10 Real Estate Principles To Make Millions
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10 Real Estate Principles To Make Millions


Who wants to be a millennial millionaire,
right? You remember that game show Who Wants to Be a Millionaire? Well friends,
today’s video is all dedicated towards teaching you 10 core basic principles
in real estate that can help you go from nothing to making millions of dollars. I get that when people watch these
videos that you might be sitting there thinking, “Kris, I love learning from you.
But dude, sometimes you go freaking right over my head. Can you get it down to a
principle-based level?” Well, because of that feedback, I’ve decided to shoot this
video and to give you 10 core principles that if you can understand
and wrap your head around, you can leverage it to make insane amounts of
money. And that’s what we’re going to do today. This principle is all about buying
the right kind of real estate. So write this down. Number 1 is I want you to
buy real estate under the median. If you can make your money from a house that is
priced under $200,000, you’re going to have a significantly higher degree of safety
than if you’re trying to make money on houses worth a half a million dollars or
800,000. Underneath the median is what Warren Buffett called a safety margin. He
says, in fact, if you buy low sell high, if you can buy homes at a discount that are
beneath the median then whether the market goes up or down, you’re going to find
that you are in a place of safety. So that’s rule number one with making
millions in real estate. It’s you want to buy single-family below the median. The
next principle is called the principle of risk. And what I mean by that is you
need to confirm that you actually have buried treasure in that property. You
cannot… The days are over. I’m just going to buy a house to say that
I’m an investor. We are buying it under the median. It’s a single-family home. Now,
you need to confirm that you have equity or that you have ROI and you do that by
performing a comparable market analysis. This is basically getting a realtor or
my prop stream system. If you’ve seen that video. To confirm that you actually have
the equity that you think you do on the property. So for example, the houses were
200,000. I’m buying it for a $170,000 and I have confirmed I
have $30,000 of equity. What that does is it ensures that you do
not have unnecessary risk. Safety is buying the right home in the
right price range. Risk means making sure that you have enough equity that if
something bad were to happen to the property, you’re protected. Okay, the next
principle is called the principle of cash flow. What’s going to protect you
and your investment is to make sure that you have a significant source of cash
flow. What you’re really looking for is a cash cow. We might have been looking for
equity like my net worth just increased or I’ve got great ROI.
But I want a part of that to be cash flow. So for example, if you’re using my
system and you’re using compassionate financing, my lease option system. Where
you’re buying a home that is a $500 month cash flow, that is a cash cow. A
single-family home purchased under the median with equity producing that level
of cash flow is a principle that’s going help skyrocket your success. Next, we have
the principle of responsibility. My mom always said, “Kris, you cannot spell but
you can’t sell.” The principle of responsibility ultimately says that you
need to make sure you’re a good steward of this property. You need to have a
strategy. You have this home with equity, you’ve got great cash flow now what are
you doing? Like for me, I use my lease option system and the purpose of that is
to have the property self managed. Meaning there’s a family in that home
that says, “We’re going to buy this home and we’re going to make it ours.” And so they’re
managing it, they’re maintaining it. It means that I’m taking on a dual level of
responsibility. I’ll make sure (Worst case scenario) the property’s taken care of.
But I put someone in the home, that far out without any pay, will do the exact
same thing. Okay, next we’ve got the principle of
odds. If you want the odds in your favor, you need to understand that real estate
is a numbers game. And it is incredible when you think of how many people will
watch this video and say, “You can’t find a home with equity. You can’t find a home
with cash flow like that.” Read the comments. “This guy is bogus. This guy just
wants your money. He just wants you to buy a course.” Dude, you’re going to get…
You’re going to see all of that. But because those people exist, guess what? People
like you and I get to go out there and freaking slay it in this game of real
estate. So understand that real estate is a numbers game. And you might have to
code them through 10 deals to find one that you make 50 grand on. Would that be
worth it to you? Would you be willing to look into 10 deals to find one that you
could make 50 grand on? If the answer is yes, then technically each deal is not
worth 50 grand. It’s worth 5 grand because there’s 10 of them. 50 grand
divided by 10 tries, that’s $5,000 of try. So by the way, when I look at a house
and it doesn’t work out, I’m like… I just put $5,000 in my bank account. It feels
really good. So principle of odd says, “When everyone else is bowing out,
choosing out, not showing up, telling you that you can’t do it, that
it’s not going to work.” Just I want you to do what I do.
It’s like the Grinch going from this to… It’s like that really big, crazy, cheesy
smile that just keeps on going. Because I need non-believers. I need people to say
this stuff is phony and this stuff can’t work. I need them to challenge it because
that’s why it’ll always exist. There will always be a balance in the force between
positive and negative. And you need to make sure you are on the good side.
Principle number 6. This is the principle of action. Now listen, this
might be one of the most important. If you yourself want to use this to go from
nothing to millions. I’m breaking down for you the 10 core principles. And one
of the most important is that when you find a deal and all the numbers add up.
Then there’s the really scary part for the beginner that says, *Gulp*. I kind of
like, you got a pounce. You got a leap. You got to like jump on
that. You got to get in there. It’s amazing how many people will just get
scared stiff and just wait and do nothing. I get that it’s a risk but you
know what? If you don’t take the shot, if you don’t take the risk, you’re going to get
nothing in life. Like taking no risk guarantees that you’re going to fail. In
fact, you want to take risks. What we’re talking about here is a calculated risk.
