How To Diversify With Real Estate

How To Diversify With Real Estate


What’s up? Kris Krohn here. Today, we’re
actually diving in on this conversation of real estate and what they should be
diversifying. I mean, look at what’s happening in the market. The stock
markets going up. Is real estate at this point a smart play? Is it a stupid play?
And if you can’t get access to it, what’s the best way to do it? So, I am joined today by Stephanie and
Christopher. They are 2 of my brand-new real-estate partners. We’ve only been at
it for a couple months, right? -Right. -Right. -And I wanted to kind of hear about their
story because we met through YouTube. But before that, you guys have always been…
You’re young for kids. But also really financially smart. How did the whole
financial smartness kick off in the first place? -I would say my mom was the
checkbook holder as a kid. A very avid on not overspending getting fees taken out
by paying with money you don’t have. It was always evident the money was a
conversation between my parents. And then,. before my brother and I, he just graduate
high school, they showed us, h”Hre’s a checkbook. Here’s how you balance it.
Here’s how much money that we put away in your savings account since you
were a little kid.” -So, you’re telling me that you guys actually had parents that
gave you… You have some financial training? -My dad taught us to like dream
and like look forward and strategize. He’s always studying and learning. Kind
of like just taught. So, yeah. -Okay. So, this is kind of cool. Because there’s a lot of
people that you know when they get married or when they have to come into a
relationship, it’s always fun for me to watch what’s the financial dynamic? A lot
of people, their parents really didn’t teach him a whole lot. Because what we
really do is we’re speaking far more loudly with our actions and our words.
And so, you you look at it. And let me just kind of ask you, I’m curious. Would you
say that you’re fine at your pants were financially behind, average or ahead? -I
think that they were ahead. They probably just had a mortgage and maybe a little
bit left of a car payment. -Okay. -But they were always thinking what would we do
5 years down the road. -Awesome. -What about you? -My dad has always
been a dreamer and a planner and a studier. -Behind or… -The average.
We’ve always had a home and food and we had our needs met. -Because a lot of
people watching this that are like, “Yeah, my parents didn’t teach me squat about
money.” Or if you want young and watching this might be, “Hey, I need to ask my mom
and dad what should I know about money.” Today though, we’re going to accelerate
this conversation and talk about kind of a core transition that you guys went
through. I know that you did some Dave Ramsey several years ago. You’ve been
sounds like you’ve been good with trying to get ahead by you know manage my debts,
pay things off. Be physically responsible. Save money, put money away
for your retirement. And yet, something happened the last couple of months that
led to you bought your first property last week and have another one under
contract. And now what plants were buying more. What happened? -Well, during this
summer, I just started… I’m a commissioned salesman. I started making less money and
nothing had changed in the work that I was putting in. And it freaked me
out. I got scared. And that’s a feeling that I normally don’t have for finances
because we have save means, we have investments, we have a good
retirement. We’re financially sound. Our house is paid for. -Yeah.
-However… -Yep. -We don’t have enough. -By the way, I want you to listen to what they’re
sharing right here. Worked so hard, been such pretty savers. Even got the house
paid off at such a young age. I mean what a huge accomplishment. But it is amazing
that sometimes we don’t level up our game plan until something bad happens.
Like for me, many people know my story. It was when me and my brand new
wife had our first financial hardship. And I didn’t know how to pay the bills.
And I was like, “Man, I do not want to disappoint this woman. I have to find a
way to dig deep and find a solution.” It’s amazing how sometimes pain becomes
the reason or the impetus why we do something. But even more powerful as
you’re watching this, don’t wait for it to hit the fan before you say, “Wait a
second. Maybe I should find a way to be motivated but not from a place of fear.” I
was like to try to get ahead. You know what I mean? What’s your story about this? -My story is just like, “We’re still doing fine. Let’s make our plan for when that
stops. So, that we’re still fine. You’re smart, you’re able,
you’re awesome, responsible. There’s no reason why we have to (like you said) wait
