Kris Krohn here on Limitless TV. And today, I'm going to talk about the secret
for buying multiple investment properties. A lot of people want to know,
people are always asking, Kris how you go from one or three homes to a hundred
homes? And I'm going to share that with you today.
One of you Limitless TV fans requested that we do a new video on how to qualify
for multiple mortgages. And you know? it's music to my ears. I couldn't think of
something more that I'd rather talk to you about than how to do this because
I'm going to tell you right now this is one of the most difficult things to do
in real estate. And for me? it's a piece of cake. Like, I don't even know why more
people aren't doing it and I hope that the next few minutes will help you
understand exactly why that is and exactly what you can do.
I want to tell
you a short story here. When I bought my very first house, the most important
mentoring that I received have been 14 months earlier and it's very likely that
what I'm about to share is going to impact one of you watching this video. So
my very first mentor said, okay Kris you want to get into a home? you want to buy
an investment property and build a portfolio of many homes? He said, I want
you to pay the price to use your own credit and own money to buy a house. And
I want you to get ready to buy a primary residence. ow whether you're in a home
or not, you can do this strategy. If you will save enough money for a 3% down
payment, which in most of the places around the country we're talking about
four, five, six, seven, thousand dollars. Put the money aside, develop your credit, and
have a two-year job history. I did those three things and 14 months later I had
$5,000 in the bank, I went from having a couple of credit cards that I wasn't
using to using them regularly and keeping them paid off so my credit was
at a bare minimum where it needed to be. And I intentionally kept the job that I
probably wouldn't have had I not gotten that advice.
So 14 months passes it comes
time and I buy my very first house. Now pause. This is so important. When you buy
your first house, you can buy a house for you that is a home or you can buy an
investment property. I bought both. A home that I could live in and an investment
property. What's the difference? one, was a home
that I liked. Two, it was an investment property that I was planning on leasing
out, renting out, and selling for profit. Here's what it meant, meant that I bought
my first home with $40,000 of yummy juicy equity.
That $40,000 was almost
more than twice I made an entire year so when I bought this home it had a
basement apartment that I rented out, covered my mortgage and I have $40,000
of equity. Now my wife and I lived this home for two years because
currently United States there is a tax credit that says, if you live in a home
for two of five years then you don't have to pay any capital gains when you
sell it. That's awesome. So I lived in this home for two years and then twelve
months later after moving into it something happened. I was able to acquire
my second investment property. Do you know how I did it? I went to the bank I
said I got $40,000 of juicy yummy equity. And they said, let's give you a home
equity line of credit. The bank basically gave me checkbook control over eighteen
thousand dollars of that forty thousand dollars of equity. And you know what I
did with that money? That became the downpayment for my
second home. Now, the second home was nicer than my first home but I didn't
move into it. I didn't live in it. Do you know why? Because it was an investment.
This wasn't time to gratify my needs. I could have bought a nice car, I could
have bought a big-screen TV, I could have taken a trip, I did none of those things.
And I'm going to tell you that four and a half years later, that's worth one
point six million dollars and retired. So giving up some of the things you want
today, young couples everywhere, older couples when they buy a house, they want
something that meets all their needs. Well, make sure one of your needs is
an investment property. The equity in that second home bought my third project.
So all of a sudden, $5,000 got me into my first three properties. And you might be
asking, Kris how did you qualify for a second and a third if you had low income?
Well it's very simple. Banks will take 70 to 80 percent of the
income that you get off of renting a home and they'll apply it to your credit.
So on my very first home it showed that I had a, it showed that I had a five
hundred and thirty dollar payment every month. But after I moved out and it was
renting in a thousand dollars a month, the bank took the thousand. They counted
seventy percent of it and said I had seven hundred more dollars of income and
that seven hundred dollars canceled out by five hundred and thirty dollar
payment on the house. Of course the bank was willing to give me a second one and a
third one. But only to an extent. This is the real secret I'm going to share with
you the number one secret where I went after three homes that made all the
difference in the world between going from three homes to 300
homes without another penny out of my pocket.
So the number one secret to
multiple homes on your credit is not to have them on your credit at all, it's to
have them sitting on a partner's credit. After I bought that third house, my
father-in-law came along and it was his suggestion once he looked at my profits
on the first three homes to suggest that we go in together on that fourth home
that became a tenth home that became a fiftieth home. Partners make the
difference of getting where you want to go. So this is what's really crucial. The
first one or two or three homes that you buy do you know what it's all about?
It's about track records. I don't care whether you make a hundred thousand or
two hundred thousand on those homes. I want you to have experience, I want you
to get your feet wet, I want you to have an experience with real estate so that
when you go and approach a potential partner, guess what ends up happening?
You can speak to your previous investments. When people join my
particular real estate club, I call it my limitless real estate community. The
number one thing I teach them I,s how to acquire multiple properties with no
money and with no credit. I show them how to go online and leverage facebook to
build a friendship base of people that have money socked away in the 401ks and
IRAs and for retirement that's not giving them what they really want. And
then I give them access to all of these incredible nationwide deals and guess
what? Voila! I make magic happen. I put it
together. I even have my coaches sitting in selling your people on why they
should partner with you. Partnering hands down, I'm buying 100 homes this year and
partnering hands down is one of the most amazing ways of acquiring multiple
properties because your credit will eventually tap out. Your debt to income
ratios will tap out, your income will tap out, something's going to tap. And then
that's when most people stop. I'm sharing with you the number one way that you
never have to stop. And ultimately, if I had to condense it, you're the deal maker.
The deals, someone with the money, and you're the one that puts it all together
and gets paid to manage it in my partnerships it's a 50/50 relationship
because there's a lot of people who would rather work with my level of
experience. Just like my father-in-law. I don't need them three homes but he had
never done any investment properties but working
as a team, it was beautiful. Today when some of partners with me they're
partnering on almost a billion dollars for the real estate experience. That's a
no-brainer. People want that experience of my good bad and ugly experiences.
Mostly good experiences and they want to leverage me at my background and my
knowledge base and that's what I want to show you how to do. And you do that
through partnering. So here are the basic steps to partnering that I want to share
with you today. Make a list of people in your life that have some assets or you
would guess that they have assets. 401ks, IRAs, and things like that. Number two, I
want you to then find a property, a really great deal, and I want you to tell
them about it. And let them know that you're open to partnering on it and
what's happening now is you're bringing people to the table and you started the
process of match making. Friends, if you do this, if you can do just one
partnering deal, then you can do a thousand and it will financially secure
you for lifetimes. Leave a legacy, do incredible great work. This is something
you can learn how to do. Now if you do want some help on your first steps in
the link below, you have an opportunity to message me and let me know, hey I want
some help with that help me put some partnering together my staff and team
will reach out and share with you what that would look like and see if maybe I
can help you bring deals to your table for your people help bring people with
money to your table and then show you how to package it all together because
partnering is how you do as many multiple deals as possible.
Thank you for
watching today's video. I really hope you've enjoyed it. I want you to
subscribe so I can tell you about tomorrow's video the moment it comes out
on how to handle criticism. Because whether we're in the real estate
investing world or whether we're just dealing with people in general, criticism
is a part of life and some people do not manage it very well. I want to share with
you how to take criticism and turn it into your greatest growth feedback.