My name is Kris Krohn and today, i'm going to be talking about the best way to
buy a house. And if you're subscribed to this channel, you might know that I'm big
in the world of investing. I've done 4,000 different investment projects. I'm
up buying a house just about every single day. And so, instead of just
answering the question of what should you look for in buying that first house,
I'm also going to be answering how should you be doing it if it's an
investment property. I'm going to answer both of those today right now.
So, the best way to buy a house for you and for your family. I've got 3 core
rules that will help you do it as intelligently as possible. Rule number
1, don't be emotional. Emotional people make bad choices. Not always but often.
Because if you fall in love with the house and don't fall in love
with the deal, you could get in trouble. Because you might fall in love with
something that is overpriced, over market or just emotionally works but actually
doesn't work on paper. Rule number 2, buy smart. If you can't buy the house at
a discount, some people literally just think that you should buy a house at
market or above market without realizing, "Wait a second. When I buy a house, that's
an opportunity for me to lock in 30 or 50 thousand dollars worth of equity or
more." That's numbers on your balance sheet
that you can access later pull out. Put to use, sell the house in a cinch and
make sure you're not upside down. Get some of the money out, put it to work.
Like be smart when you buy this house. A house is for most people the biggest
purchase they'll ever make. And some of you might be buying that house 20% below
market. And sure, there's a couple of handyman projects that you might need to
do. But what you pick up, could be very significant to you and your family. Take
advantage of that purchase by being smart. And the third rule, don't spend
more than 25% of your total income on whatever your mortgage is going to be. If
you start paying more than that, it means that your expenses can start getting
ahead of you. And for some of you, you're out there and you're thinking, "Well, we're
going to justify living in this house for a really long time and it's in the right
neighborhood and it's the right this or that." But if you buy too much house with
too big of a payment, then you actually put your family at risk. By keeping
yourself to the 25% rule, this actually comes from Dave Ramsey that I really
agree with. It means that you're buying a house and if an unexpected expense comes
up or something shifts in your life, you've got the ability to adjust to it.
And more importantly, you should still have enough left over after your other
expenses to really pay yourself hopefully saving at least 20% year. Those
are my 3 rules for the best way to buy a house for you. Now, let's talk about
the rules of how you when it's an investment property. And by
the way, if you can blend these rules together on a primary residence, that's
powerful. When buying a single-family home, rule number 1 is buy underneath
the median. Because the markets are going to rise and fall. And when the market goes
up, it's fun to watch a $400,000 house become a
600,000 house. But when the market drops, it's not fun to watch a
600,000-dollar house, become a 300,000-dollar house. And
that's exactly what happens. If you buy real estate below the median, it keeps
you safe, it keeps you protected. That one rule right there has saved my bacon. Rule
number 2 is you want to buy your real estate in the very best markets. Which
means it doesn't have to be your backyard. If you're leveraging my Lease
Option system, that's a great strategy, you can do that in your backyard. But
when you have serious money to invest from your 401k or IRA, then go to the
very best markets. You can take the United States and you can cut it up into
324 mini markets. And each market is different. The people have a different
mentality. People have different cost of living.
People have different income opportunities and rates of earning out
there. And so in the different areas, if you can find a way to normalize all that.
You can put yourself at a massive advantage if you go into markets that
have the very best of the best. That's what I do. So, when I partner with people,
they'll actually I'll take them into right now Florida, Memphis and the past
Phoenix, in Vegas. So, take them into Indianapolis. These are markets where I'm
averaging a 28% annual return. Which we just imagine if your stock
portfolio did that or your savings did that or your IRA did that. The world
would be different for people but the reality is it is for me because I earn
that and it can be for you. So, make sure that if you invest that you invest in
the best markets out there. And then my third rule of investing for an
investment property is to also make sure that you're buying and leveraging the
right strategy. So, if you've got a copy of my book, The Straight Path To Real
Estate Wealth. This book documents my lease option strategy that I use in my
backyard that you can use in your backyard for making five grand up front,
$500 every month, the residual income after the mortgage is
paid. And then maybe clear $50,000 when you sell that house. This book documents
what that looks like. That's a strategy. That's my backyard strategy. If I
take you into the very best markets nationwide, we're actually going to do a
straight rental but we have all of the forces working together for our good by
being in the best markets, best employment areas, best of everything, the
right price range, the best appreciation. And all of those will actually be even
more financially lucrative than even a lease option. So, there's different
strategies that are hands-on, hands off in your backyard out of your backyard.
And so those are three rules for you on how to deal with your investment
properties. So my friends, whether you were looking for the best way to buy a
house, there's 3 rules I gave you there or whether you're looking for the
best rules for how to buy investment property, there's that as well. And as
always, check out the links below. Connect more deeply with me and my team. Whether
you feel like you're too young to invest or whether you're too old, whether you
feel like you've got no money and you can't or maybe your credits bad, I just
want to remind you that real estate done the right way doesn't require money, it
doesn't require credit. What it really requires is conviction and commitment
and a willingness to act. You bring that to the table. That's what I had and
that's where I see people crush it the most. Sometimes money and credit our
crutch. Because we think that's why we succeeded or why we have doors of
opportunities open to us and it's false. The door for your financial freedom is
already available whether you walk through it does not, come down to a piece
of paper a number a bank account. It comes down by your desire, your
conviction and your willingness to act. If that's you and that connects with you,
then get with me in my team and let's get you started on your wealth building
journey right now.