What You REALLY Need To Know About CROWDFUNDING In Real Estate - YouTube

One of the hottest topics in real estate today is "Does crowdfunding apply?"

Crowdfunding is basically where people can pull their money together and put it

in business. They can put it in real estate. They can put it towards deals.

Bottom line is that we live in such a small world today with technology that

people can come together and make deals happen that couldn't before. So today, I'm

going to answer the question, "Does crowdfunding apply only to business? Or

does it in fact apply also to the game of real estate?" Because I'm going to share

with you today one of my favorite methods for bringing people together to

get amazing deals with 25% ROI is done that wouldn't have options otherwise.

If you're burning a great ROI, that means you're getting a 5 to 1 leverage.

I'm going to break down how we're doing.

Okay. So, let me break it down. First of all, we have to start with what is

crowdfunding. First of all, it's kind of like the word sounds. Crowds, groups of

people come together and they each put in a certain amount of money and

collectively, there's enough money for a venture to get underway. A lot of people

are applying this to business ideas. And there's a lot of ways that people are

using this technology. And today, we're going to answer whether people are actually

doing this in real estate. The reality is we are doing this in real estate because

I am doing it. I'm going to break down how we're doing it. Typically, when you buy a

real estate, let's say that you wanted to own a property. There are 2 components

to doing that. Someone's got to put up money and

someone's got to put a credit. If you're going to buy a property with leverage. For

example, let's a property costs $250,000. Instead of writing a check for

$250,000, you can go to the bank and say "Bank, you put up 80% of the money. I'll

put 20% of the money." Which means that you're only bringing 50 grand at the

table instead of two hundred and fifty grand to the table.

Real estate is beautiful because if you're earning of great ROI, that means

you're getting a 5 to 1 leverage. But if you're buying it to live in for

yourself, the leverage is even higher. You can put down maybe 3% or 5%. And the bank

will carry the rest of the loan. Still, there's a lot of people that want to get

in the game however and they say, "Kris, if I want to do that, I got to bring

credit to the table. And either my credit isn't good enough or I don't want to max

up my debt to income ratio." Or for whatever reason, maybe you're too young.

Maybe there's... You've changed jobs. Banks have a number of reasons why you can't

actually use your credit. Some of you are international and you want to buy real

estate in the United States. You say, "Well, that may not work either." So, there is a

type of crowdfunding that we do inside the United States. There's a way for us

to actually bring people's money together and have enough (all of a sudden)

to actually move banks out of the game and actually buy homes cash. So, first of

all, this is kind of exciting because $250,000 for one person might be a lot

to bring to the table. But for a group of people, they can take

it down. Now, there is a problem however if you buy real estate cash. If you buy

real estate cash, the ROI tends to go down. Because leverage brings your ROI up.

The less money you bring in for that same amount of profits brings you a

higher ROI. If you put all the cash down and get that same ROI, that profit is

going to look smaller proportion to what you put out.

Hence the smaller return on investment. So, how do you work around

that? Here's the beautiful thing about the way real estate works: You can

literally have a group of people come in, buy a home cash but then go back to the

banks and say, "We own this asset outright. Now, we're going to ask you to give 60%

of our money back and we're not going to use anyone's personal credit." And banks

will do that. It's called asset based and lending. And it's really easy to do when

you're basically pulling money out of a project. So, one of the things that I do

with people is people find me on YouTube like this, they learn about all of the

things that we're doing. They click my links below. They get with my team and

anytime you ever find that there's a credit hurdle, your credits not developed,

underdeveloped maybe it's been hurt for some reason. Maybe you live in Saudi

Arabia, maybe you live in in some other distant country. And the banks in America

won't acknowledge your establishment of credit to actually buy the house. What we

do in a situation like that is we can aggregate all this money, pull it

together. We can technically go out there. We can buy these homes cash and then we

can go back to the banks and say, "Now, we want you to give money back to us based

on asset based refinances." And what that does is that gives our money back to go

and do it again. And it means at the end of the day that we're still able to get

those 20, 25, 30 percent ROIs but we're not necessarily beholding to the banks and

playing their games. So, this is one of the beautiful things that we found in

the game of real estate is that crowdfunding, it's real, it works and it's

a way for everybody to get in the game. Now, if you're watching this and asking

yourself, "Alright, what can I do with this information?" There's a couple things that

you can know. First of all, be educated and know that you and others can come

together and put money together to make projects happen. 2, you can go out there and

start googling and finding groups that are doing this crowdfunding and real

estate because it absolutely exists. 3, if you've been watching my channel

and we've become buddies over the last a little bit and you want to know what

that would look like to actually be partnered with me on some real estate

deals, I have a document that shows my last 4,000 projects. We are

averaging on about a billion dollars worth of real estate around a

25% annual ROI. So, if you compare that to like the stock market's

7% or a 401k even a smaller percent, those institutions will let you

double your money and maybe 15 years. We're doing it here every handful

years just because of our experience and knowing what we're doing. And we've got

ways for people to come together to make deals happen. So, if you want to learn

more about that, there's a link below. You can talk to members of our team and let

them know that you're interested in getting in the game of real estate. And

here's my commitment to everyone I work with: Whether you do have credit or you

don't have workable credit, it never matters to me. I never allow credit or

even money to get in the way of actually getting out there and building wealth. In

fact, the first 1.6 million dollars I made that produce my first 6-figure

residual income, I used less than $10,000 out of my pocket to

make that happen. Because I was a deal maker that would put the people with

money and the people with credit together. I bring the deal and we would

make magic happen. Now, 15 years later, same thing. Just doing it on a much

bigger wider scale with people all over the globe. So, if you're asking "Does this

work in Zimbabwe or does this

work in Tokyo?" I don't know the real estate market there. But I do know that

you can come here and play the game with us and bottom line is get those really

amazing ROIs. If you want to learn more about that, you

got to speak to a member of my team. And there's link in the description below or

you can actually learn about how to do that. Hey, guys. Thank you so much for

watching today's video. If you liked it, smash the like button. Make sure that you

subscribe and we will see you on tomorrow's video.