How To Buy Investment Property

How To Buy Investment Property


How do you buy investment property? My name is Kris Krohn, I achieved my financial
freedom at the age of 26. And frankly for the last decade and a half,
I’ve been traveling the world and living life and amazing ways because what buying investment
property has done for me. Today, I’m actually going to go back to the
basics –investing 101. We’re going to be talking about what you should
be buying. We’re going to talk about good debt and bad
debt and what your next steps look like so you can start building wealth today. So, I must’ve been a really odd person because
I was so concerned in my early 20’s about my future. I didn’t want to wait 30 or 40 years in a
career only to find out that I might not enjoy it. In fact, I couldn’t even really imagine liking
doing anything for 30 or 40 years. And so, for me, I just want it out. I wanted to find a way to live life on my
terms. Listen, I wasn’t even trying to be rich. All I really wanted at the end was to have
a replacement income so I didn’t have to have the job. I met 3 men who had all made millions of dollars
in real estate that gave me the guidance like I’m going to be doing for you today. So, check it out. There are some really important basics for
you to understand when it comes to, “Okay, what is investment property?” For those of you that have actually bought
property and might think that this is a little basic, listen super carefully because I’m
going to share some of the new ounces that can make differences between 1 or 2 properties
and literally hundreds of properties like I have. So, when you buy a property, there’s a couple
of basics to be aware of. First of all properties are kind of scary
when you’re brand new or if you’re young. Because if you think about it, it’s like the
most expensive thing that you can buy that is still considered a commodity. You know, if you take a look at the national
median, meaning the average price in this country, it’s over $200,000. So if I take a $200,000 piece of property,
it’s like, “Wow, that’s a lot of responsibility.” And all of a sudden, you’re going to be thinking,
like, “What happens if someone doesn’t pay the mortgage or I don’t pay the mortgage or
what my credit get ruined?” Here’s the basics that I think are super important
for you to understand. First, one is, is if I buy this property for
$200,000. I have to come up with the down payment. Usually if it’s an investment, you’re going
to put 20% down. And 20% on 200,000 comes out $40,000. Now, I’m going to show you some strategies
later in this video where you can pay a lot less money or even potentially no money. But understand that this is the other thing
that scares a lot of people. I have to come up with a lot of money. And “Kris, how am I going to save that? Can I use money for my 401k or my IRA?” Let’s just assume for a moment that because
you’re a subscriber to this channel and I’m teaching you these things that I show you
literally dozens of ways to get money that are super easy. That don’t require saving and waiting. But accessing this money, if you buy this
property, what you’re going to get is something called the mortgage. And a mortgage is basically is where the base
is. If you give me 40,000, we’re going to give
you the other $160,000. And it’s a loan. And you got 30 years to pay us back and you’re
payment on that is going to be a thousand dollars a month. So, now you have a brand new obligation. Some people will say, “Kris, that’s debt and
debt is bad. I’ve been taught that you should stay out
of debt.” I actually hate consumer debt. But I love business debt. The difference between the 2? If I but a boat or a car, that debt and i
cost me money. It takes money out of my pocket every month. This debt, make no mistake, this is actually
really positive thing. And you actually want as much as this debt
as you can get. Why? Because if I take this property… And let’s say that I’m going to own it for
5 years before I sell it. What can I do with it? Well, I’m not just going to sit around and
pay $1,000 a month. What actually needed to do is get this house
producing income for me. And you can do a couple different things. You could turn it into straight rental as
in, “All right, I got to find out that someone can rent this for more than $10,000 a month.” And in this price range, if these numbers,
you’re going to find that you’re going to be able to rent that positive cashflow. It might be only 1 or 2 hundred dollars left
over every month. So, let’s say, our tenant comes in here. And let’s say that they rent it and that the
renter is willing to pay is $1,200 every single month. You’re thinking, “Great, they’re going to
cover my $1,000. They’re going to work on paying this home
down and I have $200,000 left over a month.” if I’m mentoring you for example how to do
a lease option, which I recommend how newbies get started, then I’m going to show you instead
how to do rent to own and collect on average closer to 14 or 15 hundred dollars a month. So that you’re now getting the difference
of you pay your thousand a month, you’re collecting 1,500. Guess what that means? There’s an extra $500 every single month. Now, by the way, when you’re poor like I was
just getting started, $500 a month is meaningful. I mean that can make car payment. For me, it paid down my credit card debt. I had $8,700 of credit card debt. And it helped paid that off which was a huge
relief to me. And so, that money is meaningful. More importantly though is if you hold this
home for 5 years and then you sell it in 5 years, understand that properties under the
median always go up in value. So, let’s just say for a moment that this
home actually went up to $230,000 in value. If you sell it, you make that extra $30,000
dollars. You’re making the $500 a month. And actually there’s a lot more money to be
made on this property than that. It could be down payments that these people
give you 5 grand upfront which is typical. It could be the tax benefits if you want to
pay less in taxes. bottom line is real estate really makes sense
when you’re buying investment grail in real estate. This example is just to kind of show you some
of those basics which is: You buy a property, it’s going to go up with time. You’re going to put a down payment whether
you’re money or someone else’s. You’re going to control that property. You’re going to lease it strategically for
more than what you’re payment is. And you’re going to make money in 5 different
ways. If you go to Kriskrohn.com or you check the
link below, you can get a free copy of my book that actually talks about 5 different
profit strategies. And because…. I feel in love with it. And by the time I was 26 years old, I bought
25 of these properties. Those 25 properties produce $12,000 a month
and increase my networth of 1.6 million dollars. And that meant that shortly after graduating
college, I walked in to my boss’s office and I quit. And even though it’s kind of nervous, it was
really exciting, because I no longer needed society or job or boss to take care of my
family. I knew how to do that myself. And that’s really what I’m empowering today
in this conversation of how do you buy investment property. Now, if you’re just starting out and brand
new, here are couple of hacks and things that will be helpful for you. First of all, you can use your money and you
can use your credit to buy property. And I always believed that the first property
that you should buy is a primary residence. It’s the first property for you. And instead of 20% down payment, it’s just
a 3% down payment. So, if we are talking about a 200-thousand
dollar house, we’re now talking about $6,000 to buy the house versus 40,000. Because says that if you’re going to live
there, we think you’re going to take care it better than if you’re going to rent it
or use it something else with it. To make that happen, you really need to establish
3 lines of credit. So, you’re going to want to get 3 different
credit cards. Apply for them and you’re going to want to
keep them paid off. You’re going to want them use them and pay
them off, use them and pay them off. And that shows the bank that you’re responsible. If you can be responsible for 2 years in building
up your credit that way and you have a basic stable job that you have for at least 2 years. And you saved up that 3 percent down payment,
guess what? You’re golden and you’re going to buy your
first house. Or you’re going to say, “Well Kris, what if
I want to get into investments. I want to go fast. I want to hit the ground running like you
did.” Then you’re going to need a mentor then you’re
going to need some training. If you click the link below, you’re going
to find out more information of how we can help you with that. Big thing that I want you to understand here
just that I want to open up your mind to is that, when buying investment properties, the
biggest hurdles are finding good deals and then finding the money for them. And what I want to teach how to do is become
a deal maker. First of all, you should be a subscriber to
this site. Because everyday, I’m teaching videos of either
strengthening your mindset so your positive financial psychology or I’m actually teaching
you the business skills for going out there and actually crushing it in real estate. And the reality is is that deals already exist. And guess what? People with money already exist. Your job is to learn how to put that them
together. Now, there’s several different ways of doing
that. And you’ll learn on a lot of my videos how
to do that. If you click the link below, there’s an opportunity
for you to actually… Yes, get a copy of my book but also get a
consultation for free. Talk to a member of my team. They will put themselves in your shoes and
say, “All right, if we were you starting at your age and what you got…” Which might be lots of money or in debt, like
I was when I started. And they’re going to show you step by step
what you need to do. We call it a game plan. And they’re basically going to share with
you what your next steps look like so that you can build wealth in the most intelligent
way possible. Listen. Buying investment property, it’s easy if you
have a team and if you have a system. And you have a chance to inherit mine. Or subscribing keep learning how to build
your own. Either way, if you’re looking for shortcuts,
I’m going to be providing those for you. Thank you so much for watching today. Make sure that you are a subscriber. And if you want to get some hands on help,
it doesn’t cost anything. And if you click the link below, my team stands
ready to help you start building wealth today.

