How I Bought This Home With No Credit


You know, I buy homes all the time with no
money and no credit. Today, I feel like sharing one of those homes
with you and share with you exactly how I bought it with no money and no credit. And how you could do the exact same thing. And friend, I’m telling you right now, it’s
easier than it is ever been before. You know, if you’ve been interested in real
estate, if you’ve caught the bug, then you’ve been wanting to be in the game for sometime. And if it hasn’t happened yet, something is
missing. I believe today’s video could be the one that
really gets to your soul and helps you know how easy it really can be to go out there
and start winning regardless of what you got money or not. So, I think there’s no secret to the fact
that I love buying real estate. But I love it especially when I can buy it
with no money and no credit. 0:00:54.600,0:00:58.630
And today, I want to share you a property that I just bought. 0:00:58.630,0:01:01.440
I didn’t use any money, I didn’t use any credit. 0:01:01.440,0:01:04.909
I create the opportunity to bring other people in and I create value by finding the most 0:01:04.909,0:01:06.119
amazing deals in the planet. 0:01:06.119,0:01:08.640
I build people’s portfolios and we partner up together. 0:01:08.640,0:01:10.319
This is something you can actually do. 0:01:10.319,0:01:13.170
You’re closer than you actually know know to doing this. 0:01:13.170,0:01:15.209
So, I’m going to break it all down at the end of this video. I’m going to show you how you can buy real
estate. Literally you could be 30 days away from purchasing
real estate with no money and no credit. And I think it’s going to blow your mind. But first, let me just kind of share with
you the reason why I actually do this. So, for me, when I purchase real estate, I’m
a really big fan of… And I judge my success by 3 letters. What is my ROI? What does it stand for? Return On Investment. Yes, return on investment. You’re so, smart. So, when you take a look at your ROI, your
return on investment is the singular number that tells me a story of whether I want to
buy the house or not. And I just recently purchased a home which
I’m going to show you in a moment. But what’s great is in the way that I do real
estate, there’s someone who’s always putting up money or credit. And then there’s someone that’s actually doing
all the work. And I normally say, “Hey, this is like 50%
of the ownership right here for all of the work. This is 50% of the ownership for bringing
the money and the credit and put them on the table to make the whole deal happen. So, in the end whatever we make we’re going
to split. And so, I’ve gotten to a point where I don’t
put my own money in on deals where I’m also putting in the work. It’s actually one of my rules. And so now, when I’m buying real estate, I’m
always using someone else’s money and I actually pick very strategically partners who are had
been great savers or a great financial position. And they love the idea of being relatively
hands-off and having an expert with 4,000 deals in their back pocket to actually do
this with us. So, we build portfolios together. So the reason why I do this is because when
they put in the money… Check this out. I think this is kind of… This, hopefully will be like mind blowing
for you because I’ll tell you right now, it is for me. If they put in money and they get a 50% return,
they can calculate their ROI. It’s going to be a figure. And if they’ll invest over a 20-year period
of time, they’re going to be averaging annual triple digit returns. Triple digit returns means they’re making
over 100% a year on their money if they’ve been doing this for 10 or 20 years. But on my side, I din’t put in any money in. So, how do I calculate my ROI? I can’t it’s actually an infinite return. And I love infinite return. Like, it’s important to me. I’m always looking for the right people that
I want to build portfolios with and do deals with. Let me give you an idea of what that looks
like on a deal that I just did. Now, don’t get scared by the numbers but this
is the reality of investing. First of all, this is a home. You can see it right here. This home is in Orlando. It was built in the year 2000. So, 19-year old home. 1512 square feet, 4 bedrooms, 2 bathrooms. Very basic. It’s got palm trees. Some other things to know about this home
is I purchase this home for $174,000. This one has a down payment. There’s some rehab costs. At the end of the day, it’s $49,455 to buy
this home. So, one of my partners is going to write basically
a 50,000-dollar check. Why would the do that? Well, after we take out downpayment, closing
cost, interest rates, property management, vacancies, repairs, everything; it ultimately… And all these numbers here… Don’t get overwhelmed but all of these numbers
tell the story of these 3 line items right here. Check this out. My cash on cash return… Meaning the money that gets put out, in first
