What Is The Best Real Estate Strategy?

What Is The Best Real Estate Strategy?

Don’t you just love shortcuts? Like I am
such a crazy, crazy fan of shortcuts. It might be my competitive nature. But
basically today, we’re talking about which of all real estate strategies is
best. And you know what? When I went and asked my very first mentor which was
best, I was not satisfied with the response. So I went to another mentor and
I asked him which was best. And I was not satisfied. And my third mentor gave me an
unsatisfactory response. I am really hoping today that I can give you a
completely satisfactory response to which strategy is best. Now, when you’re
the student and you’re trying to learn everything you can from your mentor, it
doesn’t bode well to try and like argue with them. But I found myself in this
really passionate debate. Because they were doing this one strategy that was a
flip and then they were doing this other seller financing deal and then they were
doing this hard money lender. And I said, “But which one’s best?” And their answer
was, “Well, they’re all the best.” I’m like, “They can’t all be the best.” I mean my
brain… My brain is fairly mathematical, right? So I mean I’m like if I had to
walk from here to Safeway or the grocery store there’s a fastest way to walk
there. And the way back is probably going to be the same way. Probably. Like
mathematically, there’s got to be a route with the shortest steps. And when I went
to my 3 mentors and I asked him this question, they couldn’t give me a
satisfactory response and I figured out why. The reason I couldn’t get a
satisfactory response was because they said, “Kris, who even defines what’s best?
Like his best makes the most money because then we would say it would be this
strategy. But then it would have crazy amounts of risk. Like so do you think
best is the most profit with the most risk?” So, it’s a thought-provoking
question. And to give you a good answer, I want to take you through a journey that
I went on to really figure out which was best. Because I’m going to give you an
answer and it is going to be satisfying. But it’s going to be biased based on these 6
things. So here was the question. Which of these strategies is best. And to really
get to the answer of this, you have to know what you’re searching for. Like
what’s your definition? What’s your bias? So I said, “Well for starers, I don’t want it to take a lot of time.” So, I’m looking for something that
takes the least time. Because at that point in my life, I was working full time
I was going to school full time. And dude I felt like I was just totally maxed out.
I don’t know if you’ve ever felt that way but today, I was getting up at like
5:00 or 6:00 in the morning. Racing to campus by 7:00 a.m. By 11
o’clock, I was racing to my job. I’d be there some nights to like 8, 9 or 10 p.m.
Go home 2 hours of homework only to start it all over again the next day.
This was not my definition of a happy life. But I did it for years. And so, I
wanted to know. Alright, I’m full-time student, I got a full-time
job. So what strategy can I do that will take very minimal time because I don’t
have a whole lot of it? By the way, I did this ultra part-time on the side and
made all this money. And part of it was because I needed a strategy that would
be very passive. I didn’t want to put in tons of time. So I was looking for
something with the least time. The next thing that I was looking for: How hard
was this going to be like. Was this going to be tons of effort or like a little bit of
effort? Because it’s one thing to put time in. But like dude, is this going to be
hard or easy? Because if it’s hard, dude I don’t want
that. So that was my bias. I don’t want it to take a lot of time and I don’t
want it to be hard. I wanted to be easy. So far, so good?
The third thing that I was looking for when it came to risk is I said, “Well,
shoot I don’t want this thing to be like crazy risky either. Like, I want something
that will have moderate or low amount of risk compared to the reward, right? My
risk to reward ratio. I wanted to be at line. Because dude, there are some forms
of real estate like tax deeds where can I go, “My God, warned me out of my mind.
It’ll take me forever to get rich. And I’m earning low ROI because I have no
risk.” And then you like go flipping. You’re like, “Yeah, I can flip the steal make
$100,000.” But you might lose everything. My God. There’s got to be a middle ground
on risk. So I said, “I wanted to require the least time, the least effort, the
least risk.” Least. But then my fourth criteria was something… I was trying to
find a way to have to… I was trying to learn as much as I could without
sticking my head in a garbage can. Sometimes that you don’t want life’s bad
experiences to be a teacher. Sometimes you want other people’s bad experiences
