There’s a couple of technical things you
want to know in the world of real estate. Remember earlier when someone’s like,
“Real estate is tons of tax benefits. How many of you heard that? Something like…
Did I care about tax benefits when I make more money. I don’t need to worry
about that right now. I know some of you were thinking that I need to switch your
mind on that just a little bit. When you buy a piece of property, a refinance
means that you restructure the loan with the bank and pull some of the money out.
When you pull that money out, you do not pay taxes on it. As long as you hold that
first property. You take that money you put it into the next property, now you
got 2. Now by the way, eventually if you sell that home, that first home then
that tax is gonna catch up with you.Bbut there’s a way to avoid it. Remember, how I
told you. Once you get in real estate, you never want to get out. Check this out.
You use a tax deferred refi to get money out while holding the property or if you
have to sell the property, you do what’s called a 1031 exchange. It’s a special
tax code that says you can take your money out. And as long as you put it
right back into a different property, you’re going to defer the taxes. You don’t
have to pay them right now. So, the game is to get in real estate and the game is
to make real estate grow bigger and bigger and the game is to never get out.
Now, wait a second. How do you get paid if you never get out? Your property’s
producing cashflow. You could live off that cash flow. Sure you’ll pay taxes on
what you make. Not after writing it off against the interest and the
depreciation and your business write offs. In my world, just check this out: If
I buy a single-family home and it makes me thousands of dollars in cash flow
that year, on average, how much money do I pay on that month? How much tax do I pay
on that money? Wait what? “Well, Kris Must be talking about something legal right
now.” Compliance. Compliance alert. What’s happening around. “Kris just said I don’t
have to pay taxes?” Listen very carefully. On a single-family home, purchase blow
the median with a really high cash on cash return. When you take that cash flow
out and you write the interest off against it and then you get the
depreciation against it. It is already in 99% of situations cancelled all out all
taxes. Whoa, whoa, whoa. Are you telling me that if I had a
property and I got the cash flow, I don’t have to pain you that to the government?
Is that kind of what I’m saying? -Yes. -Yes. But then I’m like, “Wait a second?” “But
Kris, you tell me if I had 10 properties. And all tells
properties, I still wouldn’t pay anything to the government?” is that possible? On a
hundred properties? Is it possible? Am I starting to solve some problems? -Yes. -I
love real estate. That’s one of the reasons why. So, if you’re smart and you
grow your portfolio the right way, you can defer all your taxes for time and
all eternity and you don’t even have to pay taxes on the money that you get. And
then if you want to go faster, we got to get into the conversation of partnering.
And I’m going to go there right now. I’ve already shown you. We’re going to back up
one real quick in a moment. When we talk about partnering, here’s what partnering
means. Why would someone want to partner with me? So what partners with me and
says, “Kris, I worked my butt off. I got this money and I’m going to put up
the money and you’re not putting up any of the money. That doesn’t sound like a
fair partnership.” And then I say, “But wait. I have a little something different I
can bring to the table.” What am i bringing to the table? -Knowledge. Team.
Track record. The 340 hours. All that kind of stuff comes
together. And at the end of the day, partners, does that feel pretty fair? Yes.
Now, I’m going to show you something new. Let me talk about your benefit. Let’s talk
about my benefit. There’s me, there’s you. We do a deal. We split it 50/50. You’re putting
money in. I’m putting the team time effort and all
that good stuff. And we get to split. This is a partnership model. When you partner
with me, you get yourself 3, 4 or 5 homes. And now you have a new asset.
You see these 5 homes? In 5 years, they should become what? 10 homes. And in
5 more years, they should become what? 20. Because 10 coupled is 20. And in five
more years, 20 should be 40 homes. So, in time, are we going to be successful? But some
of you are saying, “Kris, in time. I need my time to go a little bit faster.”
Because let’s say that we started with 5, 5, 10, 15 years to get to 40 homes and a
killer cash flow and amazing tax benefits. “But Kris, I don’t want to take
15 years. How many of you ever feel that way sometimes? I did. I don’t want to
waste any of my life. So, then you say, “Well, I use my money. I did this. And I’m
just waiting. Now you, Kris, you’re just going to get to a partner and do it
again. I wish I could get me on that side of the fence.” You ever feel that way?
