How do you start a real estate investment company? It's a really good
question. And today I'm going to share with you the 5 steps to get you started
right now. So, you want to be a real estate investor? There are 5 things
that you need to know how to do to help you get started in the most powerful way
possible. Of the 5 things, the first thing that you're going yo need if you want
to start a real estate company is you need to start with a strategy. There's a
lot of strategies out there. You could do multifamily like one of my buddies. you
could do real estate development like another one of my buddies. You can flip
properties, you can own rentals. And so you got to get clear on what is that
strategy. Now, some of you have actually read my first of several books that I've
written. It's called "A Straight Path To Real Estate Wealth." It's all about my
hybrid system called lease option. That is my favorite strategy when someone is
brand-new and starting with very, very few assets. Now, you're going to want to get
really clear on what that strategy is because by the time we get to step 3 and
you're actually doing a deal, you want to make sure that it lines up with what
that is. The second thing that you're going to need is you're going to need
how to get the money. When you're actually out there doing a deal, last
thing you want to do is be one of those brand new green investors like, "Oh yeah,
man, I'm hustling. I'm going out there. I'm finding a deal." And you do and then you
don't got the money, that's like a nightmare. So you want to be able to
check that off the list and say, "Hey listen, if I go out and I find a deal, I
have confidence that I'm going to be able to execute on that deal because I've lined
up the money for me." I remember when I bought my very first
property. I had a took me 14 months to save up a tiny cute little down payment,
right? $5,000 in the bank. And because I was so freaking poor, saving up five grand...
Like my wife and I, we went to the mat. We were literally counting pennies and
quarters and doing everything that we could. I obviously know faster ways of
doing real estate today. But back then I didn't have those strategies. When it
came time 14 months later, that we met all the criteria my mentor gave me to
actually go out there, I found the deal that I wanted. And the good news is we
were able to buy that because we have the funding lined up. So, once you know
the strategy and you got the money lined up, that is what takes us to number 3,
you got a deal. Now, I know some of you were thinking, "But Kris, I need my
LLC, I got to set up my business." Dude, right now, get yourself on track for
making money. You don't need an LLC. You listen, don't waste time on things like,
"What's my logo going to be?" Don't worry about that stuff. That stuff will work
yourself out. You're here to figure out how to make money line that up first.
Know your strategy, get the money and then after that, you're actually off to
making the deal happen. Once you've secured the money, it's all about fun in
the deal. This is going to match up. In a moment, I'm going to break down a very
specific way of using these 5 steps. Only after I have the deal and I'm
actually on track to making money, do I then actually care about setting up an
LLC? A business. Limited Liability Company is what 99.9999% of people are
going to use for a real estate business. The other .001% are idiots and don't
know what they're doing. So, it's going to be an LLC. Now, this is something you can
set up after the fact. And some people are like, "Oh, but don't I have to have
that first?" Here's a reality. If I'm buying a property in January or February
or April or March or anytime before the end of the calendar year, I still have
time to set that up inside of an LLC, deed it in and then I'm good for the
next year tax season. The fifth and final thing that you need, I'm going to say it as
a bonus. So hang tight for the end of the video because I think this is one of the
most important things that you can have. First, let me share with you though what
does it look like to actually do these 4. If I were mentoring you and I was
helping you get your start in real estate then I'm going to start you off with
a strategy that I call compassionate financing. It's my lease option strategy.
And basically it says, we're going to be dealing in single-family properties.
Single Family Homes, SFH. We're going to be purchasing them underneath the median.
We're going to be buying them with a discount. And the reason why I like this
for people that are new is because people that are new, they need to make
money when? They need to make money now. They don't want to make money in 5
years or 10 years or 20 years. This particular strategy enables me to get
5 grand up front. Which if you're new investor, dude $5,000, that's a good shot in
the arm of confidence. The second thing that's going to happen is you're going
to be making $500 each month on average in cash flow. Which again for a new
investor, dude, that can cover a car payment. That can subsidize a house payment. $500
a month can help, you know, pay down credit card debt. For my wife and I,
our very first house.... Dude, my wife was so scared of being in debt. It was all about
get out of debt. And our first 2 properties got us entirely out of debt.
And that's when my wife went from being a skeptic to a total supportive. "Kris,
dude, we need to get more houses." Which was music to my ears at that time. After that,
the last thing is there's tens of thousands of dollars that come to you
when you actually sell that house a few years down the road. So, for a new
investor, that's a really great way to fly. That's my lease option strategy. Next
you got to line up the money, a couple of the front ways of doing this. One, you
could say, "But Kris, I don't have any money." And that's okay. I've got a no
money down lease option strategy that I teach people how to do. But some of you
have money in 401 k's which you know my feelings on those things. I hate them.
IRAs. You know my feelings on these things, I hate them. Or you might be
putting your money in stocks. In this situation, you might know my feelings on
this. I hate them. Or you might be putting your money into an annuity. I especially
hate those. Or any other stupid retarded places where people put their money
where they forfeit control and are threatened with taxes and penalties and
are frankly screwed. Instead you got to get your money working for you. So a lot
of you actually already got the money that you can put into real estate. Some
you got it under the mattress, you might have it sitting in these places. And by
the way, if you do have a choice of being with an employer that is seducing you
with a really great match. If you put your money in the 401k, do yourself a
favor. Don't do it. Your money in your hands today is far more powerful then
socking it away in a place you can't touch it. For who knows how many decades
so that when you finally can't touch it, you're like, "Crap, that is not a lot of
money. Sure hate that I did that thing." Don't make that mistake.
