Welcome for the fourth and final video in this installment. We're going to be
talking about compound interest. Just as a reminder, we're talking about the 10
core principles that you need to go from nothing to millions in the game of real
estate.
You don't understand these foundational principles, you're going to be lost. So,
I'm here to help show you the way. And compound interest, this is number 9 of
10 principles that I'm going to be teaching you. And here in this video, I
just want to start by telling you right now. Some of the stuff... Some of you don't
really like math a whole lot. And that's not going to be a great decision. I'm
going to invite you to fall in love with these principles. When I was brand new,
this stuff was confusing as anything. And and sometimes I'd be confused for like a
year before I could finally straighten it out. I hope that I can be a better
teacher than the one that I had (Which I didn't really have one) so that I can
really help you get this a whole lot faster. So, today we're going to talk about
compound interest. Why do you need to understand this in the game of real
estate? Well, let me ask you, do you want to make $100,000 or do you want to make
millions of dollars? Well, if you want to make millions of dollars, you need to
understand this principle. So, number 1, I need you to get that even though we
see and hear about people doing deals like, "I just did this deal. And I made a
$130,000. And I did this other deal and I made
$250,000." And sometimes, we just perseverate on these
deals that we hear about these stories. And were like, "Oh, my gosh. I'm going to make
all this money overnight. It's going to be awesome." I wanna help you understand
something. If real estate works and it makes you lots of money,
would you stop what you're doing? This is one of the heirs that I've made. And this
is one of the heirs that I know many people make. You do something that works
and then you stop doing it. Why do that? All of your growth and
compound interest stops when you do that. Let me explain compound interest. If I
buy a home... And let's just say for a moment that I buy it... I have money in a
401k or IRA. And I put a 20% down payment. So, let's just say I put $35,000 of my
money in this house. But 5 years goes by and in that course that 5 years,
I'm able to sell this home and I make a $70,000 profit. Now by the way, can you
see that 35,000 times 2 is 70 grand? If in 5 years, I made
100% return on my money... You want to back up this video make sure you
understand what I'm saying because this is basics, friends. I doubled my money, I
did it in 5 years. That means that 100%...
Because I made a hundred percent on my money. Divided by 5, 5 years, is 20%
every year. So, check this out. I doubled my money and now, because I sold
my home, I'm going to replace it for what? 2 new homes. This home is going to be
bought with my original money that came out. But this home is going to be bought with
my $35,000 of profits. So, how much money have I put in
the game so far? Only 35. But I don't have one home, now I have what? I
have 2. Now, 5 years goes by and I sell those homes and I use the money to
now buy how many? 4. My 35,000 goes in one of them. My profits
from this home, this home and this home buy this home, this home and this home. I now
have 4 homes with the same $35,000. But let's just say
when I sell all of these, what I'm left with is a $150,000.
aAd I started with 35. We could figure out what our return is.
35, 70, 105, 140. I've made a huge amount of money on whatever he started with. The
growth curve (I'll do it in a different color) looks something like this.
A little is turning to more is turning to more. Now imagine if I could just fast
forward and start with 150 grand instead of 35. Then
in 5 years, that might turn into 300. 5 more years it turns into
600. And that's just one part of compound. All you're doing is making your
money produce a track record for you. Once you have a track record, trust me.
When you've done several deals, you're going to get that nosy neighbor, that good
friend, a family member that knock on the door. "Hey, I see you've been doing this. I
got some money. Can you help me do the same?" When they ask that, if you've got a
system and you've learned how to do this, more what might you say to them? You
would say yes. And all of a sudden, you're now getting your money growing like this.
But you're now... You're going to go buy a couple more homes with them. And you've
got the exact same thing happening. And they're 2 become 4. And they're 4
become 8. And all of a sudden, your growth curve looks like this and you're
achieving what you want faster. And then more track record. And then you get 2
or 3 more partners. And before you know it, your growth record now all the
sudden, it's like, "Wow, I'm going to track to get where I want to be in 20 years.
Uh-oh! I brought up partners. It's going to be 12 years. Man, I brought in more
partners, it's going to be 8 years. I brought in more partners, going to be 4
years." How I retired in 4 and a half years is because I understood the game
of compound interest. It's a super. It is what Einstein called in mathematics and
Finance. He says, "It's the most important principle that's ever been conceived of."
And don't just know it, live it. Experience it. Have this experience. How
would you do that? Well, there's a couple of things you can do. First, hopefully
I've given you enough information that you're comfortable to go out there right
now and just... Friend, get out there and make that first deal happen. Go make it
happen. Like take action on your life. If you're sitting here and you're saying,
"Kris, I don't know if I know enough yet. I don't know all your 10 principles. I
would like to actually have a mentor. I want someone to have my back. I need help."
Well for you, you're going to want to click the link and actually learn about how
you can get just that. You can get all of my principles and you can also get the
hand-holding that you're looking for. So you can go out there and freaking crush
it in real estate. Most importantly, never allow knowledge or the lack of money or
resources to keep you from doing something. Get the knowledge, get it
quickly and then take action on it. Thank you so much for watching. I hope you've
enjoyed this 4-part video series on 4 of the 10 principles. Man, there's
so much more to share on it. So, make sure you get your hands on my 10X real estate
course, if you haven't already. If you have it and you've watched it, then you
know that what I'm telling you is really important. You now understand the basics
and the foundation so you can go out there and start crushing it in real
estate. Thank you so much for watching this. Make sure that you are a subscriber
because guess what's happening tomorrow baby?
I got another video coming your way designed to help empower you, strengthen
you, develop the mindset, the wealth that's gonna allow you to live as
limitless a life as possible. Take care.