24 thoughts on “How To Buy Investment Property

  1. Love your vids man keep them coming

  2. Sir plz make video on indian real estate investing

  3. I know tere is one video already

  4. Big fan from India ❤️❤️ love your ideas and strategies i'm a teenager hope I will get success in my early 20's

  5. Sir plz make your own course from basics because on YouTube you content is mixing

  6. Awesome 😎

  7. Thanks for this

  8. Chris you have been uploading videos that have been peaking my interest lately!! Every video you upload is so great and inspirational. I’m 21 saving up for my first property!

  9. Great Video👍🏼! Did your old boss ever come to you for advice on home investing after seeing your success?

  10. Big fan from Trinidad

  11. What about for expenses?

  12. I don't think any property which costs 1000$/month EMI will create a income of 1200-1500$/month.. it'll hardly give 400-500$/month.. I'm from India and at least here your formula doesn't fit..

  13. Can you please make a video on taxes

  14. Hi kris what can you say about real estate in Philippines which has alot of condominium rent to own & cheap townhouses (for closed)?

  15. Hey Kris, I'm interested in learning more about ways to invest, are there any books you would recommend for for a beginner?

  16. Kris I filled out the contact form a few times and havent had anyone reach out to me.

  17. Krish… do visite Nepal once

  18. What I need is a investor

  19. You look more like WWE champion than finantial expert lol

  20. Dear Kris , things in South Africa work a little left way around

  21. What are the 3 best credit cards that you recommend getting?

  22. Do you recommend only doing lease properties or to find a balance between Lease properties and rental properties?

  23. hey kris I'm from Toronto Canada all the homes here are over a million dollars and 20 percent on that is 200k how do i save that

  24. Lease Option is brilliant!

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