I can’t promise it’s going to work out because it might not. But it’s better to
try than not. Okay, so the next principle is called the principle of profit. And
what I mean by this is for you to make money on the deal, you have to become a
really good negotiator. I’m going to share with you a style that I use in
negotiating real estate. I don’t play games.
In fact, people pay a lot of money just to like learn this from me. So I’m just
going to teach it to you real quick. It’s a little side bonus. Is that okay?
When I want something, I just have to know the right price that I need to get
it for to win. I am not waiting for the best deal guys. Don’t hang out for
the perfect deal. It’s a myth. You’re hanging out for a really good deal that
will work. And I’ve got standards. And my standards is I want a 20% ROI. So, if I
have a deal that has a 19% ROI and I know that I want 20, I’m not going to ask
for 25, I’m not going to ask for 30. And I’m also not going to settle. I have my breaking
point and I draw that line. So I skip all of the games and I will just actually
call up the person and just say, “This is what I want. Does that work?” And what
we’re going to do is we’re going to do it as verbal as much as possible instead of in
writing and paperwork. Because what it does is it saves time. You got to be
wicked fast to secure a great profit. Don’t mess around playing games because
you can go back and forth all week long. “This price, that price. This price, that…”
Someone else just snagged it out from under you because you were focused on
the wrong thing. You found a good deal, say what you want
son and get that thing or get out. This next principle is called the
principle of condition. And for principle 8, what I mean by that is that when
you have this property now, you got to make sure that you upkeep it to the
proper standard, to the proper level. There’s a lot of people that will spend
way too much money on a property or fix things that they shouldn’t or they deny
certain things that they actually should. The principle of condition that I break
out my entire program when we work together is making sure that you’re
really just doing the right amount of work on the property. If you want to know
what the right amount is, look for projects that have sold in the area and
ask, “How much did they fix the house up to?” Because you might be dropping in like
gold plated toilets and granite countertops and you know, you might be
doing above and beyond when really the neighborhood’s just a Formica
neighborhood. Dude Formica. That’s it. We need linoleum, we’re not
doing tile. So you don’t want to put more into the property. And on that same token,
when I do my lease option system, I actually leave it up to my tenants to
actually be in charge a lot of that stuff. So I actually don’t take on any
unnecessary financial burden. It’s actually part of the system. As I pass it
on to them and I give them credit for that and I give them a big bonus for
doing those things. So, principal condition means when you’re
rockin out your real estate, only put the right amount into it. Okay the ninth
principle that I want you to understand when you’re considering anything in real
estate. But my system, it’s all around the principle of optimization. And
optimization basically says, “least time, least effort, least risk, most money.” A lot
of people know how to mistake movement for achievement. They know how to play
the busy game and be busy all day long. But the reality is you need to learn how
to value your time so that you’re using it and spending it appropriately. If
you’re doing a real estate strategy that’s taking way too much
effort and way too much time, you’re doing the wrong deal. You’re doing the
wrong thing. Now, we’re almost done because I got a tenth one. But the reason
why I’m teaching these principles is because I have 3 different ways of
making monumental amounts of money in real estate. And all 3 of those
system adhere to these 10 principles. So, if you really understand the nugget of
what’s behind them, it’s going to help you be way more successful as an investor.
The tenth principle is based on what Albert Einstein called the most
important financial instrument. Which is compound interest. When you do your real
estate, you need to keep it in real estate and you need to magnify it. If you
and I were sitting down at the table and playing my favorite board game Monopoly,
here’s what would happen. I would be trading to greens for for greens. I’d be
trading greens for red hotels. I’m always going to be trading less for more. And my
goal is to double everything. So one of the ways that I win in the game of real
estate is that if I’m making 25% a year on my money. In five years,
when I’ve more than doubled my money and I saw my project. I’m going to take my
winnings and I’m going to put it back into real estate and now do 2 properties
when before I had one. Guess what I’m going to do later with those 2 properties.
I’m going to take them and I’m going to turn them into 4. And 4 to 8. And
8 to 16. Compound interest will allow you to grow your wealth and to
continue growing in amazing financial ways. Friend, these 10 principles of
safety, risk, cash flow, responsibility, playing the odds,
action, profit, condition, optimizing, compound interest. These are the 10
principles that I use in all of my real estate. It’s principle-based. Because if
it is, it’ll protect your time, your effort, your energy and your money. And so
friends, I know that that was a lot. It was hard-hitting but I hope you’ll take
these principles and go freaking run with it. Go crush it in the game of real
estate. Now, if you’re asking yourself, “Kris, this is all great. Some of this
went over my head. I’m glad that you broke that down. How do i implement this?”
Did you know that I’ve got a team on standby? If you got money, I got it excess
deals. And if you got no money, I can get you into a club that will actually teach
you how to go out there and do deals. You just need to click the link in the
description below. Get with me my team, let’s figure out the best way for you to
play and help you take action on these principles crushing it in real estate
today. We’ll see on the next video.

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