How I Partner With People In Real Estate – Part 1

How I Partner With People In Real Estate – Part 1

Hey friends, Kris Krohn here and today
we’re talking about how to partner in real estate. I might be partnering with
you or you might be watching this to learn how to partner with other people.
In this series, you’re going to get the full scoop. — All about partnering. Alright, welcome back. So listen up.
Partnering is absolutely something that has created a tremendous amount of
wealth for me and for my partner’s over the years. In fact, I have 15 years of
experience partnering with people. I can tell you that in that period of time,
I’ve learned who I like partnering with, who I don’t like partnering with. And
ultimately, partnering is a tremendous strategy to purchase a lot more real
estate. For me, it means that I can purchase a lot more real estate. For my
partners that means they can get in on a level of real estate investment that
they couldn’t have otherwise. Now, there’s going to be a couple of benefits for you
to watch this entire series on partnering. The first one is, you might
actually be watching this because you’re considering partnering with me. I’ll
select a handful of people over time that I work with and what I’ll do is
I’ll build them an amazing portfolio that builds tremendous wealth. But I have
other people that are watching this or saying, “Alright Kris, I want to get into
the game of real estate but you know what? When I run out of money, I want to
know how I can do more. If I figured something out and if I have a strategy
that works, how do I actually attract the kind of individuals that want to put
money into the game so that we can actually go out and partner long term
together?” So, there’s going to be many applications to watching the series. And
what I want to do is I want to start right off the bat by talking about, what
really is partnering? You know, in the game of real estate, when it comes to
making money, someone’s got to put money in the deal
to make the deal work and someone else has to find the deal. And right now
because of the team that I’ve built over the years, I have a problem. My problem is
is that I find too many really good deals. And I can only buy so many of them.
So, what I’ve done is I’ve created a system where people can partner with me
they can put their money in the game. And basically, I’ll do with my team, all the
management, all the heavy lifting, all the work and I’ll bring about some of the
best ROI is that real estate has to offer. On the other end of the spectrum,
there are people out there that have money that say, “Wow, I’m not diversified
in real estate and I see that real estate has created so many millionaires,
it’s created so much wealth. But frankly, I either don’t know how to get in that
game or I don’t want to.” You might know who you are. You might know what your
passion is. And at the end of the day you’re saying, “Wow, I’d rather partner
with someone that has the expertise and that’s been doing this on thousands of
deals and we’ll build the portfolio together.” So, the way that I
do partnering in the way I’m suggesting that you tackle it is a partnership is
typically for me divided up on a 50/50 basis. There’s the managing member and
then there’s the funding member. We’re both members of this corporation that we
put together. But ultimately, the funding member has money sitting in a 401k or an
IRA or home equity or an annuity or savings or gold and silver or something.
And they’re getting too low of an ROI. And they’re basically saying, “Wow, I’d
like to make a whole lot more money or I want to diversify in real estate.” So, the
funding member is the member that brings the money to the table. The other member,
I am in this case, the managing member. And the managing member is the one that
says, “Hey, between me and my team, we’ll tackle all the day-to-day of real estate.”
On every deal that we do on average, there’s 342 hours put in. Now just wrap your mind around that for a second. 342 hours worth of work. That my funding member doesn’t have to do. So
the rule that I’ll play is, my team’s going to be the busy bee’s, doing all the
expert work. My funding member is going to be bringing the money to the table. And
what do we do? Well, we’re there to make really big picture decisions together,
when is it time to refinance, take the money out and redeploy it into the next
properties. Because here’s the goal: We’re trying to take a small amount of money
and turn it into a lot of money. In fact, the goal of the first decade. Because
this is not get rich quick. The goal of the first decade is to take a small
amount of money and turn it into a lot of money. If we were to continue building
into the second decade, that’s what we’re taking a lot of money and turning it
into a legacy. And when we’re talking about multi millions and millions of
dollars. Creating tremendous amounts of freedom. And that’s ultimately what the
goal of the partnership is. Now, if you’re a subscriber to my channel, you probably
know that my specialty is doing a short term buy and hold. I like to hold homes
for three, five, seven years. And what I like to do is I personally, out of all my
deals, I cherry pick the very best ones. I’m looking for deals that have often a
well over 15% ROI, which is awesome. But I’m actually targeting deals
where I can get 20% ROI or more. Now, the reason why that’s important is because
most people in 401ks and IRAs and in the market, over time they’re averaging maybe
3, 4 percent. They’re hardly keeping up with inflation. But in real
estate, if you’re doing 15%, 20%, 25%, the goal is to deploy
a certain amount of money. Let’s say someone had $200,000. And we were going to buy 5 homes. Having 5 homes, earning 20% is awesome. That means that 5 years down
the road, they will have more than doubled in value, potentially. What we
want to do over time is we want to take a look at those 5 homes that are earning
20% and see a few years in, “Can we do our refinance?” Which is a tax-free event and
take that money out and deploy it in five more homes. Or in three, five years,
do we sell those homes and instead of buying five more now have 10 more. Well,
ultimately, the first part of the decade is getting that money growing into
something. But if 5 can turn into 10, if 10 can turn into 20, if 20 can turn
into 40, if 40 can turn into a hundred. Then you
can see that what we’re trying to do is actually create a very special velocity
where we can have our money compounding on top of itself. If the first layer
homes are producing a 20% ROI, for example. And we can pull that money out
and put them and do another set of homes earning 20%. Now, we’re compounding on top of compounding. And that means that over a period of time, maybe a decade, we could
