Hey, welcome back. Kris Krohn here and today, i'm going to answer the question that
I keep getting lit up on all the time for my young friends which is, "How can I
quit my job because of real estate investing?" I decided to make today a
little bit interesting. I got my buddy Dallin here. We only met a couple of
minutes ago for the first time. Had a nice long drive to get here to my
mountain home. Welcome. -Yeah. Thank you, thanks for having me.
-Dude, you're welcome. So they do let's get to know him a little bit and I just want
to let you guys know what we're going to do with Dallin. Perhaps one of my most
favorite things to do on the planet is to put myself in someone else's shoes
and say, "Alright, if I was in your life with your
financial situation, what would I do with my rules to create financial freedom as
quickly as possible?" Is that okay for you? -Yeah, definitely. -You excited? -Yeah. -Som dude
here's how it went down. I just posted a I went into my social media and just
said, "Hey, this is my filming day. Anyone who wants a free financial game plan
that's okay being on camera revealing financial sensitive information,
come show up and that's kind of how I met Dallin." So, we're really kind of
meeting for the first time. But have you been subscriber to the
channel for a long time? -Basically since October. -Okay, cool. Awesome. You have
been able to take down some good video since then? -Oh, yeah. Definitely.
-Good. What's the probably the most important thing you've learned so far?
-I'm just having the confidence to move forward to the next step. -Cool. Now, I've
been chatting with down just a little bit off-camera and let me see if I can
summarize as well. -You have a full-time job but you're also going to school
full-time, is that right? -Yeah. Now, something totally I've never even heard of this
before. You're going to school for what degree? -Entrepreneurship. -Entrepreneurship.
Dude, look at that camera dude. This is freaking awesome. Like that how
cool that society is finally catching on to what America and the rest of the
world really needs. Why entrepreneurship for you? -Well, I want to know my own
businesses. I mean, I want to be financially free by creating my own
businesses. -Okay. And you already work on campus in the
admission office, right? -Yeah. -How much he making here roughly? -About 45. -Okay,
full-time college kid making $45,000 a year. That's super
respectable. And you've actually already bought
your own home? -Yeah. -And you also just recently got
married? -Yeah. -When you get married? -In August. -Dude, freaking awesome, man.
Awesome. So, tons of new responsibilities. 26, married. Tell me about the house that
you just bought. -Well, I actually bought it a couple of years ago. -Okay. And I've
been looking to... Looking for another real estate like position to move forward on.
Been kind of stuck the last couple of years to figure that out. -Awesome.
Well, we're gong to play the game right now of how do we help you get financially
free as quickly as possible. Are you ready to play? -Yeah. -Okay, can we
go entrepreneur pace? -Yeah. Okay, awesome. I got my trusty white board here. And
what I'm going to do is I'm going to break down for you. If I were you... By the way
dude, check this out. Check this out for a little bit. We got some of this going on,
we part it on the right side of the head. Awesome. Okay. We're twinners. So, let
me kind of break this down for youm Dallin. This is what I understand about
your situation. You've had your job for how many years now? -2 years.
-Okay. So you had your job for 2 years. And the house you bought is a duplex,
correct? Okay. And your duplex it has a value currently of how much? $230,000 and
what it... What is it? What do you owe on? 140. So currently, from what you
bought 2 years ago to what it's valued at today, there's roughly $90,000
of equity. So if you take the value of something and you subtract
what's owed, that difference, 230,000 minus 140 is 90 grand. So,
in the 2 years, you've done pretty well for yourself. Did you get a discount on
it? Dude, what's up? What's up? Love it. So, he gets a good deal on the house and I
think you were sharing with me that you just finished getting a home equity line
of credit, is that right? -Yeah. -Okay. For those of you that don't know what that
means, when you have a home with good equity, you can go to the bank and they
can give you something called a home equity line of credit and they'll let
you tap into some of the equity. They're basically saying, "Hey, you got a
house, you got equity, you've got some security there." So your home equity line
is how much? Okay, he's got 75,000. Now, that's a very... Just so you
know, that's an aggressive home equity line. Because the bank is basically
saying you got 90 grand of equity, you can have 75 over right now. You
have checkbook access to it or credit card access to it? -Yeah.
-So basically, if he doesn't use it, he doesn't have to pay anything.
But you probably have a really low interest rate on that you can borrow it
super cheap and go do something with it. I wonder what I'm gonna invite Dallin to
do. I don't know. You know exactly what it is. We're going to talk some real estate
here, right? Okay, so are there any other assets that I should be aware of? Making
45 grand here. You've got good credit? -Yeah.
