The Ultimate Beginners’ Guide To Investing In Real Estate
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The Ultimate Beginners’ Guide To Investing In Real Estate


Kris Krohn here. And i’m back today to
share with you the ultimate investor’s guide. If you’re a beginner and you want
to know how to win in the game, I’m going to tell you exactly where to start in
exactly what you need to do. The ultimate beginner’s guide to
investing in real estate does begin with you answering one of these questions. Do
you want to make money today or do you want to make money tomorrow? You see in
the game of real estate, there’s a couple of different ways to play. And right now,
there’s a huge divide. I could tell you about all the strategies but really what
I want to do today is I want to just share 2 strategies in particular.
Because you’re going to gravitate to one or you’re gonna gravitate to other. And
then I’m going to see if I can change your mind on something. Because I think I
already know where you’re going to land. And the answer is it’s short-sighted. The
question of making money now versus tomorrow what is more important? Well,
let’s dive in. When people get in the game of real estate,
do you want to know what it is that really entraps people? It’s the idea of
doing a flip. Now, I’m just talking about a back flip. I mean, that’s pretty cool.
But I’m actually talking about buying a property right now for less, selling it
for more and making the money. In truth, I’m doing the flip right now. I’m buying
a home for an amount of money and by the time I’m done selling it, I’m going to make
right around $100,000. And I don’t really need $100,000 but
because I only need to put in about 3 or 4 hours, I’ll be it’ll meet
my standards and making 20-30 thousand dollars an hour. So, I’m going to do
this deal. It’s worth a couple hours of my time. More importantly, it’s actually
helping out a friend, happens to be my brother. It’s a
property that has a big piece of land that he wants. So, I’m going to shave off the
land. Sell the property make the money. So, there’s a great allured of flipping.
It’s easy for me because I have crazy resources. And what’s fun about that is
it’s like, “Whoa, I could have this deal done in 30, 60, 90 days. And I’m going to make
all of this money.” That is the now money. And so, there’s a lot of people that are
like, “Dude, if I get in the game of real estate, I want to flip a deal and I want
to make the money now.” And that’s what gets them totally jazzed and excited. But
if I’m being honest in sharing with you the ultimate beginner’s guide to
investing in real estate, I have to share with you a second strategy. Flips will
always be compared to rentals. Now, a rental is not about now money. A rental
is about cash flow and it’s about tomorrow. And even though today I’m not
going to about rentals, I’m going to talk about
something similar that actually is a combination of giving you the best of
both worlds. You see the flipper says, “Give me the money now.” And the renter
says, “I want to be a landlord. I want to own that property. Every month
I want it to give me a little bit of money for the rest of my life.” And you’re
like, “I don’t know. Do I want the now money? Do I want a little bit along the
way? And eventually some tomorrow money?” And the reason why I say flipping is
short-sighted is because if I fess word let’s say that you do a flip. And you
make 20-30 thousand dollars, you’re going to be stoked. You’re going to
average that out over the 3 months that it took and you may be made you
know 5-10 thousand dollars a month. And you’re like, “I quit my job all day
long to do that.” But I have to also tell you you work your guts out. Like when you
do the math, most flipping means you find the house, you go to Home Depot, you do
all the work. And often there’s a risk of actually losing money at the end of the
day. So, it’s actually a dangerous proposition.
A flipping is crazy dangerous when you’re inexperienced. So, if you do this,
you best have a mentor. Someone that can review the numbers because most of us
come in the game optimists and then we leave the game pessimists. You know why?
Because we didn’t have a mentor showing us how to do all the numbers the right
way. On the other hand, this is a little bit boring but I’ll tell you what: By the
time I bought 25 of these homes, guess what it meant for me? 25 of these homes
meant that I was making $10,000 a month and I could quit my job
and I could pretty much do whatever I wanted. Now, flipping is a job. It’s
working. At least it is in the beginning. Having a house is passive. And passive
means that the house keeps making money for me even though I’m not working for
it. So, I have to ask you. Do you want to make $120,000 a year flipping that you have to trade all of your time for or do you
want to make $10,000 a month
residually that you don’t have to trade any time for. It’s kind of a dumb
question. I think we’d all agree. You would actually want the residual income.
Right? Same amount of money but you do have to work for it here. Here you don’t