take a small amount of money and potentially turn it into a lot of money.
Which means that the decade after is basically, taking a huge windfall of
profits and rotating it into a whole lot more money. Now, when I partner with
people, there’s something I’m bringing to the table and there’s something my
funding partners bring it to the table. Me, I’m bringing nearly a billion dollars
worth of real estate experience to the table with this expertise in my strategy.
And for a lot of people, that is worth its weight in gold. Because they want to
skip as much of the learning curve as possible. It doesn’t mean I’m perfect at
what I do. It just means that I have a massive track record that I get to rely
on and a massive team to make as few mistakes as possible. And hopefully to do
as many of the right things as possible like we’re going to talk later in the
series about being in the very best markets which not everyone really knows
how to do. They’re usually subject to their backyard and if they do
something out of state, they’re not willing enough power of volume and doing
enough deals to actually make that work. On my partner side, I generally partner
with people that have at least $100,000 on up to $10,000,000 or
more. And what we’re doing is we’re building a massive portfolio. Now, if you
don’t have $100,000, don’t sweat it. You need to be watching this series so that
you can be learning, “How do I build my own track record? And then how do I
partner with other people? And how do we work together so that together we can do
so much more than either of us would actually do on our own?” Now, you have to
understand, if you’re a partner of mine that I set up boundaries. Because I’m
going to be giving you my personal cellphone. Not very many people get that.
We’re actually going to be working very very closely together. And I’m there to
work with you on the vision, on the big picture, on the big picture strategy and
making the right decisions. And you can imagine, I’ve got an extensive team and
they are the worker bees that are going to set the whole thing in motion and at an
expert professional level, execute everything that we want. Now, as a funding
partner, you would be collecting financials and documents and seeing if
we’re bringing your credit to the table and later in the series, we’ll talk about
what happens if you can’t use your credit or if you eventually max out your
credit for investment properties. But ultimately, this is a relatively passive
role. So, we’re getting together and we’re really deeming the the big decisions of
what we’re doing and playing with this portfolio. Now, anytime someone comes on to be a partner of mine, we’re basically getting married in a business
kind of sense, right? You come from one background, I come from a different background and our minds think very differently. Now, there’s a
strength to that but there’s also a weakness if we can’t get on the same
page. And one of the other videos, I’m going to talk about how to select a good
partner versus a bad partner because I’ll tell you that when my partners join
with me, I put on quarterly events. There are
three-day, life-transforming events. They have to do with manifesting, belief
breakthrough, they have to do with creating wealth. And when my partner’s
come on board, I require them to come to one of the next two big
events because I want to connect in person, we actually have some private
time together and we work together with all the partners to actually advance
their education, knowledge of the markets and what we’re doing. I want a
relationship with you. But I also want you to come to the three-day event
because I want to get our minds aligned. And I’m going to share with you the most
successful thinking patterns of millionaires and billionaires, the
most successful people in the planet. And I do that because I want us to have a
common core foundational understanding of how successful people think. Because
you’re trying to become more successful than you currently are. And that’s going to
require a change in mindset. So, partnering with me actually has two
components. One component is as we’re developing our relationship and
friendship, is I want to know. Are we investing in our mindsets so that we
know how to think in an aligned pattern more later on why that’s important. And
then the other part is making sure that on the technical aspect, you learn the
things that you need to know when working with my team, that ultimately you
feel really comfortable with the process of going out there and building as
aggressive and successful of a portfolio as possible. Hey, thanks for watching this
video. Listen, if you are serious about becoming a partner of mine, then I want
you to click the link in the description below. And I’ve got a specialty team that
has been trained up to know my appetite for who I like, personalities, who I’m
looking for. If you think it’s something that
interests you, then I want you to click the link in the description below.
Otherwise, watch the next video. Next I’m going to be talking about the difference
between good partners and bad partners in this lengthy series to teach you
everything there is to know about successful partnering in real estate.

16 thoughts on “How I Partner With People In Real Estate – Part 1

  1. What about the huge housing bubble that's again being warned about? The banks are again in the market and there's a potential collapse coming down the pike.

  2. Kris how do u find the equity in the houses and also can u walk us through on a deal. Like go on your computer and show you making a deal

  3. I watch your videos everyday at night bro I haven’t watched all of them but hoping to try learn more and i really want to try and do something with real estate you’ve definitely convinced me it doesn’t take genius to make wealth just takes a little bit of hard hard and some knowledge but what are the first things I should do I’m only 18 and I’m pretty sure I can do it atleast start something at my age to reach wealth in the future what are the first steps?

  4. Is there any possibility of partnering if you have less than 100K saved up? (Maybe a down payment partner or credit partner)

  5. Went through the vetting process of becoming a partner. Said I basically had 115k to invest. Now you'd think being the financial partner and essentially giving Kris fifty grand would be enough of an incentive for him to work with you.. nope you have to pay fifteen thousand, oh wait, 14977 (deception) to work with him. I'm sorry man but there is no defending this. This is a poor program. I expected better and am disappointed.

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