The Entrepreneur DNA - The Human Connections Behind a $2 Billion Real Estate Portfolio | Kris Krohn

Starting point is 00:00:00 Tony Robbins, I'll never forget when he said this one line and it changed my world forever. He said, you're one person away from lifetimes of income. You pay to get into the rooms so that you can finally meet that person. So that one interaction changed everything. The other gentleman that I met, that person stayed in my life and helped me do my first several deals. And so I'm like, yeah yeah my world is a byproduct of people that changed everything for me like the two billion dollars real estate transacted does not happen without that man what is up entrepreneur dna family i am excited about this episode because if you are watching this you will see i am with an absolute real estate stud a personal friend of

Starting point is 00:00:43 mine who's done this business for 20 years and over $2 billion worth of transactions. Chris Crowland's in the house. What's up, man? How we doing? Yep, let's go. I'm excited about this. So listen, real estate, I've been doing it 17, you've been doing it 20. We've seen the highs, we've seen the lows, we've seen the last six to eight years, just incredible. What's your thoughts right now about what's going on in the real estate market? Well, right now I'm actually more excited than I've ever been. When I got started in the 2000s

Starting point is 00:01:08 before 2008, 2008, 2009 was the best thing that happened to me because while everything else was crashing, I was going into the top markets in the nation like Phoenix and Vegas that had just tanked and I was buying up their inventory for a hundred grand, 150 grand that was selling for three, 400 grand before. Within five years, I made my investors over $100 million. And I was like, okay, I get it. This nationwide game. So I've been playing nationwide ever since. Obviously, 2021, 22 was incredible because the pandemic was incredible for real estate.

Starting point is 00:01:38 But we actually just finished, Justin, the last nine years, we just looked at our average ROI year over year for the last nine years, we just looked at our average ROI year over year for the last nine years. Dude, any guess on what our year over year ROI averages on buying single family homes? I don't, but I guess it's huge. Yeah. It's 60%. That's insane. 60.6%. And so I've been telling people for the last, you and I are cut from the same cloth. We have the experience. We've seen it. We did it. I'm more bullish on real estate now. I'm buying more assets today than I've ever bought in my 17 year career as fast as I can. Right. And I'm doing it nationally. I'm doing it not in my own backyard. I'm in Miami right now. We're in Miami. What do you say to the people that are the doom? Like you and I are saying the same thing, but everyone else is like, Oh my God,

Starting point is 00:02:22 I'm like, okay, so let's, let's just break down the interest rates for just a moment, right? Because people have this really weird assumption that a high interest rate is bad and a low interest rate is good. And I'm like, okay, you realize that the interest rate only affects the cash flow. And cash flow is only one of four ROIs. And it's the smallest of the four ROIs. So I'm like, when I say I'm making 60% a year on average on a property that I do, if the interest rate was two points lower, what would happen to my ROI?

Starting point is 00:02:50 Might go up a percent. Right. Like it's almost not touched at all. So people, people have been taught to be rate conscious and they're really focusing on the wrong game. So what should they, cause I think I have your answer. Cause I go to appreciating markets. I care more about the market than I do about the $300 or $400 per door I'm getting because of the thing you're going to say. But what are you focusing on when making those purchases? Okay, so there's four different ROIs, right? Obviously, appreciation.

Starting point is 00:03:13 If you're going to go nationwide and then you only go to the top markets, that's where you're going to cash in is, okay, if I'm going to buy and hold for a period of time, I'm going to kill it on that. That's right. But then on top of that, it's like, okay, well, I do have my cash on cash ROI.

Starting point is 00:03:28 What's my return on the cash flow? Number three, the principal reduction. Like a lot of people don't even factor in the ROI from a tenant that you're really outsourcing to buy your house for you. That's right. So I didn't buy a house. My tenants are buying me houses. Like every day I buy a house that a tenant buys for me. Like it feels like Christmas, right? That's right. You know, and then you've got tax advantages. So when you add up all four of those, that's how I get to that 60% number. And appreciation by far is the biggest, but I don't have to have it. It's just going to be there. So would you go, personally, this is more a curiosity just for me,

