How To Start A Real Estate Investment Company
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How To Start A Real Estate Investment Company


How do you start a real estate
investment company? It’s a really good question. And today I’m going to share with
you the 5 steps to get you started right now. So, you want to be a real
estate investor? There are 5 things that you need to know how to do to help
you get started in the most powerful way possible. Of the 5 things, the first
thing that you’re going yo need if you want to start a real estate company is you
need to start with a strategy. There’s a lot of strategies out there. You could do
multifamily like one of my buddies. you could do real estate development like
another one of my buddies. You can flip properties, you can own rentals. And so
you got to get clear on what is that strategy. Now, some of you have actually
read my first of several books that I’ve written. It’s called “A Straight Path To
Real Estate Wealth.” It’s all about my hybrid system called lease option. That
is my favorite strategy when someone is brand-new and starting with very, very
few assets. Now, you’re going to want to get really clear on what that strategy is
because by the time we get to step 3 and you’re actually doing a deal, you want to
make sure that it lines up with what that is. The second thing that you’re
going to need is you’re going to need how to get the money. When you’re
actually out there doing a deal, last thing you want to do is be one of those
brand new green investors like, “Oh yeah, man, I’m hustling. I’m going out there. I’m
finding a deal.” And you do and then you don’t got the money, that’s like a
nightmare. So you want to be able to check that off the list and say, “Hey
listen, if I go out and I find a deal, I have confidence that I’m going to be able
to execute on that deal because I’ve lined up the money for me.”
I remember when I bought my very first property. I had a took me 14 months to
save up a tiny cute little down payment, right? $5,000 in the bank. And because I
was so freaking poor, saving up five grand… Like my wife and I, we went to the mat. We
were literally counting pennies and quarters and doing everything that we
could. I obviously know faster ways of doing real estate today. But back then I
didn’t have those strategies. When it came time 14 months later, that we met
all the criteria my mentor gave me to actually go out there, I found the deal
that I wanted. And the good news is we were able to buy that because we have
the funding lined up. So, once you know the strategy and you got the money lined
up, that is what takes us to number 3, you got a deal. Now, I know some of you
were thinking, “But Kris, I need my LLC, I got to set up my business.”
Dude, right now, get yourself on track for making money. You don’t need an LLC. You
listen, don’t waste time on things like, “What’s my logo going to be?” Don’t worry
about that stuff. That stuff will work yourself out. You’re here to figure out
how to make money line that up first. Know your strategy, get the money and
then after that, you’re actually off to making the deal happen. Once you’ve
secured the money, it’s all about fun in the deal. This is going to match up. In a
moment, I’m going to break down a very specific way of using these 5 steps.
Only after I have the deal and I’m actually on track to making money, do I
then actually care about setting up an LLC? A business. Limited Liability Company
is what 99.9999% of people are going to use for a real estate business. The
other .001% are idiots and don’t know what they’re doing. So, it’s going to
be an LLC. Now, this is something you can set up after the fact. And some people
are like, “Oh, but don’t I have to have that first?” Here’s a reality. If I’m
buying a property in January or February or April or March or anytime before the
end of the calendar year, I still have time to set that up inside of an LLC,
deed it in and then I’m good for the next year tax season. The fifth and final
thing that you need, I’m going to say it as a bonus. So hang tight for the end of the
video because I think this is one of the most important things that you can have.
First, let me share with you though what does it look like to actually do these
4. If I were mentoring you and I was helping you get your start in real
estate then I’m going to start you off with a strategy that I call compassionate
financing. It’s my lease option strategy. And basically it says, we’re going to be
dealing in single-family properties. Single Family Homes, SFH. We’re going to be
purchasing them underneath the median. We’re going to be buying them with a
discount. And the reason why I like this for people that are new is because
people that are new, they need to make money when? They need to make money now. They don’t want to make money in 5 years or 10 years or 20 years. This
particular strategy enables me to get 5 grand up front. Which if you’re new
investor, dude $5,000, that’s a good shot in the arm of confidence. The second thing
that’s going to happen is you’re going to be making $500 each month on average
in cash flow. Which again for a new investor, dude, that can cover a car payment.
That can subsidize a house payment. $500 a month can help, you know, pay
down credit card debt. For my wife and I, our very first house…. Dude, my wife was so
scared of being in debt. It was all about get out of debt. And our first 2
properties got us entirely out of debt. And that’s when my wife went from being
a skeptic to a total supportive. “Kris, dude, we need to get more houses.” Which was
music to my ears at that time. After that, the last thing is there’s tens of
thousands of dollars that come to you when you actually sell that house a few
years down the road. So, for a new investor, that’s a really great way to
fly. That’s my lease option strategy. Next you got to line up the money, a couple of
the front ways of doing this. One, you could say, “But Kris, I don’t have any
money.” And that’s okay. I’ve got a no money down lease option strategy that I
teach people how to do. But some of you have money in 401 k’s which you know my
feelings on those things. I hate them. IRAs. You know my feelings on these
things, I hate them. Or you might be putting your money in stocks. In this
situation, you might know my feelings on this. I hate them. Or you might be putting
your money into an annuity. I especially hate those. Or any other stupid retarded
places where people put their money where they forfeit control and are
threatened with taxes and penalties and are frankly screwed. Instead you got to
get your money working for you. So a lot of you actually already got the money
that you can put into real estate. Some you got it under the mattress, you might
have it sitting in these places. And by the way, if you do have a choice of being
with an employer that is seducing you with a really great match. If you put
your money in the 401k, do yourself a favor. Don’t do it. Your money in your
hands today is far more powerful then socking it away in a place you can’t
touch it. For who knows how many decades so that when you finally can’t touch it,
you’re like, “Crap, that is not a lot of money. Sure hate that I did that thing.”
