5 Reasons Everyone Should Own Real Estate

♫ The hills are alive with the sound of Real Estate. . ~Ahh ♪ Listen. It is cold out there. It is. Those are freaking snowy icy hills. Listen to guys, Kris Krohn here and yes, I am a total goofball. Today, we're talking about real estate and why everyone has got to own it. Look how much of it there is out there. And everyday, millionaires are being created in it. So why not you?So, today I want to show you the 5 most important reasons why everyone needs to own real estate. Imagine a time when everybody owned real estate. We call them farms. And everyone owned a lot of it. And it was a wealth and it was something that we fought for and we wanted. Bloods were spilled over this. Still is today. And we had our farms and we had our retirement plan. Have children, have children. . . You know basically pass on the farm, take care of us in our old age, we die. Real estate was so big to us but the end of the industrial revolution, we start now pulling people off of their farms. We're giving them pensions, we're pulling them into the city. You know, technology is emerging and people working for other people. And we're forfeiting our farms, we're forfeiting our real estate. And if you look at what's happened since then, our pensions have turned into 401Ks, they've turned into IRAs, they turned into broken retirement plans that don't work when our original game plan did. Real estate is really how it all used to happen. And it's still is. And yet, we're also brainwashed by the society's concept of money that no one is really thinking about real estate except for those that have really figured it out. And they're wealthy. Now, you're watching this video for a reason so I want to give you 5 reasons why you should own real estate. I want you to pay attention to the graphic that we're about to put on screen. Because check it out, real estate over time, it does this. It may not look exactly like this. It might do some of this stuff. But take a moment and look at this graphic that you have right here for rents. This is ridiculous. What is rent do over time?Look at that. It goes up and up and up and up and up. And the same thing. look at the sales prices on homes on this most recent map that is showing you. Sure, we had a big spike prior to the 2008. It came down. But guess what?It caught back up and it is moving again. And if I could show you graph for the last 3,000 years, guess what?At one point, real estate could be bought for pennies. Then it could be bought for thousands. Like the very first house that I bought was built like 1954. And it was bought and built for like $5,000. Well, that's same house today as selling for nearly 200 grand. Real estate is simply going to continue going up, up and up with time. So, number 1?Real estate values and rents, they increase. Now, they may not always do that. But as long as it lays at least for example in this country, as long as people are moving here and we're making babies, we're going to have a supply and demand thing where real estate is going to keep going up. On another video, we'll talk about what will happen in the next 50 years and 100 years. But right now, this is very, very true for this generation and for the next generation. The next thing for you to understand is that real estate beats the financial markets. We're taught to put our money in 401Ks and IRAs and annuities. And we're even told, "We will punish you. We will penalize you if you try to touch that money. Because it's yours. "Wait, why are we punishing you for your money in touching it?It's weird. real estate is something that you own and you control. And the financial markets like 401ks and IRAs, these things area averaging 3, 4, 5, 6 percent reality over the long haul. Real estate kicks the trash out of that. If you suck at real estate, you're going to do 3, 5, 6 percent. You're going to match the market. But guess what?You play real estate the same time frame as the other markets and if you actually learn some of the stuff that I can teach you, as in like, click the link below and let me like getting you up to like an expert level of the top of the curve. And guess what will happen? you can crush the financial markets. Everyone's putting their money in 401Ks and IRAs saying, "One day, I am going to retire and that'll be retirement. But it's not going to be enough. Friends, do the math. It's broken. Real estate, it's not broken. And so, this is something very important to be thinking about right now. That's one of the other reasons why you need to own real estate. The third reason is huge. You may have heard of it. Something Albert Einstein was a big fan of. And it's called Compound Interest. This is the most important financial instrument that you and I can touch and play with. What it means is that if you can get your money working for you and earning you something,then in time, it can compound on it's past results. And get bigger and bigger and bigger. So, in the game of real estate, if I buy a property with a 20 or 25 percent ROI --return on Investment, in 5 years, when I doubled my money, I'm going to take my home, I'm going to sell it and I am going to trade it for 2. Now, I have 2 homes that are earning me 25% each. Well, that's 50% on my original dollars. After a decade, I can quadruple my investment. I can be making 100% on my money. Imagine if whatever you have in year one, you can get as a spin-off every single year in your 10. So, compound interest is something that you can do in a lot of games but in real estate,you can do it profoundly because real