-Beginner budding credit and we've got 75,000. So automatically,
what I'm doing is I first of all want you to understand that if you're like
any other human being on the planet, you're sitting there and you're thinking,
"I got no money." Because a home equity line it's not like it's profit that's in
your pocket. You... You feel like you're financially getting ahead or being
somewhat check to check? -I'm ahead. -Okay. So he's making more money than what
his expenses are. But now what I got to go know is the target. For you to be
financially free, how much money passively do you want coming in every
month to feel like you can kiss that job goodbye and live life? -Atleast
10,000. $10,000, this is the goal. When his investments are
producing $10,000 a month, what are you going to do to your job? -Quit. -How
are you going to do it? Just walk out the door and be done. It's like I'd like to
give you my two-week notice. Psych, I'm out of here. No, be respectful.
Okay, so goal is $10,000 a month. The question is with what he has
so far, 2 years ago started with nothing. Now, is $90,000
of equity, 75,000 home equity line and now I'm going to customize
this for you. Now by the way, you could be exactly where Dallin is if you just buy
your first house strategic. Did you get that? You could be starting with nothing
and buy a house and put yourself in this situation. Because that situation that I
was in. So, first of all, do you like the duplex? -Yeah. -Do you rent the other side?
-Yeah. -Does that cover the mortgage or most of it? -Yeah. -How much you rent you
bringing in? -I'm actually positive, 500 a month. -Okay, so he already eliminated his biggest
expense. He did that by having a duplex. So now, this is where we're going to go. How
do we get you to $10,000 a month? Okay, first of all, I want to give you a couple
of presuppositions that you need to know. When I buy home, I'm using my lease
option system. You probably note that as if you're a subscriber and watching
videos. Which means when I buy the home, I'm
getting paid five grand up front, I'm getting paid $500 a month in residual
income and when I go to sell that home in a few years, I'm going to be banking on
tens of thousands of dollars coming my way, okay? So, this is my strategy that I
recommend for someone who's brand-new starting with very little. But for
college kid, he's got something going for him and he's an entrepreneur. So he's
going to freaking eat this up. Some of you going to be terrified like those things are
scary but not to an entrepreneur. Because we take risks, we live by risk, right? We
don't want to make stupid risk, we want to make educated risks. So, what I'm going to do
is I'm gonna back this up by 3,500 homes. Which means sure there's risk. There's
risk to waking up in the morning or getting out of your car. It might blow up by
the Mafia. It was weird. Okay, so here's where we're at. Goal is 10,000. If we're making
$500 a month, how many homes does he need to have ten grand a month?
Mr. entrepreneur, I'm assuming you're pretty good at math. So I'm just going to
put you on the spot. If you were making $500 on each house, how
many houses would you need to get to 10 grand a month? 10 houses at 500
would give you 5 grand. We need 10 more. So, we're going to need 20 houses,
perfect. So, here's the real goal. It's not 10 grand a month. The real goal is how
do I get to 20 homes? Now, you're going to love this because I got a sweet
hookup game plan for you. What you're going to need, number 1 is we've got to
get you some more knowledge. So for example, like my lease option course that
I have, that will help give you the knowledge the contracts everything that
you need. Once you have the knowledge, I always find that it's really helpful
to have a mentor. This is someone that can check your deals and just making
sure you're not doing something stupid. Because on your first 25 deals, you're
going to mess up. Like it's just... You're going to buy a house with a foundation
problem and figure out, "Oh, that's 25 grand to fix. I wish I knew that." First
house I ever bought, it had a belly in the sewer line and I had to pay 7
grand to dig it up and get it fixed. Because it went into the road and I
needed city permit and I needed a... I mean it was a deal. It was an ordeal. I would
have never guessed that I could have a problem like that until I bought the
house and 3 months later I had a renter in the basement screaming, "There's
poop everywhere." You know... They can't go out. It's going to come back up. So anyway,
lots of fun little things that learn along the way. So knowledge and
mentor. That's kind of the background but here's what you're going to do. Number 1,
we're going to take that home equity line of credit and use that to purchase the
first 2 properties. Now, we need 20, we already got one. This is going to bring us
property number 2, number 3. Now, what we're going to do is we're going to find
homes specifically where that $75,000, we're going to max it out. It's probably
going to cost you $300 in interest but if we're making
500 on each house, you're going to net. If you're making 500 here, 500
here and it costs you 300, you guys tell me. If you're bringing in a
thousand and your expenses are 300, what's left over? $700
a month, okay? Is that $700 good progress towards
10 grand? Heck, yeah. Good progress. Now, we want to buy these homes and do something
similar. We want to get a good deal on them and what we want to do is we want
to collect the $5,000 up front. We want the high cash flow and
then when we go to sell these bad boys. They're going to give birth to more
homes. Let's talk about that. If you buy homes my style and follow my system,
we're looking at doing 20% of your honor money. And if it compounds, in 4 years,
you can trade 2 homes for 4. So, on the same dollars, we want those two homes
to eventually become 4 homes. And those 4 homes at that time, even if we
don't pay back the home equity line, we're probably at that point going to be
bringing in somewhere around $1,700 a month.