Starting point is 00:03:56 would you go to a market like Cleveland, Ohio, or Ohio in general? Columbus is one of those markets that does appreciate, but Ohio doesn't really, or would you go to more of an Alabama that has a sizable up tick? Do you personally have a, so you, I swear this is the weirdest question you could ask me. Okay. Cause I will never own real estate in Cleveland,

Starting point is 00:04:18 Ohio. Okay. I will never buy in like Detroit, Michigan. Sure. Like, and why am I saying that? Cause in 2009,

Starting point is 00:04:24 I bought a couple hundred homes in those markets off of Fannie Freddie tape from the government at a 92% discount. Okay. And I'm like, I'm going to make $10 million. And then like, even if I suck, I'm going to make 3 million. Yeah, yeah.

Starting point is 00:04:34 I lost a million dollars just breaking even to get out of that. That's it, yeah. And that's where I learned about blue states and red states. Okay. Like the mindset of the people that currently live in those markets, a 92% discount on still lost i'm like how does that even happen well i can tell you exactly how it happens now but measuring 324 markets that make up the nation

Starting point is 00:04:55 and being in the top five yeah well that's a total different game like for example blue oval city yeah right this is a market most people don't know about at all. You've got, um, Ford that is building an $11 billion plant that needs 11,000 employees and they don't have any real estate in that market. So it's a tiny sub market that I'm going in and these homes, I'm buying them brand new for 180 to 200 grand. That's amazing. Brand new four bedroom, two bathroom, 1800 square foot homes. And guess what? They're going to project it to be in five years. They're going to be a 300 to 350,000. So I'm going to experience unnaturally high appreciation of those markets. And that's part of what my strategy is. It's not just picking one of the top growing markets like Florida, that's obvious, and which parts of it.

Starting point is 00:05:36 But it's going beyond that and saying, okay, where do we have extenuating circumstances, especially where it was already a great market but then a large corporation moved in and they're actually going to alter that entire subframe of that market that's where i'm winning you and i are yelling from the mountaintops of this and people are still scared and it just this is why he and i are keynote speaking at clever summit if you don't know about clever oh my gosh have you talked about freaking clever we haven't yet dude i'm gonna be at the vip party the night before with all of the speakers on a yacht let's go in the bay it's gonna be amazing yes um but no so clever is um september 13th 14th 15th jen gottlieb uh you've got cody spurber

Starting point is 00:06:17 himself is speaking there paul smorby you're gonna be there i'm gonna be there vina jetty's gonna be there it's gonna be great all the legends ryan sir hands coming that's it and uh patrick bet david that'll be awesome dude it's gonna be it i think it's gonna be probably one of the most important not only there's real estate events of the year but i think it's actually gonna last through 2025 because the way the rest of this year is shaping up um the game has changed most people haven't figured out how to adapt and if you go to summit you're going to learn that game and then you're going to realize oh crap there's a short window opportunity for to freaking spank it and win yeah that no one else is going to take advantage of get there's

Starting point is 00:06:53 links all over this if you're watching this get to the link get your tickets now yeah by the time someone sees this there's probably no more yacht tickets left but if there are get them get the all access pass because you'll be with chris myself spurber pace all those speakers we will be there uh this is going to be the game changer so we'll plug that right now dude i'll tell you i was at summit in 2022 it was a freaking party no doubt it was so fun but people also walked away then with everything that they needed to go win and that's the point is they need to know we're doing a podcast about what we know to be true today. There's going to be three straight days of hardcore speakers with the experience that people want to do what we do. And that's why I say that is so important that you're screaming

Starting point is 00:07:36 from the mountaintops. I'm screaming. No one should be scared. Be smart. Don't be foolish with how you're buying and what market you're buying in. Yeah. But if you're not following Chris, follow Chris on all platforms, Instagram, Facebook, TikTok, everywhere this man's at. He and I are saying the same thing. Yeah. Be a clever summit. Yeah. But did you have something you wanted to say?

