How To Buy Multiple Investment Properties


Kris Krohn here on Limitless TV. And
today, I’m going to talk about the secret for buying multiple investment
properties. A lot of people want to know, people are always asking, Kris how you
go from one or three homes to a hundred homes? And I’m going to share that with
you today. One of you Limitless TV fans requested
that we do a new video on how to qualify for multiple mortgages. And you know? it’s
music to my ears. I couldn’t think of something more that I’d rather talk to
you about than how to do this because I’m going to tell you right now this is
one of the most difficult things to do in real estate. And for me? it’s a piece
of cake. Like, I don’t even know why more people aren’t doing it and I hope that
the next few minutes will help you understand exactly why that is and
exactly what you can do. I want to tell you a short story here. When I bought my
very first house, the most important mentoring that I received have been 14
months earlier and it’s very likely that what I’m about to share is going to
impact one of you watching this video. So my very first mentor said, okay Kris you
want to get into a home? you want to buy an investment property and build a
portfolio of many homes? He said, I want you to pay the price to use your own
credit and own money to buy a house. And I want you to get ready to buy a primary
residence. ow whether you’re in a home or not, you can do this strategy. If you
will save enough money for a 3% down payment, which in most of the places
around the country we’re talking about four, five, six, seven, thousand dollars. Put
the money aside, develop your credit, and have a two-year job history. I did those
three things and 14 months later I had $5,000 in the bank, I went from having a
couple of credit cards that I wasn’t using to using them regularly and
keeping them paid off so my credit was at a bare minimum where it needed to be.
And I intentionally kept the job that I probably wouldn’t have had I not gotten
that advice. So 14 months passes it comes time and I buy my very first house. Now
pause. This is so important. When you buy your first house, you can buy a house for
you that is a home or you can buy an investment property. I bought both. A home
that I could live in and an investment property.
What’s the difference? one, was a home that I liked. Two, it was an investment
property that I was planning on leasing out, renting out, and selling for profit.
Here’s what it meant, meant that I bought my first home with $40,000 of yummy
juicy equity. That $40,000 was almost more than twice I made an entire year so
when I bought this home it had a basement apartment that I rented out,
covered my mortgage and I have $40,000 of equity. Now my wife and I lived
this home for two years because currently United States there is a tax
credit that says, if you live in a home for two of five years then you don’t
have to pay any capital gains when you sell it. That’s awesome. So I lived in
this home for two years and then twelve months later after moving into it
something happened. I was able to acquire my second investment property. Do you
know how I did it? I went to the bank I said I got $40,000 of juicy yummy equity.
And they said, let’s give you a home equity line of credit. The bank basically
gave me checkbook control over eighteen thousand dollars of that forty thousand
dollars of equity. And you know what I did with that money?
That became the downpayment for my second home. Now, the second home was
nicer than my first home but I didn’t move into it. I didn’t live in it. Do you
know why? Because it was an investment. This wasn’t time to gratify my needs. I
could have bought a nice car, I could have bought a big-screen TV, I could have
taken a trip, I did none of those things. And I’m going to tell you that four and
a half years later, that’s worth one point six million dollars and retired. So
giving up some of the things you want today, young couples everywhere, older
couples when they buy a house, they want something that meets all their needs.
Well, make sure one of your needs is an investment property. The equity in
that second home bought my third project. So all of a sudden, $5,000 got me into my
first three properties. And you might be asking, Kris how did you qualify for a
second and a third if you had low income? Well it’s very simple.
Banks will take 70 to 80 percent of the income that you get off of renting a
home and they’ll apply it to your credit. So on my very first home it showed that
I had a, it showed that I had a five hundred and thirty dollar payment every
month. But after I moved out and it was renting in a thousand dollars a month,
the bank took the thousand. They counted seventy percent of it and said I had
seven hundred more dollars of income and that seven hundred dollars canceled out
