Most Profitable Strategy For Beginners

Most Profitable Strategy For Beginners


What is the best strategy for beginners
when it comes to the game of real estate? My name is Kris Krohn and today, I’m
going to be talking about the big 3 which means we’re going to be tackling
3 of the biggest most popular strategies that there are in real estate
and really get down to the gritty nitty gritties of which one is going to be
best for you. Is it going to be multi-family real estate? Is it going to
be single-family rentals or is it going to be flipping property? So, let’s go check out my trusty
whiteboard here. And what I want to do is this basic comparison. Flips, multifamily,
rentals. And as we talk about them, let me make sure you first have some context on
what all those are. First of all, for those either new to the game real estate,
flipping is this game of I’m going to buy a property really low and I’m going to sell
it really high. And it’s really short. Right? I’m going to do this for like like
one month, 2 or 3 months. And I’m going to see if I can make 10,000 or 20,000
or 50,000 dollars on a single deal. Then you have multi-family. Multi-family is
like think high-rises. Think many families in one building, right? It could
be a multi-family, it could be like a 12 unit, it could be a 20 unit. It could be a
hundred and fifty unit. And the idea is I’m going to do 1 property and it’s going to
have several different many apartments that I can run out for money. And then
lastly, you’ve got single-family rentals, right? It’s just reducing it down to, “I’m
buying a home that I’m going to be renting out. And I like that one because
I’m going to be renting out. I can buy something really small. it’s not as big
and scary.” There’s no flipping this is and that. That’s
what we really get into the pro and con of this. So now that you understand a
little bit more about what these are, let’s talk about the differences. So,
flips. If I’m going to buy a property, I’m going to flip a property, one of the things
that you need to understand is that one of the big pros is that you have really
big upfront money. I mean, if you successfully do one of these deals,
someone in my private real estate community just completed a flip and he
made $70,000. False, he made sixty nine thousand eight hundred and something
dollars, right? He made seventy thousand dollars. And he did all that and I think
like a 6 week time frame. The pro is you got really big money but if you’re
new to the game, there’s also a certain level of risk that you need to be aware
of. Because what if something goes wrong? What if you intended to make a 20
thousand dollar, because 20 grand sounds great. Riding a flip those deal, I’m going to
make $20,000. But what if something goes wrong and the foundation
has a bigger problem or I miscalculated and I can’t sell it for as much as I
thought. And all of a sudden to get it off your hands. You’re now, 10 thousand
underwater. That happens to new investors. So you can make really big money but you
need to understand that there is some risk and
game. Let’s talk multifamily, okay? Here’s the cool thing about multifamily. This
money that you get here on a flip, this is what I call upfront money. But here
are multi-family, what you’re going to get is a really big cash flow. You’re going to
get a superior cash flow. And what I mean by cash flow is it costs 10 thousand
dollars a month to maintain my building. But I collect 15 thousand dollars a
month. Which means there’s 5 thousand in the gap. And that 5 thousand comes
to me when it’s all done and said. So that can be a really big cash flow. But
one of the negatives, especially if you’re brand new is that if you want to
buy a really big building, guess what it takes? Takes a lot of money. These are
multi multi-million dollar deals. And you might need $500,000 out of pocket. You might need a million dollars. So if you’re brand new, one of
the cons is that it takes a lot of money. Now, you might be watching this saying, “I
got a lot of money.” But if you’re like most people are like when I got started
with nothing. That’s like, “Dude, I don’t have 2 pennies to rub together.” So
that’s not going to work for me. And then lastly, we have rentals. Now, the game here
on rentals is that rentals have the ability if you hold single family homes
long enough, they can really go up in value. And what it can produce is what I
call a long-term gain. Which means, “Hey, on this property, I might not get a whole
lot of cash flow compared to a multi-family like a big apartment
complex.” But you know what? When I go to sell that house, if I do it right, maybe
I’ll make 50 grand when it’s time to sell it. Maybe I’ll make $100,000 when
it’s time to sell it. And that can be exciting for some people. But you know
what? One of the cons on rentals is that if you buy a home at market value and
you rent it out, it often has a very small cash flow compared to multifamily.
Look at these 3 strategies for just a moment. Flipping offers you the big
upfront money. Multifamily gives you that every month big residual income money.
And rentals gives you the long-term gains. If you were to ask me, “Kris, of
these 3 strategies, which one should I put my time and effort in? If I’m
brand-new, if I’m a beginner and I really want to crush it in real estate, which is
it Kris? Is it flips? Is it multifamily? Is it rentals?
None of them. They’re all popular. They’re all good. You can make money with all of
them. But I do a little bit of a different strategy. Because I’m a little
greedy. Meaning I want it all. I want to have the upfront money, I want the cash
flow. And I also want the long-term gains. And by the way, is there a way to do that
while eliminating my risk or at least severely reducing it? Is there a way to
do it that doesn’t even necessarily even require money as opposed to a lot of
money? And is there a way to get an awesome cash flow instead of a small
cash flow? There is a perfect solution. When I first got starting the game of
real estate, I mathematically was evaluating not just these 3 but the
top 30 strategies. And I was asking myself, which of all of these strategies
is going to be best? And I would ask my mentors and people that were really
successful in real estate. None of them could give me a clean answer. You see,
every single one of them they would say basically, “Well, this one’s has merit for