Starting point is 00:07:55 Well, I was just going to say that I think that a lot of people, they're looking at what we're doing. They're like, oh, that's too unaccessible. It's like you're saying out of state, get on play. I wouldn't even know the first thing of how to do that. I'm like, you know, I commiserate with you. I get that. Cause there's a lot of people. I think they're like, Justin, what should I be doing right now? Oh, they're saying by real estate interest rates are high. How do I buy my backyard? The numbers aren't going to pencil. It doesn't make sense. And I'm like, no, you're right. Like what you're

Starting point is 00:08:18 thinking is a bad idea is a bad idea. You've got to change to adapt to what's happening in the market. And that's what we're doing is we've adapted and we know how to win in this economy that's right so let's talk about how people think you know i like to talk a little bit more about the money side of it people actually don't realize how much money can be made right now yeah with money and how to utilize money and what you can do in the real estate let's talk a little bit about your philosophy on money and real estate. And like, I mean, dude, we have mutual friends. There's, what is it? $65 trillion in IRAs and 401ks. Well, let's talk about that. Right. This year, they came out with a 20 year study on 401ks showing that the average ROI is 4.2%. And I'm like, well, that's good. Cause inflation is 4.1. That's right. So it's a total cancel. Yeah. Right.

Starting point is 00:09:03 And it's kind of a scam anyway. And then your IRAs are doing maybe like 5.5%. You know, the S&P is not the 10 it used to be now, sitting around 7.5. So people's blended average return is going to be like 5, 6% if you're generous. And I talk to people all the time like you that have money in retirement accounts. And I'm like, okay, let's do some basic math.

Starting point is 00:09:21 Take 50 grand, right? Because I can show you markets where 50 grand is a down payment on a basic home. That's right. So it's like, okay, 50 grand sitting in my 401k or IRA making me 6%. If I don't do real estate, what will happen to it over 20 years? It'll triple. 50 grand turns into 160 grand. Like that is to the penny amount, by the way. And it's like, okay, well, what would happen if I put it in real estate just earning, not Chris's 60%, 34%. Well, that same 50 grand now turns into $17.3 million. That's wild. It's 108 times more money. And so it's like, it's no comparison. It's no comparison. I'm like,

Starting point is 00:09:56 90% of all wealth is held to real estate. 90% of all millionaires did it in real estate. I don't know why people are so scared and nervous. Yeah. Their own strategies are not going to work, but there are strategies that do, and you've got to be looking for those. What do we, you know, some of the things that I go viral with is when I go across Dave Ramsey. Oh my gosh. I feel bad. Dave's the only person online that I kind of make fun of a little bit. Well, and so my podcast is ranked right under his. Yeah. And we say the opposite stuff. Well, that makes sense. But I would tell you this.

Starting point is 00:10:29 The reason why people are scared is because the people that he's talking to don't have you in their back. And they can. That's the point. You can find Chris today right now and direct message him. When you're watching this or listening to it, he and his team will respond to you. You can have Chris or you can have me but the point being is there's so much more knowledge out there if you have someone that can be by your side holding your hand correct yeah dave i think he's winning a lot of following a lot of followers

Starting point is 00:10:54 right now just because we're in an election year sure people are scared right now there's less money in the market than we've had in years prior um debts are running really high average household debt is over a100,000. So when you start looking at the facts- And you're talking about like just credit card debt. Yeah, yeah, yeah. Yeah, so when you start really looking at the economy, his message has a strong appeal. The only problem is,

Starting point is 00:11:13 is that if you follow Dave's program, it's really for people that don't know how to manage money and they've made poor choices and they have debt. And he's like, let me show you how to get out of debt. It might take you five years or maybe like 15 years. The problem is by the time you get out of debt, you're going to say, I made it.

Starting point is 00:11:27 Like, I'm freaking, I'm free. I'm like, cool, you're 48 years old. And you just spent almost all of your time unwinding choices you had made years in the beginning. And now what do you do with the last time that you have? It's like, you don't have time to compound your money anymore. Like, you're so late to the game

Starting point is 00:11:43 because I got news for you. You can't eat no debt. You can't travel on no debt. Like no debt doesn't actually give you the life that you want. No debt is a feeling. So Dave has got everyone chasing a feeling of like, but Chris, when I'm finally out of debt, I'm going to feel good. I'm like, oh good.