by five hundred and thirty dollar payment on the house. Of course the bank
was willing to give me a second one and a third one. But only to an extent. This is
the real secret I’m going to share with you the number one secret where I went
after three homes that made all the difference in the world
between going from three homes to 300 homes without another penny out of my
pocket. So the number one secret to multiple homes on your credit is not to
have them on your credit at all, it’s to have them sitting on a partner’s credit.
After I bought that third house, my father-in-law came along and it was his
suggestion once he looked at my profits on the first three homes to suggest that
we go in together on that fourth home that became a tenth home that became a
fiftieth home. Partners make the difference of getting where you want to
go. So this is what’s really crucial. The first one or two or three homes that you
buy do you know what it’s all about? It’s about track records. I don’t care
whether you make a hundred thousand or two hundred thousand on those homes. I
want you to have experience, I want you to get your feet wet, I want you to have
an experience with real estate so that when you go and approach a potential
partner, guess what ends up happening? You can speak to your previous
investments. When people join my particular real estate club, I call it my
limitless real estate community. The number one thing I teach them I,s how to
acquire multiple properties with no money and with no credit. I show them how
to go online and leverage facebook to build a friendship base of people that
have money socked away in the 401ks and IRAs and for retirement that’s not
giving them what they really want. And then I give them access to all of these
incredible nationwide deals and guess what?
Voila! I make magic happen. I put it together. I even have my coaches sitting
in selling your people on why they should partner with you. Partnering hands
down, I’m buying 100 homes this year and partnering hands down is one of the most
amazing ways of acquiring multiple properties because your credit will
eventually tap out. Your debt to income ratios will tap out, your income will tap
out, something’s going to tap. And then that’s when most people stop. I’m sharing
with you the number one way that you never have to stop. And ultimately, if I
had to condense it, you’re the deal maker. The deals, someone with the money, and
you’re the one that puts it all together and gets paid to manage it in my
partnerships it’s a 50/50 relationship because there’s a lot of people who
would rather work with my level of experience. Just like my father-in-law. I
don’t need them three homes but he had never done any investment properties but
working as a team, it was beautiful. Today when
some of partners with me they’re partnering on almost a billion dollars
for the real estate experience. That’s a no-brainer. People want that experience
of my good bad and ugly experiences. Mostly good experiences and they want to
leverage me at my background and my knowledge base and that’s what I want to
show you how to do. And you do that through partnering. So here are the basic
steps to partnering that I want to share with you today. Make a list of people in
your life that have some assets or you would guess that they have assets. 401ks,
IRAs, and things like that. Number two, I want you to then find a property, a
really great deal, and I want you to tell them about it. And let them know that
you’re open to partnering on it and what’s happening now is you’re bringing
people to the table and you started the process of match making. Friends, if you
do this, if you can do just one partnering deal, then you can do a
thousand and it will financially secure you for lifetimes. Leave a legacy, do
incredible great work. This is something you can learn how to do. Now if you do
want some help on your first steps in the link below, you have an opportunity
to message me and let me know, hey I want some help with that help me put some
partnering together my staff and team will reach out and share with you what
that would look like and see if maybe I can help you bring deals to your table
for your people help bring people with money to your table and then show you
how to package it all together because partnering is how you do as many
multiple deals as possible. Thank you for watching today’s video. I really hope
you’ve enjoyed it. I want you to subscribe so I can tell you about
tomorrow’s video the moment it comes out on how to handle criticism. Because
whether we’re in the real estate investing world or whether we’re just
dealing with people in general, criticism is a part of life and some people do not
manage it very well. I want to share with you how to take criticism and turn it
into your greatest growth feedback.

