Hands down if you can partner with other people in real estate. One plus one can
equal a hundred. You can do so much more than your own limited resources could
ever allow. My name is Kris Krohn and today i'm going to interview one of my
recent partners and talk about what it's been like going out there and taken the
world down. World domination, baby. And here he is. This is my friend, Paul. Paul,
how you doing brother? -Good, man. -Dude, so Paul knew that we were
going to be coming up to my mountain home today. So, like underneath, he's like Mr.
professional executive. And dude, he Clark Kent over here. That's who he
reminds me of threw down some serious Lumberjacks. So dude, welcome. -Good to be
here. -Yeah. So, you drew drove up from Vegas, right? -Yeah. Literally. And then up
the hill here. -Awesome. So first of all, you know, you and
I, we've only been partnered since when? -August. Well, probably September because I
started watching you in August. So... -Okay. So, you started watching in August. So, just
like you might be watching this video right here. How many of the videos did
you watch before you got in contact with us? -Probably 600. -Okay. -That's how many you have.
-Alright. What drew you to the channel in the first place anyway? -I think it was
your video were you getting out of the car and I was kind of like, "What's
this about?" But it was about how to get wealthy in your 20's. You know... I'm
a little bit on that. But I thought I was just attracted to that and I just
started watching. I like the idea of financial independence and what you had
done for yourself at such an early age. And I thought, "Let's learn more about
this." And more and more as I watched, I thought, "Should be pretty cool to work
with this guy." And then you know, you talked about the ways to do that. So... -And
here we are dude. Here we are and we've done deal since. But I want to just back
up a little bit further. What initiates real estate, what brings people into the
game of real estate so often is just the fact that society has laid a game
plan before our feet. And it's one that it can help take care of the bills. You
can follow society's game plan and you can live day-to-day. But when it comes to
freedom, financial freedom. When it comes to living the life on your terms, the way
you want. That's just something that most people will never even
know. And those dreams died pretty fast because people start
realizing, "Oh, my gosh. I just... If I work harder, I make a few
more bucks, I barely get ahead." And people are busy throwing money into 401ks and
IRAs and things that are not designed to create wealth. So, tell us a little bit
about your background that, you know... Because it's more than all real estate...
It'd be kind of cool but like get real with us for a second here. -Yeah, it's
totally the the financial independence. And for a long time, my head, you know,
it's building up money in 401k and saving CDs and it. But none of that as
you know generates any kind of passive income. Any kind of residual income and
that's what you talked about. And for years, I remember walk... You know, going to
work and seeing, "Hey, I have all the savings. How can I get that working for
me?" And you know, you talked about how to do that with, you know, the deals that we
started to do and building that foundation. So, it just gives me a lot
more confidence to know. I've got that going now and just have money sitting in
the bank or in a CD. So we're great at... My wife and I at making money, saving
money, keeping money, storing money. But how to grow it is your expertise. -So,
here we're going to be talking about partnering and the benefits. And there's
something that Paul is doing that he's tackled that a lot of people
haven't figured out. I mean, when you're young and you come into life, eventually
you're going to get a job and then maybe with a degree or whatnot, you're going to
get better paying jobs. But most people, Parkins Law dictates that we elevate our
expenses and spending to the level of our income. So, the problem is is that
what you're making $30,000 a year or $300,000
a year, most of us know we got dreams big enough and wants big enough
and a list long enough that by the time we make more money, we've actually
already mentally spent it. So, we're going to physically spend it too. How you break that
cycle is you got to develop a discipline to pay yourself first. You got to develop
a discipline that says, "I can't put all of this stuff towards a house or a car
and then if I get more money, another house and another car and a boat." And all
these nicer things. You and your wife have been awesome at saving money. What
brought that on in the first place? Like what... And what motivates you to be a good
saver? -Probably just how we were raised. Our background was... You know, you make
money and save it. My parents are great savers, her parents are great
savers. But not so much on the investing side. So, I don't know. I I'm glad
that we did that because it gave us the ability to play offense with our money
as opposed to just defense. Save, save, save. And one... So, the other thing is you
start to realize as you get older and you go through all those pay raises,
promotions, commissions. All that stuff isn't going to fix your problem. You need to
have some form of residual income. -I hope you guys just listen to what he just
said right there. Is that this whole climb the corporate ladder, we're not
calling it bad. We're just saying it's limited. In a corporate ceiling at some
point, like where you work, do you feel like you're kind of at your ceiling? -Yeah,
more or less. -Yeah. And so, if you want more from life...
-How much more could I really make? Is it going to... Is that going to get me to financial independence?
