Would you be willing to move if it could accelerate your real estate investment
gameplan? My name is Kris Krohn. I became financially free at the age of 26. And
since then, I've been helping people making these videos helping thousands of
people on their journey to creating financial freedom through real estate.
And a lot of people get hung up on this big question of like, "Man, should I
actually like move?" or "Moving is so uncomfortable. I don't want to do that."
Today, I'm going to be actually interviewing one of our friends here of this channel.
His name is Zach. And he's coming on to kind of share his situation he's in. He
bought a house, he's got some equity. Should he move or not to further his
portfolio? We're about to find out.
I'm sitting here with Zach. Dude, how you doing brother? -I'm doing good. Thank you
for having me. Zack, how long you've been watching the channel? -For probably about
2 years now. -So, watch the channel for 2 years. He's out here one of my events
with me and I said, "You know what? Let's make a video and actually talk
specifically about what your game plan looks like." And there's a number of
different game plan. Sometimes those game plans are about
moving. Like, will moving help me go faster? Recently you guys bought your
first house and so you actually are kind of in the game. I mean you bought a house
for around 200,000. You're technically in school finishing up your master's
program. But that house has shot up in value to what now? 260-280? -Yeah. Right
around there. Yeah. -Right. So, first of all, having just bought a house 3 years
ago. And knowing that there's 60, 70, 80 thousand dollars of equity. How's that
feel? -That's really good. -If you think about that... I mean, let's just say 2
years it ends up being a total of a hundred grand. You're like, "If I did that
10 times, that'd be a million bucks." -Exactly. -And that's the way that you want
to get thinking. So today, I'm going to kind of just put myself in your shoes
and say, "Alright. I'm going to find out what your world financially looks like." And
say, "Great. If I had to start exactly where you're at." And I was agnostic to
your beliefs or situation. And I was just gonna do what I know how to do.
How would I make my next million dollars. Is that fair? -Yeah. -That's great. -I can't
guarantee you like it but are you open to it? -I am open to it. -Okay, awesome. By the
way, for the rest of you watching this, if you're thinking, "Oh, jealous. No fair. I
want Kris to do a game plan for me." I'm tell you right now, there's a link in the
description below. I have trained a dozen men and women on my staff who do this
exact same thing with my perfect methodology. So, if you have any questions
on what it looks like to get your game plan, it's free. Just click the link below.
So, let's talk about you. Let's talk about your game plan is. -Alright. So, you guys
have a house. -Yep. -You bought it 3 years ago while still in college. -Yes. -And
since then... You're married now, right? -Yeah. -You got a kid? -Yep. Yes, I do. 21-month
old girl, Kennedy. -Kennedy, 21-month old girl. There's proud dad all over his face right there. Dude I love that. But
you got something else really exciting happening right now. Something happens in
about 4 weeks. You are going to officially... -Graduate. -Oh, my
gosh. You're going to be done with the game. -I'm so excited. -Yeah.
So, you're software developer. -Yep. -And you're getting a master's in this. -Yes. -So,
you're full-time. And so right now, the house that you live in... This house, we're
going tO call it a value of 280,000. We're going to say... By
the way, your tax valuation gave it a value of 260. -Yeah. -That's usually 10 to
20 percent lower than it is because if they get any closer than that, then
the people get upset. -Right. -So, this could be 280. It could be even 300. It may have
gone up 100 grand in value. That would be really nice. -Would be really cool,
right? -Well, really cool with some of the options I'm going to show you.
Right now, you purchased it for around 200,000. You owe
right around two hundred thousand. So, there's about $80,000 of
equity in play here. Now, I put that out because "Do you have any money and
savings right now?" -Yeah. We have about of combined out of all our accounts, it's
probably about 5 grand in savings. -There's kind of a typical situation,
right? I mean graduating college. Got the first job. You're making some good money.
Hopefully the Masters gives you a little bit of a bumping pay. But the reality is
it's relatively check to check. Good thing you bought the house 4 years
ago, though. -Yes. -Why? -There's kind of... Because my wife, we wanted to go with the next
phase of life and we wanted to start having a family. And so, to do that, my
wife didn't want to climb 3 storeys of apartment buildings in the middle of winter.
And so, that's kind of why we went forward with that and started looking. And my
wife is very ambitious and she wanted to find one. And within a matter of weeks, we
found a house. And within like a month later, we closed on it. So... -Will you do me
a favor and give her a high five or a hug or whatever the two of you do
tonight. Say, "Hey, this from Kris Krohn just telling you. Hey, 3 years ago, you
made a brilliant choice. Because you've got 80 to $100,000 of equity." And
hopefully, you're going to be bringing home some bacon and some good news tonight
sharing with her, "Hey, where can we go from here for the next phase?" -Yeah.