this reason and this one…” Like for example, flips. This one’s good because as
good up for a money. I like rentals because as long-term gains. And it’s like
wait a second, that’s not a good answer. There’s got to be a best. I ended up
writing a book about a special mathematical equation that I wrote. An
algorithm. I dumped in the top 30 strategies and one emerged. And what I’m
going to do right now is I’m going to share with you what I would do if I were you
if you’re a beginner. On how you can get the upfront money of flips, you can get a
really awesome cash flow and you can get long-term gains. I call it compassionate
financing. It’s a lease option with the twist. And here’s what it basically means.
What I’m doing instead with my special lease option system. I am buying
single-family homes underneath the median that do offer me
the long-term gains of a rental. But I’m not just buying the home and renting it
out. I’m using a special contract and I’m basically saying, “I don’t want a renter. I
want a future homeowner.” Did you get that? I want someone that wants to make this
their home. They want to maintain it. They want to manage it. They want to take care
of it and they want to buy it. TVhat person is going to give you double the cash
flow. So now, we picked up double the cash flow than we would have gotten here
while still keeping the long-term gains. And finally, these individuals got to
give you not just a refundable deposit or first month’s rent. They got to give
you a bigger commitment than that. It’s almost like what you’d call it down
payment when buying a house. Because their intention is to make this home
their own. So they’re going to give you an average $5,000 up front as a down
payment. You get that upfront kicker. So here’s what it really means. It means
that with my system that I that… By the way, you can click the link below and
I’ll tell you all about it. And if it’s useful for you, get started with it. I
actually mentor people. I have a private community where I help people do this
because when you’re brand-new, you need help. Right now, I’m buying hundreds of
homes personally every single year. I’ve got my wealth figured out. I was
financially free at the age of 26. But I take a little bit of my time and I
basically help those that really want to learn how to do this. I want $5,000 up
front when I actually do this deal. Because on average, that’s what I collect.
Cash flow, I don’t want like a 1 or 2 hundred dollar a month
risky cash flow. I want on average, it’s $500 a month. I mean just imagine for a
moment having 500 extra dollars every single month. And then this last
1. The long-term gains? When I go to sell this house, I’m making tens of
thousands of dollars at that point. So 5 grand upfront, 500 a month,
tens of thousands of dollars. And here’s the best part.
This strategy, it doesn’t have the risk of flips. It doesn’t require a lot of
money. In fact, I can show you how to do it with very little or no money at all.
Which is perfect for people like you and I, if we’re starting with nothing. And it
has an amazing cash flow. So, we’re eliminating the cons, we’re picking up
all the benefits. And if I were a beginner and if I were you, that’s what I
would do. Like I said. The information is in the description. And the link below is
what I want you to understand. I got really insecure about society’s game
plan for me. Society basically said, “Kris, go to college work for somebody else.” And
I started going down that path and then it didn’t work out. And I got discouraged
because I was like, “Man, society’s not really going to help me. My parents told me
that if I got a college degree that I’d be set for life and that a company would
help take care of me.” That is not what my experience was. It all hit me like a ton
of bricks when I came home and I was newly married and I found my wife in
tears because we couldn’t pay the bills. For me, as a
husband trying to be a good provider, it was a really sucky moment. I could have
said, “Well, I’m in college and I even though I have this full-time
telemarketing job which sucks. I’m doing my best.” But my best wasn’t enough it.
Wasn’t it… Wasn’t putting food on the table literally. That’s why she was
crying. That’s when I decided that I needed to have a game plan for my life.
And what I’m really sharing with you right now is the game plan that I used
on my first 25 properties in a 4-year period of time that bought me back my
independence. My emancipation. I created a 6-figure residual income and I quit my
job just the same year I graduated from college. And my life has never been the
same since. So, I want to you understand that I’m not just sharing with you
logical ideas for your consideration. I’m really sharing with you my life. I’m
sharing with you what I did that created my financial independence. Made a huge
difference for me. And now, I’ve created all this wealth and have made millions
of dollars. And the way that I give back these days is by finding serious action
takers. People that are committed, people that know they need a mentor. People that
know they need help getting outside the system. And that’s what I do. Might be for
you, it might not. If you like in the video, I want to invite you to subscribe
and watch more of these videos and let it be useful for you. But for those of
you that are saying, “Oh my gosh Kris, I can identify with that, right?” I mean…
Especially in today’s world. Dude, we have been cheated. Society’s been
telling us what to do and it’s not working.
College is not producing what we wanted to. And you fast forward 40 years and
people aren’t getting what they want. You got to take financial control of your
own life. You got to take bull by the horns and you got to make that happen.
But that doesn’t mean you have to go it alone. I had mentors helping me out. You
know, I take some of my time and I help other people out. And if you feel like
that really resonates with you, I want to invite you to click the link in the
description below. And let me share with you more about the details of exactly
how this works. Talk to a member of my team. Get the details and let me mentor
you and show you how you can in your life. Thanks for watching the
video guys. Make sure you are a subscriber. Click that link below
and I look forward to seeing you on the next video.