estate. . . There's a little bonus. Real estate allows you to actually do this cool thing called Leverage. There's this giant lever in real estate and you can push on it. And what leverage basically means is that, if I was going to buy stocks, I could buy$100,000 of stocks for a $100,000. But in real estate, I can buy $500,000 of real estate with 100 grand. I get 5 times more money with leverage on real estate than I can on the stock market. And you know what does to your ROI?It magnifies it by a factor of 5. In general, that's the way it works out. Sometimes it's a lot bigger than that. So, in. . . I can basically beat out the stock market with leverage 5 times over because I have leverage on my side. Reason number 4 why real estate is so awesome. You need to write this rocket. You've probably heard this before. But I want to give to Warren Buffet in his book Snow Ball. It's like a thousand-page book. And basically, the whole book is how he created billions and billions and billions of dollars. By the way, Warren Buffet is a crazy fan of real estate. Black Stone, 2008, . . 09, . . . 10, . . . 11 was the biggest competitor against me. Buying 40,000 homes in a single year. While I was buying, you know, 2,000. So, I was a small guy in comparison to him. But we are crushing it in the market. right?Well, what Warren Buffet says in his full book of how you create safety. Buy low, Sell high. In real estate, you have the opportunity to buy something at a discount. This whole strategy of buy low, sell high means that you can shave years off of saving. I mean let me ask you. Be honest with yourself. How much money are you saving a year?Dude, when I started out, I was saving like a couple thousand dollars a year. And that was with intense budgeting when I was making a very little money. So, we human beings, when we live check-to-check, we're not getting ahead very fast. First house I bought had $40,000 of equity. That meant it was worth 150,000 and I bought it for 110,000. Do you still hear the music on those hills?That's $40,000 of equity that was singing back to me. And when I bought that house, a year later, I pulled some of that equity out while keeping the house and cash flowing. And I took that money and go buy another house. Again, that leverage component. And now, I have my money compounding at a whole new level. You can't make this up. Are you kidding me?A kid who is making less than 20 grand a year buys house with $40,000 of equity. My net worth goes up double than what I made in a single years of college kid. Where else can you do that?I can't do that in stock market. I can't do that anywhere else. I only know of one other place you can do that. And that's in being in business for yourself when you're really good at your business. But outside of that, real estate?You can do this Buy low, sell high thing all day long. I mean that's what my whole plan is predicated on. Which again, if you click the link in the description below, I'm actually going to break it down for you and you can see how you can jump in and ride that rocket with me. The last thing that I want to share with you is that in the game of real estate, you get this cool thing called tax benefits. Now, that may not mean a lot to you now. But if you do this with me and we start making lots of money and you start making loads of money, guess what's you're going to owe Uncle Sam?Money?Now, the cool thing is. . . Real Estate, there is a way of purchasing real estate in a way where you have all of this tax benefits. But how many?In one of my other videos, I talked about how you can actually buy real estate for years. And never pay a single dime in taxes. So at some point, that's going to be really big and really important. Because in business and stock market and 401k, you got to pay your taxes to Uncle Sam. Real Estate, just look at the benefits right here. I needed to make this video today because it's like we're getting to further and further and further far away from where we've come from. People have forgotten. Those hills are singing and there are alive and they are not making anymore real estate. It's only going up in value. And so, I guess what I am really passionate about here is freedom. Real estate is a pathway to freedom. And if you do not have a gameplan in your life, for the financial freedom that you want,my invitation for you is do a couple of things. First, if you are not, make sure you become a subscriber right now. I want you to ring that bell to to say, "I want Kris' daily video. "That's what that means. Where I can help you get out there and freaking crush in real estate. And the knowledge is going to be very valuable. Hopefully like today's video was. But second thing is you might be watching this video and saying, "You know what?I've been watching Kris' video awhile here and you know what?Why am I not doing this?Why am I not taking action?"And it might be "I feel too young or I am scared or I don't have money. "Those are not good reasons. When I got started, I was scared, I was young and I had no money. And you know what I am where I am today because I got a mentor and I took action. The action you can take is you can click the link below, talk to a member of my team. And whether you got no money and loads of money and anything in between, we got a game plan that can help you get set up for making your millions in real estate. So that you and I can go out there and sing, " ♫ The hills are alive. . . ♪ " Hey, thanks so much for watching this video. Hope it was fun for you. Hopefully it was useful for you and we'll see you on the next one.