Who wants to be a millennial millionaire, right? You remember that game show Who
Wants to Be a Millionaire? Well friends, today's video is all dedicated towards
teaching you 10 core basic principles in real estate that can help you go from
nothing to making millions of dollars.
I get that when people watch these videos that you might be sitting there
thinking, "Kris, I love learning from you. But dude, sometimes you go freaking right
over my head. Can you get it down to a principle-based level?" Well, because of
that feedback, I've decided to shoot this video and to give you 10 core
principles that if you can understand and wrap your head around, you can
leverage it to make insane amounts of money. And that's what we're going to do
today. This principle is all about buying the right kind of real estate. So write
this down. Number 1 is I want you to buy real estate under the median. If you
can make your money from a house that is priced under $200,000, you're going to have
a significantly higher degree of safety than if you're trying to make money on
houses worth a half a million dollars or 800,000. Underneath the median is what
Warren Buffett called a safety margin. He says, in fact, if you buy low sell high, if
you can buy homes at a discount that are beneath the median then whether the
market goes up or down, you're going to find that you are in a place of safety. So
that's rule number one with making millions in real estate. It's you want to
buy single-family below the median. The next principle is called the principle
of risk. And what I mean by that is you need to confirm that you actually have
buried treasure in that property. You cannot... The days are over.
I'm just going to buy a house to say that I'm an investor. We are buying it under
the median. It's a single-family home. Now, you need to confirm that you have equity
or that you have ROI and you do that by performing a comparable market analysis.
This is basically getting a realtor or my prop stream system. If you've seen that
video. To confirm that you actually have the equity that you think you do on the
property. So for example, the houses were 200,000. I'm buying it for a
$170,000 and I have confirmed I have $30,000 of equity.
What that does is it ensures that you do not have unnecessary risk.
Safety is buying the right home in the right price range. Risk means making sure
that you have enough equity that if something bad were to happen to the
property, you're protected. Okay, the next principle is called the principle of
cash flow. What's going to protect you and your investment is to make sure that
you have a significant source of cash flow. What you're really looking for is a
cash cow. We might have been looking for equity like my net worth just increased
or I've got great ROI. But I want a part of that to be cash
flow. So for example, if you're using my system and you're using compassionate
financing, my lease option system. Where you're buying a home that is a $500
month cash flow, that is a cash cow. A single-family home purchased under the
median with equity producing that level of cash flow is a principle that's going
help skyrocket your success. Next, we have the principle of responsibility. My mom
always said, "Kris, you cannot spell but you can't sell." The principle of
responsibility ultimately says that you need to make sure you're a good steward
of this property. You need to have a strategy. You have this home with equity,
you've got great cash flow now what are you doing? Like for me, I use my lease
option system and the purpose of that is to have the property self managed.
Meaning there's a family in that home that says, "We're going to buy this home and
we're going to make it ours." And so they're managing it, they're maintaining it. It
means that I'm taking on a dual level of responsibility. I'll make sure (Worst case
scenario) the property's taken care of. But I put someone in the home, that far
out without any pay, will do the exact same thing.
Okay, next we've got the principle of odds. If you want the odds in your favor,
you need to understand that real estate is a numbers game. And it is incredible
when you think of how many people will watch this video and say, "You can't find
a home with equity. You can't find a home with cash flow like that." Read the
comments. "This guy is bogus. This guy just wants your money. He just wants you to
buy a course." Dude, you're going to get... You're going to see all of that. But because
those people exist, guess what? People like you and I get to go out there and
freaking slay it in this game of real estate. So understand that real estate is
a numbers game. And you might have to code them through 10 deals to find one
that you make 50 grand on. Would that be worth it to you? Would you be willing to
look into 10 deals to find one that you could make 50 grand on? If the answer is
yes, then technically each deal is not worth 50 grand. It's worth 5 grand
because there's 10 of them. 50 grand divided by 10 tries, that's $5,000 of
try. So by the way, when I look at a house and it doesn't work out, I'm like... I just
put $5,000 in my bank account. It feels really good. So principle of odd says,
"When everyone else is bowing out, choosing out, not showing up,
telling you that you can't do it, that it's not going to work." Just I want you to
do what I do. It's like the Grinch going from this to...
It's like that really big, crazy, cheesy smile that just keeps on going. Because I
need non-believers. I need people to say this stuff is phony and this stuff can't
work. I need them to challenge it because that's why it'll always exist. There will
always be a balance in the force between positive and negative. And you need to
make sure you are on the good side. Principle number 6. This is the
principle of action. Now listen, this might be one of the most important. If
you yourself want to use this to go from nothing to millions. I'm breaking down
for you the 10 core principles. And one of the most important is that when you
find a deal and all the numbers add up. Then there's the really scary part for
the beginner that says, *Gulp*. I kind of like, you got a pounce.