Starting point is 00:11:57 You're making bad financial choices so you can have a feeling. Well, I'm like, let me tell you where that'll put you at 65 years old. You're going to have $254,000 in your 401k and your IRA. You're going to have a house at 70% paid off. Your average net worth between the two of them combined, it's going to be $600,000, but you're not going to feel like it because you're not going to sacrifice your house. Your 401k by then your average earnings is sitting right around $90,000 a year. You're living off of about 85 grand of it, which means $254,000 will last you for three for three years congratulations you spent 40 years to save three years worth of retirement yeah and it's like it's broken and if it's broken then you got to do something different so what would you tell the

Starting point is 00:12:34 person who let's just talk about like the teachers the service cops firemen who like they don't necessarily have the opportunity to spend time making more money. So they buy into this, this subscription or whatever we want to call Dave, what he talks about. And I understand that you made bad decisions. You have high debt. You don't have the ability to go make an extra a hundred grand a year. What do you tell those individuals? Well, first of all, like, it's not like they all have bad debt with interest, you know, credit cards with interest rates at 22%. They consider like their student loan debt at 5% bad debt. They consider their 6% house loan a bad debt. I'm like, hey, you got to actually learn a different game called opportunity cost. And it's like, okay, let's say you're not investing with

Starting point is 00:13:15 Chris making 60% on your money, but you can read some of my books and find out very easily how to make 25% on your money. So it's like, okay, do you try to pay off a five percent debt or have that same dollar sitting at a 25 asset i'm like hello yeah like 25 can make you a multi-millionaire in this lifetime by the time you need to retire and trying to eliminate this debt will never do that for you that's right so it's just which choice are you going to make what makes more sense so i lean to people even if you do have a job that is a time suck, right? So most of these individuals have jobs that do. There's still opportunity out there that you can actually just go make more money. It doesn't have to be life-changing money. But if you make a couple extra bucks and you have people like myself and yourself that know what to do with those couple extra bucks,

Starting point is 00:13:56 that's where the extra money comes from. And it starts to compound to your point. Well, and I think you also have to look for just passive opportunity. You know, I mean, you and I both harp on real estate, but let's be honest. I mean, I don't know how much time you're spending every month managing your portfolio, but I'm twiddling my thumbs because it takes less than an hour. I don't. Yeah, I know.

Starting point is 00:14:12 And so it doesn't mean that you have to find more active income. Sometimes it's just being better with the money you got. That's right. And that's why I think they should make a couple extra bucks because if they're strapped, then go make a couple extra bucks and then learn how to utilize it i mean i i talk a lot about uh insurance as an opportunity yeah that that allows you to compound your money and then you can very quickly have an extra five figures now you can go work with chris for 50 grand that you didn't even think was possible because of the deal you know what i mean yeah but they don't think that way and that's what i want

Starting point is 00:14:42 to try to break them out of is like, you know, scared money doesn't make any money. Yeah. The other thing is a lot of people actually have money, but they don't feel like it. And I call this hidden assets. Yeah. Because I'm like, hey, do you have any money in your bank account? They're like, no, I'm broke.

Starting point is 00:14:54 I got like two grand sitting in my account. I'm stressing about my bills. And they have $150,000 sitting in a 401k. Yeah. And it's like, yeah, but that's not my money. I'm like, well, actually it is your money. That's right. And you should be asking how to access that. I was like, oh, I know, but that's my retirement. I'm like well actually it is your money that's right and you should be asking how to access that i was like i know but that's my retirement i'm like

Starting point is 00:15:07 cool run the math where's it gonna be well it's gonna be a you know quarter million dollars like cool yeah what are you gonna retire on well i was making 80 grand a year i was wondering if i could retire like maybe 50 grand a year cool so how long is quarter million gonna last you even with security what six seven years do math do math And it's like fifth grade math, too. It's like, that's my biggest frustration with people. For sure. Like, why are you doing math? Yeah.

Starting point is 00:15:30 Like, this is not hard to project into the future what you think you're going to need. It's incredible. I mean, I even have individuals that I will literally help them math out the equity in their home. Yep. Now, say, listen, guys, you have $600,000 of equity in this home. You've owned it for 20 years. If you know how to math this out, you can be a lender. Well, do you want to know what's crazy about what you're saying?

