The Basic Foundation Of A Real Estate
Articles,  Blog

The Basic Foundation Of A Real Estate


Hey, what’s up friend? My name is Kris
Krohn. And today, I’m going to share with you the foundational principles of building
your own real estate business. Alright. I believe any foundation of getting in
the game of real estate involves 5 steps. So, in setting up your real estate
business, here’s step number 1. What’s the goal, right? I mean you got to have
plans. You got to have a vision for what you want. You need to have a why behind
it all, right? Trust me, real estate just like probably
any other business, is not a business that you want to get into half-cocked or
without a full conviction that, “Hey, I’m doing this. Do you know why? And do you
know for what end?” You know, for me when I got actually in the game of real estate,
my big why was that I was afraid of living a mediocre financial life. I knew
that I would always make the most of any opportunity but I felt like my life was
financially in someone else’s hands. I felt like it was in society’s hands. And
it wasn’t until I realized that, “Hey, Kris. No one is going to do this for you. And do
you really want to waste a lot of life on this?” And the answer is no. I want to
actually rise up and make this happen. That’s when everything changed for me.
I’ll never forget I just bought my second investment property and my wife
fully got on board. Because she’s like, “Kris, our house is paid for now and we
have $600 left over a month. Like, what are we gonna do with
this money?” And it was in that moment that I realized, “Oh, my gosh.” And my wife
is supporting me. She’s telling me we should buy more homes. And that’s when we
decided that we should buy enough homes to have $10,000 a month residually. And
when I hit it, then I can quit my job. And I’ll tell you what. That was all the
motivation that I needed for picking myself up and getting where I wanted to
go. 3 and a half years later, I had 25 homes out of 12,000 dollar residual
income. I drove to my boss’s office, top down in my convertible and I was
actually nervous and scared when I actually fired myself from job.
But I’ll tell you I’ll never forget what it felt like when I walked out. How I was
breathing air that I had never breathed before. And I’ve been breathing it every
day since. And most people, you have no idea what you’re breathing but it is not
the air of a free man or a free woman. Unless you know what it’s like to not
have to work, unless you choose to. And that’s what freedom is all about. It’s
moving from have-to to choose-to. And right now, the work that I’m doing
even in making this video for you, it comes from a deep hearing and a deep
passion that says I want to help better your life. it worked for me. I’ve been
able to help thousands and why not you too. So, that’s a pretty deep why. That’s
my goal. Do you have a vision for what you want? Do you know what you want to
achieve that will make it worthwhile for you to get in your real-estate business?
I want you to know what it is? I want you to articulate it. I want you to write it
down. I want you to print it out. I want you to put it on the wall. I want you to
review it every day so that you can remember, when it gets hard, why you’re
going to stick with it no matter what? So, if you’re starting a real estate business,
then you’re going to need an entity or a business structure. And listen, I’m not
here to give you any kind of legal advice. I can’t do that. I’m not an
accountant. But I will tell you that it is pretty
uniformly agreed upon here in the United States that your real estate business
should be done in most cases under what’s called an LLC or a limited
liability company. Now, I don’t want to complicate things but I have a parent
company that owns all my subsidiary LLC’s. I put multiple properties in each
one of my LLC’s and what that business structure does is it creates protection
between my personal life and my business life. You know, on thousands of properties
I’ve never been sued. And that’s a good thing. But I have protection if something
like that were to happen. And so yes, you want to make sure you’re taking all the
proper precautions so that your personal life in your business line, they that
they’re separated and that there’s a firewall in between them. The third thing
that you need is a profitable strategy. Profitable strategy essentially means
that you’re going to buy real estate with the intention of making money. Now, I know
that this sounds really obvious. But you need to understand that real estate is a
business. And there’s more than enough strategies out there where you can do
this business and you can lose money. So, I want you to keep it to the forefront
of your brain that the purpose is to be profitable. Which means you need to pick
a strategy that can be profitable. Now, there are many strategies out there. The
book that I wrote –The Straight Path To Real Estate Wealth. The synopsis is the
free book that I give. I just bought a truckload of these. You know and you’re
welcome to have one for free if you click the link in the description below.
And what the book essentially does is it talks about what I believe to be the
singular best strategy in all of real estate that takes the least time, the
least effort, the least risk. And is certainly super profitable while
creating a massive value for people. And that’s a mouthful but that’s the truth
of the matter. I evaluated 30 different strategies.
And I found a hybrid for the winning strategy. If you don’t know what that is,
get a copy of my book. It’s free, so that you can have a profitable strategy. At
the end of the name business, when you take all your revenues which includes
all your rents and you subtract out all your expenses. Whatever is left over,
that’s a profit. And so, if you have… If you have the desire and the intention to