until everything is gone.” Like, let’s this plan for the next phase of income. So… -Was it a
pretty big switch to go from… Because really, I want to talk about diversify in
real estate. I know you guys have somebody in the stock market.
It clearly paid off your house and I think a lot of people know how I’ve used
some of these assets, right? I mean, I look at the stock market. I’m like, “Okay. If
you’re playing that game then you’re going to ride out the highs and lows and
hopefully average 10%.” If you’re getting your house paid off, that’s a lot of
money to sit in an asset that produces nothing. But it provides some people like
a peace of mind. Kind of like if I lost my job. At least my bills aren’t going to
be as high as they would be otherwise. But really at some point, I really feel
that for people to reach the financial levels that they want, we have to exit
the world of single digit investments like 401ks and IRAs. We have to find
a way to get true double-digit returns. How to make fifteen, twenty, twenty-five,
thirty percent on my money. We’re finding that right now with real estate. You
remember on that first deal we bought what the projected ROI looked like on it?
-I think it was like 31.5 or 31.6. -By the way. Just so
you guys understand my reaction. When I see an investment that I believe in that
has a 10% return, I’m like… 15%, I’m like…. 20%, I
start getting excited. 20% for me is like, “Hey, I can double my money
every 5 years. Now, that’s exciting to me.” But when I hit 25 or even 30 percent,
I get… Dude I get freaking rock star excited. If it’s an investment that I
believe in. So, obviously this is very different than some of what you’ve been
doing before. How do you feel about the property that you just bought last week?
-Looks like a nice place. It’s a really nice house. It’s in Florida. Hot and sticky and alligator
Solstein, California. The house looks great. -Yeah. -I think someone would
actually want to live in it. It’s definitely a place that I’ve had to own.
You know… -100%. So obviously, our team… You know, found the house, research, get all the fix-up repairs, management. Are you really like hands-on
kind of people who are hands-off kind of people? Do you like the way this is
arrangement is working so far with having a team do all the work for you? -I
like the hands-on aspect that I want to learn and I want to know and I want to
have the skills so I just know what’s happening. -We’re in studio but really you guys are at our 4-day immersive the
man called unleash your financial destiny. Link below. By the way, I’m curious
how are you doing the event so far? -Really fun. -Yeah. -It’s good for us. It’s just
like kind of a marriage retreat in a sense. -Good for you guys. -It was really hard to
leave town like their four kids and they all have their stuff. And like, so many
people at home, thank you, if you see this. Like…
This has been good for us. It’s like, dreaming together again. Like really like
just taking time to just be like, “Why are we doing this?” And everything we’re
giving at, we believes from the Lord. And it’s our job to distribute that… Be good stewards of it. It’s like, it’s all for the purpose of spreading his
love. So it’s like, “Man, if he’s given us these resources, it’s like, we’ve got to
be really sure what we’re doing.” -That’s great. -So, you’ve done some good acts. -Oh, yeah.
So, it was been really fun to just be like, “Okay, what is our…” -Before we turn on
the camera, I was like…
You’re like, “Go research this guy. Find out. Find…” -Oh, yeah. -He’s like… After
hours of research, what did you find? Like… -A ticket for not wearing a seat belt. -So,
that’s a discerning part like you’ve gotta be careful with this stuff. Because
this is like… This is not our stuff. This is his stuff. It’s like, we have to like…
You’ve given us the responsibility to be wise with it. -No, I love that. It’s really,
really beautiful. So, let me ask you this: So, because we’re talking about
diversifying into real estate through your own home, you now bought your first
property. We’ve got a second one under contract. So, you’re going to have 2 homes
through the problem with the next couple of weeks. Where do you think you go from
here? -I think we want to buy more. -Yeah. -Yeah? -We definitely want to get renters
in those 2 properties. -Like there is a payment coming December 1st
or something like that. But I’m sure I have no problem. Yeah, it’s all good.
-I won’t say this because you’re brand new investors. You know, I love working with
brand-new investors because the reality is you like to fantasize and dream about
good things but sometimes we fantasize about the worst case scenario. And it’s
like, “What happens that the home never rents?” Or is “What if I rip the house to