Starting point is 00:15:50 They just came up with a stat. The average American has $304,000 of equity. It is the highest figure we've ever had. And it's due in part to 2021 when houses each went up $100,000. And so right now, for the first time ever ever people have more equity than retirement at retirement and and so your idea of like how do you pull that out and actually put it to work and get performance on it and there's so many but that rubs against this mindset of their sacred cow they're like no not my house i'm like got news for you got no assets that's right you don't have a choice you don't have the luxury of protect my house you're not

Starting point is 00:16:20 protected at all you got to use what you got and get ahead to your point if they sold it as a retirement for 300 grand of equity it lasts six years yep 70 i mean you know but they stretch it yep but the reality is in our world of real estate that's why everyone should be in real estate if you have equity if you have a source like that then it is just math let's just say you go and get a heloc as an example at nine percent if you could lend it to whether it's me you or anyone else out there on a secure asset with a deed of trust and a mortgage whatever at 12 it's called arbitrage yeah right you and I know this that's an extra three percent you pick up literally for just how you move money around that's right and you already have it but the weird thing is humans I think would get that if you're like hey right now you have nine streaming platforms and they cost you three

Starting point is 00:17:01 hundred dollars a month but you only use three of them. Like why not save $200 a month? They wouldn't get that. Yeah. But this is the same game just in the name of making money, not saving. Because you can't save your way with wealth. Yeah. I mean, you know, it's interesting. So I have two little kids and I know you have a handful of kids yourself.

Starting point is 00:17:16 Yeah. Mine are really little. I started late in life. So we watched these ridiculous shows, in my opinion, that have gone viral on YouTube. And I'm talking like 18 million views of them opening up a puppy dog pal thing and playing with the toy my daughter loves it begs for it cries for it and i'm like they probably made oh yeah 80 grand on this one video just this one and they have 400 others i mean there's literal side hustles that this is where I go, guys, you can't tell me you're broke

Starting point is 00:17:46 and you don't have a way to go start to create income. Because if someone can open a toy and go to 18 million views on a single video that came out nine months ago, I go, everyone's just not thinking. They're not being opportunistic enough. And I think that's the bigger problem. You know, it's, you take a look at Gen Z

Starting point is 00:18:04 and you take a look at millennials. They've got a bad rap. People are like, oh, they're lazy. And I'm that's the bigger problem. You know, it's, um, you take a look at Gen Z and you take a look at millennials. They've got a bad rap. People are like, oh, they're lazy. And I'm like, actually, if you look at the value of their dollar today, compared to what boomers had, check out this stat. This is wild. Gen Zers in their twenties today, their money is 85% less valuable than a boomer in their twenties.

Starting point is 00:18:21 And it's like, and so they've got a heart, which means they have to innovate. They've got to get smarter and they have to break the mold. And I think that that message is starting to get out there because their gig economies are increasing and their desire for college is going down, which I actually think is a positive thing because they're getting more realistic saying, I don't know if I can shoulder a couple hundred thousand dollars of student debt, especially since the cost of college has gone up 730% from Gen Xers. It's wild what the cost of their life is today.

Starting point is 00:18:50 So they're forced to be smarter and they have to play the game differently. Just not all know how to. So dude, I want to jump into something that you and I are firm believers on and it has to do with why you and I have probably sustained 17 and 20 years of real estate, buying assets, staying steady, and being able to be as steadfast in our space is the impact on people and people in general. What is your philosophy? I mean, obviously you've coached thousands and thousands of individuals. You've worked with people. I have to guess, and you want to tell me the answer, part of that $2 billion of real estate, I bet you credit people as much as anything else.

Starting point is 00:19:26 So I always say that real estate actually has nothing to do with property. It has everything to do with humans. And if you really break down a single real estate transaction and all the value that's created, I think I once counted up 260 people that are part of the value chain of a property. Starting with all the people that help part of the value chain of a property. She's starting with all the people that, that, that help build the home. But once you basically buy a home, it's like you have title agents that are involved. You have realtors, you have loan officers. Um, then you've got the actual families that are going to live in it. You got the people that are writing the notes. When you start

