Hey, welcome back. Kris Krohn here and
today, i’m going to answer the question that I keep getting lit up on all the time
for my young friends which is, “How can I quit my job because of real estate
investing?” I decided to make today a little bit interesting. I got my buddy
Dallin here. We only met a couple of minutes ago for the first time. Had a
nice long drive to get here to my mountain home. Welcome. -Yeah. Thank you,
thanks for having me. -Dude, you’re welcome. So they do let’s get
to know him a little bit and I just want to let you guys know what we’re going to do
with Dallin. Perhaps one of my most favorite things to do on the planet is
to put myself in someone else’s shoes and say, “Alright,
if I was in your life with your financial situation, what would I do with
my rules to create financial freedom as quickly as possible?” Is that okay for you?
-Yeah, definitely. -You excited? -Yeah. -Som dude here’s how it went down. I just posted a
I went into my social media and just said, “Hey, this is my filming day. Anyone
who wants a free financial game plan that’s okay being on camera revealing
financial sensitive information, come show up and that’s kind of how I
met Dallin.” So, we’re really kind of meeting for the first time. But have you been subscriber to the channel for a long time? -Basically since
October. -Okay, cool. Awesome. You have been able to take down some good video
since then? -Oh, yeah. Definitely. -Good. What’s the probably the most
important thing you’ve learned so far? -I’m just having the confidence to move
forward to the next step. -Cool. Now, I’ve been chatting with down just a little
bit off-camera and let me see if I can summarize as well. -You have a full-time
job but you’re also going to school full-time, is that right? -Yeah. Now, something
totally I’ve never even heard of this before. You’re going to school for what
degree? -Entrepreneurship. -Entrepreneurship. Dude, look at that camera dude.
This is freaking awesome. Like that how cool that society is finally catching on
to what America and the rest of the world really needs. Why entrepreneurship
for you? -Well, I want to know my own businesses. I mean, I want to be
financially free by creating my own businesses. -Okay.
And you already work on campus in the admission office, right? -Yeah. -How much he making here roughly? -About 45. -Okay, full-time college kid making $45,000 a year. That’s super respectable. And you’ve actually already bought your own home?
-Yeah. -And you also just recently got married? -Yeah. -When you get married? -In August.
-Dude, freaking awesome, man. Awesome. So, tons of new responsibilities.
26, married. Tell me about the house that you just bought. -Well, I actually bought
it a couple of years ago. -Okay. And I’ve been looking to… Looking for another real
estate like position to move forward on. Been kind of stuck the last couple of
years to figure that out. -Awesome. Well, we’re gong to play the game right now
of how do we help you get financially free as quickly as possible.
Are you ready to play? -Yeah. -Okay, can we go entrepreneur pace? -Yeah. Okay, awesome.
I got my trusty white board here. And what I’m going to do is I’m going to break
down for you. If I were you… By the way dude, check this out. Check this out for a
little bit. We got some of this going on, we part it on the right side of the head.
Awesome. Okay. We’re twinners. So, let me kind of break this down for youm
Dallin. This is what I understand about your situation. You’ve had your job for
how many years now? -2 years. -Okay. So you had your job for 2 years.
And the house you bought is a duplex, correct? Okay. And your duplex it has a
value currently of how much? $230,000 and what it… What is it? What do you owe on?
140. So currently, from what you bought 2 years ago to what it’s valued
at today, there’s roughly $90,000 of equity. So if you take the
value of something and you subtract what’s owed, that difference, 230,000 minus 140 is 90 grand. So, in the 2 years, you’ve done pretty well
for yourself. Did you get a discount on it? Dude, what’s up? What’s up? Love it. So,
he gets a good deal on the house and I think you were sharing with me that you
just finished getting a home equity line of credit, is that right? -Yeah. -Okay. For
those of you that don’t know what that means, when you have a home with good
equity, you can go to the bank and they can give you something called a home
equity line of credit and they’ll let you tap into some of the equity.
They’re basically saying, “Hey, you got a house, you got equity, you’ve got some
security there.” So your home equity line is how much? Okay, he’s got 75,000. Now, that’s a very… Just so you know, that’s an aggressive home equity
line. Because the bank is basically saying you got 90 grand of equity, you
can have 75 over right now. You have checkbook access to it or credit
card access to it? -Yeah. -So basically, if he doesn’t use it, he
doesn’t have to pay anything. But you probably have a really low
interest rate on that you can borrow it super cheap and go do something with it.
I wonder what I’m gonna invite Dallin to do. I don’t know. You know exactly what it
is. We’re going to talk some real estate here, right? Okay, so are there any other
assets that I should be aware of? Making 45 grand here. You’ve got good credit?
-Yeah. -Beginner budding credit and we’ve got
75,000. So automatically, what I’m doing is I first of all want
you to understand that if you’re like any other human being on the planet,
you’re sitting there and you’re thinking, “I got no money.” Because a home equity
line it’s not like it’s profit that’s in your pocket. You… You feel like you’re
financially getting ahead or being somewhat check to check? -I’m ahead.
