Make $500 Per Month Cash Flow On Your First Deal

Make $500 Per Month Cash Flow On Your First Deal

You’re brand new to the game of real
estate, you’re a brand new green investor and you want to crush it out the gate on
your very first deal. My name is Kris Krohn. I’ve done over 3000 deals and
today, I want to share with you how you can crush it and make over $500 a month
a cash flow on your very first deal. So, you’re feeling ready, right? You’re
going to jump in the game of real estate, you’re going to buy a house and you’re
thinking, “If I could have an extra $500 a month on just my first house, it would
make such a big difference in my life. It would help me to get out of debt or
maybe you know take care of that supplemental income that I was looking
for or just have a little bit more freedom.” A little bit more breathing room
right? So, here’s what you’re probably thinking. “Alright, what I need to do is
buy a house and rent it out. Because that’s what people do to get a cash flow.”
Here’s what’s going to happen. Let’s say that you purchase entry level. This is a
home that you can purchase for $150,000. And let’s say
that that ends up producing a mortgage of a thousand dollars a month. Just based
on what the interest rates are at that point. So it’s like, “Okay, I’m going to buy
this house. But I’m going to have this monthly debt. This liability of $1,000.” So
you’re thinking, “Okay, I bought this house and now I’m going to rent it.” And when
you rent it, you did your research and you found out, “Shoot I can actually only
rent this for $1,200 a month. I didn’t get my $500 a month cash flow. Right now,
I got to pay $1,000 there. I only collect 1,200.” Guess what that Delta is? It means
that my cash flow is $200 a month. But not really. You see you’re doing a rental.
And that person is going to call you up and say, “The sink broke. The faucet isn’t
working. The valve is sticky. The toilet won’t flush. The front door squeaks.” And
depending on what kind of tenant you get in there, you’re going to have to start
going on over and fixing this and fixing that. You’re thinking, “Dude, I can’t afford
property management company. They’re going to charge ten% of what they
collect. That’s going to wipe out almost all my cash flow. I’m going to do it myself.” So
now, you’re kind of nervous that you’re only making 200 a month. Now, you’re
nervous that you have to do the work yourself. When you take those calls
trying to find time in between work or college and life or family. And so you’re
taking your very little bit of precious time. You got you’re driving all the way
out there. You don’t to do that too many times before it’s like, “Shoot. Well I’m
glad I fixed it. Someone would have charged me $300. But there was $80 in
parts.” This isn’t going to be $200 a month. This might actually turn
100 dollars a month on average. So you’re in a pickle. You thought you were going to be the
hero. You’re going to do this first deal. You were going to get this breathing room
and all you really got was a part-time job that comes calling when you least
expect it and only to make $100 a month. Can you just like feel the stress of
that? That’s what normal investors do. Which is why I’m glad you are watching
this channel and learning from uncle Kris. Has done 3,000 deals to help make
sure that you don’t freaking screw yourself up like that. Because you’re
smart and you’re a subscriber, right? You’re watching these videos every
single day. So every day, 10 minutes of videos of Kris gets you 10,000% smarter in the game or real estate. Let’s get smart and find a
solution. You might actually be in a situation like this right now and saying,
“Kris, I need the doctor. Call the doctor.” Doctor is here. Let’s fix this situation,
okay? So, let’s give you an alternative to this situation. The alternative that I’m
going to give you. It is a powerful hybrid strategy it’s called compassionate
financing. It’s a strategy that it’s like a lease option with a twist. I wrote
about it in my first of 4 books that I’ve written and published. I’m a
best-selling author and that book I’ve sold more of than any others. And it’s
all about what I’m going to share with you right now.
So here’s what the doctor is subscribing. It’s called a lease option. And what
you’re going to do is you’re not going to put a renter in this house. Because first of
all, it’s going to cost you $100 and you can avoid that. Because the lease options
gonna do some things for you. Number 1, instead of putting a tenant in there
that has no interest in really taking care of the house. What? They put down a
small security deposit that they’ll lose if they stain the carpet?
Booooo-whoo! They don’t really care that much. Instead, you put someone in the home
that says, “I’ll take care of this home as if it’s mine.” And you’re like, “Oh, that’s
great. Because I… That’s the way I feel about this house. I’m so glad to find
someone that’ll do that.” And for that to happen, they got to give you a down
payment. On average, it’s $5,000. That’s called commitment right there. And
all the sudden you’re like, “Hey, I got $5,000 more in the bank. That’s freaking
way better than a tenant with a first month’s rent. Which I don’t get to keep
any of that. Just goes to a month of rent. And a security deposit I got to give
back. Unless I have to repair the place.” Number 2, they’re not going to pay more rent. They’re going to pay a high rent. On average with a $5,000 downpayment,
they’re going to pay $300 more a month. So, by the way, this $200 cash flow just
turned into what? A $500 a month cash flow. $500 a month plus no repairs. Now, I
want you to think about that. When something breaks, when the door squeaks,
when the toilet doesn’t work, when a valve gets broken, guess who they’re
calling? Not you. Because they’re the future what? Homeowner. They have to start
acting like it it’s all locked and loaded in the contract. And you know what
they want to. They’re now taking pride of ownership. They’re not a renter. They’re
in a total different frame of mind. You now got your goal of collecting $1,500 a
month having $1,000 payment. You’re making $500 a month. You don’t have the
repairs. It’s not a part-time job anymore. And you’re enthusiastic and already
saying, “Wow, we did it. How can I get another one?” Friends,
true story. This is how it went down for me when I got started in a game of real
estate. I did my very first house but I lived in that house. So when I bought my
first house, I could have rented it out and I would have probably had about a
$200 a month cash flow. And I would have had to put on the hat called “I’m a
property manager.” But instead, I took my mentors advice. I put signs in the yard
that said, “Rent to Own. No bank qualifying.” And I started having people on that busy
road driving by calling me up, calling me up. And someone moved in. They gave me
several thousand dollars as a down payment. And then they had a payment. I
was making $600 a month on that. And here was the best part. When my wife actually
was basically making all the payments because she was in charge of the money.
She called me in one day a little bit nervous and excited. I said, “wWat’s up?” She
says, “Kris, I’ve been paying the mortgage on this house but there’s $600 leftover
every month.” And I said “Well, you should have figured that out months ago. Because
this is like our fourth month of owning it.” She’s like, “I know.” It’s like $1,800
leftover in just the first 3 months. And when they pay their next payment,
it’s going to be another $600. Plus they gave us several thousand dollars. Like
we’re up with all this money. Like what do we do? I said, “I don’t know. What do you
think we should do?” She said, “I think we should buy more.”
Okay, that was ecstasy to a husband who is married to a skeptic that all of a
sudden warmed up to the fact that this is working. Friends you need your first
house to be a home run. You need to win. Because if you do it poorly, you might be
out for the rest of your life. And if you win, then you could go in an entirely
different direction. Because I was winning, I said, “How do I do this a
hundred times? How do I do this a thousand times?” And that’s the journey
that I’m on. This is working. It’s.. I’ve got an automated system and it’s
freaking rocking. Don’t go it alone. My mentors made the
difference and if you’re new to the game and you’re like, “Kris, I want to crush
that $500 a month.” I just have Mitch here in my community that got started. He’s in
Louisiana. He just closed on his third property. He’s averaging $700 a cash-flow
on every one of those homes. And now, he lined up a partner that’ll help him buy
his next half a dozen. It’s absolutely incredible. It’s amazing. And it works. Now,
if you’re thinking to yourself, “Geez, I could use a mentor and I’d love for
someone to walk me through this. I need help with the paperwork and making sure
I do it the right way.” And I’ve lined all out of it up for you,
maybe. I don’t work with negative people. I don’t work with crotchety people. I
don’t work with whiners. I work with serious committed action takers. That’s
what I am. And those are the… That’s the tribe that I’m building. And so, these
videos, you’re watching it. What did I charge you? Nothing, it’s free. It’s me
helping as many people as possible. But you might be one of those that could be
perfect for my community. Vlick the link in the description below. Ask to talk to
a member of my team and let them take you through a qualification process.
Learn what it is to join my club. More than what it is to be on the inside.
Learn what it is to have all the tools and resources. And together, let’s go out
there win in this game of real estate now.

