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Risk vs. Stability | Real Estate Investing Made Simple With 3 Key Concepts


Risk, stability. How do you really make
real estate simple? My name is Kris Krohn and i’ve done thousands of transactions.
And this channel is all in service of helping you learn how to do real estate
as successfully as you possibly can. It enabled me to achieve financial freedom
at the age of 26. Which just meant that I’ve been able to
have the coolest life with options and opportunities that I hadn’t really
dreamed possible before. My hope is that it will do the same for you today. So, let’s talk about this game of Risk vs
stability. Because as I’m going to deliver the 3 things you need to know about
real estate that make it super simple and keep you super safe and your
investing, understand that that’s not what the
world’s telling us to do. In fact, most people do not invest in real estate. Most
people don’t become investors. Most of us are told that we need put our money in
401ks and IRAs or things like the stock market or Bitcoin. And I’m not here to
bag on those things and say that they’re bad investments. They can certainly be
fine points of diversification. But there’s a problem with putting the
majority of your money in something that can change so rapidly from quarter to
quarter or month-to-month. Something that real estate doesn’t do. You know the
stock market, all the sudden it’s up, 300 points and then it’s down
500 points. And for many people it’s an emotional rollercoaster that
really messes with them and puts them in a space of fear and scarcity. Real estate
on the 4,000 homes that I’ve done the projects, I’ve never had that. What I have
is a consistent cash flow coming in. and because this wavelength of real estate
is moving over, you know like, a 10, 12, 15 year period of time; it means that
there’s a rise and a fall. And it’s predictable. And if you got the right
strategy like I do, it means that you can play in the game of real estate in a
very specific strategy and system and price range where you can sleep really
well at night. So, let’s actually talk about some of the
things that real estate does to provide stability, minimize risk but give you
some really huge upside. Because on my last several thousand deals, I’m
averaging about 28% per year growth. And I can’t get the stock
market the 401k or anyone else to do that. And so, let me kind of share with
you a couple of things. These are 3 key indicators that I think you need to
know that make real estate investing super, super simple.
The first thing that I want you to understand is that real estate
appreciates. That means that it goes up in value with time. And what’s useful
about that is that for most people, the home someone buys ends up being one of
their best investments. Because they’ll buy it, you wait, the value increases and
a lot of people’s net worth ends up just being in their home. I remember when I
got my hands on that and I’m like, “Man, I should have the system.” Like,
if you bought one home and over a decade had $100,000 increase, what would have
happened if you had 10 homes? You might see a million dollars of just net worth
come about, right? So, number one real estate appreciates in a way that no
other assets do. And it does it in a really great predictable manner.
Especially if you buy in the right kind of price range. The second thing that
real estate does is it produces cash flow. And frankly, I believe that an
investment should pay dividends and real estate does that. If you put too much
your money in something like the stock market or a 401k or private securities,
your mutual funds and you don’t get paid, it creates this weird habit that says, “I
put money out but I never get something back.” You should harvest money out of
your investment. But the third thing that real estate does that is huge to really
simply understand it, is that it gives you the power of leverage. Let me help
you understand what that means. If I have a hundred grand, how much stock can I buy
for a 100 grand? 100,000 dollars of stock. In real estate, how much
real estate can I buy for $100,000? I can buy 500,000. Always at least five times of real estate. So think about what that
means. My 100 grand in the stock market buys me $100,000 of stock, my real estate, $100,000 buys me 500,000. Let’s say both of these assets go up 10% value. Here my 100,000 is now worth $110,000. Here, my 500,000 is now worth $550,000. A 10-thousand
dollar increase, a fifty-thousand dollar increase. It’s a 5x. It’s 5 times more
money. You can’t get that anywhere else. You might be able to produce that in
business but predictably in real estate. So, those 3 things. The cash flow, the
fact that real estate grows with time. And most certainly, the fact that you
have leverage. And what it does is it super charges your ROI. So, when I tell
you I’m earning 28% a year, I wouldn’t be able to produce that
if I didn’t have that leveraged component. Part of my strategy is I go
into the very best markets and then I employ leverage. And it produces that
supercharged ry that I can’t get anywhere else. And that’s why I was
retired at age 26. That’s why every year, my net worth is growing millions of
dollars because I know how to compound… 28% compounding it’s crazy sexy.
3% compounding doesn’t really feel like anything over 50 year period of time. So,
those 3 things really make real estate a super no-brainer for me. Perhaps
the best part about real estate is that if you can get those 3 things
working for you, what you can do is put all of your energy and just doing one
project. Buy a house under the median, if you don’t have a good strategy, get my
book for free. It’s in the link below. Cover the shipping and I’ll send it
right out to you. And that book that I’ve been using for 15 years is a strategy,
that has done hundreds and hundreds and hundreds of millions of dollars of real
estate. But if you buy it and get it to work once, then the next step is, “Oh, if it
worked once, like one of the smartest things you can do is duplicate what
works.” And now, I’m going to do it a second time and then a third and then a fourth
and a fifth. And frankly, if you do it enough, then real estate has the ability
to become like a real resource of financial freedom for you. Like for
example, in one of my systems, I’m buying homes and when I closed on it, I’m
getting paid 5 grand. And then I’m cash flowing $500 a
month. And then when I sell it, I have to make $50,000. So, you add
all of that up and it’s like, “Wow, if that worked once, what if I did that 10 times.”
And that’s the beauty of real estate. So, I hope what you get from watching this
video is that whether you want to become like a mega like sincere investor. Super
committed that says, “Kris, I want to mentor with you. I want to learn from you.
And 5 years from now, I want to be financially free.” Or you’re like, “No,
I’m just going to hold some real estate. In the background on the side and with time.
You know, hopefully that’ll add an extra half a million or a million dollars to
my net worth.” Whether you want to be casual or whether you want to be
aggressive, that is entirely up to you. But down below in the description, you’re
going to find a couple of things. Number 1, you’re gonna find a link to my book
which you can have for free. And number 2, if you have money sitting in the
stock market or 401k or IRAs or home equity things like that, I call them
hidden assets. Because it’s money that’s not really doing much for you. It’s not
really working for you and it’s just taking up space. If you want to learn how
to take that and supercharge that into the top investments today, click that
link. Talk to a member of my team and you and I might actually be partnering up
and hands-on some of the best real estate
around the country. Hey, thank you so much for watching this video. I hope it was
useful for you and really gets your mind thinking, “I got to make some real estate
happen for me right now.” The link below you can get your free
copy of my book. Or you also have the chance to learn about partnering with me
and getting your hands on deals producing 28% a year
compounding. Growing well over 100% a year.

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