Kris Krohn here REITV and I'll tell you
something...
I retired when I was 26 and
that's the question is how old or young
do you need to be to really get into real estate?
is there a particular age?
so I love it when young people ask me
how old do I need to be to invest in real estate?
and i love it with old
people are like "is it too late for me to
invest in real estate" everyone wants to
know what's the magic age when is it too
early when is it too late?
well before I
answer that let me just kind of share
this idea regardless of age, if you have
the ability to do a deal and let's say
that deal could make you $50,000
so what I ask, "do you really want your age
to to get in the way of producing
$50,000?"
so what age do you need to be?
well I got started when I was 22 and I
retired when I was 26 just a year out of
college so do you need to be 22 or 26 on
the low side no I've seen 17 and 18 year
olds do it I have gotten a buddy who who
went by the time he turned 19 years old
had already brought a couple properties
he went to go server to your Christian
mission and when he came back you know
what he walked into almost a hundred
thousand dollars of equity sold those
properties that cash flow paid for his
mission and then he upgraded it into
more properties you can be young and you
can do this you can also be old and of
course it's never too late if you're
leveraging a short-term buy-and-hold
strategy because no one wants to buy a
property at 100 and then kick the bucket a
year before they're able to sell it
there doesn't have to be and I'll tell you this
I was 26
beat that!
if you're young be inspired ultimately getting a
deal done does not come down to you
having money are you having credit it
comes down first of all you having a
desire to make something happen and so
if you're watching this video and you
have that desire know that in some way
shape or form what's available out there
are the necessary resources to make
deals happen I spent ten thousand
dollars to do millions of dollars in
real-estate that's all it took for me to
get in and then the beginning even far
less than that for you I'm not going to
tell you an age I'm not going to tell
you how much money or how little money
because the reality is everything you
need right now to make real estate
happen it's available to you if the
desire is there go for it now if you
want to make sure that you do the deal
right there are three things that I want
you to watch out for how many?
at three all right so let me give these
to you the first thing that I want you
to be focusing on
is equity now what is equity equity
ultimately equity is this idea of the
difference between what something is
worth and what you all want right so if
an asset and then there's a liability
portion when you have a mortgage on it
let's say something is worth a hundred
thousand dollars and let's say that got
such a great deal on it and i bought it
for fifty thousand dollars well now that
means that fifty percent of the property
is paid off and in this example there's
fifty thousand dollars of equity then
also represent a 50-percent ltd or
loan-to-value so fifty thousand dollars
that will be fifty thousand dollars in
network equity is the first thing the
second thing that you want to look
forward to make sure deal works is cash
flow k cash flow basically means all
right here's this hundred thousand our
house and my $50,000 mortgage is costing
me four hundred dollars a month but I
rent it for seven hundred dollars a
month what's the difference between 700
and 400 that's three hundred dollars a
cash flow in a year that's three
thousand six hundred dollars and if it's
something like a lease option strategy
and all the expenses get deferred to the
person in the house so that could then
become a cute cash flow to you watch one
of my other videos on how to do these
options to get more information on that
and then the third thing that you want
to look for is controlled you don't need
to be the sole owner to share control in
this property sometimes I buy properties
with cash sometimes I buy them as loan
sometimes I bonded with partners take an
example to partner you can watch one of
my other videos on how to find partners
and what that looks like but essentially
with the partner what you're doing is
you've got somebody that says hey don't
put up the credit maybe they'll put up
the money and maybe you're the one
finding the tenant and managing your
property and the tube you are sharing
control so you can put anything in a
contract
you can decide what control looks like
and make sure that you have some so that
as you hold on this property over time
when it comes time to buy sell reruns it
out you're the one calling the shots to
make this work for you whether you are
17 years old yes you can or whether you
are 100 years old
go for it no seriously go like go go
scram make it happen like I don't care
how old you are if you're watching this
video if you're old enough to watch this
and like cognitively process what I'm
talking about here then guess what go go
make it happen and then go tell us what
went down and go ahead and blogging and
comment below because I would love to
hear from some of you how young or how
old were you when you actually got into
real estate
you