34 thoughts on “Make $500 Per Month Cash Flow On Your First Deal

  1. Niceee

  2. Great video🙌

  3. But compassionate finanancing is not possible in india

  4. Teach it about india

  5. Just taking advantage of people who likely won't ever be able to buy the place anyway.

  6. Kris I would really love to meat you man you seem like a really genuine person much love to you and the family bro I LOVE your videos I watch them every day and take notes I just need a mentor and take some friggin action. haha once again thank you.

  7. I recently found out in Texas you can only do a lease option for maximum 180 days. So how exactly would I go about doing a lease option in such a short amount of time?

  8. Merry ChristMas Eve Kris Im Pumped 🌠🔑🏡❗️

  9. The problem is how does everyone do it. I live in SoCal and houses start at like half a ticket.

  10. What about property tax during the mortgage repayment period? Wouldn't that wipe out the profits? I'm new so yeah… Apologies for the noob question.

  11. Can i Do this alone my friends are not undertstanding how this Works , only my father but he cant start with me.

  12. Are you really going to get people lining up to pay $1500/month with a 5k downpayment to live in your basement?

  13. What to do if mortgage loan interest rate is 14%?

  14. is this strategy possible outside US ? and btw, the equity in the house during a lease opthion is yours or the buyer´s?

  15. Hi chris i am currently a tenent in a house that i live in but will soon n negotiate to buy with lease option. It should cost around 270k canadian dollars i will be paying a mortgage of around 1100 to 1200 month. And theres a twist the house has 2 apprtments attached to it and i would receive 1190 in rent a month and pay 280 to 300 taxes a month. Is it worth it. This will be me and my wife first home There will be no real equity when buying but it will the mortgage will pay itself and i will be paying an extra 4 to 5 grand a year to shave off interest to build equity faster . Thanks

  16. "Uncle Kris" ☺

  17. Uncle Kris !

  18. Here’s what the doctors subscribing lol I like that kris

  19. What if the tenet still messes stuff up

  20. what if the ower/renter messess up the house? like they redo a room and it looks really bad

  21. Love this bro, keep it up.😀

  22. Kris you my guy and all but your barber needs to be evicted boss

  23. I can’t believe people actually will lease a house. What state is this for?

  24. This dude is trash! Just jabber jabber

  25. Is this legal in New York ?

  26. Hi, in the first lease option video Kris made he said that we help people build equity in a home with his strategy. I didn’t understand that, Please explain. Kind regards Arash

  27. But I’m from England is any of this legal ?

  28. How can you do it if you still want to be the owner?

  29. chris why dont you include interest payments because that is very important as well

  30. sir can you please make videos as per indian rules
    please please kris

  31. This feels very legally ambiguous.

  32. Man I’m so glad i found you you are a inspiration

  33. Great vid bro

  34. So what happens if there are no tenants how will i be able to pay my mortgage off or if the tenants fail to pay on time ?

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