How do you make money in real estate? It is a really good question.
Kris Krohn here with limitless TV and I'm going to be sharing with you from
hundreds of millions of dollars in my personal experience doing real estate
all across the country of everything that I've learned of all the courses
I've taken of all the mentors I've had I'm going to share with you right now in
the next few minutes the most pertinent information on how to successfully
invest in real estate.
If you want to know how to make money in real estate then there are four things
that you got to cuddle up against and become really good friends with and I
want you to cuddle them hard. These are the four profit centers that you can
find in real estate. Here's the first one, we're gonna talk
about equity, we're gonna talk about cash flow, going to talk about taxes, talk
about how much you appreciate me. Just kidding! A different kind of appreciation.
Okay equity cash flow taxes appreciation these are the four important profit
centers of real estate that are ultimately going to make up your
experience, your ROI, and whether the deal works or doesn't work. First of all,
equity. This is a simple one. This is, I buy a house, I can buy the house as a
value of one hundred and fifty thousand dollars. I can purchase it for one
hundred and twenty thousand dollars. What is that? there's a thirty thousand dollar
discrepancy in what it's worth in what I can get it for that is your instant
equity. That's treasure hunt. You found some good booty. The moment you buy that
house you become thirty thousand dollars richer. I know that booty word puts a
smile on your face. Number two is cash flow. When you buy
that house and you have a mortgage for one hundred and twenty thousand dollars
but because of the discount you got on it and makes your cash flow even better
than if you bought a hundred fifty thousand dollar house that was worth one
hundred fifty thousand because it's like you already paid off thirty thousand
dollars of it. Man, you have to have that loan for like ten of the thirty years to pay
off twenty percent of it. So we'll talk about massive time work. So on cash flow,
the cool thing is if I have let's call it thirty thousand dollars in equity and
when I rent this house out I am making three hundred dollars a month,
awesome! This is looking pretty cool so far. I got my equity, every month my
investment pays me, tax benefits. Real estate, some of the best tax
benefits. Rich people they want to own real estate. You start making money, you
want to own real estate. You want to make a lot of money? you need to be in real
estate. If you're an American, do the American thing. Own a real estate. The
tax benefits are all stacked in your favor what I mean by that is you can
depreciate the property over 27 years. Which means that, if you took the value
of the whole 150,000 and divided by 27 then every year you get to ride up a
huge chunk. Now this is cool because remember you've got income. You've got
300 this month, January, 300 in February, 300 in march, I made 36,000
dollars this year. Maybe I did a lease option that I got a down payment that
would be like a fifth bonus here and so I made $8,000. That's going to make my
income go up to $8,000 that's going to cost me some taxes but I can take
150,000 I get to divide it by 27 and this year I get to write thousands of
dollars off against that $8,000 and now all of sudden and most years it looks
like you're losing money. You're getting paid in your living that's the beauty of
depreciation that you can 1031 tax exchange and send it into your next
properties we'll talk about that. So also my tax benefits ends up lowering my
interest that I'm paying on that earlier. Last one, appreciation. This property is
going to go up with value and value with time. This is something I don't account
it's something I account for but it's not something I count on. You know if you
take a look at most of the cities I invest in you're going to get three four
five or six percent annual appreciative growth. So if I buy a house here for a
hundred and fifty thousand and in this market if it has a five percent growth
that would be equivalent to it appreciating seven thousand five hundred
dollars the next year. If it did five percent for five years in row and it
compounded that might turn out to thirty five or forty something thousand dollars.
So all of a sudden, I capture thirty thousand. And I gained thirty five thousand and I'm cash
flowing it then the beautiful thing about all this plus getting that tax
write-off is I put myself in this really beautiful position where I'm making
money, my net worth is growing, I'm moving towards retirement, my taxes are
minimized. Friends, that is one of the beautiful things about investing in real
estate. Now this is how you're going to ultimately be making money if you do the
right deals. Now if you click the link below and ask for more of these deals or
what might help want to partner with me? You know generally I'm looking for a
partner that has enough money to buy a house and if we partner up you'll notice
something. I'm going to find a house that has equity, that meets my standards on
cash flow, for both of us tax benefits and it's in a market that
it's going to give us some appreciation and don't you love to be appreciated by
your real estate? I know that I do. Alright if you want to do deals in real
estate here's the big thing that I really want to recommend for you, you got
to get some training. Remember I talked about deals money knowledge? I'm
putting on a three-day event coming up and I want to invite you to fly in town
and spend three days with me. Here's what I'm going to do during those three days,
me and my team are going to come together and we're going to teach you
how to partner on deals. We're going to show you how to gain access to the deals,
we're going to show you how to find the money, and you'll roll your eyes at how
simple some of these things are. We're gonna show you how to put it all
together. What does that structure look like? what are the basics? we call it our
limitless wealth intensive. We're going to talk about the mindset of building
wealth, we're going to do some mindset training but then we're going to hit it
hard and say partner partner partner how exactly do you do that? These events
never disappoint. People walk away saying, oh my goodness I got the knowledge and
know what I need to do these videos is short and sweet as they are, you need
several hours with the training to really understand that. So in the link
below, just go ahead and click the link and just say I want to know more about
your upcoming limitless wealth intensive in the comments and we'll reach out
we'll get you the date so that will let you know what it is and we'll have
someone on our team reach out and help set all that up for you. Friends rock it
out, do real estate now.
And that's how you make money in real estate. Now you
might be asking yourself, where should I make money in real estate? Guess what I
got coming tomorrow? make sure you subscribe I will be notifying you about
a video and I'm going to take you on a journey around some of the very best
places in the market where I have invested and why. Where I'm investing
right now and some of the deals that I can hand off to you because I can't do
all of them. Remember there's like 350 million people in this country and that's a lot
of houses and I need some help. Can you help me help you make a lot more money
in real estate? Say yes, subscribe, see you tomorrow.