to be your teacher. And I had known enough older people with gray hair that
said, “I remember when the real-estate market crashed and
I lost everything.” I’m like, “Oh, the market goes up and down.” So I thought to myself,
“I need something that can be insulated from that. From the market going up and
down.” So I’m looking for something that works in up and down markets. Because who
wants to have like a decade of success and then lose it all?
Like doesn’t that sound like the definition of futility. That didn’t seem
really cool to me. Fifth criteria, service. Like I didn’t want to chase ambulances
and real estate. It’s like, “Oh, I can find all the people that are so hurt so I can
prey upon them.” It’s like who are the people that are delves steeped in
misfortune so that I can take advantage. Like, that stuff exists, right? If you get out there you’re going to see some of that. It’s like, I want to be the
solution. And that doesn’t mean you can’t provide solution to the people in
problems. But dude, when you try to get one sided like I’m going to take advantage
of them because they’re in misfortune. I wasn’t interested in that. I wanted to
know what would create value, right? I mean businesses succeed based on their
ability to generate value. So if I’m going to do real estate, I want something
that will benefit more than just me. I want it to benefit other people. And my
sixth criteria that I came up with, my final criteria, tada! Had to be profitable,
right? I mean the things got to make money, how much money was this thing
going to make? Was going to make a lot of money? Was it going to make a little money? So, I
created an algorithm and I started comparing all strategies. And what we’re
going to do right now is we’re going to go on a fun little journey. Check this out. For
just a moment, as we look at all these, let’s actually compare some of the most
well-known real estate strategies. Let’s do right here.
We’re going to do R for rentals. And we’re going to here, we’re going to do F for flips.
And let’s just do a quick little comparison. Little little check box. So
for example, let’s compare these 2 just side-by-side for a moment. Rentals versus
flips. Do they take a lot of time or a little bit of time? Well, rentals, if
you’re the property manager after you bought the home, they actually take a lot
of time. So that’s a frowny-face. And what about flips? Well flips dude, you
can put hundreds of hours into a property that takes months before you
sell it. Dude, it’s like a full-time job on the side. So I didn’t like either of
those strategies. And this will happen. Sometimes you won’t find things
at work. Next is effort. Like rentals versus flips, which one takes more effort?
Well, doing a rental is not necessarily hard work. Fixing a drain, fixing a toilet,
some of that stuff. So, I’m going to put a smiley face here and say, “It may not.. It
may take a lot of time but at least it’s not hard stuff.” Flipping on the other
hand, there are so many different areas of expertise you might need to get into
that you don’t know how to do. Like, I got to do drywall and I got to change out
this pipes and then freaking the furnace breaks down. And there’s a leak in the
roof. That takes a lot of knowledge to have it done correctly. So I’m actually
going to say that effort is also a frowny-face for flipping when it comes
over here. Risk, rentals and versus flips. Which one of those 2 do you think has
more risk? Dude hands down, flipping has way more risk. But you know what? Rentals,
when you first own them, if you didn’t buy them right, dude there’s not a lot of
cash flow and you’re putting you can put hours a week into the property. You don’t
know when it’s going to come calling. I know people it’ll own a rental for 5 years
and they’ll still sell it upside down. Like it’s kind of scary that people
don’t understand that. So I’m actually going to say that there’s a too much of a
risk over here on this one. Works in both up and down markets. Flipping, I’m going to
tell you right now, when the market comes crashing and you get caught on a flip
and you can’t recover, you lose everything.
Same thing in real estate development. So that was also a big frowny-face. Don’t
worry, it’s not all frownies, I think. As far as works in up in down markets, guess
what? People always need a place to rent. So, rentals definitely. If you stand to
the median, rentals definitely work. Service. Are we were like really
providing a service in helping people? Well dude, at least start a rental dude,
people need a place to live. I’ll go smiley face. And on flipping, you’re
giving a lot of people work as you’re doing that process. I like that. I think
you’re taking care of a lot of people on that one. And then on profits, guess what?
On rentals, the profits are kind of like this. That’s constipation. And over here,
