How To Build a Team Out of State for Real Estate Investing
Kris Krohn here with Limitless TV. Today we’re talking about investing in real estate and I’ve been getting a lot of great questions from you and I want to answer them today. One of them predominantly on the idea of, alright I want to do your system, I want to build this wealth and yet if my market isn’t working for me in my backyard, how do I build a success team miles away and have the same kind of success that you’re suggesting? My brother, Matt, thank you so much for submitting the video. It’s a fantastic question and good on you for reading the book and watching these videos and learning and growing. Super proud of you and you’re probably German because Schmitz? That sounds like a really awesome German name, Krohn, one German to another, we got to have we got a pitch in and help each other out, right? So I’m gonna do that for you right now. Today’s video is dedicated directly to you. These are the questions that you asked: “I was the follow your system that you laid out in your book which I have right here. I’m about halfway through reading it and maybe I haven’t found the answer yet. It’s in here somewhere but how do I figure out the best way to figure out the best city to start investing in?” – Super smart question you’re learning that your backyard doesn’t have to be the default. So first of all, you should look in your backyard to see, is this a growing city? Is this a thriving city? What’s the median income here? Ultimately, I’m looking for an area where I can be the nice homes that are not slumlords that aren’t the brand-new expensive stuff right there in the middle, single-family, three to five bedroom homes and I’m looking for home, I’m hoping that your area has a median income higher than the national average, especially in those areas, it’ll mean nicer tenants, lower vacancies, more cash flow, you’re going to be better off. But your backyard may not be the best place to invest. Some people live in San Francisco and New York and places where super unrealistic because the median is well over two hundred thousand dollars.That is why, what I do, Matt, is I go invest in the nation’s hottest markets so if you’re ready to start doing the system, the first thing I’m going to say is, you’ve got to build a team where you want to invest and I’ve got some videos that teach how to do that but I’ve already done it and so you actually might be able to just step right onto my team and have my team do the work with you and that would be an awesome shortcut directly of what you could do and that would be pretty awesome. My team will take you to markets like Florida, North Carolina, Memphis, and Indianapolis and if you’re just starting off the gate and focusing on growth, I’m going to emphasize North Carolina and Florida, is two really excellent markets for you to play in right now. – “How do I form a team hundreds of miles away? People that I’ve never met before, I have no idea about and I have no idea about the area where I started without contact.” – Building a team from a distance is, it’s a lot of hard work, honestly, when you’re just starting off the gate. It’s a lot more realistic to build a team in your back yard. If you know your back yard is not gonna work, that’s where I’ve made my open invitation that says, “just use my team” 200 experts lined up in the hottest markets and I’ve paid my dues and paid my time and I paid my money and now they’re there and they’re available and they have an access of deals. So my recommendation is just have my team do it for you. What are they going to charge to make that possible? As little as nothing and then just charge you a transaction fee for playing the parts of lining up the financing and the funding and the housing and the repairs and putting the tenants in and doing all those pieces, you’re gonna pay, you know, your normal realtor and loan fees, etc. across the board that you have to pay anyway, but they’re usually reduced with my team because they’re all in-house and they’re all with one singular team. That’s what I do, makes things super easy for me. If you’re just getting started, you need to be out of state, just use my team, it’s a lot easier than me spending hundreds of hours training and teaching you how to do that. So let me share with you how I built my team. Before I went national, I was just building locally in my area and I bought a lot of my real estate and I noticed that I couldn’t get a singular realtor to find me a good deal consistently. So I went through hundreds of them, using some of the techniques I show on some of the other videos here, and finally I found one by the name of Steve Earl, that could consistently produce really good properties every single time, he became a part of my team. Then I need a lending team and so what I did is, I found a loan officer that was fair, gave me group volume rates, had really good ratings with a bunch of different banks who was super experienced and investment and that became a part of my team. I created my own property management person, I gave them all my homes and they became a part of my team and that’s the real basic crux of a good team as a solid realtor in the area, a solid loan officer, and a solid property manager. There are other members that you can add but those are the three elemental pieces that are really important. After I started doing a lot of local real estate and had a lot of money coming in, it was easy to justify expanding into a nationwide team and learning how to network with people out of state, my team today just, I let people just use my team and instead of needing to pay really big fees upfront, you can step right in if you’ve got the money and credit ready to go or you’ve lined up a partner with credit and money ready to go, you can step right into my team, pay your typical transaction fees and that’s what the shortcut would look like. “What’s the length of time you give a tenant the option to buy a house or what happens if they don’t buy or the option expires?” You know, kind of like I explained in my book, I usually like to do lease options on a 24-month basis and I would give people a one-year option to renew, if they’ve kept their nose clean, if they’ve made their payments on time. I love working with people that are dependable and reliable on making their payments and do what they say they’re going to do and obviously you’re gonna encounter a lot of people that don’t do that and those are the people that I don’t want to give long terms to. In fact, all of my contracts say that every 12 months I can choose out if they’ve had any late payments so it’s up to my discretion to choose back in if I felt like, oh they went through something reasonable, they lost a job, they were a little late but then they caught up and they made good on it, I feel good about renewing this contract and I want that power to stay in my hands. Keep on asking questions! You now have the ability to click the link below and submit videos of the questions that you have and we look forward to giving you those answers. Subscribe and click the bell and that way, YouTube will notify you when we upload our next video.