Add that to your 500 on your own home, now you're already sitting at
$2300 a month. Now, you're making $45,000
a year. You're getting ahead, so your true expenses or what maybe 25
or 30,000 a year? -Yeah. -Okay. Right now, these 4 homes, guess what
they've almost done? They've completely wiped out your expenses. Which means the
money you're making it your job, where can that now go? It can go right in your
pocket. And you're probably going to use that money to buy more... -Real estate. -...You
know, buy more real estate, right? Well, I'm going to give you the ultimate shortcut.
Let's say you don't. Let's say you put it in the pocket and you want money for... You
want money for some other things. So by the way, here's 5 grand. And we bought
another one, so here's another 5 grand. But then you were smart and you actually
put into 2 more homes. So here's another 5 grand,
okay? Here's another 5 grand. Could you put that in real estate? You could. But
right now just hold on to it. What we're going to do right now is step 2. This is
when we get really aggressive and put the gameplan on steroids. You and I have
one, two, three, four, five homes. Let me ask you. At 5 homes, are you with more
confidence than after you just bought your first house? -Yeah. -If you've done it
five times then it's all gone kind of according to plan, you starting to feel
like you know this thing a little bit? Now, you've developed a new asset and
it's more important than this stack of money. I could stack this to the ceiling
and it would be worth more than that. What you now have is what is called a
track record. And that track record has a tremendous value. I can show you a system
where you can go and find people out there that have money, that are already
in real estate. They're buying houses cash. You can tap right into that Network
and basically say, "Hey, I found another deal and I always put up my money but
I'm trying to go faster here. Is there anyone willing to go 50/50 with me?" All of
a sudden, they're now taking their money and they're coming in with you. What's
the benefit to a partner that puts up their money? For you, the benefit is you
get the cash up front to do a deal. What's the benefit to them? Why would
they want to partner with you? Why would they want to do that? What do you have?
You've got a track record, high-five. Awesome. See, so Dallin, by having that
great track record, now all of the sudden, you're going to find some people. It might start
with some people. You know, it could be family Members, could be friends, it could be
an in-law. My first was a father-in-law. Did a few deals with my father-in-law. Went
from thinking I was absolutely stupid to saying, "This kids kicking the trash on my
401k IRA. Maybe he's onto something." And we've now bought dozens of deals
together. But he was my first partner. So, what you do is you take this track
record, you bundle up all 5 of these homes into a document that says, "Here's
how I bought them. Here's my equity, here's my growth, here's my cash flow,
boom! There's my track record." And then I want you to make a list of people you
know that have been working 20/30 years at their job outside a
college that are good savers and might be looking for a financial solution for
retirement. Those individuals can make really good partners. And I'm going to
tell you right now. Here's the biggest difference between a good partner and a
bad partner. If someone says, "I love your track record and I want to be hands-on
every step of the way and I have the time freedom to do that", they're not
going to make a great partner for you. They're going to be happier if they can
get a mentor like you did and can do it themself. A better partner
someone that says, "Hey, I've got a great career, I'm doing very well with it. It's
it's working out great for me. And by the way, I don't want to mess up on my first
X number of deals." You've done X number of deals. You've already put in you're
working towards your 10,000 hours of expertise.
I want to partner with you. And you start realizing that together, you're far more
powerful than you are apart. That makes sense? -Yeah. -Because most people are not built
to say, "I'm going to find the deals and then I'm going to fund the deals. And I'm going to
be the money and then I'm going to be the credit and I'll do the management. and
I'll do the contracts and I'll do everything." Like most people don't want
to do everything. They want to do a part. That makes sense? So, you're looking for
someone like that that says, "I value your track record. And you don't have a huge
track record but you know what? 5 homes is not no homes. 5 homes is a
great start." So, you all of a sudden bring in a partner and that
partner says, "Hey, let's buy 5 homes." Now, becaue you got to split that 50/50,
that's only worth how much to you? 2 and a half homes. But guess what? Is that
2 and a half going towards your 20? Guess what? 5 more years, you double
the portfolio, those 5 homes become 10 homes. Are they getting what they
want? Are they growing financially? Are you growing financially? -Yeah. -Absolutely.
So, all of a sudden, things worked out well with one partner. You're like, "Tang,
I've now taken these homes. I've put them into more homes and now have a partner."
And I'm thinking, "Man! Now... Right now I have... Now I have 15 homes or 10 homes." Do
you think you have more confidence then than when you had 5 homes? Do you
think with that confidence, you could step into more partnerships? But for the
rest of you, there's always a shortcut to get a lot faster where you want to go. So
if you're ready for your custom game plan, click the link below. And Dallin,
congratulations, my man. I'm excited for you, dude. You're going to make it. You pumped?
-Definitely. -Awesome. Thank you. Awesome brother. We'll listen thank you guys so
much for tuning in today. Make sure you are a subscriber. Ring that
bell and we'll catch you in tomorrow's video.