82 thoughts on “Most Profitable Strategy For Beginners

  1. gg

  2. i don't even have 1$

  3. Kris man I just have to say you are awesome.

  4. Whats the difference between this process and rent to own process? Thanks in advance for the positive helpful responses only.

  5. I need help I want to start help me out please I messaged u website and no one answer me

  6. Most profitable strategy is consistency.

  7. Bro im 13 and im watching this for my future..

  8. how do we know the value of a home will go up? what are the signs and causes?

  9. Where's Steven?

  10. Can you buy a house without 2 years of tax returns?

  11. I'd like to look at getting a hard coppy of the book. Anyone know where I can find one that fairly priced.

  12. I think u should take location and and go geographic in to hand

  13. Hi I have been looking into buying acres of land. I was wondering will it be better just to buy a house. Which is better buying acres or a house

  14. How does your lease option work with possible hyperinflation taken into consideration?

  15. Hi Chris how do I get in contact with you because I'm ready to a rental property thanks buddy

  16. HI KRIS IM FROM AUSTRALIA HAVE WATCHED LOTS OF YOUR CLIPS I WOULD LIKE YOU TO DO A CLIP ABOUT THE LEASE OPTION CONTRACT IN DETAIL THE PAPERWORK . THANKS

  17. Me like u the same i believe u r my mentor

  18. Thanks 🙏🏼

  19. Love the video! So much important information.

  20. Kris if you reading this first of all thank you for this videos i find them quite helbful btw i just turned 16 yr old and i want to know how to start young although i dont live in us but in country that strugles financial problems and basically the market is bad so what do i do

  21. Can I hv 5 bucks

  22. He’s so transparent, I would like to work with him

  23. You

  24. Where and how do I find the right mentors?!!

  25. I like the way you put it

  26. I am curious.  Do Kris Krohn and his team work with real estate agents?  The reason I ask is because in addition to being an wholesale investor I am also a licensed real estate agent and I might know investors whom I can send Kris's way.  However, they would need a local real estate agent to help them purchase the properties I find for them.  I can locate the deals.  However, I need my fellow agents from my company to close deals for people investing long distance.

  27. but what if your house burn down when you have a leas option?

  28. Hey Kris i thank you so much for the videos you post I feel like your sincere and so helpful for my future decisions. My question is, my credit scores are now 810 i also have a decent amount saved in the bank but my yearly income is about 38 thousand a year, can i be approved for a loan by any bank to purchase a home to invest with the amount of yearly income I'm making?