have to work for it. So, what’s the priority? What’s most important? Well, you
don’t have to make that choice. I’m going to share with you something that if
you’re not familiar with, you need to get familiar with it. And this game is a
hybrid of both of these 2. And a hybrid is something
I call compassionate… I’m sorry, I just have to use this eraser tool and try to
spell the right way so my mama’s not disappointed to me. It’s called
compassionate financing. It is a version of what you may have also heard as a
lease option or a rent-to-own. Now, if you do not know what I’m talking about,
there’s a video that’s going to be popping up here that I made. It’s a 4-part
video series that will explain all of the soup to nuts. That video has made
people crazy money. Brian and Oregon, I think… I don’t know… A third a
fourth deal and he’s made a couple hundred thousand dollars. He’s crushing
it right now. This is a really important conversation because compassionate
financing is actually a hybrid where it’ll give you today money. And it’ll
give you the cash flow of tomorrow money. And you can actually have both at the
exact same time. So, if you could have the best of both worlds, wouldn’t you want it?
Well, the ultimate guide is actually found here in book that I wrote.
This book is called The Straight {ath To Real Estate Wealth. By the way, for all my
YouTube friends and fans, this book is yours for free.
You do have to pay for shipping. But otherwise, the entire book, hard copy; I
put it in the mail, I give it to you. I’ve been able to send this book out to
so many people. And it’s a joy for me because literally people will get this
book. They will follow the 4-step system and then they will make money. And
I’ll never meet them on. I may never see them again.
But sometimes years later they run at me like, “Kris!” You know, they’re like so
excited to tell me their story. This book is the manual that you want for learning
how to do this. You’ll find if you click in the description below, you’ll get the
book for free. But keep watching this video and more importantly the one
that’s coming up next, I’m actually going to take this entire book that you could
take a few hours to read and you should. But in these 4 little videos, I’ll
actually take the most important parts of this book and I’ll actually just give
it to you video format. So, if you like watching videos, it’s like the book on
video form in its most essential form of what do I need to know to actually start
making money now. But let me give you just a little bit of an idea of how this
compassionate financing deal actually works. So before we get to the video, just
watch the really big picture of this. What you’re doing is you’re finding a
house. The house is a good deal. Good deal means it’s going to make you a lot of money.
If you tried to flip this house today, you like this house cuz you like, “Kris,
this house has $50,000 of equity. Like I’m getting it under market. I’m excited
about that.” And you’re like, “Okay, if you flip it, we’ve got to remove the selling
costs and the repair costs.” And by the time you do that at the end of the day,
you’d be surprised. $50,000 can turn into $10,000 really fast. It can turn into negative 10,000, it could turn into
20,000. And I know a lot of you like, “Dude, 10 grand.
Kris, that’s great. Let’s do the deal.” But if you instead do this version of a
lease option that I call compassionate financing that’s all explained in this
video, what you’re going to find instead is that you can, if you will not try to
make the money over the next 6 months but maybe try to make the money over the
next 3 years, you’re going to get the $50,000 of equity, you’re probably going
to pick up another $20,000 in appreciation, you’re probably
going to pick up $10,000 in down payments and in cash flow you’re
probably going to make another let’s just call it 10, 20 thousand dollars. Some
of it gets credited back. At the end of the day, I add this up. And guess what I’m
at? Listen guys, $90,000. Flip 10 grand
and do it in 3 to 6 months or hold on to it for 3 years and make 90
grand. 10 grand, 90 grand. 10 grand, 90. Like, which one makes more sense? This one is
also way more passive. This guy? The flip takes work, it takes effort, it takes
energy. Can you put hundreds of hours into these things? Versus this? It’s a
fraction of the time. So, can you see why that is actually worthy about knowing
and understanding? This ultimate guide to investing in real estate,
all comes down to this: I want you to do real estate in the most intelligent way.
And you’re going to want to write this down. If you’re not familiar with this, check
this out. Number one, you’re looking for a strategy that will take you the least
time. A flip is not the least time. A flip is a job. And if you don’t do the job, you
don’t get paid. It’s just like your other job. It’s just in real
as opposed to a desk job. Number 2, you need to evaluate efforts. Is it going to
be hard or is it going to be easy? Because if it’s going to be hard, then you
may want to check some of the screws up here and see if you got things screwed
