When you get into the game of real estate investing, there's several ways of doing it.
And you go to listen carefully because some people will actually exit the game before
they have a chance that could've been the gold ticket to financial freedom.
Reality is there's ways of doing real estate investment that take lots of money and then
there are ways of doing real estate that take absolutely no money.
There is ways of doing it that make it incredibly difficult and hard.
And then there's absolutely easiest paths out there.
And so, in today's video, I want to share with you what's up, what's down and how to
do that.
For those of you that don't know me, my name is Kris Krohn.
I became financially free at the age of 26.
And I've dedicated the last decade of my life helping other people, thousands become financially
free just like me.
So, I hope you enjoy today's video.
So, based on my own experience, you really have 4 options when buying a home.
And this go from the most expensive to the least expensive.
And they're all valid and they're all serve a specific role.
You see, if you are going to buy a house and for own intent and purposes, this is a $200,000.
And you deem this a great property.
It's going to have a fantastic ROI.
Let's make up a number.
Let's say that it's producing a 20% return on your money.
And you're like, "This is fantastic.
Kris, what are my 4 options?
Like how could I actually buy this house?"
Let's explore.
The first one, I think it's kind of obvious.
You could actually pay $200,000 and buy the home cash.
Right?
You can leverage some kind of money.
Maybe an inheritance or some savings or maybe some 401k that you self directed.
And you could buy property cash.
Most people do not buy a property that way.
But you could buy it that way.
The reason why they don't is because your ROI goes down without leverage.
Leverage meaning, leverage banks cheap money and a little bit of your money.
It actually brings your Return On Investment really high through the roof.
So then you say to yourself, "You know what?
I'm not going to buy the home cash."
Or, "I can't buy the home cash."
Let's do our standard conventional financing.
Which is 20% down.
And 20% down on his house would be $40,000.
Now, right out the bat, you got to be thinking, "200 grand, 40 grand."
40 grand is a lot easier than $200,000.
But some of you are thinking, "Man.
Kris, that's either a lot of money or that is not a lot of money at all."
This is pretty standard practice.
When I buy real estate, I like to put 20% down.
That doesn't mean that it's my money but that is what needs to happen.
There's another way to do real estate however.
You could start getting into what's called seller financing.
And this is highly creative real estate.
Seller financing for all intents and purposes, let's say that it will take $5,000 to do this
house.
Now, mind you.
We just went from paying full price to actually just putting 20% down.
Now, we're looking at putting down like 2 and a half percent.
$5,000.
It's a very small amount of money.
But what is seller financing?
Seller financing.
The question is who's the bank, right?
In this situation, when you buy it cash, you're the bank.
In this situation, the bank is the bank.
Meaning, you're going to put down 20 grand or 20%, they're going to put out the rest.
In this situation, the current owner of the property is the bank.
Do you see that?
You're the bank, the bank is the bank, the owner of the house is the bank.
Seller Financing is where you go to the person that is selling the house and they don't want
it anymore.
Or maybe they do want it but you have a great preposition.
You see, anyone that is renting a house in a valley, guess why they're renting it?
They're renting it because they're trying to make money.
But once a while you get someone that's renting the house because they inherited it or they
moved and they don't want it anymore.
But for whatever reason, it's not in their mind to sell it and so they're only option
is to rent.
And when you become an accidental landlord, there's a 90% likelihood (Made-up statistic)
that you're going to hate doing it.
Which means, I could call up anyone that is renting a house like that an just say, "Hey,
my name is "Kris Krohn.
I buy houses for a living.
I see yours is for rent.
Do you mind if I rent it for the next 5 years and buy it from you?"
Now, that's not a normal conversation.
By the way, I'll take care of the house.
I'll take care of all of it's repairs and everything."
You're going to get a landlord out there that raises an eyebrow and says, "That is interesting.
Because I actually don't want this house."
And if you're telling me that I can finance it to you because I am the bank, then they'll
say, "Well.
what will you give me?"
Hey, I'm not going to cheapskate on rental.
I'll actually give you some money down upfront.
I'll take care of it.
I'll do this or that.
But I get to sub you and I get to manage it.
And I get to sell it."
If they say, "Yes" You just did the seller financing deal.
And then, there is 1 fourth option.
Now, by the way, if any of these is going over your head, I've written a book and you
can actually get all of this information.
Put a game plan of how to go from nothing to millions of dollars.
I'm focusing on a basic principle today.
But there's a game plan for you to become a multi millionaire.
And not because I want you to be rich.
But because I want you to experience freedom in your life.
I want you to experience what it's like to live life on your terms.
Not a boss's terms.
Not someone else's terms.
The fourth option is what we call bringing a partnering.
Partner that has OPM.
They have money and they're going to put the money in the equation and you're going to
be the active partner that's doing the work.
If they're putting up all of the money, then your part is to put up what?
No money.
But it is to put in work.
When I partner with people, I put in about 300 hours with my collective team on every
single deals.
So, there is work happening.
But there isn't money.
Because there is an exchange that's worth the money that they put in.
Partnering basically means someone brings in the money, someone else is doing this equity
and boom!
Today, I wanted to show you the 4 ways of buying real estate, Buy cash, buy it 20% down.
Buy it with seller financing where they're the bank and in this situation, your partner
is the bank.
And now we know there are 4 kinds of banks.
You, the actual bank, the person who owns the house or your partner.
And if you learn how to leverage those 4 different type of banks and you bring a winning strategy
to market, guess what?
For me, I'm buying hundreds of homes this year.
I'm not putting a penny in.
But I'm obtaining and building all of that wealth.
How?
Because I understand this core principles.
One of the things that I want to recommend for you.
If you don't know your next step or where you go from here, get a copy of my book for
free.
I actually every year, when I go and print them, I get a whole bunch of extras and I
don't charge anything for the book.
Cover the shipping.
That would be helpful so I can get it in the mail to you.
But after you buy the book, you'll learn about things like my real estate foundation course.
And what it is to learn the 10 core basic principles that create financial independence.
There's a lot that comes from this free book that you can get your hands on that can really
help you figure out your next step in the game of real estate.
Hey, I hope you enjoyed today's video.
Thank you so much for watching and making it to the end.
Like, subscribe and we'll see you on tomorrow's video.