It's you know, as another 5,000... You know? -So now, obviously Paul and I... Just even
since August. September, we've jumped into a number of deals together. I'm going to
tell you a little bit about that. But first, I want to actually show you
something. Because Paul, come walk over here. I'm going to put this between us. I'm going to
get on this other side of it. And Paul said something. He says, "You got to get on
the offensive with your money." So some of the things that Paul said. He said he was
putting money in 401 K, he said he was putting money in CDs and he was putting
money in savings. Now, let's just talk about these for just second. 401 K. You've
been contributing form K for how long? -15 years. -15 years. -And why do you contribute
to a 401 K? -Because they match. -So, there's a seductive match, right? There's this, "Dude,
I'm going to give you free money", right? "I'm going to be giving you some free money",
right? "You go ahead and put 3% will put 3%." But by the way, can you touch the
money that they're matching? -It's very difficult. -Can you touch your own money
that you're matching? -That's difficult. -No. In fact, if you're contributing to... -Like it's not
your money. -No, it's not your money. Dude, they freaking put that money in freaking
401 K and then all of a sudden you... It's trapped because you're like, "You know
what? Something's going down on my life, my daughters getting married or I want
to take this trip or I want a down payment on the house." And guess what the
401 K people say? "No." You know? And then you try to touch it and they slap you on
the hand. Now, it's only after you leave your job that you can actually free that
money up only if you pay taxes and penalties. So, you accumulate a big chunk
and then tax and penalty is going to... Bu you got to even leave your job. So people,
they get stuck. So, 401 K. If I were to ask on a monthly basis,
how much is your 401k paying you to your personal bank account? -Zero. -Nothing. So,
for me that's kind of like... I call that a speculative investment. Something that
will grow or can grow. It's tied to market that I can't control. Very
different than real estate investing. And yet, it doesn't even pay me. So don't feel
bad Paul. Because you got yourself on the right track. But this is... This is where
people are at and this is when we talk about the game of partnering builds,
brings bigger results. You have built an asset. You have built... You've been working
hard at your job, you've been good saver. And now, we're playing a game called "How
do I take my money from low yields and turn it into high yields?" CDs. What are
they paying you on those CDs? -2%. -Okay, what's inflation? -3. -Inflation is
3%. So... So, for those of you that don't understand, there is a market
force in the world working against your money because of the fact that here in
the United States and probably your country, when your country needs more
money, guess what they do? They print more. And it brings the value over time down.
So, no one would ever invest in the dollar. Who would put their money in
something that loses 3% value every year? Crazy. But the CD, what we're trying to do
is counteract this. So now, in with this 2% that you are making,
you're netting, you're only losing 1% of your on your money. Which is better than
3%. And yet... Guys, we're not taught and educated about money. Society's game plan
of 401ks, IRA, savings. Things like this. And they are designed to get you
backwards but you don't know it. Savings. What are you earning on your savings
account? -1%. -I want to know what bank you're at. I can't get any of my banks to
give me 1%. But you got a bank giving you 1%. And you got your negative 3% here.
You're maybe making a negative 2% gain on that. Arghhh! Okay. So, this is... This frustrating
because the only way you're going to get ahead is by what? Accumulation. Watch this.
You got this pile of money. The only way... If Paul's the bank. Open your hands. The
only way that this money grows is if I take money and I put more money in this
bank account. Which means I got to trade time for dollars. Meanwhile my most... My
most important asset is my time. It's all getting flushed away. So, my bank account
only grows if I work hard because these, these market
forces right here basically mean that I'm not going to get any interest on
this. Here's the real question. Being a hard-working dude, making good
money. You work an entire lifetime. When you look at how big your dreams are, can
you really stockpile enough money in the bank to get what you really want? -No. -Guys,
that's a zero-sum game. That's a game that... You can hold that for a second .it's
good Juju, okay? Yeah. So, as we look at this, people are saying, "I got to be
smarter more intelligent with my money." So, let me tell you what Paul and I have
been doing. This is kind of fun. Instead of putting the money in these places,
what's the first move we did? We didn't start with one house. We said, "let's start
with... Let's buy in batches, right?" So, we go out there and buy 3 houses. Now, I want
you understand something. The reason why Paul was able to do this because years
ago, he and his wife, they made a decision. "We may not know how we're going to get
rich but we're going to at least in the meantime pay ourselves and be good
savers. We could increase our lifestyle, we could have a million dollar house
maybe. We could... We could have more but instead, we're going to actually focus on
taking that money and and saving it." Now, all we're doing is transferring at. And
where is... This is earning 1%, 2%. 401k on average might be 5, 6%. You take this into
account, all across the board, you're maybe making a couple percent. You need
lifetimes for that to compound in me anything meaningful.
But in these 3 homes, do you recall roughly what our ROIs are that we're
projected on these? -18 to 20. -Okay. So we're 18%, 20%. I looked at the last one,
it's 26%. We're averaging across the board. Earning over 20%. Now,
for just a moment, to help you guys understand that. Are you a real estate
expert? -No. -But you watch a lot of YouTube videos. And you're interested and you
like it. This is where people get caught up. You should never do something you
don't like. So, you find someone that has an undying
passion for it. So Paul and I, you know, we've got a match made in heaven.