Put the power and the control in your hands right now. And so these might be
some of the places that you store money. This can help you fund. If you don't have
any of those things and that's all you got going for you. Another thing that you
can do is save up a few thousand dollars and do a tiny 3% down payment
on your own first house. So now all of a sudden, you got the no money down
strategies. You watch one of my other videos, you'll
about that. You can take your hidden assets from places that other people are
controlling, yank those out and actually put them to work. Or you could buy your
own house. A fourth option just for fun maybe a partner. Maybe you know someone
that is just as committed to financial freedom as you are. And maybe they have
money sitting in 401ks, IRAs in some of these different places. And boom, now
you've got money. Bottom line, I've given you 4. Those are different ways to say,
"I've got my strategy, now I got my money." The next thing you need to do is go out
there and find a deal. Now remember, we're doing single-family homes, priced
underneath the median. I like to buy them in the very best markets because I'm a
fan of making a 20% plus ROI on my deals. And the reason why is because I won that
with compounding that, I can double my money every 3 and a half or 4 years.
Worst case scenario, 5 years. And that means that sure I might not get rich
quick, but I am going to get rich. You understand the difference? If you want to
get rich quick, go find more partners and go find more money. It's out there, it's
available on massive tranches. You just got to have the courage to go out there
to be bold and and believe in yourself to actually go make this thing happen.
And then the last thing is once you actually have the strategy, you lined up
the money, you went out and you did a deal. Now go ahead and pop that in an LLC.
Go put that in a place now where it can, you can receive the protection.
Make sure you ensure your tax benefits and write offs. And that takes us at the
end of this video here friends to the most important thing that you need when
launching your business. Beyond the strategy, beyond the money, beyond funding
the deal and beyond structuring it in the right LLC. The fifth and
final last thing that you need that unfortunately too many people go without,
is you need a mentor. A mentor gives you something very special that I like to
call proximity. When I learned from Tony Robbin,s is what he calls proximity to
power. The reality is it's our human nature to surround ourselves with people
in our exact same circumstances. Because that's where we feel the most
comfortable. We're not leaving our comfort zone. When I'm surrounded by
people that are in my situations. But what you don't understand is that it's
getting uncomfortable, it's getting outside of your comfort zone where
freedom actually lies, opportunities lie. The people with knowledge and skills of
abilities track records lie. Which means you got to leave your comfort zone. And
what a mentor does is a mentor for me, definition of a mentor is someone that
has a minimum of 10 times the results of what you want. You say to yourself, "I
want to make a hundred thousand dollars a year. 6-figure residual income." Then
you need to find someone that is making a million dollars a year residually.
Someone that meets that definition, that's a person you want to hang out
with and that's a person that you want proximity to. You want to be where they
are. Do they go to seminars? Do they go to events? Where do you find them? Are they
on their podcast? Do you know where they live? Do I have people track me down a
knock on my door and ask for help? Yes. I had some people do it today. And so, what
I want you to understand is that a mentor will ensure that you're not going
to screw things up because when you're brand new, you should be very afraid of
you. You'd be very afraid of the fact of what you don't know. One of my mentors
that I paid over a million dollars to, the most powerful moment for me is he
had flown in town. We were having a business argument. My mentor gave me a
look like maybe I shouldn't be arguing with him. And it was like one of those
father dad son moments where I just felt really uncomfortable because he just
stopped talking and just kind of stared at me. Then he said something I'll never
forget. He said, "Kris, the most dangerous information is what you don't know." And
then I got it. I was operating and trying to make
decisions on what I think I know. Now, in my space having done over 3,000 real
estate deals, there's a lot that I known that space and I haven't learned
anything new in that particular niche for years. So, I'm expanding, I'm growing,
and pushing myself. I make a great mentor for people that are new to single-family
and don't know what they're doing. But on the other hand, in all the areas of my
life where I'm going in and learning things that I don't know, guess what I do?
It's I find the best, brightest, smartest mentor that I can and I seek proximity.
This last year, I spent over $100,000 following this one man all over the
world. I was going to be where he was going to be and I was going to learn I was
going to grow. Next year, I'm doing the same thing. Except I'm going to spend
$250,000. And the point is is that at this point in my life, I am
aware that what I don't know is dangerous to me. When you're getting
started on this path, there's a healthy balance between
taking bold action which you need to do and then tempering that against making
sure that it is the right bold action. And that's what these 5 steps will do
for you my friend. Thank you so much for watching today's video. Listen, if you do
not have a mentor, if you don't have someone that's got your back, if you
don't have someone that can review your deals and make sure that you're doing
things the right way then I want you to click the link in the description below.
Because I'm at a space in my life where I've got a intimate niche of brand-new
investors for the most part. Some of them very experienced. And we get together and
I share with them the best deals that I'm in on doing on. I'm training them, I'm
working with them. And then they're bringing their deals to the table and
this mastermind is getting deals done. So, if you don't have someone like that
and if you don't have the system or you don't have the training or you don't
have confidence and how you're going to find the money or you're lacking the
deals, if you're lacking any of this, click the link in the description below.
Get with me and my team. Let's break it down for you and see if we've got a win.
Other than that my friend, thank you so much for watching this video. And if you
haven't, make sure that you subscribe and we'll see you tomorrow.