Starting point is 00:19:58 really like adding up, you know, then, then someone is going to come in and do the yard work and then someone's going to clean the windows, you know, and when you start really looking at it, like a house moves all of society. There's something really beautiful about the value proposition of providing that necessity, especially right now at a historic time in our country where we're missing over 6 million single family homes. You compare that to multifamily. Multifamily actually is overbuilt. Multifamily is actually going down in value right now. People don't understand like, why is that market softening? I'm like, because real estate is always a game of supply and demand. And right now we have too much supply of multifamily and we are still missing 6 million

Starting point is 00:20:38 supply on single family because people are like, well, when's the market going to crash? I'm like, I'll tell you when it's going to crash. It's going gonna crash after you have too many single family homes and people want to buy and guess when that's gonna be like a decade from now it's gonna it's a long ways out long way so so people are like well what happened when rates come down like you're gonna see prices skyrocket again like 2020 20s like bidding wars are like yeah bidding was like well why is that gonna it's not affordable it's not sustainable like i don't care if it's not sustainable we will always find a way forward. Right now, we have a scarcity because of a supply and demand problem that won't solve

Starting point is 00:21:08 itself for a decade. That's right. And the thing about this is not only are you talking about the chain of people within the economy that you're helping and getting paychecks and all these other things, but we're talking about how do you help other people achieve those type of things? Let's just use Clever Summit as a perfect example. But we're talking about like, how do you help other people achieve those type of things? Yeah. Right? Like, let's just use Clever Summit as a perfect example. There's going to be 3,000 incredible entrepreneurs, real estate investors, real estate enthusiasts.

Starting point is 00:21:32 There will be deals done in the crowd. Oh, yeah. While you're on stage, while I'm on stage. People are going to find business partners. They're going to find the people they're going to run with for life. They're going to find solutions to, oh, my gosh, I knew that I needed this. I didn't know how I was going to get there. And then they're going to find a way to get into the game like the networking of that event i i still have business partners today that i met at the last clever summit i told

Starting point is 00:21:53 sperber today i did an episode with him i'm a product of a very large event just like this back in 2007 sat first row broke as shit like literally my home to foreclosure repo man took my car sleeping on a couch and i just knew it i said i'm gonna change my own trajectory and i did right 17 years later but everyone at this place needs to understand the value of sitting in that seat yeah i don't care if it's a general admission ticket i don't care if it's an all-access ticket you need to understand the value of being in a room like that and hearing from you and all the speakers, but not just that.

Starting point is 00:22:30 The people in that crowd, to your point, deals will happen. Money will exchange hands. There will be opportunities. There will be business partners. And that's what will help keep pushing forward. Tony Robbins, I'll never forget when he said this one line

Starting point is 00:22:44 that changed my world forever. He said, you're one person away from lifetimes of income. And I'm like, wait, what does he really mean by that? He's like, you pay to get into a rooms so that you can finally meet that person that is going to change everything. I'm like, who are the people that changed everything for me? When I was a broke college kid, I met two men who had each made over $10 million in real estate. They weren't gurus. They didn't have books. They literally were their own successful investors that had learned it. And one of them had just gotten back from spending a decade overseas with his family. And I was like, I was young and broke. And I was so impressed with this person's energy and vernacular. I'm like, I don't understand that. I was like, they, cause they had taught this financial class,

Starting point is 00:23:27 a community class for free. Yeah. And afterwards I'm like, what's your job? Like, what do you do? He's like, I don't have a job. This person's in their late thirties. I'm like, what do you mean you don't have a job? I'm like, what do you do? He's like, well, a long time ago, I just bought a bunch of homes and now I just travel around the world. And I was like, I caught the bug so hard cause I didn't get it. And then I got it got it and then i wanted it that one person changed everything for me strangely i met that person three more times in my life under no consequence and that was it so that one interaction changed everything the other gentleman that I met, that person stayed in my life and helped me do my first several deals. And so I'm like, yeah, my world is a byproduct of people that changed

Starting point is 00:24:12 everything for me. Like the $2 billion real estate transacted does not happen without that man. Yeah. And I think that's true for everybody. Right. And that's why when people are watching this, you need to follow Chris because the exact exact same thing you need to engage you need to interact you need to get your ass to the clever summit that is for sure there's links everywhere make sure you are there but you know it is something that i credit almost all of my success to the handshake right we have a mutual friend brad lee says it all the time the more hands you shake the more money you make but you have to be intentional and do that yeah you don't just go and show up to clever summit or anything you say okay i'm just going to be here right no you need to say okay how am i going to change my life what am i going to do

Starting point is 00:24:53 what dots can i connect so moving forward it actually makes an impact yep and you're brilliant at this i mean i literally have studied and watched what you do and how you do it and the millions and tens of millions of views you get, you understand the impact of the connection and what you're doing is you're making impact to other people, which allows you to continue to grow. So let's talk a little bit about that side of your world because this is the entrepreneur DNA, which is heavily real estate, but you own more than just real estate. You have businesses, you have verticals. Private equity, a lot of companies, yeah.

