I remember when I was growing up, the idea of a millionaire seemed like a lot of money
but the world's changed a lot and you know what, it's probably a good goal for anyone
that wants to have a basic retirement to plan on being a millionaire so today, I'm going
to share with you my game plan on how you do just that and become a millionaire.
I want to be a millionaire so flippin' bad, buy up of the things I never had.
I actually can't sing very well but this cool microphone makes my voice sound way cooler
than my normal real voice so we're talking about how to be a millionaire in this video
today.
Becoming a millionaire is what translated into a residual income that freed me up at
the age of 26 when I retired for the first time.
Now I got to say retired for the first time because I figured out that retirement is bunk,
man.
I love life, I love living life and all retirement really ended up adding up to is doing what
I wanted instead of doing what somebody else wanted.
If I wanted to become a millionaire, what would I do?
And I'm just going to time machine and say, okay, I'm poor again, I've got debt, I'm starting
all the way over, how would I become a millionaire and that's what I want to share with you.
The first step in becoming a millionaire is you've got to make one of the most important
financial decisions of your life.
You need to decide what percentage of income you're going to pay yourself for investments
and ultimately, we're going to invest in 2 major things, the first one is we're going
to invest in savings because savings is all about peace of mind.
The second thing though is we've got to diversify, we've got to put our money into actual investments
that give us the ability to compound our assets.
This is a really big decision, this is one of the most important decisions.
You need to understand this, this is a disciplined automatic thing, this is, what is the amount
of money I'm going to automatically extract out of every paycheck that I get that I can
set aside for investing and I want you to be aggressive and realistic on this note.
It might be 10% so or example if I'm making $3,000 a month, 10% of that would be $300.
For this to work, it's got to be $300 that you don't touch and you got to be thinking,
Kris, how is $300 a month going to turn into a million dollars?
Don't worry, we're not saving it, we're going to percentage that in savings and then we're
going to percentage that towards our investments.
The second step is that after you've done a saving, what you're going to do is you're
going to accumulate enough money for downpayment on a property.
The secret here is to buy an investment property that has equity and good cash flow, those
are two very important factors.
When I bought my very first house, it had $40,000 equity position, I bought it as actually
a primary residence so let's actually pretend that becoming a millionaire, you got to buy
a new home for yourself and so you've been just making sure you're establishing basic
credit, it's time to buy that house, the bank is going to say "Well, we want a 3% downpayment."
And on your $200,000, let's say that you're getting for a $160,000, that's not unreasonable,
right?
So I'm going to buy, it's going to have a value of $200,000 and I purchased it for $160,000,
notice that there is a $40,000 equity position but 3% on a $160,000, guess what that comes
down to.
My total downpayment for this house is probably going to be somewhere around 5 grand.
$5,000, if you're saving $300 a month, can you actually how in time you can grow that
into $5,000?
And then all of a sudden tax refunds came in and then I got a bump here and I did this
little side gig and I made little this or that.
This $5,000 is your ticket to becoming a millionaire.
In this system that I'm sharing with you, you're setting your money aside, you're going
to keep doing that, you've got $300 extra a month, now all of a sudden guess what we're
going to do..
We're going to buy this property, this house is going to produce cash flow, watch that
compound effect.
If I buy this house and I either rent it out to roommates or maybe it has a basement apartment
that I'm renting out or if I buy it shortly later, I'm moving to a rental or a different
property and I rent this one out and now all of a sudden, when it's bought as a primary
residence with that kind of equity position, let's hone in on a $500 a month cash flow
with my lease option system that happens, usually collect as a downpayment ironically,
$5,000, you paid 5 grand now they're paying you 5 grand and just for a moment pause.
We're nowhere near million dollars but do some basic math with me.
You started with nothing but a really important decision but what do you have now?
Now you've got your $300 a month from your discretionary income ad you got $500,000 from
the property, we're snowballing into $800 a month.
It was not there before.
It's a lot easier to accumulate money at $800 a month than $300 a month.
On top of that, I did pay my $5,000 but I recovered it.
So I got my $5,000 back in the bank and then number 3, just for a moment, look at your
net worth.
Your net worth increased to $40,000.
Add all of these up over a 6, 7, 8 month period of time, you've just become worth $50,000
from nothing.
Now you got to stop and appreciate that for a moment because $50,000 is a 20th, you did
that 20 more times and you'd be a millionaire.
You did it just through following this simple system.
Stick a moment, celebrate it, say that feels great, that feels good.
Now it's how do we go from here, how do I take $50,000 and turn it into more?
I'm going to erase some things here so take a screenshot of your screen, right.
Or just come back and watch the video again.
What we're going to do right now is, we're going to take this property and the equity
that's in it and after its season, we're going to wait 12 months and we're going to go for
home equity line accredit on this house where we can get enough money for a downpayment
on now investment property.
Still got my primary residence but now I got an investment property.
This investment property let's say is producing $400 a month of cash flow.
Well I got $300 here, I got $500 here, I got $400 here, let's add all that up, where are
we running into now?
You are now pocketing $1,200 a month residual income.
This is huge.
Not a millionaire yet but you bought another property with some equity, you're now probably
worth around a $100,000, you have $1,200 a month cash flow.
How bomb is that?
That's incredible, this is so amazing, it's so simple.
Now this isn't going to surprise you yet, this property is going to become the next.
If you're no longer living in this primary residence, it's because you bought a new primary
residence.
Yes, you moved.
This one turned totally into an investment property that you maybe even sold used to
buy another one, we're playing monopoly now, we're just trading like wow, nothing became
one, became two here, became two over here.
Now I got 4 properties, now I got a net worth of a quarter million dollars and my residual
income is up to $2,000 or $2,500 a month.
Friends, we're just doing more of this exact same system and over a 10-year period of time,
we're going to reach a new phase in the business.
All because we've still keep this rule, just remember this is changed.
It used to be $300 a month, guess what..
Now we are sitting on 15 properties and let's say that we're making $6,000 a month that
you're setting aside.
You're now making way more money here than you were at your job.
Some of you may have even quit your job by now and you're going to get to a point wherein
you're like, well, do I just keep going?
We have two choices.
If you know what your number is, let's say you're targeting $8,000 a month or maybe you've
achieved $6,000 a month and you want to go boho, just travel around the world and be
a bum and just see things and you want to live off of a fairly minimalistic financial
situation, you could take your properties and you can consolidate them into paid off
homes if you wanted to, pile a paid off homes producing your $6,000 a month, that will grow
less aggressive when they're paid off than when they're actually using some element of
leverage.
Getting a million dollars, that's it, we're just trading less for more.
It's simple but it does start with this really important decision which is, how much are
you going to set aside and by the way, be as aggressive in real estate as you can.
How much are you setting aside for your active income?
And especially if you've got little.
I want you to really, I want you to go to the math on this, set that bank account that
is untouchable, directly deposit automatic withdrawal every month, pull money from your
checks into there and let is accumulate because when it compounds, a little turns into a lot
and making your first million from there then it's like, oh now I'm going to be worth 5
Million then 10 Million and then 50 Million then a 100 Million.
This is how billionaires are born, they're created and they're creating it by being disciplined
with their money, and then compounding it appropriately and that my friends is how you
compound in real estate to become a millionaire.
Are you ready to become a millionaire?
Listen up my YouTube friends.
I've got some special tools prepared for those of you that feel committed and ready.
I've got an event sent aside where I teach you the real mindset of building wealth, I've
got tools with my team that can help you actually do it.
We've done it for thousands of people so go check our website over here and let me and
my team share with you some ways that we can help you accelerate and build wealth a lot
faster.