Kris Krohn here on Limitless TV. And today we're talking about how you create
wealth in your 30s.
So how do you build wealth in your 30s?
conversation that I have with someone this last week. They were sharing with me
their game plan and it applies very much to you my friend. They were showing me
that there was a house that they owned about three hours from where they live
and this house has a value of $300,000. They owe $200,000 and they're renting it
out and they said, you know what? we need to play catch-up. So instead of a 30-year
mortgage which would allow us to have a positive cash flow
let's put it on a 15-year mortgage. A 15-year mortgage is for the person that
says hey with the 30-year mortgage the interest to the bank I'm going to pay
for this house like two and a half times. Instead, I'm going to do a 15-year
mortgage and I'm not only going to pay for it one and a half times but you're
going to have a higher monthly payment. So on this house they're losing $100 a
month on the cash flow.
equity but they're also losing $100 a month because of the 15-year mortgage
that they put it on. And they came to me and said, okay Kris we think we're
pretty smart because in fourteen and a half years this house is paid off and
you know what? $300,000 house paid off, maybe giving us $1,800 a month rent, we
think that that's pretty cool. I looked at them I said you know what you're
right that is pretty cool. Are you open to seeing something cooler? And they said,
sure. Well, this is what happened. I said, let's talk about scenario A, which is you
guys and scenario B, which is this guy's. And I said under scenario A, we're
positioned right now as market as climbing up in the market things are
really hot and right now the value of your home and the rebuild value is at
200. We're going to look at this from a five-year perspective. I said, in five
years you're going to lose all hundred thousand dollars of your equity. Now if
you've been watching my videos, you know why because they bought something that
is over the median by a hundred thousand dollars. And what's going to happen when
the market corrects in five years? and how do
I know that? Right now, we are lacking inventory in the country. We need to,
we now have this slingshot effect of people are building like crazy and
we'll get to a point where we have more than enough for people but we'll build
beyond that. This is the 20-year k-wave Kondratiev cycle. You're going to lose a
hundred thousand dollars and for the next five years you're going to lose not
only a hundred a month because of your 15-year mortgage but you don't want to
be property managers because the homes three hours away. So guess what they did?
they put a friend in the house and they're subsidizing the rent another two
hundred dollars. They're losing three hundred dollars a month because they're
beginners at the game. Three hundred dollars a month in a years thirty-six
hundred times that by five years, we're talking about another, let's call it
sixteen thousand dollars that's going to be washed. So in Scenario A, in five years
they're going to be down a hundred and sixteen thousand dollars.
looking so good.
and above the median it violates one of my rules. We are going to sell the house.
We're at the top of the market. We're going to take the hundred thousand we're
going to use it to buy two houses. If they moderately only have twenty
thousand dollars of the equity each,
transfer it into two new homes I'm going to get twenty thousand on each one of
them twenty thousand plus twenty thousand is? ding-ding-ding! Forty
thousand dollars. I'm going to make three hundred dollars a cash-flow on each one.
300 a month, 300 a month. That's six hundred dollars a month. What
six hundred? That's thirty two thousand instead of minus sixteen thousand it's
plus thirty two thousand dollars. And then let's not even say that the market
goes up in value, let's just add these up. Hundred, forty, thirty, this is a
hundred and seventy two thousand dollars. What is the difference between negative
116 and positive 172?
making money in your 30s start with buying an investment property and you're
going to use these properties. You're going to use these principles that I'm
sharing with you. If you need help getting properties, hit the link below. My
team has an access of them every month because we're
buying as much as we can and we just have lots of leftovers. So what I'm, advising you
to do for earning when in your 30s is, you know what people are doing? They're
saying I've got out of college, I'm starting families, I'm buying a house and cars do
it a little different. Watch a different video on why I hate
401k's. Instead of investing in a 401k, instead of putting money into an
IRA, these aren't investments they're they're speculative. They don't pay you
anything back, not now. At age 65 what are you going to do avoid a penalty? don't
even get me started going on my 401k rant that you don't want to hear. Instead,
do something different than the other thirty year olds your age instead of
putting in stocks which goes up and down, you can't control, 401K's up and down
can't control,
below the median get them running it out. Get your positive cash flow, walk into equity
and watch your money grow.
age of 26 and I got news for you, it's working today better than ever
before. So guess what? I'm celebrating my decade anniversary of this stuff working
awesome in my life and if you hang out, keep watching the videos here, you're
going to learn more of how and why.
might just be like the little guy on your phone or television on the other
side of the planet but guess what? I'm here to answer your questions.
I can partner with you, I can present deals to you. If you want to learn more
about that, click the link below. Make a trip, come out to one of my live events,
meet me and my team. Beware, the real estate conversation is
happening because where I am, real estate leads are as well. We'll help you take
those next steps. Because whether you're your 30s or 20s or 40s or 50s or 60s
guess what? There's a next step that all of us can be taking to grow our real
estate portfolio.
Friends, look forward to seeing you next time.