Kris Krohn here and today we're talking about "How to make money in real estate?"
If you have ever wanted financial freedom, if you've ever wanted to live in
your dream house, if you've ever wanted to travel the world, if you've ever
wanted to drive the car that you want. If you've ever wanted most importantly the
time freedom to do what you want, with from your life when you want, with who
you want, then I'm going to tell you right now. Real estate has created more
millionaires than anything else bar none. So today, I'm going to talk to you about how
to make money in real estate. So, check it out. Today I'm going to be sharing with
you the two most important secrets, the two most important elements of how you
can start making money in real estate right now. Because my very first deal,
when I increase my net worth $40,000 as a young 23 year old,
I'm going to tell you that was mind-blowing for me. Because I was making less than
$20,000 a year at the time.
I mean imagine... Imagine in one moment, signing a piece of paper and that on
paper at least, increasing your net worth $40,000. A short time later, I was
actually able to refinance that property and pull out nearly
$20,000. 20 grand in hand. Also that exact same house, I was renting out and it was
cash flow me $550 dollars a month. What would you do with
an extra $550 a month? Listen, whether you're a CEO
making $200,000 a year, 550 extra dollars a month, every month,
no matter what, that's a really big deal. Or if you're a young, poor, dumb, like I
was when I was in college and I had nothing going for me,
$550 a month, that was huge. That was that like covered my rent, right? I
mean, that was a really big deal. Now, to make this money in real estate, there are
two core elements that I want to share with you. And as I share them with you, I
want you to understand. I'm not going to share anything that's rocket science. In
fact, I can't tell you how many millionaires I've met in real estate
that probably are below the average IQ. I mean, I don't want to be rude or
cruel in any kind of way. But this stuff is not rocket scientist. This is stuff... I
mean listen, if I can do it, you can do it. I actually wanted to go to college and
be a doctor and I was told that I was I was too dumb, I was too stupid because I
just... I didn't do well in my chemistry classes.
I had to harness a different type of intelligence. And I want to share with
you an intelligence that's along the lines of Street Mart smart. So, if you got
street smarts, you're really going to like what I'm going to share with you today. Okay,
2 things that you're going to need. See this? It's not peanut or butter and it's
definitely not peanut butter. That's my camera producer this guy's crazy. He
wants so badly for me to slip up and say peanut butter on stage. He's trying to do
inception on me. It's not working Nate. Alright. So check it out. Peanut butter
is not what you need although that is like seriously favorite food of mine.
Alright. So, before I share these 2 things, I'm going to share something that you have
probably heard before. It's called buy low, sell high. Like Warren Buffett.
Richest man in the world that's given away (How many?) tens of billions of
dollars now. 85% of all of his wealth. He'll tell you that buy low sell high is
really how he created all his wealth. He's done it in real estate and he's done it
in business and that's the core competency. Now buy low, sell high. Just so
you understand what that means, if you buy something for 50 cents and you sell
it for a dollar then you make a 50% profit and you make 50 cents on that
buck, right? Well in real estate, we're going to apply buy low sell high to the two
most important elements of how to make money in real estate. And at the end of
this video, I'm going to actually share with you how you can access some of the
free resources that I have that I can give you that can jump you right into
real estate and give you the tools that I wish I had that I got started. I mean, I
retired after four and a half years in it. You know, I'm actually working today.
Loving my life and helping a lot of people with what I'm doing. You got to do
something when you're retired, right? You got to do something when you don't need
money. And for me, that's giving back to you. So
take notes, classes in session. Number 1, equity. I'm going to define what this
term is and why it's important. When you buy a house, buy low, sell high. Let's say
that you have a house that is worth... It has a value of $100,000. It's a hundred
thousand dollar house. But let's just say for a moment that you can purchase this
house for $80,000. That's $20,000 below what it actually cost, what it's actually
worth. Now, think about that for a moment. That $20,000 is what you increase your
net worth by when you buy that house. And if you sell that house down the road,
there's money you're going to get because you bought low and because
you sold high. So equity is a really important element. The second most
important element that I want to teach you today is what's called cashflow. And
I'm even going to give you one of my top strategies today. So, here's what cash
flow means. (Cash flow means I dropped the board.) Cash flow means that I have a
mortgage on this house. And let's say my payment is $600 a month. But let's say
I'm able to rent this house for $800 a month. There's a discrepancy. You're going to
collect $800 this month but you're going to have to only spend $600 of it on, you
know, the mortgage. So there's $200 leftover. That's called a cash flow. This
is a part of buy low, sell high. There's an arbitrage here. An arbitrage measures
the difference between what you owe and what you can get. In real estate, I'm not
talking about becoming a realtor, I'm not talking about becoming an agent. I'm
talking about how do you leverage these two things right here to financially
improve your life right now. What can you do in the next 30 days that will
increase your net worth and actually put money in your pocket?