profits here are actually like… They can be right here but they can also be right
here. And going to say this is a tongue. Okay, so we’ve got these 2 guys and we got
our frowny faces and we got our smiley faces and then our weirdo faces.
When I looked at this, these are just 2 strategies. If you read my book… “Straight Path To Real Estate Wealth” kriskrohn.com. You can pick up a
copy of this. I actually show you my comparison on a number of strategies. And
after comparing the top 30, you will know what emerged the best? Yes, this is the
drumroll for the whole video. Like we finally got there. Which is I actually do
something that I call compassionate financing. It’s actually a lot like a
lease option with a twist. And significantly better. And guess what? Out
of 30 strategies on compassionate financing, the amount of time that it
takes to help take a home and put a family in it that will eventually buy it
from you, which is what this strategy is. Dude, it’s cool. You make 5 grand up
front. On average, you make 500 each month that you own the property and
then you make tens of thousands of dollars when you sell it. So, it’s awesome.
So, with that understanding, when it comes to time, it is very little time. So, when
you look at compassionate financing when it comes to time, guess what? It takes
very little time. Effort, it takes very little effort. Risk? It takes very little
risk. Works in up in down markets? 100% heck yes. Service? Really big smile on
that one. And profitable? Really big smile on that one. It’s got 6 smiles across
the board. Now, this doesn’t look very mathematical in my book. I really
documented a lot more thoroughly. But I want you to know that there is a best
strategy out there for a beginner. There are even superior strategies when you
start accumulating massive amounts of wealth. There’s strategies for people
with nothing, start here. Compassionate financing, lease options. This style, this
way. And if you want to learn how to do that, click the link and it’ll guide you
to some information I think is helpful. You’ll get to see people on there like a
video of one of my guys that made over a million dollars. And others that are just
brand new. They join my private real estate club just for my YouTubers. YouTube
friends and fans. And you know, he made 2, 3 deals. He did 2 deals, he
made 75 thou… Like he’s very… It’s very cool. So you can get that information. More
importantly, you can request to speak to a member of my team and say, “Hey, what
does it look like to actually mentor with Kris and actually learn these
things so that I can go out there and crush it in my life?” Dude, I’m just so
pumped and excited. Like, this YouTube channel, it’s doing well. It’s creating
value for millions of people. We are breaking hundreds of thousands of
subscribers which is really what the intention is. It’s to take time to give
back and help as many people as possible. So, from these videos alone, I hope
they’re edifying and building and growing your life. And if you want to do
something for yourself that will help you take that up a notch,
make sure your subscriber and make sure you ring the bell. I’ll notify you every
day. My goal is to have a video come out every day that can help you develop the
millionaire mindset. Help you learn smarter ways of doing things. Help you
learn from my mistakes in the world of real estate and wealth. And most
importantly, learn how to be the absolute most successful, happiest version of you
that you can possibly be.

23 thoughts on “What Is The Best Real Estate Strategy?

  1. Kris, you think you can make a list of videos in order , of the process of buying real estate. I've been a new subscriber for a week and all your videos overwhelm me with happiness and dont know which videos to watch in order to fully invest properties

  2. If u buy a house with lease option, lest say u are paying it of in next 5 years, in those 5 years can u actually rent it or sell it with lease option or is that not allowed?

  3. Would like to see a video on your first real estate investment gone wrong what you did to recover and minimize losses and also hear about your biggest mistake you have made

  4. I'm interested in Vacation rental property, would you take a different approach to vacation rental property or would you keep it the same way you did with personal Rental property?

  5. Hey Kris, I've been having a hard time getting in contact with your limitless mentor team. I know your very busy but if you could help me that would be awesome.

  6. I like very much the way you talk and making different sounds, thank you so much for helping the people who wanna change their life

  7. blahh blahh blahh plugs his website. We get ittt. Create some actual content which doesn't involve clicking off youtube

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