What You REALLY Need To Know About CROWDFUNDING In Real Estate


One of the hottest topics in real estate
today is “Does crowdfunding apply?” Crowdfunding is basically where people
can pull their money together and put it in business. They can put it in real
estate. They can put it towards deals. Bottom line is that we live in such a
small world today with technology that people can come together and make deals
happen that couldn’t before. So today, I’m going to answer the question, “Does
crowdfunding apply only to business? Or does it in fact apply also to the game
of real estate?” Because I’m going to share with you today one of my favorite
methods for bringing people together to get amazing deals with 25% ROI is done
that wouldn’t have options otherwise. If you’re burning a great ROI, that means
you’re getting a 5 to 1 leverage. I’m going to break down how we’re doing. Okay. So, let me break it down. First of
all, we have to start with what is crowdfunding. First of all, it’s kind of
like the word sounds. Crowds, groups of people come together and they each put
in a certain amount of money and collectively, there’s enough money for a
venture to get underway. A lot of people are applying this to business ideas. And
there’s a lot of ways that people are using this technology. And today, we’re
going to answer whether people are actually doing this in real estate. The reality is
we are doing this in real estate because I am doing it. I’m going to break down how
we’re doing it. Typically, when you buy a real estate, let’s say that you wanted to
own a property. There are 2 components to doing that.
Someone’s got to put up money and someone’s got to put a credit. If you’re
going to buy a property with leverage. For example, let’s a property costs $250,000.
Instead of writing a check for $250,000, you can go to the bank and say
“Bank, you put up 80% of the money. I’ll put 20% of the money.” Which means that
you’re only bringing 50 grand at the table instead of two hundred and fifty
grand to the table. Real estate is beautiful because if
you’re earning of great ROI, that means you’re getting a 5 to 1 leverage.
But if you’re buying it to live in for yourself, the leverage is even higher. You
can put down maybe 3% or 5%. And the bank will carry the rest of the loan. Still,
there’s a lot of people that want to get in the game however and they say, “Kris,
if I want to do that, I got to bring credit to the table. And either my credit
isn’t good enough or I don’t want to max up my debt to income ratio.” Or for
whatever reason, maybe you’re too young. Maybe there’s… You’ve changed jobs. Banks
have a number of reasons why you can’t actually use your credit. Some of you are
international and you want to buy real estate in the United States. You say, “Well,
that may not work either.” So, there is a type of crowdfunding that we do inside
the United States. There’s a way for us to actually bring people’s money
together and have enough (all of a sudden) to actually move banks out of the game
and actually buy homes cash. So, first of all, this is kind of exciting because
$250,000 for one person might be a lot to bring to the table.
But for a group of people, they can take it down. Now, there is a problem however
if you buy real estate cash. If you buy real estate cash, the ROI tends to go
down. Because leverage brings your ROI up. The less money you bring in for that
same amount of profits brings you a higher ROI. If you put all the cash down
and get that same ROI, that profit is going to look smaller proportion to what
you put out. Hence the smaller return
on investment. So, how do you work around that? Here’s the beautiful thing about
the way real estate works: You can literally have a group of people come in,
buy a home cash but then go back to the banks and say, “We own this asset outright.
Now, we’re going to ask you to give 60% of our money back and we’re not going to
use anyone’s personal credit.” And banks will do that. It’s called asset based and
lending. And it’s really easy to do when you’re basically pulling money out of a
project. So, one of the things that I do with people is people find me on YouTube
like this, they learn about all of the things that we’re doing. They click my
links below. They get with my team and anytime you ever find that there’s a
credit hurdle, your credits not developed, underdeveloped maybe it’s been hurt for
some reason. Maybe you live in Saudi Arabia, maybe you live in in some other
distant country. And the banks in America won’t acknowledge your establishment of
credit to actually buy the house. What we do in a situation like that is we can
aggregate all this money, pull it together. We can technically go out there.
We can buy these homes cash and then we can go back to the banks and say, “Now, we
want you to give money back to us based on asset based refinances.” And what that
does is that gives our money back to go and do it again. And it means at the end
of the day that we’re still able to get those 20, 25, 30 percent ROIs but we’re not
necessarily beholding to the banks and playing their games. So, this is one of
the beautiful things that we found in the game of real estate is that
crowdfunding, it’s real, it works and it’s a way for everybody to get in the game.
Now, if you’re watching this and asking yourself, “Alright, what can I do with this
information?” There’s a couple things that you can know. First of all, be educated
and know that you and others can come together and put money together to make
projects happen. 2, you can go out there and start googling and finding groups that
are doing this crowdfunding and real estate because it absolutely exists.
3, if you’ve been watching my channel and we’ve become buddies over the last a
little bit and you want to know what that would look like to actually be
partnered with me on some real estate deals, I have a document that shows my
last 4,000 projects. We are averaging on about a billion dollars
worth of real estate around a 25% annual ROI. So, if you
compare that to like the stock market’s 7% or a 401k even a smaller
percent, those institutions will let you double your money and maybe 15
years. We’re doing it here every handful years just because of our experience and
knowing what we’re doing. And we’ve got ways for people to come together to make
deals happen. So, if you want to learn more about that, there’s a link below. You
can talk to members of our team and let them know that you’re interested in
getting in the game of real estate. And here’s my commitment to everyone I work
with: Whether you do have credit or you don’t have workable credit, it never
matters to me. I never allow credit or even money to get in the way of actually
getting out there and building wealth. In fact, the first 1.6 million dollars I
made that produce my first 6-figure residual income, I used less than $10,000 out of my pocket to make that happen. Because I was a deal
maker that would put the people with money and the people with credit
together. I bring the deal and we would make magic happen. Now, 15 years later,
same thing. Just doing it on a much bigger wider scale with people all over
the globe. So, if you’re asking “Does this work in Zimbabwe or does this work in Tokyo?” I don’t know the real
estate market there. But I do know that you can come here and play the game with
us and bottom line is get those really amazing ROIs.
If you want to learn more about that, you got to speak to a member of my team. And
there’s link in the description below or you can actually learn about how to do
that. Hey, guys. Thank you so much for watching today’s video. If you liked it,
smash the like button. Make sure that you subscribe and we will see you on
tomorrow’s video.

9 Comments

  • Kris you are killing it

  • .

  • Super great helpful video keep killing it

  • There is always SOMETHING to do. Take action! SHOW UP!

  • Very interesting, crowdfunding and crowd sourcing are great marketing and sales techniques and they work equally well for real estate

  • Hello kris can i message you on Instagram?

  • What is the song used in your new intro?

  • Kris, you creating a Covid-19 video soon?  It seems everyone else on YouTube is.

  • Kris would u be my father in law to invest in my first property? 🤣🤣

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