Want to know how to do it? Hello. This exciting stuff folks. Right now, I select
the number of partners based on how many deals I find. So, when I want more deals,
my team needs to what? It needs to expand. And I’m careful about that expansion
because I want to be a wise business owner. That entire team costs money. In
fact, it costs a lot of money to put the whole thing together to make this thing
work. So, we’re super careful about it. So, I know if this month I’m going to buy, if
I’m going to be able to do 30 properties with my partners.
I will only bring in as many partners as for the number of deals that I can do
because if I bring in more partners than I have deals, what happens to my
integrity? And I’m probably… How do I feel about integrity problems? And not
throwing… I don’t… I’m not messing with my integrity. So, all of my partner’s when I
said we could do something, did we do it in the timeframe left through that I
said. Okay? That integrity is important to me.
Now, I can keep expanding my team but I only do it based on demand.
I’m also gearing up for the… And I’m gearing up for the crash. It’s good
timing for me to take that team and make it what? So… Instead of waiting for the
crash, I need to find a way to make my team
bigger when? Which means I need to create more supply, more demand so I can expand
my supply. Does this make sense? So, I’ve been thinking to myself, “Alright. How
could I do that?” On top of the fact that some of you my partners. You know who you
are? You’re coming to me like, “Kris, getting 3, 4, 5 homes is great
but in 5 years. We double that and that’s fantastic. But I want to go faster.
Partners, how many of you would like to go faster? If you want to go faster and
for the first time ever in 15 years, I’m going to put you on my side of the fence.
Here’s what it looks like. You all paid a fee to become partners. We now have an
additional fee called unlimited partner. My team can break that down for you. What
unlimited partner means is that once you’ve established your track record
with me, it means you got the system down of how it works. Like from your first
home to the second home is it getting easier. Brent, you learning more?
-Absolutely. -And more birthday boy. And the third and fourth and fifth on will get
easier. And every time you’re going to ask different questions. And by working with
Cory and me, you’re going to get some point where it’s like, “I got this down now. I’m
feeling actually really comfortable.” When you’re feeling comfortable and certain
and you also have the track record, that’s where if you’re an unlimited
partner, you can take your portfoliom come over to one of your buddies say, “How you doing? How you doing?” -Awesome. -Oh, good. Awesome. Hey, you remember
how I been doing that real estate thing for a while? -Yeah. Dude, you won’t believe it.
I started with one home and then I got two and then it were good. And then I did
3. And then we’re good and I did 4. I’m up to 5 homes now. It’s pretty
cool. And I thought of you. And I thought, “Hey, as we’ve talked a little in the past,
you kind of said that you might be interested in a little bit of real
estate. And I decided I would wait until I had extreme confidence in what I was
doing because I got a track record.” Does that make sense? I thought I would just
take a moment and share with you like my deals and my ROI and what I’m doing and…
I don’t know. Maybe if something’s like and sounds interesting maybe we can get
together do some other deals. Can I take them all me share my deals
with you? Check them out. Kick butt awesome. Do you see that number
right there? So, cool right? Well, yeah. Exactly. Yeah. Do
you see that one? Do it again. Oops I did again. See, I just did five times. That’s
pretty cool, right? I’m just curious. Your 401K’s
money or wherever you under the mattress your money. Are you doing any kind of
returns like that? That’s right. I didn’t mean that for real.
Where… Are you doing any kind of return like that on your money? Oh, really? Are you sure? That your money comes even close to doing the ROI I just showed you
on that spot right there? -No. Not really. -How would you like to do that number?
Wait, I got a crazy idea. What if I find the deals. What if I do all the work
what if I make it all happen so you get to be pretty passive right do your job. You put up the money. We go 50/50 with you more of this. It’s just an idea. What do
you think? Does sound good? -Yeah. -Let’s shake on it. Yeah, yeah. Yeah. Okay. I’m
having fun. Guys, it’s a little conversation. Do you guys get me?
When you build confidence and you’ve done the deals and you got the track
record, shit how many of you could have a conversation like that? What if he says,
no? What does that mean? Not… Not now. Hey, how you doing. Hey pretty. Hey… Can
you have this conversation? How many of you can show it make this happen? Okay. So,
here’s what I’m doing that’s different is once you’ve established your track
record with me so I know that you really get the system and understand it. In this
new program, you can you’re going to continue your portfolio growing with me.
It’s going to continue expanding. But now you have the ability to take this
portfolio and I’m going to show you how to package it and then you get to have
conversations with people. And when they say yes, my team will help you set up the
LLCs put the bank accounts together. And basically duplicate the exact same
system that we just did for you. Only differences you’re now on my side of the