How To Invest $100,000 In Real Estate - YouTube

Channel: Kris Krohn

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Welcome back. Today we're talking about how to invest a hundred grand. How do you
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put $100,000 into real estate and maximize it so you can take a
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small amount of money and turn it into a million dollars.
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If you have $100,000 to invest in real estate, it's almost like you put on your
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big-boy underpants and you are ready to go out there and start putting 20% down
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payments on properties. And I'm going to share with you a strategy that I use
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that is fairly passive. I've done it over 3,000 times. it works really, really well.
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So, I'm going to break that down for you. But let's just kind of cover some of the
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basics to create some awareness. If you have an amount of money, it could be a
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million dollars, it could be a hundred thousand. It could be 10 million dollars.
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When you start having an amount that you want to put into real estate, here's what
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you're thinking. Number 1, you've got to be thinking
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about ROI. What's my actual rate of return that I'm
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going to get on a property. You see when you put your money in the bank,
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that's FDIC insured. They'll give you like a tenth of a percent. You lock it
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into a CD for a couple of percent, you put it in Treasury bank notes for you
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know, 2.5%. You're not even keeping up with inflation yet. That's the problem.
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So, you start thinking, "Wait a second. I worked so hard to get this a little bit
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of money, how do I actually get that money working for me so that can
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freaking go somewhere. Like I got to find out. I worked so hard for that, how do I
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turn that into like a million dollars?" So, I'm going to share with you some of the
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rules that I use that are going to help make this possible. Then I'll share with
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you where I invest in how I do it. And at the very end I'm going to share with you a
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way that people will even partner with me. And I'll take and grow their money at
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maximum rate. All sorts of huge opportunities. So, first of all, let's talk
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about my specific rules. These are my rules, they're not society's rules but I
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would write them down because they work. Number 1, I'm looking for properties
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that can produce 20%. Why do I want a 20% annual ROI?
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Well, right now 20%, 20%, 20%, 20%, 20% is
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100%. So, one of the goals that I have is I want to double my money how
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often. I want to double it every 5 years. Okay? So, let's just do some rough
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math. If there's a hundred thousand dollars, if you doubled it in 5 years,
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it'd be worth 200,000. Double it again in 5 years that'd be
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worth 400,000. Double it again it'd be worth 800 thousand. And
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that's taking a fairly conservative approach that I'm going to be sharing
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with you here. So, there are ways that you can go a lot
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faster. But the financial markets don't know how to do what I'm talking about
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here. And I've got a pretty significant track record on this. So, the first rule
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is that. Number 2, this is an amount of money that you can't put it into
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multifamily, you can't put it into big projects. So, when I'm working with a
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hundred thousand or $300,000. I'm automatically
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thinking, "I've got to put that in my single family system." So, I'm going to do
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Lease Option or I'm going to go into the very best markets around the country and
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do rentals. I can make both of these. When I partner with people, we often are doing
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25 plus percent. We'll just say we're doing 20%. And what this is, is this is
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specifically single-family homes. This has purchased beneath the median. And it
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is a short term hold. Short term means this is going to be 3, 5 or 7 years. In
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5 years, what do we want to do? If 100 grand... And I'll show you what
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we're going to do in a minute. But if a hundred ran went into 2 properties,
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then in 5 years, we want to what? We want to pull those 2 out we want to
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turn into what? 4 properties. We're doing magic. Take 2, double them and
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turn them into 4. Take 4, turn them into 8, right? So, this is what we're
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going to do. This is what the goal of outcome is. Doubling the money is the
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minimum standard of what we want to make happen. And then number 3, this is the
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killer part. You've got to go into the very best markets. Listen, you can be
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passive or you can be hands-on. If you want to do lease options, you're going to be
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super passive in your own backyard. If you are going to be... Going to the very
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best rental markets around the country, you can exceed what you can earn in
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lease options. Because there's 350 markets around America for example. Or
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maybe wherever you live. At your area has a market. The reality is your backyard is
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not the best market to do real estate in. So, what does that mean? It means that
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you've got to go to the very best market. So right now, I have five markets out of
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350. Those are the only places all invest. Why? Because I'm getting my highest
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cash-on-cash return in those areas. And that's what I'm looking for right here.
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So, if you want to start playing up a whole
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level. Its... I want the best properties, I want the best inventory. And why? Guess
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what's going to happen in the market? It's going to take. It's going to go down. And when
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that happens, do you have a strategy for overcoming that? Because I do. The stock
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market every 8 years needs to go ahead and tank. And take 3 years to
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come back. In real estate, every 15 to 20 years has the exact same cycle.
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But homes that are underneath the median, don't have the same experience as homes
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that are over the median. For me, it's opposite. When the market crashes, I get
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really pumped up. Because it means it's time to what? Buy as many assets as you
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can in the very best markets. Okay? Now, if you do this, let's talk about what this
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game plan can actually produce for you. Hundred grand,
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let's just say theoretically that this was the source of a 20% down payment
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into these 2 homes. Okay. When we buy these 2 homes, what we're going to be
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doing is... The goal is in a 5-year period of time, either by selling them or
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by doing a tax-free refinance or if we sell we're doing them 1031 exchange. And
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what we're ging to do is we're going to transition these 2 houses into what?
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We're going to transition them into 4 houses. And then in 5 more years, do
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you know we're going to do then? We're going to turn it into 8 houses. Now, that
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wasn't adding any new money and that'll totally throw the equation off and make
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things even more accelerated. But what you're we're talking about is we don't
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want geometric growth. What we're doing this we're creating exponential growth.
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And here's what exponential growth means. Listen, in 20 years, your real estate
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is going to be doing hot. But in 40 years, it's going to be hotter. In 80 years,
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it's unrecognizable. You're going to die along the way. But that
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real estate has a chance on a trajectory to continue growing bigger and bigger
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and bigger. And I've had a chance to meet some of the families that started this
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2 generations ago and it's turned into insane same amount of money at massive
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cash flow. So, $100,000. This is exact
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what I would do. This is how I would grow it. And just as a little bonus like I
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said I would. For those of you that say, "Wow, Kris. I really need some
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hands-on help to how I could do that." I'm going to tell you right now. I've got a
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couple of different systems where people can access my nationwide inventory. And
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it's very turnkey. I've got my team that'll come in. They'll do about 342
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hours of work per property and basically tee it up for you and make it all happen.
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So, the cool thing is if you want to go into the very best markets, single-family
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homes and you want to learn how to get those crazy good ROIs, I'm fully
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systematized and I am fully ready for you. All you have to do is click the link
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in the description below and talk to a member of my team and they'll lay down
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what those different options look like which could be anywhere from hey I want
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to partner with Kris. Or Kris, I just want to... I want to rent your team and I
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want to actually do what you're doing. Both of them work beautifully. All you
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got to do is click the link in the description below and actually learn
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from my team exactly how to do that. Hey, thanks for watching today's video. I hope
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it had some great nuggets and insights that were useful for you. Make
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sure that you do subscribe because guess what? We've got a lot more value coming
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this way tomorrow and we'll see you there.