Don’t make that mistake. Put the power and the control in your
hands right now. And so these might be some of the places that you store money.
This can help you fund. If you don’t have any of those things and that’s all you
got going for you. Another thing that you can do is save up a few thousand dollars
and do a tiny 3% down payment on your own first house. So now all of a
sudden, you got the no money down strategies.
You watch one of my other videos, you’ll about that. You can take your hidden
assets from places that other people are controlling, yank those out and actually
put them to work. Or you could buy your own house. A fourth option just for fun
maybe a partner. Maybe you know someone that is just as committed to financial
freedom as you are. And maybe they have money sitting in 401ks, IRAs in some of
these different places. And boom, now you’ve got money. Bottom line, I’ve given
you 4. Those are different ways to say, “I’ve got my strategy, now I got my money.”
The next thing you need to do is go out there and find a deal. Now remember, we’re
doing single-family homes, priced underneath the median. I like to buy them
in the very best markets because I’m a fan of making a 20% plus ROI on my deals.
And the reason why is because I won that with compounding that, I can double my
money every 3 and a half or 4 years. Worst case scenario, 5 years. And that
means that sure I might not get rich quick, but I am going to get rich. You
understand the difference? If you want to get rich quick, go find more partners and
go find more money. It’s out there, it’s available on massive tranches. You just
got to have the courage to go out there to be bold and and believe in yourself
to actually go make this thing happen. And then the last thing is once you
actually have the strategy, you lined up the money, you went out and you did a
deal. Now go ahead and pop that in an LLC. Go put that in a place now where
it can, you can receive the protection. Make sure you ensure your tax benefits
and write offs. And that takes us at the end of this video here friends to the
most important thing that you need when launching your business. Beyond the
strategy, beyond the money, beyond funding the deal and beyond structuring it in the right LLC. The fifth and final last thing that you need that
unfortunately too many people go without, is you need a mentor. A mentor gives you
something very special that I like to call proximity. When I learned from Tony
Robbin,s is what he calls proximity to power. The reality is it’s our human
nature to surround ourselves with people in our exact same circumstances. Because
that’s where we feel the most comfortable. We’re not leaving our
comfort zone. When I’m surrounded by people that are in my situations. But
what you don’t understand is that it’s getting uncomfortable, it’s getting
outside of your comfort zone where freedom actually lies, opportunities lie.
The people with knowledge and skills of abilities track records lie. Which means
you got to leave your comfort zone. And what a mentor does is a mentor for me,
definition of a mentor is someone that has a minimum of 10 times the results
of what you want. You say to yourself, “I want to make a hundred thousand dollars
a year. 6-figure residual income.” Then you need to find someone that is making
a million dollars a year residually. Someone that meets that definition,
that’s a person you want to hang out with and that’s a person that you want
proximity to. You want to be where they are. Do they go to seminars? Do they go to
events? Where do you find them? Are they on their podcast? Do you know where they
live? Do I have people track me down a knock on my door and ask for help? Yes. I
had some people do it today. And so, what I want you to understand is that a
mentor will ensure that you’re not going to screw things up because when you’re
brand new, you should be very afraid of you. You’d be very afraid of the fact of
what you don’t know. One of my mentors that I paid over a million dollars to,
the most powerful moment for me is he had flown in town. We were having a
business argument. My mentor gave me a look like maybe I shouldn’t be arguing
with him. And it was like one of those father dad son moments where I just felt
really uncomfortable because he just stopped talking and just kind of stared
at me. Then he said something I’ll never forget. He said, “Kris, the most dangerous
information is what you don’t know.” And then I got it.
I was operating and trying to make decisions on what I think I know. Now, in
my space having done over 3,000 real estate deals, there’s a lot that I known
that space and I haven’t learned anything new in that particular niche
for years. So, I’m expanding, I’m growing, and pushing myself. I make a great mentor
for people that are new to single-family and don’t know what they’re doing. But on
the other hand, in all the areas of my life where I’m going in and learning
things that I don’t know, guess what I do? It’s I find the best, brightest, smartest
mentor that I can and I seek proximity. This last year, I spent over $100,000
following this one man all over the world. I was going to be where he was
going to be and I was going to learn I was going to grow. Next year, I’m doing the same
thing. Except I’m going to spend $250,000. And the point
is is that at this point in my life, I am aware that what I don’t know is
dangerous to me. When you’re getting started on this path,
there’s a healthy balance between taking bold action which you need to do
and then tempering that against making sure that it is the right bold action.
And that’s what these 5 steps will do for you my friend. Thank you so much for
watching today’s video. Listen, if you do not have a mentor, if you don’t have
someone that’s got your back, if you don’t have someone that can review your
deals and make sure that you’re doing things the right way then I want you to
click the link in the description below. Because I’m at a space in my life where
I’ve got a intimate niche of brand-new investors for the most part. Some of them
very experienced. And we get together and I share with them the best deals that
I’m in on doing on. I’m training them, I’m working with them. And then they’re
bringing their deals to the table and this mastermind is getting deals done.
So, if you don’t have someone like that and if you don’t have the system or you
don’t have the training or you don’t have confidence and how you’re going to
find the money or you’re lacking the deals, if you’re lacking any of this,
click the link in the description below. Get with me and my team. Let’s break it
down for you and see if we’ve got a win. Other than that my friend, thank you so
much for watching this video. And if you haven’t, make sure that you subscribe and
we’ll see you tomorrow.

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