Many of my videos are dedicated towards helping people get started in the game of real estate.
I think it comes from a soft spot in my heart, compassion.
Because when I got started, I didn't have money.
I didn't have credit.
I had debt.
So, I was really starting from nowhere.
And yet, there's also a lot of people watching my videos that are more sophisticated that
are credit investors.
And they've got millions of dollars to invest.
I also helped billionaires and multi-millionaires successfully invest in real estate.
So, today we're actually going to elevate the conversation to...
What happens if you have million dollars...
Kris, does you strategy shift and change..
And how would you invest it in the most intelligent manner for maximum ROI.
So...
So much to my channel here is dedicated towards helping everyone gets starting in the game
of real estate.
But the reality is I work with millionaires and I work with billionaires on building their
portfolio.
So, I thought, "You know what?
They've been asking for it.
And I'm going to actually going to make a video today."
For the person that says, "Hey, what if I had a million dollars to invest?
What if I had 10 million dollars to invest?"
If I wanted to turn million into 10 million dollars.
Or 10 million dollars to 100 million dollars, how would I do that?
So, today, I'm going to I'm going to break down the details of what that looks like.
And frankly, it comes down to 3 main advantages in the game of real estate.
Number 1 common mistake that people with more money think is that if you have more money,
you need bigger projects.
So that you have fewer of them.
Should I do apartment complexes?
Should I get into big commercial deals?
And I just going to tell you right now that of course you can.
And those can be incredibly profitable.
But I want you to create space for different idea.
If single family homes can produce 25% annual ROI.
And in 5 years double that to 50% annual ROI.
In 5 more years, double that to over 100% a year on your money.
Can I get commercial to do that?
Some but not all.
Single family.
See, I could do it predictably all day long.
And that's my track record on the last several thousand homes that I've done.
Number 1 is don't discount single family because you might think, "But Kris, if I have 10 million
dollars, we're talking about a lot of homes versus a single project."
And I would say that you actually have greater strength and diversification.
You actually better hedge than a market downturn.
So, there are tremendous advantages to actually doing single family homes.
Hence that brings me to strategy.
So, the strategy that I do with single family homes is I do, investment grade rentals in
the top markets.
Here's what I think you should be considering.
Phoenix and Vegas were markets where I've done a couple thousand deals.
And we crushed it during the last downturn.
We're going to get another downturn.
When that happens, we're going to find out the 324 markets that 2 or 3 that get the hardest.
And then we're going to go buy there.
In the meantime, I'm producing 30 plus percent return sometimes in my growth Florida market.
I'm in Indianapolis and Memphis in bulk buying out in the auctions and MLS, etc out there.
And those were my cash on cash markets where we're producing cash on cash between 8 and
a half, 9, 10 plus percent.
And then in my growth markets like Florida, we have really high appreciation, I'm still
picking up 6 to 7 and a half percent my cash on cash there.
Overall ROI's are super strong in those markets.
The strategy is to buy these single family homes and hold them for 5 years and then to
sell them and then to double them.
So, if I start with 10 homes, I want to turn it into 20.
If I start with 100 homes, I want to turn it into 200 homes.
Why do I do that?
Because on a growth curve, you actually pick out, you get initial big bump and it diminish
return about the fifth year.
Sometimes, depending on the market cycle where in 3 years.
Sometimes we're in 7 years.
But the goal is roughly about 5 years.
If we're earning those kind of returns to turn and double the portfolio and pick up
more tax advantages which is what frankly people with money are really looking for is
how do I actually lower my tax bracket.
Now, these homes are rented out.
But because we're doing this in bulk, my property managers are not charging 10%.
They're charging 68% which is pretty ludacris when you think about it.
We actually demand really high performance because we're doing things in bulk.
My repairs are happening in bulk with my team of 200 experts.
Boots on the ground that are making this happen.
So, overall of the 3 things you need to really have massive advantage in investing a million
dollars into single family is you got to have (number 1) the right strategy.
The second thing you need is the right system.
Systems all come down to how efficient and effective we can be in acquiring real estate.
How do we minimize time frames on getting a home, rented as quickly as possible.
How to have many not lazily waiting to be deployed but immediately deployable.
Being able to scale, those are all really good components of systems.
I set up over 10 years ago on acquisitions department that is design to comb through
thousands of deals every week on the hottest markets.
Extract the best deals, put offers and go after them.
And at the end of the day, it widdles down to the absolute 100% winners which is why
we're getting in that really high ROI.
All of the teams are communicating from title to the real estate broker jist to the property
management companies, to lending.
Their all in the same page.
We're investing million dollars.
We're going out.
We're actually...
The system is to buy the home cash and then we actually go and go to bank that will actually
lend on the portfolio.
Will up to 60%.
We only go up to 60%.
Pull money out.
Buy more cash.
We do 3 turns.
In general that help us optimize and produce the highest ROI.
Keeps us well over that 20% mark which is frankly where my partners are super, super
happy.
The 3rd final factor is track record.
Like you want to be with the organization that has done this more than 50 times or 100
times.
Try on 4000 times.
Nearly a billion dollars worth of real estate.
Because track record equates to results.
You shouldn't jump into market and be optimisticly hoping what you think you can get.
You should be having hindsight to look back at what's historically with the same system
to then be able to create predictability in your results.
Those 3 things my friend will help you invest a million dollars as intelligently as possible.
And for those of you who are interested in actually acquiring my team to actually come
and to make that happen for you, there's a link below and it's all about partnering with
me.
And essentially I bring my team and the system and bring everything to the table.
You bring the money to the table.
We come together.
We strike that right balance.
And we basically going to make it all happen.
So, it gets to be actually very passive for you.
But we get to optimize the tax benefits, the cash flow and of course the over growth in
the portfolio.
Just 10 years from now, we want to be doing over 100% a year on your money.
And that's the goal of what we're doing.
We're not just putting $50,000 or $100,000.
But we're putting 10 million dollars or 50 million dollars.
Hopefully it was enlightening and useful for you.
Please go ahead and click the link below.
If you have any amount over $30,000 and you want to earn to the team and say, "Team, help
me figure out how to do this."
They'll be in touch with you and show you that.
If you have less than $30,000.
The team will also share with you options of how you can still be in the game of real
estate without needing money or credit.
So, whether you have 100 million dollars to place or a lot less.
My mission and purpose is to serve everybody and help those that are starting out just
like I did when I had nothing.
To those who have a lot of money to manage, but want a smarter alternative than a typical
REIT.
Thanks for watching.
We'll see you on tomorrows video.