be profitable, I’ll tell you the best part about it. Some of you might be
thinking about, “Kris, I can quit my job at have this extra money. I can… I can have several thousand dollars left over a month.” Do
you know what I love the most about being profitable? It means that
everything in life, I don’t like doing or I don’t want to do. I have the ability to
leverage someone else’s skill set that does like doing it. And I can create a
trade with the mighty Benjamin and say, “Hey, now you can do some of these things.
And that really works for me because at the end of the day, I have asked myself
what do I really want? There’s just a little tangential bonus. I’ll make it
super quick. We don’t want real estate. And we don’t want wealth and we don’t
want money. We don’t want cars, we don’t want nice
houses. We don’t even want to travel. The only reason why we desire those things
is because we’re pursuing a feeling. Because we want to feel a certain way.
And enough of the right feelings ends up creating a resonating feeling of
fulfillment. If you want to be fulfilled in your life, what you’re really after is
feeling a certain way. And so when I use that money to outsource this project,
have someone else to do this, have someone take care of that… What I’m doing
is I’m practicing a different level of emotional intelligence that says, “Hey, I
want to love every part of my life. Not the parts that I don’t want to like. I
just want to like all the parts and chews into the parts that I really,
really like.” So, that’s what that third step is. Here’s the fourth foundational
principle in setting up your business. Never, ever, never, never, never, ever, ever,
ever stop buying real estate. It’s not about these 25 homes,
give me a six-figure residual income and I’m done. I remember when I had sold one
of my properties, put a big huge grendel of money in the bank and I walked away
satisfied thinking, “Oh, my gosh. I won so big. Look at what I have in my bank
account.” I don’t when I walked out of the bank, I realized, “Oh, my gosh. What am I
going to do with that money? I’m going to put it in real estate.” And then it dawned on
me. I already owned the real estate. I could have kept the property, kept the
cash flow, refinance some money out of it. Bought another one, increased my
portfolio, increased my cash flow. I wasn’t going to leave the money sitting in
the bank. I was going to put it real estate. And ever since that moment,
I’ve realized more property is more better. Which means that in my lifetime,
I’m still young buck. At the rate that I’m acquiring homes, I have a plan of
becoming a bonafide billionaire and then I get to enjoy the second half of my
life just giving it away. Doesn’t that sound fun? Doesn’t that sound like a
really fun life? It sounds great to me. So, the fourth step,
you just never stop buying real estate. Even when you meet your goal and the
cash flow is coming in. Or maybe you’ve replaced your job income or you like
your job you’re going to stay there. Just don’t stop. You build it and build it and
build it so you can pass it to the next generation, the next generation. It
becomes legacy wealth. And the cool part about that is it means that you’re
perusing so far beyond what you need that you not have the access to help
really a whole lot of other people too. Which by the way, feels really good and
produces that feeling of fulfillment that I’m talking to you about. If the
first step was to have a goal, this fifth and final step is to have a vision. And
the vision is what are you going to do with the money once you have it? You know,
maybe it’s the first X dollars or something for you but start thinking
bigger than that. Who are the people that you want to impact? What are the
organizations that are worthy of your time, your money, your effort. Have a
vision bigger than what you get out of this for you. Because if you look at the
bigger part of the video that I’ve just done here. A big part of it comes down to
regulating how you feel and being really satisfied and happy with your life.
Another big part of that is, what is the bigger cause? What is the bigger reason?
What is the bigger why? What’s something bigger than you, so big that it can take
your breath away? That is something that I want to invite you to get incredibly
committed to. Because with these 5 steps, you’re not just going to be able
to launch your real estate business. But you’re going to put purpose and meaning
behind it. You’re going to assign a meaning to it that is going to be so much more
useful and helpful. So the when times get tough, you can rise up and muscle through
it and make it happen. Hey, thank you so much for watching this video. I hope it
was useful for you. If you liked it, share it with somebody else. Certainly give me
the thumbs up and subscribe and ring that bell. Because guess what? I got video
content like this coming out every single day. I love producing this for you.
Because I’ve already seen how many lives with the millions have watched my videos
that has been able to impact. And I hope today’s video touch to you in this. And I
hope tomorrow’s video and the next day after are going to continue impacting in a
positive way. If you’re looking for, “Okay, Kris. I could do your steps on my real
estate business but now I need an expert to come in and help mentor and really
get this party started.” Click the link below. You’re going to get a
free consultation with a member of my team. You also have a link below for
getting a free copy of my book. Between my book and talking to my team, you got
everything that you need to actually go out there and execute a multi-million
dollar winning real estate game plan. Thank you for watching today, we’ll see
you tomorrow.

19 Comments

Leave a Reply

Your email address will not be published. Required fields are marked *