Starting point is 00:25:24 So talk a little bit about that. So I wrote a book a couple of years ago called have it all. And it's, it's a blueprint for how someone who is a nobody can become very financially successful. And it's like, um, I don't want to encourage people to have to have star power. You don't have to have some kind of X factors. It's like, how does an anybody with a heartbeat and can fog a mirror make money? And the book takes you through a procession of five different ROIs and I'll hit them real quick. Yeah, go for it.

Starting point is 00:25:51 The first one is you got to learn PYF, pay yourself first. So you're not making money to pay your bills. You're paying money not to save it for a 401k. You're earning money to pay yourself first so that you have the opportunity to invest. There you go. My whole world started with PYF is that I was broke. And then I learned how to save a little bit of money. I probably didn't do a property that property about my next property, that property about my next property. And that $3,300 that took me 14 months to save up

Starting point is 00:26:16 turned into $1.6 million four years later. So that's the first step is you have to learn how to save. The second step is where do you put it? I like you, I put it in life insurance. We're at double dipping. I'm earning 6%. My money is untouchable and it's just waiting to come out to sit in an investment and double dipping, sitting in two places. That's right. So that's where I go from a single digit ROI, which I don't do 401ks. I don't do ROAs, IRAs. I don't do the stock market. I do life insurance. That's right. I want that stable 6%. Then I can borrow it out and have it still earning while it sits in double-digit real estate.

Starting point is 00:26:53 Where I always go into real estate and say, I won't touch a deal unless I'm earning 25%. That's my bid. I say 20. And what's your reason behind it? Except mine is I want my money back in five years if it's stuck somewhere. Yeah. That's my answer. I'm simple.

Starting point is 00:27:04 Yeah. I think my minimum is just 25 because i'm earning 60 and i had to come up with a minimum that yeah you know just high standards just people high standards i like it um you know then i go into private equity where i can earn triple digit rys and private equity is a shot for at moonshotting it's like i want to some of my money sitting in companies that could be like a 2014 Tesla play where a thousand dollars then is now worth $1.7 million today. So it's like, it's learning how to keep an eye out for companies that represent the future and then take making bets on them. And there's a whole system for how you bet on 10 companies, hoping that two will win and you can lose 80% of the time and get rich. That's triple

Starting point is 00:27:45 digit ROI. And then I graduate to quadruple digit ROI, which is owning companies that you don't operate. And that's where you get really healthy active incomes. And then after that, there's infinite ROI, which is how do you use OPM, other people's money to get ahead. And so I take people from a progression that if you can go from saving your pennies, going from single digit to double digit to triple digit to quadruple digit, that's how a person literally can become wealthy in under five years. It's not putting all your money in real estate. It's actually diversifying your ROIs. So if my money has a portion in double and a portion in triple or a portion in quadruple, just that alone, that means that a someone by the time they're 65 years old,

Starting point is 00:28:23 could they be worth $10 million or a hundred million or a billion? Yeah. Take a look at every billionaire. How did they do it? Their money wasn't in a single digit 401k. That's right. It was sitting in a business that, that hundred X. And so it's like, well, then how do you become successful

Starting point is 00:28:37 without being the brilliant superstar, the CEO of that company? It's diversify your ROI. And when you say that there's a word I would be using is you become an investor. And I think that is the last, I guess, pillar on this chain for entrepreneurs is you remove yourself from the operator, you remove yourself from the business owner or even entrepreneur. Everything's passive. And you become an investor. Correct. And it's not always in real estate. Yep. You know, it's got to get to the place. And I have a very similar thing. I have some moonshots and I have some opportunities and I have some real estate and I have some crazy wild investments.

