Risk Management Strategies In Real Estate

You know, I’ll tell you right now you can
make a lot of money in real estate but you can lose it too. In fact, you can wind
up worse off than the way you started unless you understand how to manage your
risk. My name is Kris Krohn and on this channel I teach people how to become
financially free from all over the world. And today is your opportunity to learn
how you can take the 4 biggest risks and eliminate them. You know, the number one thing that keeps
people out of the game of real estate it’s a 4-letter F word, It’s fear.
Fears that thing that says, “Give me knowledge, give me information, get me to
seminars. But at the end of the day, fear is going to hold me back.” And you know what I’m
going to actually argue that that is not necessarily a bad thing. For just a
moment, think about what fear is really meant to do. It’s to keep us from doing
stupid. And you know what? I got to tell you, just today I kid you not I got a
text on the phone from a guy. He’s like, “Kris, I can buy this house for 600,000. I’m going to flip it for a million. I’m going to make 400 grand.” He’s
like, “I need some money. Can you help me?” And I said… I was like, “Alright. Let’s
just sniff this out. Tell me about the deal.” And he says, “Well, I can get it for
$650,000 and it’s also going to be closer to 150,000 in repairs and that I think I can sell it for a million bucks.” Dude, I
want to tell you right now, here’s the reality in this game. This guy is going
to be 800,000 in. So, he thinks. He’ll probably closer to 850 or
9. He thinks he consult for a million. Once you pay your 6% realtor fees and
closing costs, that’s going to cost you 80,000. You might have to make
concessions. This guy might make 50 grand.
He might lose $200,000. It’s a really bad deal. Fear
keeps us from stupid. But fear also keeps us from what we want. In today’s video, I
want to share with you the 4 biggest risks of real estate. I’m going to show you
how to overcome those risks. And then in addition to that, I actually want to give
you one of the coolest resources that I have in my back pocket that keeps me
from ever making a mistake. Imagine if you had a master real estate coach in
your back pocket that you could just paying real quick and just say, “What do
you think of this deal? Is this good? Are there warning signs?” And I have a team
that does that for me. And I want to give that team to you today. So, hang out for
the end of this. It’s going to get cool. So, here are the 4 steps that you should
take to protect yourself. The first one and biggest problem that a lot of
investors have is they haven’t a lack of deals. Now, the problem with having a lack
of deals is that when you find a deal that’s mediocre like the one I was just
telling you it with my buddy. He says, “I haven’t seen a deal like this before. I’m
going to jump on it.” And so, he gets out there and he just
says, I’m going to actually do this thing and make this thing happen.” And I’m like,
“Dude, you should be looking at 100 more deals.” Like my team that’s thousands
of deals every week for me to find 10 winners. How many are you looking at? I
looked at 3. And I picked the best of the 3. A lack of deals will
absolutely get you in hot water in the game of real estate. I want you to take
action. I want you to be eager. But the tool I’m going to share at the end of this,
my team that I have, they also have an excess of deals that they tee up for me
to actually get me in the game and actually doing this because I don’t want
to have a lack of deals. The next thing that people have is they have a lack of
strategy. There’s a lack of strategy and a lack of experience. You’ve got to start
somewhere but trust me, if you’re doing something you’ve never done before, I
need you to reach out and get with an expert who has. And you need them to
Shepherd you through the process. If you do not have someone that is watching
your 6, watching your back; you’re going to be in big trouble. I remember one of the
first times I was actually doing a deal. I was so excited about it but I didn’t
know if it was a good deal. I only thought that it was. It was a house that
I was going to buy for $110,000. And I basically drove
over to my mentors house. Didn’t have the kind of technology that we had today. I
would have loved just to… You know, do a little zoom call or something but…
Basically, I went over and I said, “Here’s the thing…” He got on his computer he said,
“Hey”. Based on the comps and everything I think this home is actually worth
150,000. What about the interior? I showed in my pictures on my camera and he said,
“Okay.” He started guessing how much those repairs would cost. And in the end, he
basically said “Kris, you need to do that deal.” Lock that down. Get that under
contract. I ended up moving forward with confidence because my mentor who had the
experience that I lacked was basically saying go. A lot of people are out there
in the game of real estate acting. And they, 99 things line up and one thing
doesn’t and fear should be saying stop but you’re not because you think you’re
going to make your move and then you lose. So, you need to have someone that watches
your back. That’s the best thing that you can have here on strategy. Which really
means you have to have a strategy. Are you flipping? Are you wholesaling? Are you
doing a lease option? Is this a buy and hold? Is this a rental? Is this an
apartment complex? Know what your strategy is and then have a mentor that
can help you with that. Okay, the third thing that I want you to
think of here is a lot of people feel because they have a lack of team. And
remember, it takes teamwork to make the dream work. And if you don’t
a team that’s actually watching your back, that means you’re going to default to
doing everything on your own. You know the problem of that is? It’s like a jack
of all trades and a master of none trying to do everything. The biggest
thing that keeps people are having the wealth that they want their life is that
they’re trying to do it all. In actuality, what they should be doing my friend is
