How To Buy An Investment Property With A Partner
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How To Buy An Investment Property With A Partner


Perhaps one of the greatest secrets to
making real estate happen now in your life is understanding how to work with
other people. We call them partners. And there’s a variety of options of how that
works. In this short video today, I’m actually going to break down my expertise
on buying properties every day with partners. Everything I’ve learned the
right ways and the wrong ways. Tune in. So, in today’s video, I actually get to
share with you perhaps one of the most innovative and
exciting aspects of real estate for me. It’s a way to buy a real estate with no
money and no credit. It’s a way to combine resources. It’s a way to ensure
that you can get in the game. You might have talent you might have time. You
might have skills. You might have money, you might have credit. All of those are
valuable assets to anyone else who wants to play in the game of real estate. And
so your next partners right around the corner. In today’s video, I’m going to show
with you who these people are as partners, where to find them. What makes a
great partnership and how to have success with it. I’m also going to share
with you how I divide up partnerships so that I can grow and we can both achieve
more than we could individually on our own. So, there’s this adage in real estate
that says that one plus one equals eleven. Which basically means that when
you combine and put resources together, there’s there’s so much that you more
that you could ever do then you could ever do on your own. I’ve been a huge fan
of partnering in real estate. Partially how it came about. Because when
I actually did my first deal, it took me 14 months to scrimp and save a little
bit of money to buy my first house. And fortunately because I bought it right, I
had a good mentor and I had a good strategy, I extracted the equity from
that a year later and I put it in another house. That was relieving because
it means that I didn’t have to save up money again. And frankly, that second
house required a lot more money. And so, I got it out of my first house. I remember
them that I used that second house to buy my third house. And so far, everything
was working great except it was just taking time. And if I could have gone
faster, I would have gone faster. But if you’re… You know, a fan of this channel
you’ve watched some of my other videos, you’ve heard me talk about my first
partner who actually was my father-in-law. My father-in-law, he was
not excited about what I was doing in real estate in the beginning. After he
saw my mean by my first second and third property, with time he became curious and
fascinated. He wanted to know more. And by the time I got to my fourth property, I
knew the deal I wanted to do. I knew how good the money was. I didn’t have the
money to make it happen. My father-in-law just happened to call
me up and be like, “Kris, dude. What are you up to, man? What are you doing?” He’s
older generation. He wouldn’t have said it quite as cool as that. But basically
he wanted to know what I was up to. And when I shared it with me,
“Dude, I’ll put up the money and let’s actually partner on this thing,
fifty-fifty.” We did. We both made money and it was the first of what became 50
more deals. When I was nearly a dozen deals in with him, that’s when I paused
him and I said, “Man, if I had another father-in-law, I could go away faster.” And
I wish I had another father-in-law. And asked myself “How could I do that?” And you
know what happened? –Is I realized that there are other men and women who had
dedicated themselves to careers, had put money in 401ks and IRAs like my
father-in-law, that we’re looking for a better alternative. I was that better
alternative. So, the next slew of homes I bought was with a new partners. And
bottom line is that partners became a way for me to transact and do a real
estate and way that I never could have before this. Why did my father-in-law
actually want to partner with me? It was because I had a track record. When I
bought my first house, he thought it was premature. I bought my second house he
didn’t understand why I needed to. When I bought my third, it was confusing him.
When he saw that I had a pattern… And by the way you usually need minimum of
3 to create a good solid pattern. Because the first one is fluke, the
second one is luck and then the third one is a pattern. That’s just been my
experience. Today, I partner with people all over the world. I’ve got a document
here that describes my track record. It’s no longer just three houses.
It’s called “Krohn Consortium, bringing institutional structure and scaled a
single family rental housing sector.” This shows my last 4,000 homes. And there’s a
link below that can give you one of these documents and get some more
information about it. But the reason why I’m showing this is because I figured
out that the biggest asset that I have is my expertise in real estate in my
track record and experience and having done it. I don’t actually put money up
when I do deals. I’m putting something different up. Let’s talk about the
components so that you can understand what the different moving pieces are so
you can ask yourself what kind of partner should I be and who should I be
looking for. So, there’s different kind of partners. And one of the things that
partners can put in is there are some things that real estate needs including
time. Is there someone that can put some time into the business? Is there someone
that can do a little bit of management like make that happen?
Is there someone else that can actually find the deals? Like where are the good
deals? And by the way, is there someone that can manage
rehab if that’s part of it? Or what about when we get this rented out? Who’s going
to be doing kind of the long-term management? Not just the initial upfront
management. You know… And then who’s also putting up money? And who’s putting up
credit? These are all valid assets. In a thriving portfolio in the beginning, it
means all of them. This is typically how this gets cut up: You have 2 people
come together. They’re often 50/50 owners and you have one of them who’s putting
up the money and the other one who’s doing the work. You can essentially take
this list of 6 things and the one who finds the deal and manages and puts the
time in, that’s the active partner. So, I’m going to put that on the work side.
They’re actively making this thing happen. But the person is just putting in
the money, this is passive. This is someone that is basically… They put their
money in and they want to see this work. Now the 50-50 is kind of cool because
you do a deal it makes 40 grand. And the person who put their money and gets it
out first it’s always first money and first money out. But there’s 40 grand
left over in profit. Now, that gets split 50-50. 20 to you and 20 to you. The person who
put in their time and effort and skill based, they got paid well. The person that
put it there money, they got paid well. This is how partnerships work. Now,
sometimes it looks like this: There’s someone who’s putting up the money again.
Someone that’s putting up the work but someone else gets brought in who’s
actually putting up credit because you need to keep buying properties and going to
say, “Well, Kris. After 10 properties, I’m I’m running out. I can’t do more.” That’s
okay. Well, it will carve out a little sliver
here and we’ll give it to the person. And we’ll call them a credit partner. My
credit partners, I don’t even put them on title or in the LLC’s but I have a
contractual agreement, they get paid. And it’s awesome. So, I buy properties every
single day literally with my partners all around the world.
They say, “Kris, you’ve got the track record, you’ve got the money, you’ve got
the experience. Let’s partner up with you.” And then they basically put up the money
and we join at the hip 50/50 and make that happen.
There have been however some amazing innovations things that I’ve created
that take partnering to a whole new level. Currently, I’m accessing some of
the best properties that are in this nation.
And I go into hot markets like Florida, and Memphis, Indy where I’m picking up
25% plus annual ROI’s. Things that kick the trash out of the stock market, IRA,
401k. It’s a perfect way for people to diversify and also have enough that they
can become financially free. I’ve also found ways for people to partner that
don’t have money don’t have credit and also don’t have a track record. Links
below on how you can learn about that. Your next step is if you’re enjoying
this conversation of partnering and you want to become an expert on it, I created
a little mini series of videos that actually show you how I do partnering
with people all over the world. It’s highly informative and it really breaks
down the science of what’s created millions and millions and millions and
millions of dollars for me and my partners. And if you want that
information, friend, from me to you; it’s absolutely free. In fact, there’s a video
coming up next, if you go ahead and click on it, it’ll actually start you at the
beginning of the series where you can watch the first video. Learn a lot more
about how partnering works and ask yourself and find out “Is this right for
me?”

13 thoughts on “How To Buy An Investment Property With A Partner

  1. Kris your awesome brother been following your videos, just got started on your book as well! How do you feel about the miami market ? Would really like to hear your input?

  2. Can you answer a request Iโ€™ve been trying to get ahold of you and actually start my real estate journey but I never receive ANY comunication back from your team

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