Starting point is 00:29:10 I have a firm belief that it's going to hit. And if you can get to a place of investor, your life can get pretty good. But you do have to start somewhere. And that's where a lot of people, you know, I have five laws of success. And I won't go through them here because I do it a lot of my own episodes. But one of it is you just got to get going somewhere. I don't give a shit what it is and get in the game, dude. Put your helmet on, get on the field.

Starting point is 00:29:33 Otherwise, you can't win a game. Yeah. And the last thing is you can't win the championship with a clean jersey. You're going to make a lot of mistakes. It's going to happen. Shit's going to happen. Yeah, but that's where you got to find coaches and mentors because if you go it alone you're gonna make the worst mistakes and if you have an expert you'll literally i think produce the least mistakes yeah you'll still there's still

Starting point is 00:29:52 mistakes because things happen but you minimize your mistakes right and then you crunch time you're able to get ahead of the time like i use i go to disney world a lot i'm here in miami and have little kids it's miserable hot, hot, and long lines, but you still spend extra money to get to the front of the line of the express line versus the general admission. And people don't understand the value of their money is not making money isn't just to have the thing, it's so you can have more experiences with the children

Starting point is 00:30:17 more than their eyes light up because you get to ride 12 rides when the average Joe rode four. Well, it's also about arbitraging time. That's right. You were talking earlier about arbitraging money, but I love to arbitrage time. That's right. And it's just like, wow. When I, you know, most entrepreneurs, I bet you have a lot of entrepreneurs that are watching this. Um, I can show them how to recapture 80% of their time

Starting point is 00:30:36 really fast because the average entrepreneur, if you actually break down all their activities, they're doing the things that make them $5,000 an hour. They've only got a couple of activities that are like four figure earners or maybe three figures, but then 80% of the time is doing $200 an hour work, $80 an hour work, $30 an hour, $20 an hour. And the weird thing is, it's like, they'll work 40, 60 hours a week and say yes to $20 an hour, $80 an hour, and 8,000 an hour. And I'm like, cool. Draw a line of demarcation. Only do the 8K stuff and the 5K stuff. Only say yes to new stuff that's at double that 16K and literally outsource the rest. And they're like, wait a second, Chris, I'll have to hire someone. I'll have to pay someone real money to do all of those low ticket items, but I'll get my time back. But I need the money.

Starting point is 00:31:22 I'm like, uh-uh. You need your time back. That's right. If you get my time back but i need the money i'm like uh-uh you need your time back that's right if you get your time back nature abhors a vacuum and just say yes to the five and eight k stuff and you will get more of it they're like but i don't know how i'm gonna get it i'm like if you're not wasting your time on the 80 an hour and 20 an hour stuff trust me it can only present when you develop standards and say no that's right that's a huge takeaway so uh we're having dan martell on the show in two weeks yeah his book is one of my favorite business books buy your time back is probably i don't know top two books right now that i can think of but he says the same exact thing and he uses the formula of 2000 divided by four now i'm going to challenge you to read my book time machine because that one

Starting point is 00:32:00 just came out yeah and it's about arbitraging time but it's also so dan only talks about arbitraging time i talk about arbitraging money time energy intuition i have five arbitrages i like that it'll add it'll if you like that book of course this one's going to add some layers for you let's go yeah i think that's a great spot but dan's phenomenal i can't wait to get that interview it's going to be great but this my friend was a great interview as well if you aren't yet following chris crone make sure you're following him on all the platforms instagram tiktok facebook make sure you're on his youtube it's a massive youtube i look up to this man in that arena for sure uh he's a king of real estate brother it's been an honor i can't wait to share

Starting point is 00:32:37 the stage with you at clever summit get your tickets right now this is going to be one of the most impactful if not the most impactful event of your life for sure. Because I know I'm ready. You're ready. I appreciate you being on this episode, brother. Let's go. All right, y'all. If you like this, if you got anything from this, make sure you share this with two of your friends.

Starting point is 00:32:55 We'll see you on the next episode with another incredible guest. Peace.

The Entrepreneur DNA - The Human Connections Behind a $2 Billion Real Estate Portfolio | Kris Krohn

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