Well, let's actually apply this to something very real. One of my strategies
that I use out there is if you were to buy a house. And by the way, if you don't
have the means or the money to buy a house, then you're going to want to click
the link in the description and I will actually show you all the ways that I
buy real estate with no money and no credit because I bought four houses last
week. And it cost me $0. And there's a reason why. So click that link. And by
the way, if you're new to the channel and you haven't subscribed, I'm going to be
dropping wealth on you every single day. So make sure that you take care of that
right now. I'm watching. Now, equity and cash flow, here's what you're actually
doing. If you can buy a house, I'm actually going to show you strategy
today called lease option. Lease option is not just do a straight rental, it's
actually like a rent to own. In this situation, if it was worth a hundred
grand and I bought it for $80,000 then my mortgage is 600. But I'm not
going to rent it for 800. I'm going to rent it for $1,000. And the reason why I'm going to
rent it for $1,000 a month is because I'm going to say to somebody, "Hey, I'm going to
put a rent-to-own sign in the yard. Say, hey how many of you want to buy a
house and not rent. Stop throwing your rent money away but you're scared to go
to a bank and go through the qualification process." I learned from
some of my early mentors. Basically, if strategy on how to do this. And in my
book, which you can download. It's called The Straight Path to Real Estate Wealth.
And it's basically all about how do you create wealth through buying homes. So,
this lease option system that I'm teaching you right now is one where you
get a good deal on the house and then whatever your payment is, you're actually
going to get a couple hundred dollars. 2 to 3 hundred dollars more a month
than you would just straight renting it. So now, we're not at a $200 month cash
flow, we're at a $400 month cash flow. It could be a $500 month cash flow. You know,
that's pretty typical on the real estate idea. To get cash flows like that when I
do this Lease Option system. Well now here you are, making an extra
$400 a month. And guess what's happening with that property over time?
It's appreciating in value. You can't count on it but you should account for
it. Because real estate what? Over time it, it appreciates. It goes up in value. So
now, you have an asset. That asset is paying you, you also have a liability, you
have a mortgage, you have a debt. But the asset and the cash flow off of it is
actually bigger. So, you're maintaining the debt. You're controlling the debt and
you're getting this money left over. Now, let's say that I do this for 5 years.
And five years I go to sell this house. Let's say in 5 years, the houses now
may be worth $120,000. And let's say that the
mortgage started off at 80. But let's say that I'd paid it down now to 70,000
Well, if I a 70 and I can sell it for 120, guess what? That's
$50,000. But in the 5 years I've also been collecting $400
a month cash flow. And by the way, you didn't know this but when they moved
in, they actually gave you $5,000 non-refundable down payment because they
want to be able to buy it. 5 years passes, they go to buy it. I don't really
have the selling fees that I normally do, I don't have the realtor 6%
fees I can normally do. So, I'm going to get most of this $50,000. I'm
going to maybe share some of that money back with them. Let's say I share 10
grand back with them. I make 40 here and I've been making $400
over the last five years. That's another $25,000.
So now, all of a sudden, I sell this home, I make $65,000.
And I did it all with understanding buy low, sell high.
Primarily on just two features. Equity and cashflow. I'm not talking about the tax
benefits and the many other benefits that come with real estate. In fact, I can
even show you one of the best parts of this is that you get to be hands-off.
You're not actively managing the property. I told it breaks. They're fixing
it because guess who wants to buy the house? The people, the owners that want to
become the technical owners on title. So, this strategy is what I leveraged on my
first 25 properties. It created a 6-figure residual income. It allowed me
to quit my job. And now, the cool thing is I get to pretty much do whatever I want
with my life. Now, that was 13 years ago when I retired.
In fact, just yesterday. I turned 39 years old. It's freaking crazy and wild. And
I've been to as many countries as I am old. So I've been traveling the world
I've been doing some amazing things. I can tell you some of my favorite beaches
and I... I don't share that to brag. I want you to understand that I haven't been
under the oppression of having a job. My life got unmortgage and I got
to go off financial life support when I created my own freedom. A lot of people,
they're not actually living life on their terms. They're not living life the
way they want. They're living life on their boss's terms. They're living life
on somebody else's wavelength on how someone else's society says you're
supposed to financially do money and live life. And I'm telling you, do you
like that? Even if you like your job, do you really want to have to work 40, 50,
60 hours a week? Now, I don't want you to become an unproductive number of society.
I want you to become a more productive member of society.
You see, the best part of wealth hasn't been the cars in the house and the trips
and taking care of my family. And even as great as the freedom has been. It's
really been the freedom to do the things that feel right that create fulfillment
in my life. What would you do if you didn't have to have a job? What would you
do if you could afford to do anything that you wanted? I'm not talking about
being a playboy and living it up however you want. I'm really just talking about
what is the life that you want to live that is the most on purpose for you. That
feels the best, that feels the most right. Takes freedom for many of us to go to
live that life. The strategies that I'm sharing with you, can absolutely do that
for you. Now, for those of you that are new to my
channel, subscribe. But for those of you that say, "Kris, what's my next step? How
do I get good deals? How do I get the awesome cash flow?"
I can show you how to do it. I've been teaching people how to do it ever since
I retired from it. And I can tell you that I've helped over 3,000 people to
date. Transact nearly a billion dollars in real estate.
My clients are making more money than they ever have. Over 70 million dollars
in the last 5 years of what my clients have brought in. From what I can
teach you, if you click the link in the description below. When you go there,
you're actually going to get access to learning about my entire system and how
I can mentor you. How I can take you under my wing. And I'm telling you right
now, learning how to do real estate that doesn't take money and doesn't take
credit. That's a game-changer for anybody.