am interest in your house."
She's like, "It's $110,000." And I didn't know what
to say next. I've never done this before. So I said, "How about $100,000?"
And she barked and she said, "No, it's $110,000." Well, I
asked her to let me inside. I mean, should have actually looked at the house first.
I mean it was so stupid that I was even quoting a number. I look back I'm like,
"Kris, oh man. I'm so glad that you had a mentor that could have kept you from
like making a bad mistake." But on this house, this lady, she was insistent that
she wanted the purchase to price to be $110,000.
When I took it to my mentor and I said, "Is this a good deal?" Pulled up his
computer, he ran the numbers. And he said, "Kris,
this house has a value of $150,000. Which means if
you buy it, you're going to walk into $40,000 of equity." He said, "Yes,
buy that home." It also had a basement apartment. So a couple months later after
I barely by the skin of my teeth bought it. Banks were hardly going to lend on me.
But I just I stuck with it. I was tenacious. So glad this was a good first
house. Because I rented out the basement. The basement paid for the entire
mortgage. And the upstairs was 3 times as big. It was 3 bedrooms. So, I
was actually living in this house for free because of the basement and I had
$40,000 more than my net worth. Like that set me up for so much success. Now listen
up guys, if real estate was a scam, we could say, "Yeah Kris, but that's one in a
million man. That deal doesn't come along every day. You just got lucky." And at that
point, I'd have to agree with you and say, "You're right. I probably did." But I've
done it more than 3,000 times since then. So, I want you to understand
that there will always be a small percentage of all real estate holdings
with people that have a reason. I don't know why that woman set the price at
110. If I had offered or more, she might may have taken it. But that's
what she wanted. I don't know why she didn't know her that her house was worth
more or maybe she just didn't care. Frankly, I don't really know what was
going on in that woman's mind other than she was mean nasty and barnacaly and
barked at me. I don't like crotchety people. I got
experiences with them I don't enjoy. So, this whole thing went down and here's
what I want you understand. That equity, I used to buy a second house. Now, if you're
skeptical and you're like, "Kris, you got lucky." Then you better watch how lucky I
really am. Because check it out. I took this equity and I popped it and parlayed it
into a second property. This house that I purchased, check this crazy thing out. I
was going to purchase his house for $150,000. Guess
what it was worth on paper? It had a value just under $250,000.
Had a hundred thousand dollars of equity.
A hundred thousand dollars of equity. Now, I need about 5 or 6 thousand
dollars worth of work. Well I rented this guy out of me $600 a month. It was nicer
than my first house. I would have loved there. Was nearly 3,000 square
feet. You know what? I wasn't interested in my lifestyle. I didn't allow myself to
buy a single luxury item for years. At that point in the game, it was just make
money. Take as much as possible and pop it into the next deal. And so, not only
did I do it a second time but 25 homes later, I had a residual income. So here's
where we get in the video. "Well Kris, does that mean you're one of these gurus,
right? Like you're the lucky sperm club. You're the guy that figured out how to
buy this home and you're lucky." Guys, I got to be honest with you. When you spend
time and get to know me, yeah you're going to see confidence, you're going to see me
stand upright. I'm 6' 4. I gone to the gym, I put some muscles on. Dude,
when I started this whole thing, I had no confidence.
I was worried wart, I was a perfectionist, I was chubby. I didn't like who I was at
the time. I was just trying to figure things out. So yes, I have built wealth
and I'm married now and I've got 4 kids. And my marriage isn't perfect
but we work on it. And it's like right now in my life, I'm just trying to have
it all. Because I believe we can. I believe we can have the money in the
bodies and all the success. But that could have never come if I maintained
the skepticism that I started with. So, there's a lot of garbage out there. And
you might be watching this video saying, "Kris, I don't want to be scammed. I don't
want some to pull the wool." I don't want you to pull the wool over. I don't want
you to pull the wool over my eyes. But that is what the world is about. And I
made this video to help educate you. Help you understand what is out there in the
world. And I want you to know that there's a lot of bad. But there's a lot
of good. There's evil and there's righteous. There's people with money
there's poor people. The poor people always think that the bad people are bad,
rotten, greedy, rich and takers. But my experience is that that exists. But
there's also the good. So, where do you and I stand in all this? Well, there's a
decision I want to invite you to make that is really core, really important.
Which is this. If you maintain your skepticism and can only see the world
through mistrust because you've been hurt before. Then you'll never really get
a chance to find the brighter side. If you learn to trust again though, you'll
probably have mistrusting experiences again because that's life. So I guess
what I'm saying in the choices before you is, is it worth trying again to go
out there and find the good and not just the bad? I believe it is. In fact, I would
like to believe that I'm one of the good guys because I have a private real
estate investing club around helping my investors. Every week, I go on there. I do
trainings with them. Me and my team are answering their questions every single
day. Yes, I'm literally doing that on a daily basis. And I'm they're spending
that time. There's... I can make a lot more money doing a lot of other things. Like
all the real estate that I'm buying. But I've dedicated a part of my life to
helping people. So that part of my legacy isn't just me becoming a billionaire
someday. My legacy is launching all these other people that have the same shot and
having tremendous success. So namaste. I wish you the best of luck on your
journey. And if you're looking for tools and resources, I'm going to tell you right
now, if you click the link in the description below, I think I have put the
best program out there available on the planet that gives you crazy amounts of
value for a very tiny amount of money. Because you have to have some skin in
the game. You won't succeed without that. And if it resonates, come and play. Join
my team. But if you do, do this. You decide upfront. It's the best decision that you
ever made. This last year, I spent over $150,000 on one of
my latest mentors. And I've spent a lot on mentors. And when I did, I made the
decision. This is the best decision I've ever made because I'll tell you, I've... You
can reinforce the pain of it's broken. You can reinforce this isn't going to work
out. You can look for evidence how my system doesn't work. But you're going to
find people crushing it. I was just texting with one of my buddies on the
phone that's joining the program 4 months ago. He just bought his third home.
Landed a partner with 200 grand. He's got 7 more properties that he's going to be
buying in the next 4 months. Dude, he's out there and he is crushing it. He's
living it up. And he's not the only one. You can succeed but you got to get over
mistrust. You got to find what's real, you got to find what's fake. And you got to
be willing to take action. Friends, thank you so much for watching today's video. I
hope it had some value for you. For me, kind of vulnerable to share that deep
into my past. But I hope that it helps some of you avoid some of the pitfalls,
the trial and error that absolutely exists in the world. And to help find
what is authentic and real. They can really help you. At the end, it's not a
game of luck. It's a game of courage and action and learning and growing. So, I
hope that you're a subscriber. Because everyday, I got more learning that I'm
going to bring to you to help you on your journey of becoming the most brilliant
financial expert you can possibly be in your life. I'll see you on the next video.