The ULTIMATE Guide to Getting Started in Real Estate

how do you turn this into a whole bunch of this guys my name is kris krohn today we're talking about how you get started in the game of real estate if it's day one for you and you're saying i want to be a millionaire through the game of real estate i'm going to show you how i did that by the age of 26 but frankly i'm going to show you how to do it even faster than me [Music] listen i get it look at how unattractive real estate can sometimes look but you see when i

see that when i see that run down property when i see that run down fence can you smell it smells like money ah that smells so good because the reality is someone hasn't taken care of that real estate is really just a game of solving problems and when someone's got a problem that's really big and you can solve it for them you usually get paid with a whole bunch of that well my friend today i'm here to be your mentor and get you started in the game of real estate because i got to tell you

it can be really intimidating at first there's all this new jargon there's this new language there's so many ideas real estate can mean so many different things so today my goal is to make it really simple and give you an introduction on the ideas and thoughts that literally can lead you down a road to making millions of dollars what do you think of my pad here it's pretty nice i actually feel a little bit like mr rogers showing off the neighborhood in his house do you remember that [Music] this is a nice house what i

like about it is i like the pool i like the lights what you're really looking at here though is a single family home this is a home that someone buys to live in they're going to put their kids in bedrooms they're going to have dogs and cats they're going to live their life this is just one form of real estate but check out all the others you see what we got here you've got residential real estate this is where people reside you've got commercial real estate where businesses reside and you've got industrial real estate where

crap gets made this is like the messy stuff all of them are forms of real estate and all of them sit on land and technically right now where you sit or stand you're on a piece of real estate right now but already my friend we are introducing one of the most important and sometimes most difficult question to answer what kind of real estate should i get involved with like for example donald trump he owned commercial real estate hotels skyrises casinos and obviously that worked out pretty well for him to the tune of billions of dollars

i've got a buddy who literally has hundreds of millions of dollars turning and burning through industrial parks like metal warehouses and and junk yards and things like that there's people out there that can get into like business parks or other people that might want to get into trailer parks reality is there's a lot of different kinds of real estate and what i want to do is i want to share with you my opinion based on a billion dollars worth of real estate and deals that i've done on the very best kind of real estate for

a beginner and frankly for the seasoned investor as well you know i think it could be really easy for you to be watching this video right now and think man i feel a little embarrassed to really kind of ask what should i be pursuing or what real estate is best and i'm going to tell you right now i'm a big fan of single family real estate residential real estate things like this but not because it's entry level or like the least expensive real estate frankly it's the real estate that i make the most money on

check this one out residential real estate generates high and reliable cash flow the most obvious advantage of residential real estate is the sheer amount of cash flow that it could potentially generate unlike other types of businesses the income from a residential property is relatively predictable and stable let me show you what this looks like let's just say that i could buy this really simple single family house assuming it's three bedrooms two bathrooms like super entry level let's just say that i could buy this house for two hundred thousand dollars and the bank is going to

put up frankly most of the money it's not going to cost me a whole lot in fact if i move into the house i might just be putting down like a small three percent down payment and three percent of 200 000 guess what that is 6 000 so frankly you can turn a little bit of money into a lot of money but when i say why single family and how can this lead to millions of dollars if all you did was rent out this home or do one of my lease options systems that i'll tell

you about in just a little bit you see over a little bit of time this house is going to keep going up in value and if someday this house goes from 200 000 to being worth 300 000 guess what i can do i can sell this house and basically i'm going to clear the difference between 200 000 and 300 000 i'm going to make a million bucks or i could go to the bank and do a refinance and the bank could actually give me some of that money and i could still hold on to the

house but for just a moment if you bought 10 of these tiny little homes held them for five ten years and sold all ten of them and made a hundred thousand on each one of them what is a hundred thousand times ten well that's my friend how you get to a million dollars check this out did you know that since 1965 they've been tracking on average how much real estate goes up with time in fact this comes from the u.s census bureau and it says wow this is interesting despite any of these recessions there's this