You got a leap. You got to like jump on that. You got to get in there. It's
amazing how many people will just get scared stiff and just wait and do
nothing. I get that it's a risk but you know what? If you don't take the shot, if
you don't take the risk, you're going to get nothing in life. Like taking no risk
guarantees that you're going to fail. In fact, you want to take risks. What we're
talking about here is a calculated risk. I can't promise it's going to work out
because it might not. But it's better to try than not. Okay, so the next principle
is called the principle of profit. And what I mean by this is for you to make
money on the deal, you have to become a really good negotiator. I'm going to share
with you a style that I use in negotiating real estate. I don't play
games. In fact, people pay a lot of money just
to like learn this from me. So I'm just going to teach it to you real quick.
It's a little side bonus. Is that okay? When I want something, I just have to
know the right price that I need to get it for to win. I am not waiting for the
best deal guys. Don't hang out for the perfect deal. It's a myth. You're
hanging out for a really good deal that will work. And I've got standards. And my
standards is I want a 20% ROI. So, if I have a deal that has a 19% ROI and I
know that I want 20, I'm not going to ask for 25, I'm not going to ask for 30. And I'm
also not going to settle. I have my breaking point and I draw that line. So I skip all
of the games and I will just actually call up the person and just say, "This is
what I want. Does that work?" And what we're going to do is we're going to do it as verbal
as much as possible instead of in writing and paperwork. Because what it
does is it saves time. You got to be wicked fast to secure a great profit.
Don't mess around playing games because you can go back and forth all week long.
"This price, that price. This price, that..." Someone else just snagged it out from
under you because you were focused on the wrong thing.
You found a good deal, say what you want son and get that thing or get out.
This next principle is called the principle of condition. And for principle
8, what I mean by that is that when you have this property now, you got to
make sure that you upkeep it to the proper standard, to the proper level.
There's a lot of people that will spend way too much money on a property or fix
things that they shouldn't or they deny certain things that they actually should.
The principle of condition that I break out my entire program when we work
together is making sure that you're really just doing the right amount of
work on the property. If you want to know what the right amount is, look for
projects that have sold in the area and ask, "How much did they fix the house up
to?" Because you might be dropping in like gold plated toilets and granite
countertops and you know, you might be doing above and beyond when really the
neighborhood's just a Formica neighborhood. Dude Formica.
That's it. We need linoleum, we're not doing tile. So you don't want to put more
into the property. And on that same token, when I do my lease option system, I
actually leave it up to my tenants to actually be in charge a lot of that
stuff. So I actually don't take on any unnecessary financial burden. It's
actually part of the system. As I pass it on to them and I give them credit for
that and I give them a big bonus for doing those things.
So, principal condition means when you're rockin out your real estate, only put the
right amount into it. Okay the ninth principle that I want you to understand
when you're considering anything in real estate. But my system, it's all around the
principle of optimization. And optimization basically says, "least time,
least effort, least risk, most money." A lot of people know how to mistake movement
for achievement. They know how to play the busy game and be busy all day long.
But the reality is you need to learn how to value your time so that you're using
it and spending it appropriately. If you're doing a real estate
strategy that's taking way too much effort and way too much time, you're
doing the wrong deal. You're doing the wrong thing. Now, we're almost done
because I got a tenth one. But the reason why I'm teaching these principles is
because I have 3 different ways of making monumental amounts of money in
real estate. And all 3 of those system adhere to these 10 principles. So,
if you really understand the nugget of what's behind them, it's going to help you
be way more successful as an investor. The tenth principle is based on what
Albert Einstein called the most important financial instrument. Which is
compound interest. When you do your real estate, you need to keep it in real
estate and you need to magnify it. If you and I were sitting down at the table and
playing my favorite board game Monopoly, here's what would happen. I would be
trading to greens for for greens. I'd be trading greens for red hotels. I'm always
going to be trading less for more. And my goal is to double everything. So one of
the ways that I win in the game of real estate is that if I'm making 25%
a year on my money. In five years, when I've more than doubled my money and
I saw my project. I'm going to take my winnings and I'm going to put it back into
real estate and now do 2 properties when before I had one. Guess what I'm
going to do later with those 2 properties. I'm going to take them and I'm going to turn
them into 4. And 4 to 8. And 8 to 16. Compound interest will
allow you to grow your wealth and to continue growing in amazing financial
ways. Friend, these 10 principles of safety, risk, cash flow, responsibility,
playing the odds, action, profit, condition, optimizing,
compound interest. These are the 10 principles that I use in all of my real
estate. It's principle-based. Because if it is, it'll protect your time, your
effort, your energy and your money. And so friends, I know that that was a lot. It
was hard-hitting but I hope you'll take these principles and go freaking run with
it. Go crush it in the game of real estate. Now, if you're asking yourself,
"Kris, this is all great. Some of this went over my head. I'm glad that you
broke that down. How do i implement this?" Did you know that I've got a team on
standby? If you got money, I got it excess deals. And if you got no money, I can get
you into a club that will actually teach you how to go out there and do deals. You
just need to click the link in the description below. Get with me my team,
let's figure out the best way for you to play and help you take action on these
principles crushing it in real estate today. We'll see on the next video.