Hey friend, Kris Krohn here. And today, I'm going to be sharing with you the 5
things I wish I knew before I started investing in real estate.
So, I'm so excited. I mean if you're watching this video, it means that you're
fully committed to getting started in the game of real estate. What I want you
to understand is don't screw up. Like I don't want to make you nervous, I
don't want to make you scared. But it is so important to make sure you have
guidance on your first several properties because you don't know what
you don't know. You don't even know that you don't know that you don't know, right?
So, what I want to do is I want to kind of help you out on this journey and say,
"Man, when I start in the beginning, what are some things I wish I knew that would
have helped me slept better at night and help me had a way better kind of rich
into the experience." So, number 1, Swan. I wish I had a really pretty Swan. No, it
stands for a Sleep Well At Night account. Okay? Bank account. Meaning, if you're
going to do a property, it's important to make sure that you fund your bank
account. This is a business. There will be expenses and you don't know when they're
going to come up. So, you might be thinking, "But Kris, if I buy a property and I'm
holding it, the rental income should cover expenses." Absolutely. And you don't
know what you don't know yet. Like when I buy a property with a partner that's
never done real estate before, I put $10,000 in the account on just
the first property. And another 5 on the second. Now, that's over the top. But
the last thing you want to do is get in on a property, have an expense come up
that you didn't expect because you're new to the game and they get freaking
stressed out because you don't have enough money to handle it. I just
recommend it being a little overcautious in the beginning. it'll help you feel a
lot better when you get in the game. The next thing that I wish I had known is
that the perfect property is a myth. The perfect property does not exist. Like
what you're looking for is good deals that meet your criteria. If you're
waiting for the perfect one, dude it may never come along. And then that becomes
your reason an excuse why you're not out there crushing it in the game of real
estate. You know for me, I got standards. My standards are if I'm going to do a deal,
it has to show me potential for 20% annual ROI. 20%. That means
that I can double my money every 5 years. Now, those are high standards
because a lot of people are only shooting at 5 and 10 percent. Because
they just want to beat the market. But for me? Come on, I've done 3,000 deals. I'm
an expert at this. I want the best of the best. And some of my deals even get up to
30%. So, when you know what a good deal is, take action on it and pounce on it. It's
not about... You know, winning the lottery making a million
on one deal. It's about sustainability and staying in the game until you win
the race. When we talk about ROI, it's really important for you to understand
that strong management is really go tell the rest of the story. Did this work
out for you? Did you make money? Did you lose money? Here's what strong management
means. Number 1, pick the right tenants. You got the wrong people, you got to get
them out of the property. Don't put them in there in the first place. And number
2, you've got to have the right exit. Which is, do you know how long you're
going to hold the property and do you know the right time to sell? If the market
goes down, it's a good time to rent, not a good time to sell, you're going to lose
money. Makes sense? And similarly, when the market is going up and you've made all
your gains, don't be that stupid guy that thinks, "It's going to keep going up, I'm
going to keep making money." You got to get educated and surround yourself with
people that understand the market. And you got to get out. You want to make the
first money that the market makes and climbing up. Not the last money. Because
guess what happens when it goes over the cliff again? Yeah, you're in big trouble.
You don't want to be that guy. The next thing that I wish I had known that would
have really made a big difference in my bank account, you know what I wish I had
known? Leave the slumming to the slumlords. Do not buy crappy property in
bad parts of town. I mean you can if you want. Maybe it's a specific strategy that
you're tapping into. But for me, I'm going to tell you right now, I want to be on the
right side of the railroad tracks. I want to be in the place that is the path of
progress where families want to be. Entry-level real estate, under the median.
That's the nice stuff. That doesn't mean the expensive stuff. But it means I want
the stuff that would attract the right families. You attract the wrong kind of
person to get into your home and guess what they're going to do? They're going to beat
the trash out of it and that is not what you need is an investor. Unnecessary
expenses. You want someone that goes in there. And I'm going to give you a little
secret right now. The more money they make, the more they're go take care of
the property. So true. It's kind of wild actually. But you'll notice that I pick
markets where I can go in and I can buy properties where the people could afford
twice as much house. Because guess what? I don't have to evict those people/ The
last thing that I would share is probably the most important. You need to
be prepared for the unexpected. When you're new to the game, you're going to have
a learning curve. Doesn't mean that you're going to necessarily lose money. But
you have an opportunity to lose your wits. And some people don't realize that
this is a... This is a of math and ones and zeros. But when
you're new to the game, it's crazy emotional for you. And that's not what
you want. You don't want this to become an emotional game. If it's an emotional
game, then I can flash you bricks of money. I can show you piles of money. And
all of a sudden, it's like you see this? And you're like, "I'm getting excited." And
then I take it away and then you get really sad. No, you need to understand the
game a real estate that part of making a lot of money is having expenses that you
don't expect. And here, I'm actually talking about your emotional well-being.
Because if you don't know how to handle an unintended and unexpected financial
cost of something, the more you poopoo your real estate, the more you get
negative on it, the more you get down on it, the more you call it a bad day, you're
about to become adult water and someone else is going to take that property off
your hands and make the same awesome amount of money you could have. But you
lost sight of the goal. Do not do that. You need to understand that if you're
going told the property for 1,500 days, it's going to have 1490 great days. And it's
going to have 10 really bad days. But it's not really bad days. It's real estate
doing real estate does to make you a lot of money. So, here's my advice. When
something bad happens as in I lost money because of something unexpected, I want
you to have a positive attitude that says, "Hmm, I'm learning. What am i learning?
How is this helping me become more wise, more intelligent so I can be more
prepared in my future?" If you're prepared for the unexpected, it's really going to
help you because everything's unexpected when you're new in the game. And a weak
mind is going to get washed out to see. You my friend,
just this alone, these are the things that I wish I had when I started the
game. And this is just the beginning of the list. Subscribe to this channel so
every day I can drop a nugget of knowledge on you that will go ahead and
expand your knowledge base and help you grow and have greater success in life.
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it would be like if I mentored you and actually went out there and helped you
crush it in the game of real estate. Thanks for watching guys. Make sure you
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