-Okay. So he’s making more money than what his expenses are. But now what I got to go
know is the target. For you to be financially free, how much money
passively do you want coming in every month to feel like you can kiss that job
goodbye and live life? -Atleast 10,000. $10,000, this
is the goal. When his investments are producing $10,000 a month,
what are you going to do to your job? -Quit. -How are you going to do it? Just walk out the
door and be done. It’s like I’d like to give you my two-week notice.
Psych, I’m out of here. No, be respectful. Okay, so goal is $10,000 a
month. The question is with what he has so far, 2 years ago started with
nothing. Now, is $90,000 of equity, 75,000 home
equity line and now I’m going to customize this for you. Now by the way, you could be
exactly where Dallin is if you just buy your first house strategic. Did you get
that? You could be starting with nothing and buy a house and put yourself in this
situation. Because that situation that I was in. So, first of all, do you like the
duplex? -Yeah. -Do you rent the other side? -Yeah. -Does that cover the mortgage or
most of it? -Yeah. -How much you rent you bringing in? -I’m actually positive, 500 a month. -Okay,
so he already eliminated his biggest expense. He did that by having a duplex.
So now, this is where we’re going to go. How do we get you to $10,000 a month? Okay,
first of all, I want to give you a couple of presuppositions that you need to know.
When I buy home, I’m using my lease option system. You probably note that as
if you’re a subscriber and watching videos.
Which means when I buy the home, I’m getting paid five grand up front, I’m
getting paid $500 a month in residual income and when I go to sell that home
in a few years, I’m going to be banking on tens of thousands of dollars coming my
way, okay? So, this is my strategy that I recommend for someone who’s brand-new
starting with very little. But for college kid, he’s got something going for
him and he’s an entrepreneur. So he’s going to freaking eat this up. Some of you
going to be terrified like those things are scary but not to an entrepreneur. Because
we take risks, we live by risk, right? We don’t want to make stupid risk, we want to
make educated risks. So, what I’m going to do is I’m gonna back this up by 3,500 homes.
Which means sure there’s risk. There’s risk to waking up in the morning or
getting out of your car. It might blow up by the Mafia. It was weird. Okay, so here’s where
we’re at. Goal is 10,000. If we’re making $500 a month, how many homes does he need
to have ten grand a month? Mr. entrepreneur, I’m assuming you’re
pretty good at math. So I’m just going to put you on the spot. If you were making
$500 on each house, how many houses would you need to get to 10
grand a month? 10 houses at 500 would give you 5 grand. We need 10
more. So, we’re going to need 20 houses, perfect. So, here’s the real goal. It’s not
10 grand a month. The real goal is how do I get to 20 homes? Now, you’re
going to love this because I got a sweet hookup game plan for you. What you’re
going to need, number 1 is we’ve got to get you some more knowledge. So for
example, like my lease option course that I have, that will help give you the
knowledge the contracts everything that you need. Once you have the knowledge,
I always find that it’s really helpful to have a mentor. This is someone that
can check your deals and just making sure you’re not doing something stupid.
Because on your first 25 deals, you’re going to mess up. Like it’s just… You’re
going to buy a house with a foundation problem and figure out, “Oh, that’s 25
grand to fix. I wish I knew that.” First house I ever bought, it had a belly in
the sewer line and I had to pay 7 grand to dig it up and get it fixed.
Because it went into the road and I needed city permit and I needed a… I mean
it was a deal. It was an ordeal. I would have never guessed that I could have a
problem like that until I bought the house and 3 months later I had a
renter in the basement screaming, “There’s poop everywhere.” You know… They can’t go
out. It’s going to come back up. So anyway, lots of fun little things that
learn along the way. So knowledge and mentor. That’s kind of the background but
here’s what you’re going to do. Number 1, we’re going to take that home equity line
of credit and use that to purchase the first 2 properties. Now, we need 20, we
already got one. This is going to bring us property number 2, number 3. Now,
what we’re going to do is we’re going to find homes specifically where that $75,000,
we’re going to max it out. It’s probably going to cost you $300 in
interest but if we’re making 500 on each house, you’re going to net.
If you’re making 500 here, 500 here and it costs you 300, you
guys tell me. If you’re bringing in a thousand and your expenses are 300, what’s left over? $700 a month, okay? Is that $700 good progress towards 10 grand? Heck, yeah. Good progress. Now, we want to buy these homes and do something similar. We want to get a good deal on
them and what we want to do is we want to collect the $5,000 up
front. We want the high cash flow and then when we go to sell these bad boys.
They’re going to give birth to more homes. Let’s talk about that. If you buy
homes my style and follow my system, we’re looking at doing 20% of your honor
money. And if it compounds, in 4 years, you can trade 2 homes for 4. So, on
the same dollars, we want those two homes to eventually become 4 homes. And
those 4 homes at that time, even if we don’t pay back the home equity line,
we’re probably at that point going to be bringing in somewhere around $1,700 a
month. Add that to your 500 on your own home,
now you’re already sitting at $2300 a month. Now,
you’re making $45,000 a year. You’re getting ahead, so
your true expenses or what maybe 25 or 30,000 a year? -Yeah. -Okay.