5 years, it’s going to average 7.88%. Almost 8% cash on cash. But if I put in my principal reduction because
every month we’re paying the mortgage down, the return is actually 12.25%. But if I add appreciation in, 32.35%. That’s doubling your money in 3 years. Now, there’s closing cost and right time to
sell. But if you look at that… This is insane. Look what happens by the 7 year. Your cash on cash jumps to 9.25 and by the
year 10, almost 12% We go from 32% to about 331/2%. So, basically, we’re topped off here as a
33% ROI. This home is a fantastic deal. And it looks like the last 500 deals that
I have done in this specific market. Because nationwide out of all the markets,
I’m only in the very best markets. All of this information here basically tells
a story. And I bought this home, they use their money
then when we… I’ll make sure the home gets taken care of. This home will produce cashflow. If we actually take a look at it, my monthly
taxes, insurance and interest is around $1,040. But the monthly rent is 1458. We’re going to take out the monthly taxes,
the monthly insurance. Cap rate is right around 7 and a half percent. So, when we do this deal, what’s exciting
about it is my partner and I are sharing a 33% return. If we sell those home in 4-5 years and double
the portfolio by 2 homes. And then at year 10 do it again and have 4
homes. One home gave birth to 4. And that 33% now becomes over 100% a year
return. That my friends is so different than a 401k
and IRA. And that’s why I won’t do those things. I love partnering with people. I love showing them how to actually do this
and make this a reality. If you’re watching this and thinking to yourself,
“Okay, Kris…” There’s 2 types of people that are watching
this. Now, I want you to put yourself to self diagnose
and put yourself in one of these 2 buckets. Because this is the cool part. You are either watching this video and you’ve
fallen to one of 2 buckets. I’m giving you a game plan right now. So, choose your own adventure. You’re either saying, “Kris, either I’m a
beginner. I’m starting to little to nothing like you. And I currently have assets. My 401Ks, IRAs, my saving account. I have assets of less than $5,000.” Or you’re saying, “Actually, Kris. I’ve been really good at saving money. I’m actually pulling ahead. I’ve been 401K-ing, IRA-ing, house pay offering,
saving. And I actually have assets that are greater
than $100,000. Right now, you either fit here or you fit
here. So, if you’re a millionaire, you’re here. If you have 100 grand in the bank or 401k,
you’re here. If you only have less than that, you’re here. If you’re one of these categories, I want
you to check this out. For those of you that are in this first top
bracket, I want you to write this down. MAVERICK. I have a program that basically says, “Go
find people like this. And if they partner with me, I’ll share my
ownership with you equally.” So my 50%, I’ll cut in half with you. And all of sudden, you’re going to start buying
real estate with no money and no credit. Is that a gameplan for you doing real estate? Yes. But if you have more than that, you can say,
“Kris, what if I just want to become one of your partners. Get access to the deals themself. And just go in with you on the deal and but
the very best deals and kick the trash on my 401Ks and IRAs and do better for my self?” Can you do that? YES. You’re going to find 2 links that are below. One link is going to give you a video about
this program. Tell you more about it. And one link is going to give you a video
series about partnering and give you a link into it. Both of them you can click on below and basically
figure out where do I fall? What do I want to do? Who do I want to become? Because that house I just bought, I’m thrilled
for it. But my partners are just as thrilled. We’re creating wealth together. I know how I’m going to make billions of dollars. It’s by helping thousands of people make millions
and millions of dollars. And we’re going to share, we’re going to grow
together. Friends, that’s what I’ve been doing in the
last 15 years. So, if you’re in bucket A or bucket B, there
is a link below in the description. I want you to click on that link, learn what
you need to learn and then level your game up. Let’s go out and buy real estate right now. Because is shifting, it’s changing and it
is perfect timing for being in these markets and buying these deals. Thank you so much for watching today’s video. Click the link below. It’ll kind of show you where you need to go. And do me favor. If you like this video and it brought value
to you, smash that like button. It tells you to just share this video with
other people. And that furthers my mission of helping 10
million subscribers and hundreds of millions of people find the financial information that
will help them own their financial destiny. My name is Kris Krohn, I believe in you. Let’s create wealth together.

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