someone that like beats the trash out of it?” And you know what? Any of those things
can happen. So, the best thing we can do is actually be prepared. You know, one of
the things that we do is we track our actuaries, our numbers. We know how long
it takes to put someone in a home and then we plan 4, 6 times
that. And have that set aside so that we know we’re going to be okay. So, you’re doing
a good job. It’ll be great. You’ll see it happen. -Totally. -You’ll feel good. -I can’t wait. -Gain some
confidence and feel more comfort with this rodeo because it’s first time for you
guys. Congratulations by the way. Like… -We’re very excited to be on this journey
with you and until definitely learn from you and your team. -You guys are welcome.
-You guys are wonderful, wonderful. I can just tell from our experience we’ve had
in the event. Let me ask you… We had you guys on stage yesterday smashing a watch
representing your commitment and to get your life back get your time
back. What was the meaning that you placed on that watch when you broke it?
-She broke it. -We’ve better ask her that. By the way,
Stephanie didn’t just like whack it, she didn’t gently tap it. She went like *BAM! BAM! BAM! BAM! BAM!* -Go big or go
home. -And then everyone else stood, those we’re never done that before. You beat the snot out of that watch.
What was the meaning for you in like this commitment where you’re at in your
life and what you want for your future? -I think it was just like pushing through
the fears involved with this. This is a new stuff and it is scary like we’re
putting a lot of hard work money in it. And there is risk that it’s all just
going to go away. That’s just a reality. -Yeah. -Probably not probable. But it is
possible. So like, breaking the watch is just like, “You know what? I’m just going to
like…” We’re doing it. Like we’re just going to push through even though it’s a lot of time in the watch that we put into this. -Yeah. -Just going to do it
anyway and it’s like, “Go big.” I don’t know. -Yeah. I’ll tell you something. There’s a
lot of people who will watch videos, subscribe, they’ll learn and learn and learn. They’ll read
books. But they never get to the point of execution and taking action. Because you
know what? That’s the hardest part. Some people have an excuse that, “Well, I don’t
have as much money as I want for that.” Some people have the money and their
biggest excuse really is they’re afraid what happens if they lose it. And so, I’m
glad that you feel such a strong connection to the responsibility of
money, understanding where it comes from and how it should be used. And feel
privileged and honored that we get to be a part of creating greater wealth
together. I’m really excited for both you guys. You’re wonderful. And one last
question for those that are watching this. From having had all your money in
the stock market, 401Ks, more traditional things, how do you feel
having diversified some of that known to real estate? Do you feel more balanced or
is there more fear? -I would say more balanced. -Responsible. -You know,
you’re always talked from a little kid never put all of your eggs in one basket.
And then you get into the workforce. They’re telling you to put all of your
eggs in one basket. It’s a complete opposite. -Yeah. It is totally opposite,
isn’t it? -Right. -Wow. Thank you so much. Dude, powerful words of
wisdom. By the way, they gave me one last piece of wisdom. They said, “Kris. Do you have
4 kids? We have 4 kids.” And I said, I’m getting baby hungry. She said “Get a doh. Time for puppy.” -Chocolate lab. -You know what? I think it’s time for chocolate lab because
those babies. -Yeah. -Alright you guys, thank you both so much. And thank you
guys so much for watching this video. If you’re not a subscriber, do that. More
importantly, make sure that you also smash that like button. It tells YouTube
that this information is worthy for others to see in here. Helps us grow and
share this message to help empower other people with knowledge and wisdom
experience of others on options that are out there that they may not be aware of.
So, if you subscribe, we will see on tomorrow’s video. And there is a link
below for you to learn more about the event that these 2 wonderful people
are attending. You can also get a copy of my book for free demonstrating the path
that they’re on on how to build wealth. So guys, thank you so much for being here.
Thank you guys as well. We’ll see y’all on tomorrow’s video.

7 thoughts on “How To Diversify With Real Estate

  1. WOW! Congrats to this couple! Making steps to financial freedom! REAL ESTATE INVESTING IS KEY! It has changed my life and I’m trying to help others get started too! Thanks for sharing Kris!

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