How To Invest 1 Million Dollars In Real Estate

My name is Kris Krohn. And today, we’re
going to be talking about “How do you invest a million dollars in real estate?” You
know, you might have different denominations of money. And reality is at
the end of the day, some choices are going to be better than others. in the
game of real estate, what sector should you be involved in? What should you be
interested in? And if you wanted to invest a million, I’ll take my billion
dollars worth of real estate experience and share with you exactly what I would
do. Coming up next. So, one of my friends sold their business
for over a billion dollars. And as I’ve been hanging out with them and asking,
“Okay. So, tell me what you’re doing with your life? What’s important to you right
now?” And now that they’ve made the money, they’re really trying to refocus their
life on priorities what’s important to them. And a big part what they’re trying
to do in the family office is figure out “How do we invest our money? How do we
make financial choices that honor the money that we have? And how do we spread
it out so that overall, we can get our money flowing back and in producing
returns on it. So, that we can continue to expand that.” Today’s video is about how
to invest in a million dollars in real estate.
You could add a zero on that, make it 10 million. Add 2 digits on it making a
hundred million dollars. Either way, the principle is the same. And today, I’m
going to share with you based on the billion dollars worth of real estate
that I’ve transacted spread over 4,000 different transactions what I’ve learned
about real estate and how I would grow that money as safely but aggressively as
possible. Check it out. One of the things that I’ve done is over the years is I’ve
kept track of records of everything that I’ve done. This document right here, it’s
called Krohn consortium, bringing institutional structure and scale the
single family. Rental housing sector. You need to understand that single-family
real estate that I specialize in is becoming over the next decade a much
bigger sector. Currently 70% of all people on their house that numbers going to
drop to 56%. Gen Z, Millennials, they want different things than prior generations.
Ownership is not the focus. And so, this is only going to become a more popular
sector. On the last 2,000 deals that I’ve done and everything documented that’s in
here, I want to share with you what I’ve learned and what we’re seeing and really
what’s possible. If you had 1 million dollars and you were looking for the
best way to invest that in the single-family sector, my average purchase
price is 143,000- dollar house spread over the
best markets nationwide. And you could essentially take that money and purchase
right around 7 homes. Now, the cash on cash is going to produce on average
around 7 to 10 percent annual ROI. But overall growth that we’ve seen over
the last 2000 homes, total ROI is averaging over 25%. In Florida, I’ve
seen this number over 30% in some of my cash flow markets. It can be in the low
20s. But 25% is a pretty safe average. What that means with the law of 72 –rule
of 72 is that you can essentially have your money doubling every 3 years.
But by the time you take selling costs and realtor costs and things like that
into account, the goal is pretty simple. The goal is to double the portfolio,
double the asset every 5 years. So, if there was a million dollars to invest,
the goal in five years is to turn that into 2 million dollars. And by year 10
to turn that into 4 million dollars. And so on and on and on. At the end of
the day, this is something that I do with individuals. But I’ve built an entire
team that does this for people. I’ve got a team of 200 experts. They put an
average at 342 hours per house. And if I had a million dollars, that would be one
of the best ways to go. Here’s the great thing about it, is the tax benefits. When
you get to amortized, when you get to write off the depreciation, the interest;
you can build for yourself a significant tax pit while still actually posting a
profit. So, that’s one of the goals of the way that we do real estate here and
something that’s actually really exciting. I’ve got a playlist that
teaches people all about partnering. It’s the videos that I put together because
I’ll have people that will watch this channel say, “Hey, Kris. I want to partner
with you. I want you to do all the work. What does that look like? How do we
actually maximize the money in the growth?” And if you want to learn more
about how partnering works, there will be a video that pops up over here.
Click the link and have the opportunity to actually watch this series. Because
it’s very instructional informative exactly how do we go into these markets.
A lot of people when they get a million dollars. What’s the number one mistake
that they make? They throw their money in a REIT. And for those of you don’t know a
REIT stands for real estate investment trust. And here’s the problem with the
REIT. The REIT is your money is combined with a bunch of other people’s money and
you lose an efficiency. Often these REITs at the end of the day
are paying out 7, 8, 9, maybe 10 percent total when I’m running 20 or
25 percent and then growing and multiplying the portfolio. And I leave my
partners with control. The big difference at the end of the day is just it’s a
philosophy difference. Doy you want to maintain control of the
asset? And if you want to know how to grow your assets and maintain control of
them, then I want you to click that link. That video is really going to walk you
through it’s going to show you how to do that. And I think that’s the best way
to invest a million dollars. you

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