5 Real Estate Secrets You Must Know Before Investing

Hey, what's up friends? Kris Krohn here. And today, we are diving into the top 5 tips for investing in real estate. Listen, if you've been waiting for the right moment to start investing, I am here to tell you that that right moment doesn't actually exist. It's actually something that you have to create. And if you invest the right way, it doesn't matter what the market is doing. Listen, I've done 6,000 real estate deals. And I've mentored thousands of investors all over the world. I'm going to share with you the top 5 tips that completely changed my financial future. It's going to change your financial future. And if you apply them, everything's going to change for you. Let's dive in. Number 1, your primary home is not just a place to live. It is your first investment property. So, don't do it all the dumb kids are doing by saying, how much home can I buy for me? And I'm like, no, no. This is an investment property. A lot of people make this mistake of thinking that their first home literally has to be their dream home. So, let's spend as much as the loan officer says that we can. Wrong! Your first home is actually the most powerful financial decision that you'll ever make because it sets you up literally for investing hereafter for your future. Side note, little tip. Go on to Amazon for $77. I want you to buy a Robert Kiyosaki's cash flow game. And play it with your teenagers if you have them. And if you never play the game, play it with your wife. Play it with adults. Because in 3 hours, you can literally see what happens when you buy a property the right way and how it will fund your next 5 properties and other investments. And it's the only way you financially win. So, be smart with your largest investment. When I bought my first home, I didn't buy it just to live in it. I literally bought it because I could run out the basement. My mortgage literally on this cheap home was only $600 a month. And my basement paid me $600 and boom! I was living for free. And it's because I wasn't looking at this as my home. It was a house. It was an investment. It wasn't my forever. Do you realize what this means? While my friends were all paying rent and struggling with their mortgage, I was living with zero housing expense. That freed up me, it freed up my money and it freed up my momentum to go buy more properties because I was smart on my first house. And I didn't have some big crazy-ass mortgage. I kept it small when the rent paid for the things so that I could do it again and buy investment properties. Now, let me contrast that for you. Because imagine if you have done what most people do. You bought a shiny new object, a house in a nice neighborhood that stretched your budget meant that you didn't have a lot of leftover money. Dude, I'd be paying $1,200, $1,500 or $2,000 a month out of my pocket. That would have locked me into a high debt. It would have slowed down my savings. It would have delayed my ability to invest for years. And by the way, I may have been stuck in the rat race for a really long time instead of what I'm telling you that got me out in under 5 years. You see instead, I chose a home that worked as an investment property. And I was able to stack cash. I was able to build equity and I was be able to roll those profits into more deals. That one decision literally accelerated my journey to financial freedom. I blame all of my success on how smart that first move was. Be smart with yours. Bottom line, don't just buy a home to live in. Buy a home that pays you. Whether that's a duplex, a house that has a rentable basement or maybe it's a property where your house hacking. Your first home should literally be your first investment. And that move alone can change your entire financial trajectory. By the way, here's the exciting part. Once you've got that first property working for you, the question becomes, how do you get the next one? Well, that's where the power of leverage comes in. Let me show you how to buy more real estate using OPM, other people's money. Because once you learn how to tap into that, you can buy unlimited amounts of real estate. Alright, number 2. Let's talk about this other people's money. It's the second big tip of the day that I have for you that can change everything. Listen, you don't have to be rich to get into real estate. It does take money but it doesn't have to be yours. In fact, most of my students, they start with very little money. And what they learn is how to leverage the banks money and sometimes even other investors money. I mean for heaven's sakes, house hacking is nothing more than putting 3% down after putting a little bit of sweat equity and saving a little bit of money. And then boom, the banks putting up 97% of the money. That's way to leverage 97% of the bank's money. And that's not the only way. There's others. Now, let's connect this to your first home. If you follow tip number 1 and you bought smart and you bought a home that isn't just a roof over your head. It's a wealth building tool. Well, it's now going to go up in value. You put down as little as possible. Over time, the mortgage is going to get paid down. Now, you're building equity. And eventually, you can tap into that equity with a refinance or a HELOC. A home equity line of credit. Basically, the value of the increase your home or the good deal that you got on it, you can now tap into that. And guess what that is? Hello, that's money for your next deal. Let me give you an example. Let's say that you bought your first home for $200,000. And a few years later, it's now worth $250,000. You've also paid $20,000 down in the mortgage. That's now $70,000 of equity. It's worth 250, you owe 180. Now, if you take out a line of credit, you might be able to get a line of credit for 20, 30, 40, 50 thousand dollars. And use that now as a down payment on a rental property. If one home tastes good, 2 homes taste good-er. And here's the crazy part. This new property, it's also going to appreciate which means that you're going to pay down the mortgage which means you're going to build equity. And that's how you start creating slow at first a snowball effect that picks up momentum as it rolls down the mountain. Because your money multiplies allowing your real estate to do the heavy lifting for you working for you instead of just you working for a job. Now, listen. You don't even have to have the down payment yourself. You could literally still partner with someone or a parent or a friend and just say, hey, let's both put some money in the kitty and let's do a deal. This is where you bring your hustle. You bring the money, they bring the money. Now, you're splitting profits. And this is really how it all started out for me. Building money, building wealth doesn't have to be what you have in your pocket. And that is a mistake people make. Hey, I wouldn't pause this video if it wasn't important. But this could literally make one of the real differences for you or someone that you care about. Most investors work way too hard and for way too little. And if you're earning 8% on your money in the market like 401ks and IRAs or you're losing money to inflation, you're playing the wrong game. It'll never get you where you want to go. For the last decade on my last 2,000 plus deals, my team and I are averaging 60% annual ROI on our real