  29. Makes no sense at all. Who is gunna pay u 5000 for a lease you have on a house that properly can't sell that's why the owners given u the lease option

  30. Is it a HMOs ?

  31. Your the man.

  32. Hey Kris, Any advice for people who live in Toronto? Houses are on average $700,000 + . Its impossible to find a house listed for less than $400,000 lol

  33. I’m also in Utah (Farmington) but what do you think about the market right now? Seems like everything is extremely high priced, is now a decent time to buy or should I wait 12-18 months to see if the market dips down a little bit

  34. Kris your my hero man

  35. Do you need a license to buy and sell houses like this thanks

  36. Amazing Video Kris, You have taught me more in 11mins, than what other so-called "Gurus" have taught me through their "online course" in months…Thanks for the value and your amazing story!!! 🙂

  37. Love this plan Kris, makes so much sense. Thanks!

  38. Kris thank you so much I am now buying my first house and have big plans and a strategy that will work thank you so much for making these videos for us who where Scared of thinking that it won’t work much love bro.

  39. Great story

  40. Hi Mr salesman

  41. What happened when it's 2 years down the road and they wont out?

  42. Thanks alot for your educational videos Kris Krohn.

  43. I'm 18 and would absolutely love for you to mentor me

  44. Does anyone else takes notes ?

  45. What is a unit

  46. Sounds like rent to own?

  47. As much as i love the optimism and quality information. A lot of this is very contingent on hitting the home run at each part of the process. Im not saying its impossible. But its going to be very difficult. Kris and his team seems to be very knowledgeable about finding great deals since they know the market extremely well and using it to their advantage.

  48. Hi. I was thinking about starting my own property management company soon? Do you have any advice on that?

  49. Your forgetting that flipping a short term investment the IRS going to charge a self employment tax, your essentially going to be paying near 40% in taxes once you get to 100k, rentals or long term gains have 0% tax up to 38k if ur single or 76 married.

  50. I love his spirit to help ppl 😇

  51. With your video I'm covering the world someday. I might not be the richest but I want to be loved by this whole world.

  52. I’m 18 and I just got my mls license , I’m pumped and ready but Where and how do I get this “special contract”. I would really love to get started on this

  53. Does he work in the same way in the UK?

  54. I like flipping liver

  55. What do you mean by putting it in real estate?

  56. How can i become one of you

  57. I've been looking at Pre-foreclosures on Zillowm today I received an email on a couple of properties I had "saved" on Zillow. They now have auction dates. Does that mean I can't buy directly from the home owner? Or do I have time up till the day of auction? Thank you!

  58. Hi guys, im 18 years old and im from Greece. Here real estate isnt that profitable cause if you "borrow" from bank 75k for example to get a home you will have to return 110k, i mean is too much, what can i do?

  59. Great video thank you for making these im a college student and im hoping to get into real estate and these have been so helpful. Quick questionvideotopic:If you could go back to college when you started and tell yourself 15 things of advise what would they be and major mistakes you made

  60. Here in the UK we get capital gains tax and higher stamp duty when we owe more than 2 properties. Not to mention we have to pay to so much tax on out income. It sucks!!

  61. I own my own house free and clear and I want to sell my house to start buying home I get a once-a-month income 1600 can you please give me some advice on what to do

  62. This is awesome. I just need to know where I'm living while I do this? Keep my apt? Move back home? Buy my own home first?

  63. Do Kris Krohn himself reply to any comments???

  64. I always felt like that but I was always afraid to do it
    Watching this gives me so much motivation thanx kris u the best

  65. Im a beginner and thank you for this video

  66. Why on earth this video came after 20 yrs after high school….i wish i learn this at my younger age..n be financial free now

  67. you talk too much…

  68. Can you be a young Real Estate owner ???

  69. Kris how can I link up with y’all

  70. Finding the client that is willing to "lease" your place is pretty hard… Even with a BA realtor.

  71. Pause at 4:37 lol

  72. Hey Chris, how can I then start your strategy if I'm broken like you when you started?

  73. Do you need a real state license to be able to start doing this?

  74. Thank you. This video is extremely helpful !

  75. Amazing video Kris!

  76. A lease option will work in the right real estate market / city.

  77. Mr kris am Phil's and please will love to have u as a mentor and get ur contact thanks and hopefully expecting your response

  78. Subscribed..i wanna LEARN

  79. mind blowning

  80. One question who has 10000s of thousands of dollars to pay at that moment?would payments over time work?

  81. 10 k u

  82. I'm glad I subscribed to your Channel because I'm learning a lot and you're cooler than a lot of other people on these videos

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