100 thoughts on “How To Buy Multiple Investment Properties

  • Loved the video but FYI change the battery on your smoke detectors that beeping drove me crazy lol

  • What about the Amount you owe the bank every month from taking out the loans you needed to buy the propertys im 18 ill be making my Realestate group I recently graduated ive been had this idea great minds think alike never seen anyone put it on video so that cash flow of 300 – 500$ where is that going ?

  • I have a question, my first house that im still paying for 3 years, how would it affect your plan if i bought this house without the bank? I did it straight with owner to owner with notarized paperwork about our contract.

  • May I ask with the utmost sincerity, where could I purchase that exact shirt!?
    It's baller. I love it. I live in Los Angeles, not sure where to get a shirt like that. Thank you!!

    Sincerely, Carl Penaloza

  • Chris, How different is this from a REIT? Im ready to move on this. I owned a house and sold after two years +50k. I now own a duplex and can net 12,640 a year. Looking to get into the third 4th 5th +++. Can we speak?

  • My job sucks, i can get a better one, I haven't because I keep hearing that I should stay there for two years so I can start buying houses. What should I do? I've been there for 6 months should I stay there for 18 months more ?😐

  • How do you pay for the house for the months while im waiting for the tenant to come sign the rent to buy deal? I'm reading your book.
    Thanks,
    Gerson

  • hello, I LOVE your videos. I have been watching your videos and I wanted to get in real state. Me and my husband have been searching for houses to buy already and we need your immediate advice please. We are in located in Pennsylvania and we found a house for $60, 000 and we want to buy it to rent to college students. This house has 3 bedrooms and is walking distance from York College, PA. We rent an apartment right now so when we buy the house for $60 000, we are planning to stay there until we find three renters and in the mean while to look for our next house. is this s good plan ? we really need some good advise

  • Hi I'm 18 and I'm from India
    You motivate me to start and get into real estate. But the problem is in only 18 and have no investment to start .Can yo please help me out in any way ?
    Thank you
    Harshith

  • Are investors like you willing to pay the down payment, for a percentage of the profit made by renting?

  • I'm an investor also. Currently closing on my tenth property. Gonna have to figure other ways tho fund after this. I'm a fan and thank you for your videos.
    I know this video is old but did you change the battery on your smoke alarm? Lol

  • When you buy a second property aka ur investment property, it requires 20% down payment. So your second home was roughly 90k? Also the bank wants to see 2 years worth of rental income on your tax return. How do u achieve that when u r living in ur first home the whole time?

  • I need help advice, I’m trying to buy first home it’s 2 bed two bath $100,000 no one will lend me because my debt to income ratio but I already have renters that want to move in and pay mortgage how do I get lended the money I need

  • Kris! For the love of chicken gravy, change the battery in your smoke detector BEFORE you do a video!!! I just spent 20 minutes looking around my own place for a peeping smoke detector!!!! GAAAAA!!!!!!

  • When I see a housing ad that says Semi detached 4bedroom $99k, how do i know its the actual value or the purchase value?

  • Hey Chris! I have been watching your videos for 3 days straight. I am in my last year of my undergrad and looking forward to making some money next year. I have one question about owning multiple homes. So say I have 3 homes on my credit and I decide to not live in any of the homes. I decide to rent the homes or rent to own the property to earn more money. By me only being able to have 3 homes in my credit what and how would I purchase another home for me and family to live in while I collect from my first 3 properties?

  • I am 20 yrs old and I have been told to put my money into a broker account, later into an IRA. I have 5k in there currently, but do you suggest that I keep putting my money into it or use the money I already have to make a down-payment on a home?

  • Thanks Kris. Following your foot steps, I am on route to purchase my second home. First property will be turned into rental. Although it's much harder to purchase up here in Canada, your channel keeps me motivated and inspired. Keep up the great work that you do! I look forward to watch more of your videos.

  • Does this work in India?. here if i buy a property of say 35 lakh (approx 50k $) i need to pay down payment of 3.5 lakkh atleast + 33k per month loan .. +some 20% tax…. now the same house may give me max 10k if i rent.. how to grow the tree from here..

  • Thanks for your video. Can you let us know, what real estate investment software you are using? In order to keep track of Mortgage and Property Payments + Rental Received? Thank you.

  • Just a quick question please … How someone can be able to service few loans with no job or with a single job income … Huuumm . A bit strange …

  • I have a quick question, how did the bank add the $700 extra a month, from the difference between the morgage and rent, if you were still living in the home? Or did you move out and then they added it?

  • Hey Kris my name is Michael Im 17. Ive been watching your videos for a while now and am dying to get into realistate but i dont know if i can at 17 and i dont have a credit card. Do you have any advise?

  • Hi thanks for the knowledge you share with the world it's really priceless… Can you do a video on purchasing a bank sealed property as their equity value is very high… Your advice please

  • If a person have a bank mutual can buy another house (if working gain 1000Euros and the mutual is 650Euros per month for 12 years)?!?!?

  • Well the average house is around 500k here where I live and the minimum deposit to get into them is 20%. That's 100k to save up.. if that's not hard enough then you will need a minimum deposit of 40% for investment properties.. so not easy now. Maybe 10 years ago when minimum deposits were like 5% and house prices were way cheaper.. definitely can't do that now

  • question on this home equity line of credit when u said u used that too buy your next investment property , how much did u exactly have to use ? all of it ?

  • I want to buy a second property but the bank asked me for 25% down payment. No 30 years on investment property, only 15 years.