force in the market that keeps making the prices of real estate go up do you know what it is it's baby-making [Music] people make babies population increases people moved to america my dad was a german immigrant and the more people we have the more houses that we need so more people create this demand saying we demand more homes be built and so then someone has to supply those homes and that's when we get into the conversation of supply and demand supply and demand with population increase in america has done this it's averaged an annual increase

of 4.58 every year since 1965. how crazy is that and how much money does that make you let's go back to the example of a 200 000 house if i buy this house and if i were to just round up that it goes up five eight percent every year let's just say it's going up five percent every year what is five percent of two hundred thousand dollars that is ten grand literally just by owning that house you're gonna become ten thousand dollars wealthier on paper that's why after ten years ten years of ten grand that's

not even factoring in compound interest there's my hundred thousand dollars that i was just telling you about ten homes ten years single family basic entry level like that dude that's how you become an easy millionaire and this my friend is why i'm such a fan of what i call american dream real estate i'm not talking about mansions or multi-million dollar homes i'm talking about tiny little single family homes that have three bedrooms two bathrooms this is where a couple has maybe one or two kids maybe they've got a dog they got a place that they

can call home it is the real estate that is in highest demand across the country more people want this than any other kind of real estate because you know what every new investor shares the same fear-based fantasy what if i buy a house and no one rents it you know what that's why i like playing in a sector where there's all of this demand and everyone wants to move in and have this real estate now check this out i discovered that there is a sweet spot in the game of real estate because i've learned that

higher the price higher the risk and so if you're going to get involved in the game of real estate the last thing that you want to do is buy real estate that can hurt you i've met many people over the years that didn't know what they were doing they weren't following my advice they went and bought an expensive home maybe a three four five hundred thousand dollar home and then they quickly found out that for the cost of the mortgage they couldn't collect enough rent to pay for it and they were coming out of pocket

every month that's why i want to show you this graph from a book i wrote the straight path to real estate wealth and here's what it really defines over time if you take a look at the cost of real estate it goes up in value and if you were to take a minimum 3 bedroom home and if you were to go buy real estate below the median meaning usually 250 grand you're going to find a sweet spot of the highest level of cash flow but if you go above the median over 250 or 300 grand

that cash flow dwindles dwindles dwindles until there's none left because you hit what's called a break even point let me give you an example i buy a million dollar home there's no way that someone is willing to rent that million dollar home for what the mortgage is going to cost you but if i stick with the simple little three bedroom two bathroom home i'm actually going to pick up my highest percentage of cash flow positive so if you're going to place single family real estate don't buy the expensive stuff and never buy above the median

but chris i miss the boat where i live real estate is really expensive i get it if you live in the big cities if you live in new york if you live in la you need to understand that real estate in california is not the same as real estate for example in tennessee it's different all across the country the national median usually hovers around 250 or 300 000 if you're buying single-family homes above 250 or 300 thousand dollars i don't think it's going to be a wise investment in the long run so if you live

in those areas that might be a great place for you to live or buy a home just for you and you can do okay on that but when it comes to investing you're going to have to find a way to go into the markets where you can make a lot more money a lot easier and don't worry at the end of this video i'll show you how you can tap into that well now you know that single family might be the best kind of real estate for you to start with and frankly even end with

that's why i've never left it alone even after 4 000 deals but there's so many different strategies that you still need to be aware of for example you could do a rental on the property or you could do this thing called a lease option or you could wholesale the property which means i'm gonna get it under contract at a good deal and then i'm gonna collect a five or ten thousand dollar fee for giving it to an investor that wants to deal with it long term i could fix it up and flip it and see

if i can turn a big profit there's so many different ways of doing real estate and what i want to do right now is i want to share with you of all the strategies the one that i think is best now i need you to understand something you're not alone it can feel scary the idea of just jumping into real estate and if you make a mistake it could cost you tens of thousands of dollars best thing you can honestly do is get educated read books in fact if you haven't already subscribe to this channel