-Because a lot of people in that phase is, "I want a house to live in. But I want to
show you what an investor's next phase is." -Perfect. -Deal? -Yeah. -Alright. I feel like, I
got a good grasp on your situation. Clearly have some pretty good average or
good credit. -Yeah. -Perfect. Awesome. And you've got your
whole job lined up. So, question is if I were you, what would I do? And I've got
options percolating right now. So, I'm going to start sharing them, okay? In no
particular order, I'm not going to say you're going to like these options. But I'm
going to share them all with you. -Sounds good. I'm open to anything.
-Option number 1, if 3 years ago buying a house was a good idea,
do you think it could be a good idea again? -Yes. -Yes. So, the first one is to buy
a new primary residence. So, this option is called moving. Now, she may not want to
move. But I'm still going to give you all your options so that you see them all.
Okay? The reason why it this is an option is because with the primary
residence, you put 3% down again and you're talking about 5, 6, 7
8 thousand dollars. More importantly, you don't have to come up with that
money this time. Guess who can pay for it? The equity on your home. So, you can go to
the bank, community credit unions. Say, "Hey, I want a home equity line." And they'll
say, "Your house is worth 280-300 grand." We say you owe 200. We'll give
you a line up to 250." And you're like, "Just like that, I get a 50,000
dollar line of credit. No closing cost." Like, yes! Hence, the hug to your wife when
you get home. 3 years ago, she made a good move. -Yes. -Right? So, let's
see if we can duplicate that. If you get a primary residence, this house is going
to pay for this house. And the reason why we're doing another one is get another
good deal. This one then what happens to it? Well, your current home (now I put an
eye on it) it becomes an investment property.
It gets rented out. You can do my lease option system. Do a normal rental. But I
can show you how to do somewhere around 350 to at least $500 a month of cash
flow. Now, what's important about this is that you know, right now, you guys.. aAe you
getting ahead? Are you more check to check? Where are you kind of at? -Right now,
it's more of check to check I would say. -Okay. And this situation now says,
"Actually, I'm not check to check. I have an extra 4 or 5 hundred dollars a
month." Plus the family that moves in, gives me $5,000 down. That
makes sense? So, every home should always put you in a better financial situation.
That's why we buy them. It's never to make your situation worse. Some of you
watch it like, "Yeah. But, what, yeah. But what, yeah. But what if?" Like, what if it's never
rented? It's like, "No. I get it. You've never done it before." But there's
solutions to all of these things. Certainly track record on thousands of
them. So, this first option is all about creating this big cash flow. The pain, you
got to move. And that's a pain and you know, I don't know. Maybe wife's up for it.
Maybe she's not. I don't know. But I wanted to at least give you that first
option. Here's your second option: Second option is don't move but get that HELOC
--home equity line of credit. And my guess is you probably
I'm going to get it between 40 and 60 thousand dollars. For today, I'm just
going to load it at fifty thousand. Go to a couple different banks. They shouldn't
charge you any money to open one of these. It takes about 2 weeks to close
on one. -Okay. -So, all the sudden, the cool thing about... This is not like a credit
card. Literally, if you don't use it, you don't pay anything. If you use it, then
you'll start paying. But the rates are way lower than typical credit cards.
It doesn't weigh on you like a consumer credit card does either. So, it's a
positive benefit. -Do you know about how much the like... How much you'd pay like on
like the payments would be like on interest or anything? -Yeah. So, interest... So
interest can be anywhere from 3, 4, 5 percent. It's cheap money.
It works. Meaning you could literally take that $50,000
and this is why today's a good day. I can take you into some of the best
markets where you could go buy one or 2 homes with that amount of money. Now,
you're going to get a payment increase. But you're going to get new cash flow off of
these homes. And that cash flow is going to be way bigger than that cheap 3, 4
or 5 percent money. -Right. -Way cheaper. -Right. -That make sense? -Yeah. -So bottom
line is I'm always treating less for more to pick up more cash flow, more tax
benefits. And right now, you're technically overdue. You've got the
assets lined up. And they're ready to be deployed into basically saying, "It worked
once, let's do it again." But even more methodically, let's do it as an
investment property and follow a system. -Yeah. -That make sense? -That makes sense. -Now, if
we can get you these 2 homes, guess what the next goal is? -More homes?
-5 homes. I want these 2 to give birth to twins. I want you to have a
total of 4 homes. And 4 become 8, 8 become 16. You're a millionaire. -Okay.
-That make sense? -Yeah. -It's just a matter of time. We just got to keep moving the
money around strategically with really great ROI. Usually on the homes, we're
doing, we're producing 20-25 percent annual ROI. Means that you double
your money every 5 years. -Okay. -Sooner. So, that's kind of what a
second option looks like. So, this one says, "Oh! I got to move. But I like the
cash flow." Because by the way, you can move and do this and do a combination of
both of those. You could literally buy a new primary residence and keep the old
one. Plus get 2 more and have 4 homes. -Okay. -So, option number 3 is I
always... It's all about having at all. So, this one's going to be called do it all.