  • Kris I’m trying to buy a new home my first one love your videos but .. my realtor told me I’ll need like about 25,000 dollars of down payment because I need to pay all the paperwork and some other stuff. I have 30,000 thousand but by watching your videos you say less than that should I change realtor

  • Perfect video, but what I would like to know is, if you pay 40k for mortgage and the home stays for the same value, there is no other equity that you can use.

  • I got one question that's been bothering me for quite a long time. So, here it is: Are all those things and principles about real estate investing that you talk about, are they the same for every country? I'm asking because I am from Serbia and the standards aren't the same here. I'm sixteen years old and really looking forward jumping into real estate. Salaries are much more lower than in other countries, so I want to ask you is it even worth to do real estate somewhere where the average monthly salary is around 400$, or I just have to go abroad if I want to do real estate? Thanks in advance!

  • I want to start investing in real estate, based on your blueprints that I’ve stumbled across at 24 I’m already more than half way there to purchase my first home! I do have one question. If I were to later down the line acquire partners, would their investments go under their bank accounts or mine?

  • Hi , Kris im currently 15 and i’ve been deeply learning and studying Real Estate and Investing for about a year and a half now. What would be the best way to begin in Real Estate? Or is there a significant age to start in Real Estate?

  • Mr. Krohn can I e-mail you with a question it's not to difficult but it may poise some light difficulty on my end, I just purchased my first  multi-family property in American, I'm in the Navy, and I just have a few questions I'd hope you could answer for me, I'd really appreciate it I understand if you are busy however, thanks for your time in reading/responding either way.

  • I want to buy a property and then use the equity to buy another one, or how can I do it? I want to buy an investment property

  • Im 13 and you have got me into dreaming of being as successful of a real-estate investor such as your self. I have literally written down pages of steps and notes that you have given. Thanks you

  • What kinds of places should I invest in? Low cost of living areas? Where I live rent can be expected at 1300 and that’s just to get the owner to break even. And is it smart to invest in places that are far from where your primary residence is?

  • Say the bank is asking for 5k but you have no credit can’t you give the bank like $10k than they’ll let it slide?

  • I gave you a chance…nothing.. I gave you 2nd chance, nothing…I gave 3rd chance to your videos and from this moment you have my trust until i literally die man, you content is AWESOME, HONEST and very useful. Wish you to get 3000 apartments just like Grand Cardone 😀😀😀😍

  • This not happen captin . At least with my bank.. only make 3500 month.. they will only loan my 42 % of income towards a house.. EVEN THOUGH THE HOUSE IM TRYN TO BUY HAD RENTER IN IT ALREADY PAYN FOR LAST 5 YEARS..and have 150k in equity.. they dont care. Partner is the only way.

  • So i don't understand every video i watch on real estate seems to neglect or leave out the mortgage part. Yes you now have purchased 3 homes and ur making cashflow through renting them but u also paying 3 mortgages . And the more houses u get the more loans u get and have to pay back. Plus repairs when something breaks and ur tenants call u to fix it. So how do you pay off the loans and get outa debt? 3 houses bringing in $ 800 each will take 4 years just to pay off 1 house that cost 100,000 total of 12 years to pay of 3 houses at the same cost assuming no repairs are done and properties were never vacant. And no taxes. Am i missing something here or do i just not understand at all whats happening? Can someone help im a mess.

  • I dont understand when you say you bought it with equity. Do you mean you just bought it for less than what its worth?

  • What is this bank that he speak of? Bank of America? National Bank? Just whichever bank we bank with? I’m ready to start NOW!

  • Any interest in being interviewed on my YouTube channel called One Rental at a Time? We could talk but and hold, etc

  • Is any of the people watching even done real estate ? .. just a question wonder how many will actually do it in the end

  • Man!
    I am doing EXACTLY what you are talking about!
    The Partnering has SOLVED the last part.
    THANK YOU!
    THANK YOU!

  • Can you still use a HELOC for the down payment?
    Articles I've read seem to suggest banks don't like the use of debt as a down payment anymore.

  • i have question reagarding Heloc from the investment property.i just purchase the duplex with 25% down on april 11 2019. can i apply for Heloc form this property and invest to buy new house. Do i have to wait 6 months to get heloc? and last one,is it hard to get heloc from the investment property

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