He's freaking good at saving the money and he's now done his part. And we
combine that with the 3,500 homes that I've done. We bring our 2 skill sets
together. We partner up. And now we're going from
maybe making a couple of percent to making
20%. Is this 20% more than the loss of inflation? -Yes.
-Totally. And if we were averaging 20% a year, how many years would it
take before, you know, for the money to double? -3 and a half? -Yes.
with compound, it's going to be pretty short. But you look at that. 20%, 20%
20%, 20%, 20%. Even without compounding, you're looking
at 5 years. Our track record, we're going to be sitting somewhere on 3 and
a half to 4 years. So imagine what happens to money that in 3 and a
half, 4 years doubles. And guess what happens another 3 and a half or 4
years? It doubles again. And guess what happens after that? Guys, it starts
getting to the point where you get this little thing called financial freedom.
And here's what happens. Right now, we're focusing on massive growth but then you
can take all that growth and you put it into a cash flow phase. Cash flow is
right now, we're interested in growth. We want to grow that money max. But at some
point, you're going to say, "You know Kris, I do want out of this job." We've grown this
asset base. Now, let's put this into cash flow. And when there's enough cash flow
that you don't need to be at your job, what's that day going to look like? -High
five to you. -Yeah, dude. It's going to be high five. We're going to... We're going to throw with that
freaking high five right now. Because we're living there now. We have a goal, we
have a destination. We know where we're headed that's going to form our destiny. So,
tell us some... What's on our horizon? Because we've only just gotten started.
We do... We've we've closed these properties. 2 of them are rented out,
the third one I think. -Third, we're waiting. -That we had just recently closed
on. -You know, another thing I like too is the... This isn't motivating when you're
just saving... I saved another few hundred, few... Whatever it is. Actually,
saving for physical assets like transferring digits into homes is fun. I like
it. -See? That's why I like Paul. Polite Paul. Dude, he totally gets it and he's
got a passion behind it. And that's really important because here's the...
Here's one way that you need to understand. Real estate is different than
401k, CD and savings. CD and savings, 401k? These are probably considered by many
people's standards a safer asset. But the reality is if it's guaranteed to make
you lose in the end, how safe is it? In real estate, things can
go wrong. Each of one of these homes, we're going to hold them for maybe 1500
hundred days, one of these days, they're going to wake up on the
wrong side of the bed, they're going to cry like a baby and they're going to
say, "Ouch, pick me up, fixed me, carry me around." And they're going tO be spoiled for a
couple of days. And then we're going to spank it real hard and we're going to get
it right back on track then we get it up making money again. This is a business.
And this business can be... If you're working with the right team and experts
far more lucrative. Which is why you are a subscriber and learning every single
day like Paul. Everything that you can about growing your mind, right? Because
knowledge applied is power. So, let's just wrap this up. What's our future look like?
Where are we headed next? We've done a couple more projects actually, right? And
we've got another home on horizon. -Yeah. So, Paul and I are actually partners.
You know that one that we... That we try to get yesterday? It got snagged. -Okay. -It's
gone. But... I know. So these good deals they're so hot that they're here today,
they're gone tomorrow. And that happened on one that we presented yesterday. How'd
I think like a 26% annual ROI. It was really good. But we are in on
a commercial project to mine together that is a cash cow. So you know, as you
look to your future and the moves that you're making, what's it like you now
4 months or 3 months later having made some of these big transfers, how are
you feeling about your financial life from 3, 4 months ago? -Really good. I
mean, it's pretty unbelievable that it... You got to get all the information but
the most important thing we talk about it's action. Yeah, you have to take this.
You have to do... Do something. If you don't have the money, do the lease option. Do
you know, give with Kris come to is his seminars. Get the mindset training. Most
important Real Estate's between your ears. Like you always talk about. You've
got to execute or you know, partner with Kris and get some money into Homes. You
don't have to do everything. Just do some of your money. Diversify. If you want
to keep your 401 and transfer some dollars. Maybe you love this and you want
to do more of it. But great guy. We've really had a good experience with him.
This team is amazing. They're all over it. So, it's been a pleasure. -Well and it has...
It's totally been a two-way street, dude. So, thank you Paul, appreciate you
brother. Okay, listen up. Thank you for watching today's video. If you're not,
definitely be a subscriber because you could be Paul. You could be the next guy
partnering up. If you're not partnering with me, I've got an excess of deals. I'll
teach you how to partner. I'll show you how to take
your life elevate it to the next level. All you got to do is click the link in
the description below. Get with my team and get a personalized game plan. Because
the reality is I don't know where you're at in your life. You could
be starting off totally backwards like me deep in debt. Or you could be
starting off after 20 years of working in a way better place. Wherever you are,
there is a plan for your financial freedom. Click the link, find out what it
is.