I was surfing on the net and came across Quora with some really great real estate
questions and someone was out there saying, "if I want to make $10,000 a month
residually, how much money do I need ?How much real estate do I need to do? So
today, on Limitless Wealth TV, I'm going to be answering that question.
Alright, so today's video is based on a question that comes straight from quora.
I really connected with it because frankly, it was the first real question
that I asked myself in real estate. The question reads, "if I want to make $10,000
a month from rental properties, how much would be my investment?" So the way I look
at that is how much money would I really need and how much real estate would I
really need to buy if I wanted to produce $10,000 a month residually? So my
wife and I when we were totally dirt poor and we scraped everything together
to buy this first property, it was like it was worth like $140- 150,000.
I bought it for a $110,000. So it had like this
$40,000 equity position. Before we even found it, it took us like
14 months to save up $5,000. It's like a baby down payment to be able to even do
this right? because you can get away with 3% down payments on homes when you're
first-time homebuyer- purchaser. So my wife and I, we spent 14 months building
up we bought this house and after we did, we would rent out the basement. It would
pay our mortgage almost entirely and all of a sudden our biggest expense was gone.
We were living for free which meant that we could start climbing out of credit
card debt, we can start paying things off and I remember that's when my wife and I
had to sit down and said, "alright, how much real estate do we need to do to get
to $10,000 a month? So I really want to say can I quit this question? It's
because I not only asked it, the answer them about to give you I lived and then
four and a half years later, I had more than $10,000 a month residual income and
and it worked. And the exact same thing that I did then is the same exact same
thing that works today. In fact I love showing people how to do it so I'll give
you a little bit of a taste for it here and then seriously, if you're new to the
channel you need to subscribe, so that I can share with you way more of the
details of how did I do it, what were my strategies, you can find it all here.
So question, if I want $10,000 a month a residual income, one of
the questions is, how much real estate do I need to do? and the other one is, how
much money is it going to actually take for me to get there?
You know I give you two totally opposite answers today. I did not have money, so
what I actually started doing my real estate that tiny
down payment I put into that house, essentially I took a what I'm gonna call
a sweat equity path. Now, sweat equity path means that the first house that I
bought yet had $40,000 of equity and that was important because all I put
down was five grand but by buying five grand,
I got 40,000 of equity. Now, some of you're watching this like, wait Kris
already lost me. What's 40,000 of equity?" Real Quick. That means that this house
had a value of a $150,000 and Ipurchased it
for a $110,000. So if you take 150 thousand and subtract
100 and 10,000, you get 40,000. So even though it wasn't like
$40,000 cash in the bank, it didn't mean that if I sold the house today and sold
it for that, I would get roughly 40 grand. That was important because all I put him
is five grand and when it came time to buy my next house, I didn't have to come
up with money again to do it. I actually accessed some of it's equity with
what's called a home equity line of credit. That's what your bank basically
says, "hey do you have some equity in your home? If you have enough, will even give
you checkbook access and you could actually literally write money out of
your mortgage. It will increase your mortgage but you can go buy stuff with
it." Well, I took that money and guess what I bought? I bought another house and this
house had even more equity in it but this house bought it. So even with two
homes, I was still only five grand in. So I want you to know that if I kept doing
this and four and a half years later, I had well over $10,000 a month residual
income. How much real estate? I had twenty five properties and those properties
were averaging between 350 and 700 dollars a month so 25 properties were
actually I think paying about $12,000 a month. This is kind of what's a little
unbelievable. How much money I needed to do it? Literally, it was less than ten
thousand dollars. Now I call it as sweat equity path because I'm about to give
you a second answer. My sweat equity path essentially meant that I let this house
buy this house and then I waited and I let this house buy that house and then I
moved again with a tiny down payment used this equity to buy that one. And as
it grow and then I brought in partners and they put up the down payments. I got
into twenty five properties. I was collecting $12,000 a month personally,
that's when I made when I hit my goal. I quit my job. That'll happen in four and a
half years. I was 26 years old when that happened. So that's how little it can
take, but if you had someone that just said, "Kris, I don't want this what equity
path. I want to do it way quicker than that." Today, I know how to buy 25
properties in like six months using other people's money. And if you haven't
been over to my website to learn about partner profits, I actually share with
you exactly how I did that and so I could actually duplicate this over again
just like that. It would be really easy because it's the knowledge that you
possess that's most important. But I'll even give you a third way. You might have
someone that says, "well Kris, I got money. if I want $10,000 a month
and I just want to drop 20% down payments." Then, going the old-school
old-fashioned way, you would probably need somewhere around a million dollars.
A million dollars in 90 days could create $10,000 a month residual income.
Now ironically 10 grand a month, 12 months in a year, it's a $120,000
a year. You put in a million, you're getting cash-on-cash
120,000 back. You're basically making cash on cash about 12% on
your money. But I didn't have a million dollars, so I did it with ten grand.
So if you're watching this video and you're like, "hey Kris, I would totally
love to have a $10,000 month residual income that I would either say
do you have a million bucks? And if you say, "yes", I'd say, "great!" then hike over to
my website and my team will actually buy you a bunch of homes that will produce
$10,000 a month. If you're saying and "I don't have that." Then
hike over to the website and what I'm going to do there, is click the get
started option and the starter option is me and my team really just sharing with
you how do you do this when you don't have money. Because remember I didn't
have ten grand when I got started out the gate and so if you're looking for
how to use other people's money, OPM, if you're looking for how to make a
little bit of money, go a really long way, you should totally go and check out that
course. Many of our YouTubers have had a chance to engage in that. They're in a
private Facebook community with me now learning and growing and doing real
estate. So that's what I would recommend. So to answer the question $10,000
a month, what do you really need? Well, I think
it's on rental property. You're going to need 25 properties if you're talking
about single-family homes. How much will it take? I've shown you how to do it with
10,000 and you can also do it with a million. Great question and frankly, I
hope the answer is useful for you as well. Listen, if you're not a subscriber,
change that. Lets you and I become friends because guess what? I got a lot
more to share with you when it comes to making a lot of money in real estate. We
got this one life to live. For heaven's sake, let's live a meaningful life and
if it's going to take some financial resource to open up and make those
dreams come true, let me share with you how you can do that through real estate
investing. Check out my website or it's in the description and the link below
and me and my team will show you how you and I can team up and get making some
money in real estate right now.