because guess what multiple times every week i drop videos just like this to teach you how to be a ninja at the game of owning your own financial future and making money so subscribe and check this out i went through the painstaking work of comparing the top strategies in real estate in fact i've compared all 30 and what i'm about to tell you is going to make you the most money if you do this in your backyard right now some of the top strategies include rentals meaning i'm going to buy this house and i'm just

going to rent it out or i'm going to buy a home to flip it or i'm going to buy a home and instead of rent it i'm going to do this thing called a lease option or rent to own i'm going to put a family in this home that eventually wants to buy it from me or you can do something i call the straight path system i wrote a book about it the book is free you can click the link below it's there for you and here's what i ultimately found out i value my time

don't you like if you're going to do real estate do you want the real estate that's going to take all the time or the lease time or effort do you want to be hard or easy super risky or not so risky do you want to provide a service and create value for people the market do you want it to work in good markets bad markets do you want it to be profitable and how many profit centers does this actually have now the reason why i put this matrix together is because it helped me identify the

single best strategy which you're about to find out to help you on your journey of making your first million dollars in real estate you see rentals is kind of like a part-time job and fixing flips when it comes to time hyper excessive lease options however when you put a family in and you say you're responsible you fix it up this is your home for the future you're going to be buying it it ends up requiring the least amount of time so that's really important for you to know or effort rentals are kind of like a

part-time job fixing flips is a full-time job lease options are minimal service market volatility profitability you weigh all of these factors out and i'm going to share with you right now the strategy with the least time the least effort the least risk and make the most money if it's in your backyard you're going to learn how to do a special kind of lease option i call it compassionate financing and again if you click the link in my book below my book is free i'll ship it out to you and i'll just walk you through how

you buy homes and instead of just renting them you make twice as much money helping those families in the next few years actually buy the home so there my friend is an important shortcut for you ultimately as you get in the game of real estate here's the three rules that you need to remember number one pick a strategy i've suggested that it's lease options in your backyard on entry-level single-family homes price below the median you know what all that means now number two you pick a mentor do not make the number one mistake which is

i'm gonna put my head down read a book and i'm gonna do this all by myself you want someone watching your six you want someone that can evaluate the numbers and just make sure you're not screwing this thing up and then of course number three you copy their system in other words do not reinvent a wheel someone's already made millions of dollars if you said chris i want to do apartments like grant cardone the dude has made so much money in that game you should just get his system and copy it stop copying me and

then you just copycat them because i tell you right now how the smart people get wealthy they don't invent anything they just take what's proven they take what works and then just do it speaking of which i hope today's video rocked your world and got you started in the game of real estate i'm just one person's perspective but if you liked it make sure you subscribe and like the video more importantly i've got a handbook that i'll give you for free on how i retired at the age of 26 and made my first 1.6 million

dollars and i'm going to tell you since then i have multiplied that portfolio so many times over this book also comes with something really cool called a free game plan this is someone certified and trained for my team i get thousands of requests every month for people saying hey crispy my mentor helped me out i can't be in every place at once that's why i make these videos but i promise you that if you click the link below and you pick up a free copy of this book you are going to get a phone call

from my team and they're going to say hey chris wanted me to call you and do a free game plan tell me where you're at are you young are you a teenager are you older are you tired of your career are you trying to get out of it are you just trying to make a million bucks like where are your priorities at are you working too hard and getting paid too little and they've been trained to basically step in your shoes as if they were me and tell you exactly what i would do so today

you're getting the book for free but just when you get that phone call or get a text from my team respond because they're just going to spend a little bit of time for free just saying hey if kris krohn were in your shoes this is exactly what he would do to make his first million dollars as fast as possible and i hope that's valuable for you hey thank you so much for watching today's video i hope i was able to deliver what you were looking for and if you want to know more then i would

check out this video over here i pick up my ceo and drive him around in my limo basically showing him the first deals i did and how i made that million bucks that would fit in my living room do you guys have kids at this point no kids so it's just you and colleen you're just me oh that's it's cute all right dude check it out