You know I get questions from people.
They're like, 'Kris, how is it that you're
actually buying the best deals in America every single day?
Like...
And you
have all this time like travel around the world and be you and do your events.
Like, how do you actually do that?"
So, today, I thought I'd give you like a
little bit of like a voyeur experience.
I'm actually in the process of
transacting on four homes right now.
It only takes me a couple of minutes but
I'm going to like slow it down and actually like break it down for you so that you
can understand (1) how does it what does it look like to make all of this money
but do it with such little amounts of time.
And (2) how do you get on the very best
deals?
Alright.
So check it out.
I just put my screen on screen capture here.
There's a
deal that came along that I couldn't ignore.
And I want to show you just how
sweet this deal is.
We're going to race and get it today.
So, the way this works is
I've got a team of a couple hundred experts.
And they set up shop in the very
best markets.
And then they're leveraging auctions, they're leveraging the MLS,
they're leveraging pretty much every methodology.
They'll go through hundreds
of homes until they find a winner.
And I don't get word on it until it actually
flows up to me as well as, "Kris, we're probably going to get this home."
So, get eyes
on my screen here.
Let me actually break this down for you.
This is a home in
Florida.
Florida's one of my growth markets right now.
It's on 800
colville drive Kissimmee.
Which is your County just south of the Disneyland Park.
This county is growing at 11% per year appreciation.
It's growing very well.
Right now, if I get this home for a $159,000,
my down payment on it is going to be $31,800.
And my estimated closing costs are going to be 63.60.
Bottom
line is getting this property.
You can see it right there,
$44,955.
This is a house has built in 2007.
It's
really new.
It's 1,239 square feet.
And check it out.
3
bedrooms, 2 baths.
Now, if you look at the image on that if like zoom in here.
That is what every home in Florida looks like.
They're about as standard and basic
as they come.
You got to understand, I'm not interested in pretty, I'm not
interested a novel, unique or interesting.
I just want this to look like my last
thousand deals in the market.
Now, if you scroll down a little further here, you
can see that right now we're projecting rent of 1350.
If I get it on a contract,
I'll send my local property management team in and find out whether that's
supposed to be 1,325 or 1,375.
80% of
the time, they're right on the money.
But I'm going to verify that.
I'm going to verify
my rehab.
And basically, if I buy this with leverage, my monthly principal and
interest is 722, my monthly taxes are 200, my monthly
insurance is $7.83.
My total payment is going to be
993.
So, $993.6.
But I'm bringing in 1,350.
Here's why I wanted to show you this.
Check this out.
I've got four deals that just landed on my lap right now.
I've got
my team's scrambling.
I'll get them in a contract.
All I do is look at this.
I
verify the number and then I give them a thumbs up or thumbs down.
That's like my
whole job.
And on this one, I want to show you what's important to me.
My annualized cash on cash return over the next 5 years before vacancies and
repairs is 9.82%.
Which is pretty dang close to a 10%
cap rate.
But I have been doing this such a long time.
I know that in
5 years, I'm going to get and Rehab the thing on the cosmetic level.
And I take
some of that into account.
So my actual cash on cash with this is probably going
to be, it's projected at 7%.
, 6.93%.
Now, this is
not a cash flow market.
I'm not in this market because of the cash flow.
Check
out this number.
In the next 5 years, I'm projecting 28.87%
on my annualized cash on cash with appreciation.
That return means
that almost every 3 years I'm tripling my money.
And having done this
thousands of times, our numbers actually historically add up.
In fact, I won't go
through the rest of the proforma here.
But you can see that we have all of our
assumptions, property values and what this is not taking into account is...
Wait
a second.
I'm actually earning money on what I'm paying this house down.
I'm
going to get those dollars but I'm not actually taking that into account.
I got tax benefits that I'm not taking into account.
So, my reality is I'm
probably 30 to 33% return.
I just want to put that in
context for a moment.
Like I want you to think about this.