they should be surrounding themselves with a team that can wear as many of the
hats as possible. You’re going to forfeit some money but you
should choose a property with enough margin which means enough profit that
you can bring experts in. If it’s going to say, “no expert”. You’ve got to do it all
yourself, that should make you extremely leery and skeptical. The fourth fear is a
lack of track record. This is what gets people in doggy doo-doo all day long.
And so, the whole concept here of track record is actually really simple.
When I say find a mentor, don’t just find a mentor that did a deal or a random
deal. If you’re doing apartments then your mentor needs to have a track record
extensive in apartments. And how much is a good track record? Well, for me, if I’m
trying to make a million bucks up, I would prefer a mentor that’s made 10
million dollars. I want someone who’s already achieved 10 times what I
want. And they’ve done it enough times now where they know the pitfalls, the
trial and error and they now know what to do and they certainly know what to
watch out for that is a blind spot to you. They can protect that. Someone’s got
to have a track record. You want to tap into a team, you’ve got to have a
strategy and you have to have access to enough deals that you’re not going to jump
it the first thing that looks semi good. Because I only jump after things that are
home freaking run winners. Let me bring this home for you. If you and I were
gonna be playing Monopoly together, I’m going to tell you right now that if you’re
novice at monopoly or you don’t really have a strategy, I have an 87% chance of
beating you. Because I love the game of Monopoly. And by the way my secret is
that my token is always the dog the Scottie dog wins almost every single
time. No, it is not a game of luck. While there is a luck component because
of rolling the dice. The reality is, I have rules. Rules that accelerate my
chances of success. Some of those rules actually enhance my risk but it’s
actually why I win so much. If you wanted to win at the game of Monopoly, if you
could just get 5 or 10 minutes and say, “Hey, Kris. I’m about to play Monopoly
with someone I put a big bet on the line. Can you
share with me your 4 rules real quick to help me out?” I could rip them off to
you right now and guess what? You’d say, I have a way better chance of winning than
I would have otherwise. I asked myself how can I make that available to you in
the game of real estate? Me my team put our heads together and so many of you
are watching the video saying, “Kris, help me do this deal. Is this a good deal? What
do you think I should do on this one? I can’t find deals. What about
strategy, have a question about it?” So, I decided to open my own private real
estate hotline. And it’s actually powered by the same individuals that run my
entire real estate system that are buying me homes every single day. Which
means that I’ve got some world-class experts that are at your fingertips.
And if you click the link below, you can actually learn more about how I’ve made
it stupid cheap to access world-class experts that you can call as much as
you’d like. You could literally ask them any question. And as long as it’s during
those office hours, they’re going to be there to walk you through what you need
for making your next deal happen. So, the Kris Krohn… Our team, real estate hotline,
it’s basically designed to say, “Hey, we’re out there crushing in real estate.” This
month, we’re going to do over a million dollars in real estate. And if you’re out
there doing your deal 2 or 5 deals or whatever it is, you’ve got experts in
your back pocket that will give you perspective can review your performance,
look at your deals. Help you find deals, if you’re not getting them, answer
questions for things that you don’t understand. Explain seller financing
opening up a new strategy. Bottom line is anytime you lack knowledge, you want
someone with extensive experience that can back you up. And that’s what we do
with essentially this brand new real estate hot line.
So, it’s cool because we decided to price it in a way and subsidize it so that we
could make it available to almost everybody that is on this channel that
is serious about doing the game real estate. So, if you’re in these shoes real
like, “Kris, I’ve been watching you…” Listen, if you watch more than 10 videos
and you’re not proactively doing a deal, get that hot line. And it’s some of the
best live coaching that you can tap into right now with my team so that wherever
you’re at, “Hey, what’s my first step or what do I do next or how do I find a
deal…” Or “Here’s a deal. Is it a good deal? I don’t know.” That they can actually show
up for you and actually make that happen. Thank you so much for watching today’s
video. A reminder that in the link that’s where you can access
brand-new real-estate hotline to work with my private real estate power team.
In addition though, today we talked about how the biggest threat to you is a lack
of deals, lack of strategy, lack of team and a lack of track record. Don’t let
those things stop you. Don’t let them get in your way.
And let your fear keep you from making dumb decisions. But do not let it keep
you from living life. Do not let it stop you from actually getting out there and
taking action. You get a mentor in your back pocket and then move forward in
confidence. And hopefully I’ll see you at one of my next events well I can
celebrate your success by smashing a watch. Which is our symbol of financial
freedom and saying, “Hey, you’re that first property means that we’re ready to
celebrate premature retirement.” Let’s go do the next 20-30 deals and make it
happen. Thanks for watching. We’ll catch you in
tomorrow’s episode.

11 Replies to “Risk Management Strategies In Real Estate

  1. sʊʀɛ,ɨ ɖɨɖռ’t ɮɛʟɨɛʋɛ ʍʊċɦ ɨռ ɨզ օքtɨօռs ɮʊt sɨռċɛ ɨ ċaʍɛ aċʀօss sօʍɛ ʀɛʋɨɛաs taʟҡɨռɢ aɮօʊt ʍʀs աaʟtɛʀ ʝaռɛ , ɨ ɖɛċɨɖɛɖ tօ ɖʀօք a ʍaɨʟ aռɖ ɢɨʋɛ ɦɛʀ a tʀʏ ɦɛ tɦօʊɢɦt ʍɛ aʟʟ ɨ ռɛɛɖ tօ ҡռօա aռɖ ʍaɖɛ ʍɛ ʝʊst ɛռօʊɢɦ քʀօʄɨts ɨռ ɖʊɛ tɨʍɛ, ʀɛaċɦ օʊt tօ ɦɛʀ tօɖaʏ օռ { աaʟtɛʀʝaռɛ[email protected]ɢʍaɨʟ ċօʍ }

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