So, here's the big secret: You want to figure out how to get to
3 homes. 3 is a magic number in the real-estate Kingdom. -Okay. -When you
buy an investment property for the first time, the people that know you or that
think they're your friends but then when they see my investment property, what are
they likely going to say or think about you? They can be confused. Some of them might
even call you a little crazy. Like... -Yeah. -"This doesn't make sense. No one else is
doing this. Why are you doing this?" Crabs in a bucket. When you buy your second
house, they're going to say, "Now, you for real crazy. You're doubling down on crazy. You
like, you're crazy squared." -Right. -But when you have 3 homes, people change their
tune. This is where they actually start saying, "He didn't die yet."
-Yeah. "Something might be working here." -So, "Something might be working here." But they
don't say that till number 3. So, 3 is a magic number.
So, whatever game plan you do choose, there's always a goal. How do I get to
3? -Okay. -So when you're considering... And here's why that's important. The
fourth and final option I want to share with you today is... Going to call it
partnering. Now, the reality is the reason why I aggressively did so well in real
estate so fast is because after I had put my own money at risk and and put
everything all into buying my first few homes just like I recommended here. I had
my first partner emerge that looked at what I was doing.
Total skeptical on property one. Total skeptical on property 2. But property 3, he was
kind of itching his head like, "He's not dead yet. So, something..." -Somethings got to
be working. -Something that... Something's got to be working. So, he open up he said, "Tell
what's going on." And I showed him my numbers. And he freaked out. He's like, do you know
what your ROI is? And I have to like now. So, I'm like, "Yes, I do. Yes." He's like, "Do
you know that this is an abnormally high ROI?" I'm like, "Uh-huh. Yeah." He said, "What's
your next move?" I'm like, "Well, it's funny you say that. I buy about my my fourth
house but I don't have the money." So, I guess I have to pass on it. He said,
"I'll put up the money and we'll be 50/50 partners." -That make sense?
Why would he do that now though? It's because I had bought some properties. In
your situation, though. I've created a streamlined version of partnering. And I
call it maverick. And the Maverick program that I created and launched
recently basically says, "As people are impressed with what you're doing,
turn them on to my channel what I'm doing. If they decide to partner up
directly with me, my 50% of the ownership I will equally split with you." And
literally just for a referral for being in a good way,
you'll start buying property with no money and no credit. And the secrets to
really going big in real estate is no money no credit. You got to figure out
how resources are no longer a hindrance. And so, that's why for me, the money
you'll make on these homes can be amazing. The cash flow, awesome. The tax
benefits, yes. But the most important number on this whole board is 3. -Okay. -Which
is... Yes, each property should improve your financial situation, equity, cash flow,
taxes. But it's all about that number. Because once you get to 3, you open up a
brand or possibility that is infinitely bigger than you ever buying real estate
on your own. It's other people saying, "Hey, you figured something out, can we play?"
Then you say, "Yes. You can do things that you would have to otherwise wait to have
the money for." That make sense? -Yeah. -So, Zack. that's these are 4 options. Like,
if I were you and I woke up, I'm like, "Now, I don't take advice directly
from someone a little bit crazy. I do. I'm doing all that.: -Right. But you got it you got to do
what's right. You got to do what's right for you and your wife and your family.
And just one step at a time. But the good news is you have tons of options.
Hug your wife because 3 years ago, she pushed for something that actually
put you in a great situation today. -Yeah. That's very true. -Yeah. -I mean at the rate
that your savings, it might take you 10 years to get where you're actually at
today. So, you're in a blessed position, my friend. -Yeah. -You excited? -I am. This is
really cool. -What do you like in what you see there? -So, I have to double
checking my wife and see what she's thinking. But you know, definitely I've
always been interested in real estate and I've always been interested in kind
of wanting to invest because I know it's like everything that's going, the trends
and all these different things like that's the one trend that is always here
and will always be here Is real estate. And so, I've always been
interested in wanting to get into that. And so I mean, I'm just pending on what
she says of getting with her. Like, I'm definitely interested in looking at
getting you know a couple more homes and just seeing what
do to help with that. Whether it's we go with number one or we you know go with
number three. Get it al, do it all. -And they're all good options.
-They are. They all are very good options. And I think it's something that
we can leverage to as a family help kind of make our situation better.
-Awesome. -Which is what I want for my family. -Dude, congratulations. -Thanks. -And
for the rest of you watching this thinking, "Argh! I want to get a game plan."
It's in the link below just talk to the member of my team.
They'll literally diagram this out for you and break it down down for you and
help you understand what it looks like. If you haven't liked this video already,
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this stuff and hopefully today got you clear on what that looks like.
Take care. Thank you.