on. Most of us are actually under the impression that for us to feel good
about making money. We’ve got to actually work. Eradicate that belief right now. You
don’t actually have to work to make money. This sounds a little bit weird but
guys, I used to make $10 an hour. And then I made $20 an hour. And then I learned
how to make $100 an hour. Then I learned to make $500 an hour. I learned how to
make $1,000 an hour. I learned how to make tens of thousands of dollars an
hour. And at the end of the day, I’m just putting in time like you are but I’m
getting paid way more for it. And that’s because at some point you have to start
having a filter to say, “What should I say yes to? What should I say no to?” You
should be saying no to a number of things in real estate that are risky
that will hurt you. I’m talking about find something with the least time, the
least effort. And then number 3, guess what? I’m talking about something that
has the least risk. Because not all real estate is created equal. Some of it is
riskier than others. And then number 4, yes. It’s got to produce the most profit.
But if I might, I want to actually share with you two more criteria that I
believe is responsible for countless millions of dollars. Number 5,
does it provide a service to the community? And it’s kind of a strange
question but money follows value. So, some real estate creates little value, some
real estate creates massive value. How much value are you creating? And then
lastly, this is really big. Does it work in up and down markets? Because guess
what my friends? Market speed up, they slow down, they shift, they change. And if
you’re not fully prepared for what can happen in a market, you can get caught
with your pants down so to speak. And it’s not fun. You can get spanked really
really hard. And if literally, if you’ve ever had someone spank a naked rear end,
so yeah like a big red handprint like, “ouch!” But the ouch doesn’t go away 30
seconds later. The ouch can last for years. I’ll never forget working with a
friend Steve who came to me with over a million dollars of debt from some
bad decisions that he made in real estate. I gave him a game plan and a
number of years later, he got out of debt, he did he filed bankruptcy and then he
got his life back on top. So, for you to have a game plan that will work for you;
lease risk, least effort, least time, most profit, provide a valuable service
and working up and down markets; these are the 6 criteria that I give you in
this book. So, you’re definitely going to want to go and click and get this. But
more importantly than even getting the book is over here there’s a video. And
it’s going to actually take the lease option what I just told you here on why
this lease option is 90 K and this is 10 K. And I created four little mini videos
that will actually walk you through exactly how to do it. Some of you are
going to capture the bug. You’re going to be like, “Oh, my gosh. That was the moment when
I knew what I needed to do and how to make it happen.” And that’s why I went
into explicit detail in those videos. So you can see exactly what that looks like.
I shot that with one money one of my previous real estate business partners.
–Stephen Miller. It’s a really, really great series to watch. So, go over there
right now. Click it. Check it out and then when you’re done with that, I want you to
get the book. The book will give you the format. People alone will read this book
and then they will do real estate. Now, if you’ve enjoyed today’s video, there’s
something you can do that would be a huge benefit to me. Would you do me a
favor and hit that like button? But smash that like button. The reason
why is because it tells the YouTube algorithm that you like the content and
that they should consider sharing it with more people. So, it helps kind of the
video get around other people. So, do me a favor. Hit that like button. Watch this
next video. Get the book and get out there and start owning your financial
destiny crushing it in real estate.

17 thoughts on “The Ultimate Beginners’ Guide To Investing In Real Estate

  1. Great video
    You could start with a lot or nothing
    Thanks for sharing your knowledge
    I talk about the stock market because it’s the most suitable investment for me because I am young but I’m looking to invest in real estate in 3-4 years

  2. So I just got your book, and I also checked the box to pay 20 something for a consultation. Then in my email it gave me a phone number to get a FREE consultation. So why did I just pay for one?

  3. Personally, imma go in and im going to try both SFH and Rentals, whichever works best i'll focus on. Flipping will come when i have a team.

  4. I respectfully disagree, Kris. We do flips on the side to fund the down payments on our rental properties. If you know what you’re doing, it can be incredibly profitable. And we don’t swing a hammer, either. We have three flips going at the moment, but we’re hiring out every portion of it and will likely clear $25-30k per.

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