Right now, these 4 homes, guess what they’ve almost done? They’ve completely
wiped out your expenses. Which means the money you’re making it your job, where
can that now go? It can go right in your pocket. And you’re probably going to use
that money to buy more… -Real estate. -…You know, buy more real estate, right? Well, I’m
going to give you the ultimate shortcut. Let’s say you don’t. Let’s say you put it
in the pocket and you want money for… You want money for some other things. So by
the way, here’s 5 grand. And we bought another one, so here’s another 5 grand.
But then you were smart and you actually put into 2 more homes. So here’s
another 5 grand, okay? Here’s another 5 grand. Could you
put that in real estate? You could. But right now just hold on to it. What we’re
going to do right now is step 2. This is when we get really aggressive and put
the gameplan on steroids. You and I have one, two, three, four, five homes. Let me ask
you. At 5 homes, are you with more confidence than after you just bought
your first house? -Yeah. -If you’ve done it five times then it’s all gone kind of
according to plan, you starting to feel like you know this thing a little bit?
Now, you’ve developed a new asset and it’s more important than this stack of
money. I could stack this to the ceiling and it would be worth more than that.
What you now have is what is called a track record. And that track record has a
tremendous value. I can show you a system where you can go and find people out
there that have money, that are already in real estate. They’re buying houses
cash. You can tap right into that Network and basically say, “Hey, I found another
deal and I always put up my money but I’m trying to go faster here. Is there
anyone willing to go 50/50 with me?” All of a sudden, they’re now taking their money
and they’re coming in with you. What’s the benefit to a partner that puts up
their money? For you, the benefit is you get the cash up front to do a deal.
What’s the benefit to them? Why would they want to partner with you? Why would
they want to do that? What do you have? You’ve got a track record, high-five.
Awesome. See, so Dallin, by having that great track record, now all of the sudden, you’re
going to find some people. It might start with some people. You know, it could be
family Members, could be friends, it could be an in-law. My first was a father-in-law.
Did a few deals with my father-in-law. Went from thinking I was absolutely stupid to
saying, “This kids kicking the trash on my 401k IRA. Maybe he’s onto something.” And
we’ve now bought dozens of deals together. But he was my first partner. So,
what you do is you take this track record, you bundle up all 5 of these
homes into a document that says, “Here’s how I bought them. Here’s my equity,
here’s my growth, here’s my cash flow, boom! There’s my track record.” And then I
want you to make a list of people you know that have been working 20/30 years at their job outside a college that are good savers and might
be looking for a financial solution for retirement. Those individuals can make
really good partners. And I’m going to tell you right now. Here’s the biggest
difference between a good partner and a bad partner. If someone says, “I love your
track record and I want to be hands-on every step of the way and I have the
time freedom to do that”, they’re not going to make a great partner for you.
They’re going to be happier if they can get a mentor like you did and
can do it themself. A better partner someone that says, “Hey, I’ve got a great
career, I’m doing very well with it. It’s it’s working out great for me. And by the
way, I don’t want to mess up on my first X number of deals.” You’ve done X number
of deals. You’ve already put in you’re working towards your 10,000 hours of
expertise. I want to partner with you. And you start
realizing that together, you’re far more powerful than you are apart. That makes
sense? -Yeah. -Because most people are not built to say, “I’m going to find the deals and then
I’m going to fund the deals. And I’m going to be the money and then I’m going to be the
credit and I’ll do the management. and I’ll do the contracts and I’ll do
everything.” Like most people don’t want to do everything. They want to do a part.
That makes sense? So, you’re looking for someone like that that says, “I value your
track record. And you don’t have a huge track record but you know what? 5
homes is not no homes. 5 homes is a great start.” So, you all of a
sudden bring in a partner and that partner says, “Hey, let’s buy 5 homes.”
Now, becaue you got to split that 50/50, that’s only worth how much to you? 2
and a half homes. But guess what? Is that 2 and a half going towards your 20?
Guess what? 5 more years, you double the portfolio, those 5 homes become
10 homes. Are they getting what they want? Are they growing financially? Are
you growing financially? -Yeah. -Absolutely. So, all of a sudden, things worked out
well with one partner. You’re like, “Tang, I’ve now taken these homes. I’ve put them
into more homes and now have a partner.” And I’m thinking, “Man! Now… Right now I
have… Now I have 15 homes or 10 homes.” Do you think you have more confidence then
than when you had 5 homes? Do you think with that confidence, you could
step into more partnerships? But for the rest of you, there’s always a shortcut to
get a lot faster where you want to go. So if you’re ready for your custom game
plan, click the link below. And Dallin, congratulations, my man. I’m excited for
you, dude. You’re going to make it. You pumped? -Definitely. -Awesome. Thank you. Awesome
brother. We’ll listen thank you guys so much for tuning in today.
Make sure you are a subscriber. Ring that bell and we’ll catch you in tomorrow’s