If you could put a
dollar into something and have it spit out $1.33 12 months
later, would that be a good investment or bad investment?
To give you some context,
your financial planner is trying to get you between 1 and 8 percent.
That's
where they're landing year after year after year.
And usually it's right in the
middle of like 4 or 5 percent.
So 33%.
Do you know what that means?
It's not just that it's 6 or 7 times more.
Instead of compounds.Aand when
it compounds on top of each other, then when I sell this home in 4 years or
3 years and then I use it to buy 2 times as many, then my same dollar is now
earning maybe a 60 or 70 percent return.
In 3-4 years, if I'm doing
that on a white scale, after 8-9 years I can be earning
over 100% here on the money.
I'm running thousands of percent a year
on my money because I've been doing this for 15 years.
And I've allowed it to keep
stacking up.
Let me just show you a couple more of these
because when I say "Watch me work", I got a
team out there and here's what they're
doing.
I've got boots on the ground that are
surveilling every single change in the market.
Then they actually find the
properties that hit all of my criteria.
3 bedrooms, 2 baths.
Entry
level in the right neighborhoods, the right side of the trail Road tracks.
Has
the right level of rents.
The minimize level of rehab cosmetic when
all the numbers line up, they then put pre-verbal offers on it and see if they
can get it.
It comes to me when they're like 90% sure that we're going to
get the property.
I give it a thumbs up and then boom, it's just another property
for the portfolio.
This year, I'll buy 300 homes this ways.
And then I'm also buying
with a lot of my other partners and doing other projects.
Next year, I'm going to
double the number.
In fact, next year, we're stepping in our recession.
So, I'm
hoping to do like 20 times as many.
When the recession hits, everyone wants to
know that has money, "Where do you put your money?"
And it's not the stock market.
You put it in real estate that cannot be earning you 30% returns.
Now
you're doing 100% a year on your money.
Sometimes 150%.
Imagine
that for just a little bit.
It's actually really kind of crazy.
Okay, now
just pause let me show you an entirely different home.
This is a home in one of
my cash flow markets.
This is Memphis.
I can get this home for...
Right here you can
see.
It's $130,000.
It's going to be
$26,000 down payment.
This one in this market, I'm usually between
25 and 35 thousand.
This is a 35,000
out-of-pocket.
Built in 1985.
So, you look at it, that's pretty
typical for what that area looks like.
It's got 1558 square feet.
Monthly rents on this one are 1200.
Now, this is what's different on
this one.
My total payment interest is 794 and I'm bringing in
1200.
So, check this out.
My annualized cash on cash, 9.52%.
That's a couple points higher than what we saw before.
My
annualized cash on cash with appreciation however is lower.
It's
27%.
So, this is a market where it's not going to appreciate as much.
But I'm also going to win a lot more on my cash flow upfront.
And so this is an
example of a home that I like to do for someone that says, "Hey, I want to actually
get some money earning on my money right now.
I want to actually
in the form of cash flow because you're going to see a bump that you're going to
actually see a higher figure."
This?
That's another example cash flow.
Before
vacancies repairs is $429.
And the cash flow
afterwards, worst case scenario, $309.
So, super solid deal.
Super solid cash on cash.
Friends, this is
what it looks like.
So my team is out there hustling to do all this.
When I
give them a thumbs up, they write the offer.
We see if we can snag it and then
we're just making it happen.
For me, this is like...
You might be watching this like,
"What's the big deal?"
For me, I'm like...
Like I get ripped up inside with all sorts of
like...
Super excitement.
Because I know what this means overtime.
If you want to
know how to get your hands on a deal like this, then I want you to hit me up
in the description below.
There's information on how you can partner with
me.
There's also information on how you can get a copy of my most recent book
Unstoppable.
The ultimate real estate gameplan for anyone in any financial
situation to crush it and go from nothing to millions of dollars.
So, get
your hands on a copy of the book or talk to my team about partnering with me.
And
these deals what I'm looking at right now, we might be doing them together.
Take
care.