estate. And here's the best part. We do a hundred percent of the work. You bring the capital. It's usually from like a 401k an IRA or equity in a home. And then we do everything else and then we split the profits equally. This isn't a seminar, it's not a course. These are real deals, real returns. And if you want in to learn about what partnering with me could look like, click the link below and find out. Here's the third tip. Never buy a house at market values. Always look at buying at a discount. I remember some of my first houses. I'm like, this thing's worth 250,000. I bought it for 200. That 20% discount meant that the day I bought it, I walked into 20% of equity. I may have had to hold that home for 5 or 7, 8 years for it to accumulate $50,000 of equity that I stepped into on day 1. So, here's the deal. You actually don't make your money when you sell. You make it on the purchase. You make it when you actually buy it. For example, if you buy a home again worth $250,000 and you pay $200,000 for it, you just locked in $50,000 of equity on day 1 and you shaved years off of the pay down process. That my friend, that's called instant wealth. Now, by the way, the way that you do this is by finding motivated sellers. These are people that need to sell quickly. They've got a problem. They're behind on their taxes. That house has been you know messed up. They're relocating. They need to move. Maybe they're getting a divorce. Something's going on and they have a reason for reducing the price. And there's a percentage of real estate every day right now in the market that is at a reduced rate. But you have to know where to look for it. Because when you get good at finding these deals, you stop competing with what's called retail buyers. You're now playing a whole different game. And that's how I built my portfolio in my early 20s. And that's how you can literally build yours today. Right. Tip number 4 that's going to be financially life-changing for you. Don't stop at one property. Create a system, scale the system. If one property tastes good, 5 is going to be better. In fact, over a 40-year career, if you would just keep every home that you live in instead of selling it when you have the opportunity, you're going to wake up with 3, 4 or 5 homes later with a couple million dollars of equity just because you kept and not sold. You see a lot of people, they'll buy a rental property and then for some stupid reason, they stop. But that's not financial freedom. That's just an extra source of income. If it works once, don't reinvent the wheel. Do it again. The goal is to ultimately systematize the process so that you can rinse and repeat. And by the way, yes, there is a link below to be in touch with me and my team. Because some people just tap into my system where they're like, Chris, can I buy a rental property with you and then have you turn it into 30 homes over time? And yeah, I get the best deals in the very best markets. We do crazy things that allow me to average 60% on my money. Don't forget the snowball effect. We talked about it in tip number 2. When you buy your first home, you're building equity. You pull that equity out and then boom, you've got a down payment for the next property. Then you do it again and then you do it again. And anytime you can have equity that you can pull out to buy more, you do that. Most investors don't do that. Now, before you know it, that snowball is rolling so fast down the hill. It's getting bigger, it's getting faster with every single deal. Now, here's where the system comes in. If you're managing one property yourself, no problem. But if you're managing 10, well that can become a nightmare. When I got to 25, I was pulling my hair out. It's a nightmare unless you treat it like a business and don't have the stupid belief that if you want it done right, I have to do it myself. That's bull crap. You're both supposed to say if you want it done it right, don't do it yourself. So, you've got to start building a team. And guess what? You're going to walk away from a little bit of money for them to do 100% of the work. It's smart and it scales. Realtors, contractors, property managers, lenders. You want to start finding these people and establishing your team. And then you want to automate it in time. And have process in place where you can find these deals, you can finance them and you can manage them. By the way, what happens when you've done 3 or 4 or 5 deals? Well, your team's going to find you more deals and you're going to be like, I don't have money yet. If you've done 3, 4 or 5 deals and you're making good money, the money's out there. Just take your deal and show it to your potential investors and now you're a deal maker. Now, there's no limit on how much real estate that you can do. And finally number 5 for today. Invest in emerging markets. Too many people buy real estate in the city where they live and it seems smart at first because you're like, I can get in the car and drive to the place. But now, you're limited by the opportunities in your area instead of what are the markets in the country that are booming and growing 3, 4, 5 times faster than your backyard. Well, don't do what's comfortable because that comfort zone is going to kill you. And just because you don't live there doesn't mean it's not the best place to invest either. You've got to evaluate that. Now, you should check out the markets I'm investing in because out of 324, I'm investing in the very best ones. Let me tell you how I pick them. I look for a market where jobs are growing and populations are increasing and house demand is strong and they don't have enough houses. Nationwide, we're missing 4.6 million homes. Find the sub markets that are booming and they don't have enough homes. These are the places where rents are going to rise the fastest and property values are going to climb the fastest. For example, there are parts in the US right now where you can buy homes for $150,000. $200,000. Rent them for $1,500 a month. Get a great cash flow but get tons of appreciation. That's a sweet spot. And when you learn how to spot these markets, you multiply your returns. And then you get ahead of everyone who's still investing in their backyard. Then again, if you want to learn my system and how I'm doing this, you can click the link below and let me show you exactly how I'm doing this. Now, let's recap. The first house is not just a house. It's your first investment. So, start smart. And you'll live for free or close to it if you know what you're doing. Even a half off. Then you don't stop there. Use the equity in time with the bank's money to snowball that into more properties. Always buy below market so you lock in wealth on day one. Put systems in place so you can scale without burning out. And finally pick the right markets where the growth is happening. Do these 5 things and real estate stops being a dream. It actually becomes your reality. And listen, if you are serious about getting started, I've got a lot of free resources, books that I've written, things that are designed to help you start from nowhere and get somewhere. And I've got it down below in my description. So, all you got to do is click below. Grab some of the free gear that I've got. My friend, I am wishing you God's blessings of abundance and winning and learning in the very best way possible. Let's go.